Kajaria Ceramics Limited · NSE:KAJARIACER
Kajaria Ceramics — Investor Day (May 2024)
31 slides from Kajaria Ceramics's investor day presentation, May 8, 2024
Slide 1: Regulation 30 disclosure letter to stock exchanges
May 8, 2024 National Stock Exchange of India Limited BSE Limited Exchange Plaza P. J. Towers Bandra Kurla Complex Dalal Street Bandra (E) Mumbai - 400 001 Mumbai – 400 051 Dear Sirs, Sub.: Disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015 -
Slide 2: Kajaria 3 Year Mission
Slide 3: Table of Contents
Table of Contents Our Company at a Glance 2 Tile Adhesives – A Logical Extension 19 Benchmarking with Best Corporate Governance 3 20 • Current Positioning Our Business Segments 4 • Growth Enablers 21 Tiles – The Core Segment 5 Plywood – A Diversified Business 22 • Dominant Leader 6 • Current Positio
Slide 4: Our Company at a Glance
Our Company at 36 Years of Presence in building material segments like Tiles, Bathware, 10 Manufacturing 7,000+ Employees a Glance Existence Plywood & Tile Adhesives Facilities 45.8 C bn C4.2 bn Consolidated PAT, USD 2.3 Market bn 20 % Consolidated Market Revenue, FY24 Capitalisation Capitalization
Slide 5: Benchmarking with Best Corporate Governance
Benchmarking with Best Corporate Governance 1 Core Values • Experienced & Diversified Professional Board 2 Capital Allocation Strategy • Capex met through internal accruals only • 40-50% Dividend Payout Policy in place 3 Healthy Balance Sheet • Lean Balance Sheet to accommodate growth • Effective Ri
Slide 6: Our Business Segments
a Our Business 36% 38% Glaze Vitrified Ceramic 89% Tiles Tiles Tiles 8% Bathware FY24 Revenue of Segments 1% 8% Bathware D45.8 bn 26% Polished Vitrified Tiles 2% 1% Adhesives 2% Plywood • Over the past few years, while we have intensified our focus on tiles & bathware verticals, we have also extende
Slide 7: Tiles: The Core Segment
Tiles The Core Segment
Slide 8: Dominant Leader
Tiles Dominant No 1 Tile Player in 8th Largest Tile Player 7 Manufacturing 86.47 MSM Annual Tile Leader India Globally Facilities Capacity 108 MSM C40.6 bn 3,500 1,800+ Sales Volume Consolidated SKUs in Dealer in FY24 Tile Revenue in Tiles Network FY24 6
Slide 9: Key Business Moat
Tiles Key Business INHERENT STRENGTH MANUFAC- TURING DEALER NETWORK BRAND STRENGTH Moat • Superior product mix • Proven Track Record of • Strong Manufacturing Prowess • Robust Supply • Widespread Dealer Network • 415 Exclusive Showrooms • Superior Brand Recall • Premium Pricing vs peers Execution Ch
Slide 10: Volume Growth Enablers: Industry
Tiles Volume Growth EnablersIndustry Growth Enablers 1 Market Share Gains to continue from regional players 2 Domestic Tiles Industry expected to grow at 6-8% CAGR over FY24-27. 3 Sustenance of Export Growth Momentum for Morbi players to limit competitive intensity in domestic space 8
Slide 11: Volume Growth Enablers: KCL's Key Enablers
Tiles Volume Growth Enablers KCL’s Key Enablers 1Incremental Volume Growth to be met through a mix of capacity addition (brownfield and greenfield) and contract manufacturing 2 3 4 Increase dealer penetration in Tier 3 & Tier 4 cities Focus on adding exclusive showrooms Aggression in brand spends to
Slide 12: Recent Initiatives to take us to Next Level
Tiles Recent Initiatives to take us to Manufacturing • Upgraded our Sikandrabad & Branding Distribution • We have started taking concerted steps to further improve our Digitisation Next Level Srikalahasti Units • Our brand spends • We are also upgrading which has now started existing distribution Pr
Slide 13: Key Initiatives: Continua+
Tiles Key Initiatives CONTINUA + Presses installed in our own manufacturing units 11
Slide 14: Key Initiatives: Exclusive Showrooms
Tiles Key Initiatives Exclusive Showrooms opened in Tier 3 Cities Exclusive Showroom in Kushal Nagar in Karnataka Exclusive Showroom in Hoshiarpur in Punjab 12
Slide 15: Key Initiatives: RCB Women's Team Sponsorship
Tiles Key Initiatives Principal Sponsors for the RCB’s Women’sTeam in WPL 2023 13
Slide 16: Key Initiatives: Large Format Tiles and Slabs
Tiles Key Initiatives Focus on large format tiles and slabs 14
Slide 17: Key Initiatives: Airport Branding
Tiles Key Initiatives Airport Branding 15
Slide 18: Bathware: A Fast Growing Supplementary Segment
Bathware A Fast Growing Supplementary Segment
Slide 19: Bathware: Current Positioning
Bathware Current 10 Years of Existence Sanitaryware & Faucet capacity of 1.2 mn & 1.6 mn pieces, 500+ Dealers including 85 Positioning Brand Name respectively Premium Outlets C3.6 bn 7.4 % 2 % 15 % Bathware Revenue EBITDA Margin Market Equity held by in FY24 in FY24 Share Westbridge Crossover Fund 1
Slide 20: Bathware: Growth Enablers
Bathware Growth Industry Growth Enablers Enablers 1 Increasing number of bathrooms in residential real estate segment 2 3 Bathware Industry to continue to grow in Double-Digits over FY24-27 Higher penetration of premium products KCL’s Key Enablers 1 Recently commissioned state-of-art Sanitaryware un
Slide 21: Tile Adhesives: A Logical Extension
Tile Adhesives A Logical Extension
Slide 22: Tile Adhesives: Current Positioning
Tile Adhesives Current 3 Years of Existence Presence in Tile Adhesives, Grouts & Tile Gresbond Brand Name Positioning Cleaners Currently 50 C cr on Outsourcing Revenue in Model FY24 20
Slide 23: Tile Adhesives: Growth Enablers
Tile Adhesives Growth Industry Growth Enablers Enablers 1Market Share Gains over unorganised players to continue 2 Tile Adhesive Industry to continue to grow at 12-15% CAGR over FY24-27 3 Increasing acceptance of large format tiles & slabs KCL’s Key Enablers 1Significant scope to leverage KCL’s tile
Slide 24: Plywood: A Diversified Business Segment
Plywood A Diversified Business Segment
Slide 25: Plywood: Current Positioning
Plywood Current 7 Years of Existence Presence into plywood, blockboards, shuttering ply and Brand Name Positioning laminates Currently C104 cr on Outsourcing Revenue in Model FY24 23
Slide 26: Plywood: Growth Enablers
Plywood Growth 1 Plywood Industry to grow at 5% CAGR over FY24-27 2 Market Share Gains over unorganised players to continue on gradual basis Enablers 3 Plywood industry however is currently grappling with rising timber prices, which is likely to ease over next 12-18 months 4 Focus on expanding the d
Slide 27: 3 Year Mission Statement
~150 MSM 5,500 3 Year Mission Tile Volume C Tile Revenue cr Statement 1,000 C Other than cr 15-17 % EBITDA Margin Tiles segment trajectory Revenue 25
Slide 28: EBITDA Margin Enablers
EBITDA Margin 1 Benefits of Operating Leverage 2Realisations across tile categories seem to have bottomed out Enablers 3 Cost Rationalisation across the value chain 4Scaling up in adjacencies to be margin accretive EBITDA Margin trajectory likely to sustain at 15-17% range (Baring the impact of stee
Slide 29: 3 Year Roadmap
6,500 4,578 Consolidated 3 Year CAGR Revenue 12% (C Crore) 3 Year Catalysts FY 24 FY 27 Roadmap Tiles (C Crore) Bathware (C Crore) Plywood (C Crore) Adhesives (C Crore) 5,500 675 175 150 4,061 104 363 Projected Capex 50 225-250 cr C Every Year from FY 24 FY 27 FY 24 FY 27 FY 24 FY 27 FY 24 FY 27 FY2
Slide 30: Disclaimer
Disclaimer This information may contain certain forward-looking statements/details in the current scenario, which is extremely dynamic and increasingly fraught with risks and uncertainties. Actual results, performances, achievements or sequence of events may be materially different from the views ex
Slide 31: Thank You
Thank You