Greenlam Industries Ltd · NSE:GREENLAM
Greenlam Industries — Investor Presentation (July 2022)
59 slides from Greenlam Industries's investor presentation, Jul 28, 2022
Slide 1: Greenlam Industries Limited – Investor and Analyst Presentation cover letter
j Greenlam Industries Limited Greenlam/2022-23 July 28, 2022 The Manager, The Manager, BSE Limited National Stock Exchange of India Ltd. Department of Corporate Services Exchange Plaza, Bandra Kurla Complex, Floor 25, P.J. Towers, Dalal Street Bandra (E) Mumbai - 400 001 Mumbai - 400 051 Fax No. 022
Slide 2: The Next Orbit – Analyst Presentation 2022
The Next Orbit Greenlam Industries Limited Analyst Presentation 2022
Slide 3: Forward-looking statement
Greenlam Industries Limited Analyst Presentation 2022 2 Forward-looking statement In this presentation, we have disclosed forward-looking information to enable investors to comprehend our prospects and take informed investment decisions. This report and other statements written and oral that we peri
Slide 4: The big message of this presentation
Greenlam Industries Limited Analyst Presentation 2022 3 The big message of this presentation Greenlam 2.0 Greenlam will has embarked on The company is Graduating from emerge larger, decisive capital expanding its one orbit into stronger and investments of market opportunity another more profitable n
Slide 5: PART
Greenlam Industries Limited Analyst Presentation 2022 4 PART
Slide 6: This is Greenlam. A snapshot.
Greenlam Industries Limited Analyst Presentation 2022 5 This is Greenlam. A snapshot. Background Locations Leadership India Greenlam commenced Manufactures products Led by Mr. Saurabh Mittal Products marketed its business operations in two state-of-the-art (Managing Director & through nine large in
Slide 7: The discipline that got us here
Greenlam Industries Limited Analyst Presentation 2022 6 The discipline that got us here Portfolio Brand Capacity We deepened our focus We focused on branded We created on decorative products premiumisation and manufacturing capacity and related solutions superior terms of trade ahead of the demand c
Slide 8: Greenlam. Driven by values
Greenlam Industries Limited Analyst Presentation 2022 7 Greenlam. Driven by values Trust Performance Learning Speed and agility Teamwork We trust people We value We encourage We are quick with The Company to be reliable performance learning: our decisions, achieves more and responsible across produc
Slide 9: Decorative Laminate & Allied Products
Greenlam Industries Limited Analyst Presentation 2022 8 Decorative Laminate & Allied Products Laminate Compact Panels MFC • Commodity to Speciality products • Standard Compact Panels • Melamine Faced Chip Board • Lab Guardian • Restroom & Locker Solutions • Clads –Façade Panels • Stratus Kitchen Sol
Slide 10: Veneer & Allied Products
Greenlam Industries Limited Analyst Presentation 2022 9 Veneer & Allied Products Decorative Veneer Engineered Wooden Floor Engineered Wooden Doors • Natural Veneer • Engineered Wooden Flooring & • Engineered Wooden Door and Door Sets • Engineered Veneer matching accessories • Teak Veneer
Slide 11: High Pressure Laminates
Greenlam Industries Limited Analyst Presentation 2022 10 High Pressure Laminates 1,556.3 Applications 15.62 Rs. Crore, Million sheets Consolidated revenues, FY2021-22 Dimensions offered 3’x7’, 4’x8’, 4’x10’, 4.25’x10’, 5’x12’ Products Thickness 0.50 to 1.50 mm Laminates Compact laminates Specialty l
Slide 12: Compact Laminates
Greenlam Industries Limited Analyst Presentation 2022 11 Compact Laminates Products Applications Exterior Grade Compact Laminate Interior Grade Restroom Cubicle & locker Solution Dimensions offered 4’x8’, Compact Laminate 20+ 4’x10’, 4.25’x10’, 5’x12’ 70+ 100+ decors natural veneer species decors Th
Slide 13: Clads
Greenlam Industries Limited Analyst Presentation 2022 12 Clads Products Applications Resistant to weather, fading Exterior clads Interior clads and fire 42 100+ Decors Decors Usage in residential and commercial applications The interior cladding solution represent fully integrated wall protection sy
Slide 14: Restroom cubicle and locker solutions
Greenlam Industries Limited Analyst Presentation 2022 13 Restroom cubicle and locker solutions Products Applications Manufactured in strict Kids’ collection Designer collection adherence with accepted fire 3 2 safety norms, enhancing their Models Models utility Assortment of restroom products compri
Slide 15: Melamine-faced chipboard
Greenlam Industries Limited Analyst Presentation 2022 14 Melamine-faced chipboard Products Applications With the increase in Greenlam’s product 2.00 organised carpentry comes in varied Million sq. m 100+ production capacity Decors (OEM) in India, the use dimensions (4’x8’, 6’x8’, annually of enginee
Slide 16: Laminates business: An overview
Greenlam Industries Limited Analyst Presentation 2022 15 Laminates business: An overview Rs cr, total exports from India Rs cr, total market size of Rs cr, share of the the laminates industry organized market Rs cr, total size of the domestic market Rs cr, share of the unorganized market
Slide 17: Decorative veneers
Greenlam Industries Limited Analyst Presentation 2022 16 Decorative veneers Applications 4.20 83.7 Million sq. m per Rs. Crore, The specification industry leads the annum capacity Consolidated (largest in India) revenues, FY2021-22 sales of this category. Decowood offers three categories of veneers
Slide 18: Engineered wooden flooring
Greenlam Industries Limited Analyst Presentation 2022 17 Engineered wooden flooring Applications 1.00 36.7 Million sq. m per Rs. Crore, Being the first and only manufacturer annum capacity; only Consolidated manufacturer in India revenues, FY2021-22 of engineered wood flooring in the country, Mikasa
Slide 19: Engineered wooden doors
Greenlam Industries Limited Analyst Presentation 2022 18 Engineered wooden doors Applications 0.12 26.7 Million doors per Rs. Crore, Increasingly used in high-end annum (only Consolidated organised revenues, FY2021-22 realty development. manufacturer in India) Unlike traditional doors Products where
Slide 20: Technological integration
Greenlam Industries Limited Analyst Presentation 2022 19 Technological integration Easy access to the world of Greenlam
Slide 21: Technological integration
Greenlam Industries Limited Analyst Presentation 2022 20 Technological integration Easy access to the world of Greenlam
Slide 22: Our green credentials
Greenlam Industries Limited Analyst Presentation 2022 21 Our green credentials Greenguard Gold Green label FSC® NSF ISO Gold Standard for First Indian brand First Indian Brand to Certification for Greenlam Industries Chemical Emissions to be certified get certified with FSC® food safety with has been
Slide 23: Greenlam domestic footprint
Greenlam Industries Limited Analyst Presentation 2022 22 Greenlam domestic footprint Location Products UOM Capacity Laminates Mn Sheets/Board 15.62 Decorative veneer Mn SQM 4.2 Behror, Rajasthan Engineered doors Units 120,000 Engineered wood floor Mn SQM 1.0 Naidupeta, Andhra Laminates Mn sheets/boa
Slide 24: Greenlam global footprint
Greenlam Industries Limited Analyst Presentation 2022 23 Greenlam global footprint Poland Russia Switzerland Philadelphia, USA Hong Kong Italy Nepal Miami, USA Dubai Bangkok Philippines Malaysia Singapore Batam Jakarta Disclaimer. This list is not proportionately indicative of our global presence ac
Slide 25: What Greenlam achieved as a result
Greenlam Industries Limited Analyst Presentation 2022 24 What Greenlam achieved as a result Value Leadership Global franchise Product niches Created Rs Rs. 4,386.18 We are counted among Our products are We comprise India’s crore of value based on the world’s three marketed through a first engineered
Slide 26: The growth outcome of our business
Greenlam Industries Limited Analyst Presentation 2022 25 The growth outcome of our business Rs Cr Rs Cr Rs Cr Days 1703.4 187.0 90.6 1320.6 93 178.3 1280.7 86.7 90 173.3 1199.6 88 77.1 1144.7 158.5 87 73.7 148.9 86 86 64.6 1075.8 138.3 49.7 81 1029.7 126.8 37.7 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY1
Slide 27: We strengthened the financial hygiene of our business
Greenlam Industries Limited Analyst Presentation 2022 27 We strengthened the financial hygiene of our business 65 28 1.47 0.26 Days, receivables Days, receivables Net debt-equity Net debt-equity cycle, FY 2015-16 cycle, FY 2021-22 ratio, FY 2015-16 ratio, FY 2021-22 3.93 18.50 8.5 3.4 X, Interest co
Slide 28: The challenges we successfully countered in FY22
Greenlam Industries Limited Analyst Presentation 2022 28 The challenges we successfully countered in FY22 Behror plant lost 17 operational days in FY22 and restricted operating hours in month of Dec 2021 and Jan 2022 due to restrictions imposed by Commission of Air Quality Management on NCR manufact
Slide 29: What we achieved in a challenging FY22
Greenlam Industries Limited Analyst Presentation 2022 29 What we achieved in a challenging FY 22 We reported We overcame We enunciated We embarked We decent two Covid the initiation on building overcame performance closures to of the next leg fresh capacity in disruption at despite report record of
Slide 30: Our consolidated financial performance, FY2021-22
Greenlam Industries Limited Analyst Presentation 2022 30 Our consolidated financial performance, FY2021-22 Overall Consolidated net EBITDA grew 7.9% to Rs. PAT grew 22.9% to Rs. 90.6 Net working capital days revenues grew 42 % 187.0 crore compared cr crore against Rs. 73.7 improved to 81 days to Rs.
Slide 31: PART
Greenlam Industries Limited Analyst Presentation 2022 31 PART
Slide 32: How realities are transforming in India
Greenlam Industries Limited Analyst Presentation 2022 32 How realities are transforming in India Macro Rising Demographic Growing Rise in home Online retail Urbanisation replacement population dividend demand sector demand GST and e-Way Mechanised bill favouring Trend towards furniture Widening grow
Slide 33: The unprecedented opportunity
Greenlam Industries Limited Analyst Presentation 2022 33 The unprecedented opportunity Organised and branded offtake to grow faster Wider opportunity in branded surface and substrate products Our goals in Greenlam 2.0 To emerge as India’s To secure sustainable To deepen financial, leading wood panel
Slide 34: Laminates, Engineered Wooden Floors & Doors, Plywood, Particle board
Greenlam Industries Limited Analyst Presentation 2022 34 Engineered Wooden Plywood Laminates Floors & Doors Laminate Engineered Decorative Wooden Floor Veneer & Doors Decorative Particle board Veneer
Slide 35: 6 core initiatives of Greenlam 2.0
Greenlam Industries Limited Analyst Presentation 2022 35 6 core initiatives of Greenlam 2.0 How we are transforming Balance Sheet Prudent debt Portfolio Resource Expansion Acquisition right-sizing security mobilization widening (plantations)
Slide 36: Current and potential market size of wood panel industry
Greenlam Industries Limited Analyst Presentation 2022 36 51,000 11,000 46,000 5,000 Rs cr, current market size (existing businesses) 30,000 30,000 46,000 11,000 5,000 5,000 Rs cr, size of potential 2,000 2,000 2,000 market (existing and proposed businesses) 9,000 9,000 9,000 Current market size Pote
Slide 37: Greenlam 2.0. We will address a larger addressable market
Greenlam Industries Limited Analyst Presentation 2022 37 Greenlam 2.0. We will address a larger addressable market Bottomline 11,000 46,000 30 5 Rs cr, Greenlam’s Rs cr, approximate size Number of years for Number of years for addressable market of Greenlam’s Greenlam to reach Rs Greenlam 2.0 more t
Slide 38: Greenfield expansion
Greenlam Industries Limited Analyst Presentation 2022 38 Greenfield expansion Investment in greenfield manufacturing capacity for laminates, plywood and particle boards business Naidupeta, Andhra Pradesh: 231,000 cbm particle board capacity (commercial production by Q4FY24) 3.5 mn sheets/ boards per
Slide 39: Acquisition
Greenlam Industries Limited Analyst Presentation 2022 39 Acquisition The acquisition Acquisition rationale Acquisition cost Acquisition of Gujarat To widen the company’s based laminates presence in the mass Rs. 51 manufacturing facility market segment Cr.(Rs. 36 cr acquisition + Rs. 15 cr upgradatio
Slide 40: Acquisition
Greenlam Industries Limited Analyst Presentation 2022 40 Acquisition Financial advantages Location advantages Funded from internal accruals Gujarat hub of paper for the commodity laminates Annual revenue potential of segment Rs 250 cr at full capacity Abundant availability Revenue generation in quic
Slide 41: Expansion & acquisition
Greenlam Industries Limited Analyst Presentation 2022 41 Expansion & acquisition Big numbers 8.9 18.9 2,31,000 million sheets/board million square meters cubic meters particle laminate capacity, plywood capacity, board capacity, FY24 FY23 est. FY23 est. est. Expansion & acquisition capex 1,000 1,750
Slide 42: Balance Sheet right-sizing
Greenlam Industries Limited Analyst Presentation 2022 42 Balance Sheet right-sizing Overview Resource security Fresh equity issues of Rs. 195 crores on a Promote, support and execute plantation preferential basis development around proposed plants 63,10,680 equity shares of FV Re.1 each Develop a co
Slide 43: How we strengthened our marketing and sales
Greenlam Industries Limited Analyst Presentation 2022 43 How we strengthened our marketing and sales
Slide 44: The Greenlam brand can enter new segments or commission larger capacities
Greenlam Industries Limited Analyst Presentation 2022 44 The Greenlam brand can enter new segments or commission larger capacities in existing segments The time has come to provide the entire range of surface/substrate products under Greenlam brand The time has come to create the foundation of a com
Slide 45: Decisive value-creation opportunity
Greenlam Industries Limited Analyst Presentation 2022 45 Decisive value-creation opportunity Significant business growth within a compressed time frame Mobilising funds through a prudent balance of debt and internal accruals Possibility of higher margins through synergies Positive cash flows from ex
Slide 46: Larger, more profitable, more sustainable
Greenlam Industries Limited Analyst Presentation 2022 More Larger profitable Laying the foundation of a More more valuable sustainable Greenlam
Slide 47: How we plan to expand
Greenlam Industries Limited Analyst Presentation 2022 47 How we plan to expand Expansion plans Laminate Laminate Plywood Particle board Location Pranti, Gujarat* Naidupeta, Tindivanam, Naidupeta, Andhra Pradesh Tamil Nadu Andhra Pradesh Annual Capacity 5.4 Mn sheets 3.5 Mn 18.9 Mn SQM 231000 CBM She
Slide 48: This is the future we are looking at
Greenlam Industries Limited Analyst Presentation 2022 48 This is the future we are looking at Manufacturing capacities Products UOM Current capacity Future capacity Location High pressure Mn 15.62 24.52 Behror, Raj laminate sheets/board Nalagrah, HP Naidupeta, AP Prantij, GJ Decorative veneer Mn SQM
Slide 49: PART
Greenlam Industries Limited Analyst Presentation 2022 49 PART
Slide 50: Consolidated Financials FY2021-22 and Q1FY23
Greenlam Industries Limited Analyst Presentation 2022 50 Consolidated Financials FY2021-22 and Q1FY23
Slide 51: Consolidated Financial Performance
Greenlam Industries Limited Analyst Presentation 2022 51 Consolidated Financial Performance Profit and Loss Statement INR Crores Q1FY23 Q1FY22 YoY% Q4FY22 QoQ% FY22 FY21 YoY% Net Revenue 470.6 336.1 40.0% 463.4 1.6% 1,703.4 1,199.6 42.0% Raw Material 258.7 181.9 255.5 944.3 601.6 Gross Profit 211.9
Slide 52: Consolidated Financial Performance – Laminates & Allied Segment
Greenlam Industries Limited Analyst Presentation 2022 52 Consolidated Financial Performance Laminates & Allied Segment INR Crores Q1FY23 Q1FY22 YoY% Q4FY22 QoQ% FY22 FY21 YoY% Net Revenue 430.2 309.6 39.0% 423.9 1.5% 1,556.3 1,065.3 46.1% from Operations Gross Profit 196.7 143.6 37.0% 192.6 2.2% 701
Slide 53: Consolidated Financial Performance – Laminates & Allied Segment
Greenlam Industries Limited Analyst Presentation 2022 53 Consolidated Financial Performance Laminates & Allied Segment Particulars Q1FY23 Q1FY22 YoY% Q4FY22 QoQ% FY22 FY21 YoY% Annual Capacity (Mn Sheets) 15.62 15.62 - 15.62 - 15.62 15.62 Capacity for the period 3.91 3.91 - 3.91 - 15.62 15.62 Produc
Slide 54: Consolidated Financial Performance – Veneers & Allied Segment
Greenlam Industries Limited Analyst Presentation 2022 54 Consolidated Financial Performance Veneers & Allied Segment INR crores Q1FY23 Q1FY22 YoY% Q4FY22 QoQ% FY22 FY21 YoY% Net Revenue from 147.1 134.3 9.5% 40.4 26.5 52.3% 39.5 2.3% Operations Decorative Veneer 25.3 12.2 107.8% 22.0 14.6% 83.7 78.6
Slide 55: Consolidated Financial Performance – Decorative Veneers
Greenlam Industries Limited Analyst Presentation 2022 55 Consolidated Financial Performance Decorative Veneers Particulars Q1FY23 Q1FY22 YoY% Q4FY22 QoQ% FY22 FY21 YoY% Annual Capacity (Mn 4.20 4.20 4.20 4.20 4.20 Sqmt) Capacity for the period 1.05 1.05 1.05 4.20 4.20 Production (Mn Sqmt) 0.27 0.17
Slide 56: Operating Parameters - Net Working Capital
Greenlam Industries Limited Analyst Presentation 2022 56 Consolidated Financial Performance Operating Parameters - Net Working Capital Amount in Q1FY23 Q1FY22 Q4FY22 FY22 FY21 INR crores Amt Days Amt Days Amt Days Amt Days Amt Days Inventory 523 101 450 122 503 99 503 108 378 115 Debtors 134 26 128
Slide 57: Debt Position
Greenlam Industries Limited Analyst Presentation 2022 57 Consolidated Financial Performance Debt Position is as under INR crores Q1FY23 Q1FY22 FY22 FY21 Net Debt-Equity Ratio* Long Term Debt 140.7 102.6 182.9 108.8 0.36 (Including current portion) 0.32 0.26 Short Term Debt 176.6 189.0 162.3 139.6 0.
Slide 58: Return Ratios – ROCE & ROE
Greenlam Industries Limited Analyst Presentation 2022 58 Consolidated Financial Performance Return Ratios – ROCE & ROE INR Crores Q1FY23 Q1FY22 Q4FY22 FY22 FY21 ROCE (Ex- Projects)* 15.9% 14.9% 15.7% EBIT 38.0 25.9 36.3 135.8 125.3 12.1% PAT 24.6 17.3 25.7 90.6 73.7 Capital 1,015.1 901.7 1,017.2 1,0
Slide 59: For further information, please contact
Greenlam Industries Limited Analyst Presentation 2022 59 For further information, please contact: Company Company InvestorRelations Investor RelationsAdvisors Advisors Greenlam Industries Limited Strategic Growth Advisors Private Limited Mr. Ashok Sharma - CFO Mr. Shogun Jain / Ms. Ami Parekh ashok.
Greenlam Industries — Investor Presentation (July 2022) on 6ix