Agi Greenpac Limited · NSE:AGI
Agi Greenpac — HSIL — Investor Presentation (October 2014)
40 slides from Agi Greenpac's investor presentation, October 2014
Slide 1: HSIL Limited October 2014
HSIL LIMITED OCTOBER 2014 Private & Confidential- Not for Public Circulation DISCLAIMER: These presentations and/or other documents have been written and presented by HSIL LIMITED. This presentation includes statements which may constitute future expectation and forward looking statements. This incl
Slide 2: HSIL – An Overview
HSIL – An Overview A leading player in two business segments – Building Products and Packaging Products Complete Bathroom Solutions (Products & Services) Glass & Plastic Containers for packaging beverages, liquor, pharma and food products (*GPPL has been merged with HSIL in March‟ 2014) Incorporated
Slide 3: HSIL – An Overview
HSIL – An Overview Largest player in Sanitaryware and 2nd largest in Container Glass. Net Sales break-up(%) : 2013-14 2012-13 Building Products Div.: 50.33% 44.53% Packaging Products Div.: 49.67% 55.47% Ownership Profile as on 30.09.2014: FIIs / DIIs / MFs Promoters Public Float 31.0% 51.6 % 17.4 %
Slide 4: Sanitaryware Market: Trends & Demand Drivers
Sanitaryware Market: Trends & Demand Drivers Indian Sanitaryware Market is estimated at INR 30000 million – approx. 60% organized The organized segment growing at ~ 14-16 % Consumer preferences are changing from low end basic product mix towards middle and high end premium products India is rated as
Slide 5: Housing & Sanitaryware Demand Drivers
Housing & Sanitaryware Demand Drivers Big potential of Turnover growth in line with expected Housing Sector growth Housing Scenario- ALL INDIA Growth in supply of URBAN Housing units Source: CRISIL Research 5
Slide 6: Housing & Sanitaryware Demand Drivers
Housing & Sanitaryware Demand Drivers Improvement in Sanitation levels will increase market size Asian Sanitation Levels - Year 2012 % of population with access 100 100 92 93 82 80 65 59 60 36 40 20 0 Source: WHO/ Unisef Joint Monitoring Programme for Sanitation New housing demand – major demand dri
Slide 7: HSIL- Sanitaryware Business Overview
HSIL- Sanitaryware Business Overview Sanitaryware production started at Bahadurgarh Plant in 1962, through JV with Twyfords, UK Acquired Krishna Ceramics and Raasi Ceramics in 1989 & 1999 respectively Manufacturing facilities: Bahadurgarh, Haryana (Sanitaryware) – 1.8 million pieces p.a. Bibinagar,
Slide 8: HSIL- Largest Retail Distribution & High Replacement Demand
HSIL- Largest Retail Distribution & High Replacement Demand HSIL- Mix of Retail vs. Institutional customers Institutional 28% Retail Institutional Retail 72% HSIL – Mix of New Construction & Replacement Demand Replacement Demand 12% Replacement Demand New Construction New Construction 88% 8
Slide 9: Bathrooms, Kitchens & Beyond
Bathrooms, Kitchens & Beyond Building Products Sanitaryware & Faucets (Outsourced) Allied Products (Outsourced) (Manufactured) Hindware Italian Collection PVC Cisterns Queo: Fittings & Seat Hindware Art Covers Luxury Sanitaryware Brand Hindware Bathtubs, Showers Enclosures, Whirlpools Amore: Raasi L
Slide 10: HSIL - Credentials
HSIL - Credentials Hindware has been honoured with the "Super Brand Consumer Validated” ,since last four consecutive years (2013,2012,2011,2010) Master Brand Award from CMO Asia for excellence in branding & marketing in 2012. Hindware has been honoured with the “Power Brand 2012” and “Star Brand 201
Slide 11: HSIL - Credentials
HSIL - Credentials Awarded as India's Best company in “Glass & Ceramics” sector from the Dun & Bradstreet - Rolta Corporate Awards 2011. Business Super brand India Award 2010-11 Industry Validated- for the growth and reach of our products by Super brands India which is a branch of Super brands Ltd.,
Slide 12: HSIL - Credentials
HSIL - Credentials Elle Deco International Design Award 2008 & 2010 for “Unique Design” in Bathroom Category Our Container Glass Division won The New Era Award for Technology, Innovation & Quality from Association Otherways Management and Consulting, Paris, France 1st Rank at 9th Construction World-
Slide 13: Recognitions
RECOGNITIONS SELECTED ELLE DECO INTERNATIONAL DESIGN AWARDS INDIA 2010 SELECTED INDIA 2011/12 I KR, BRANDS Power Brand 2011 - 2012 Selected Business Ciperbralt Industry Validated © IZZ Golden Peacock Awards” las 9 ™ BRAND, INDIA 2011 India's Most Impactful Brand Chosen by the Indian Consumer 13
Slide 14: Quality Benchmarking
Quality Benchmarking Robust system for quality – ISO9001, ISO14001, OHSAS18001 Strong product quality – first licensee of Bureau of Indian Standards – Indian standards are now aligned to European Standards Series of 18 quality tests before the final delivery to ensure minimal rejection rate (<0.1%)
Slide 15: Faucets Business
Faucets Business Indian faucet market – INR 50000 million – 45% organized, 55% unorganized Major players – Jaquar, Grohe, Parry , ESS ESS, Marc. The faucets are sold under three brands namely “Queo” “Benelave” and “Hindware” Bhiwadi, Rajasthan (Faucets & fittings) installed capacity 0.5 million piec
Slide 16: Hindware Kitchen Business
Hindware Kitchen Business • Kitchen Chimneys • Kitchen Hobs & Cooktops • Vents • Trash mashers 16
Slide 17: HSIL launches new luxury Brand “QUEO”
HSIL launches new luxury Brand “QUEO” HSIL launches new luxury Brand “QUEO” • In Dec.11, HSIL unveiled a new luxury Sanitaryware Brand “Queo” from the stable of UK based boutique Sanitaryware maker Barwood Products which we had acquired in 2010. • HSIL launched its first showroom “Queo Emporio” in G
Slide 18: HSIL launches new luxury Brand “Amore”
HSIL launches new luxury Brand “Amore” • “Amore” from HSIL is a new brand launched recently under the category of “Wellness” & “SPA”. • After QUEO, “Amore” is the next brand from HSIL targeted to the luxury bath ware market. • At present ,we have 19 dealer showrooms of 1500 - 2000 sq ft. 18
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Slide 21: Showrooms
Showrooms 21 21 21
Slide 22: Poncho – Kid Bathroom
PONCrI9O —KID BATHROOM LY S | L 22
Slide 23: The Green Building Products
THE GREEN BUILDING PRODUCTS NOW FLUSH WITH 4 & 2 LTRS 23
Slide 24: The Green Building Products
THE GREEN BUILDING PRODUCTS Aquafree Waterless Urinals Nano with 1.5 Ltrs Flushing 24
Slide 25: Container Glass Industry
Container Glass Industry Overview Indian Glass Container Market is estimated at INR 70000 million accounting for 8% of Packaging Industry Markets currently growing at 6-8% p.a. Regional Industry – freight cost is critical India Packaging Market (by Value) Demand is driven by the growth in the user i
Slide 26: Container Glass Market: Trends & Demand Drivers
Container Glass Market: Trends & Demand Drivers • Large young addressable population is a key growth driver. • India‟s per capita Beer consumption is expected to grow to 2.6 litres by 2016. (Source: Beeronomics 2013) • Liquor Industry expected to grow at 8% CAGR (Source: Moneycontrol, April 2014) •
Slide 27: Container Glass Division (AGI) overview
Container Glass Division (AGI) overview • Andhra Pradesh/ Telangana – largest consumer of soft drinks, liquor and beer • Company has 2 Container Glass (CG) Plants strategically located in Hyderabad and Bhongir, Telangana. • Manufacturing Installed Capacities Tons per day (TPD) Hyderabad Plant (2 fur
Slide 28: AGI Business overview
AGI Business overview • Combined installed capacity of about 2.30 billion pcs. of bottles and jars. • Highly automated production process with State-of-the art Furnaces • Highly efficient, environment-friendly • Integrated manufacturing facility. • Mould making • Own quartz mining • Printing - appli
Slide 29: AGI - Special Coloured Bottles
AGI - SPECIAL COLOURED BOTTLES • HSIL is India‟s sole producer of special coloured bottles. • We have adopted special German technology and advanced machinery for producing different coloured bottles. • Currently, we are producing dead leaf, green and blue bottles for our clients. • These bottles ac
Slide 30: AGI has a Customer base across sectors
AGI has a Customer base across sectors M Liquor & Beer PharmaFoods GSK Consumer Healthcare Heinz India Limited Hindustan Lever Limited Parle Agro Pvt Ltd Pharma GSK Pharma Johnson & Johnson Limited Pfizer Limited Apex Laboratories Limited Thermo Fishers Scientific India Pvt Ltd Wardex Pharmaceutical
Slide 31: Revenue Mix by Volume & Value - AGI
REVENUE MIX BY VOLUME & VALUE - AGI Revenue mix (by volume) – 2013-14 Revenue mix (by value) – 2013-14 31
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Slide 33: Container Glass Product Range
CONTAINER GLASS PRODUCT RANGE 33
Slide 34: Company’s Financial Performance
Company’s Financial Performance NET REVENUE 17168 EBITDA 18000 15503 15000 13229 2583 2641 2711 INR M illion 2850 INR Million 12000 10353 2166 9000 7887 1850 1548 6000 3000 850 09-10 10-11 11-12 12-13 13-14 09-10 10-11 11-12 12-13 13-14 NET PROFIT CASH PROFIT 2205 1250 1101 2200 991 1675 INR M illio
Slide 35: HSIL- Financial Performance
HSIL- Financial Performance 20 EARNING PER SHARE EBITDA MARGIN 16.67 24% 20.9% 15.01 19.6% 19.5% INR PER SHARE 16 14.47 17.0% 18% 15.8% 12 9.53 12% 8.51 8 6% 4 0% 09-10 10-11 11-12 12-13 13-14 09-10 10-11 11-12 12-13 13-14 9000 LONG TERM DEBT TOTAL DEBT TO EQUITY RATIO 7500 6456 2.00 INR Million 567
Slide 36: FY vs. FY Growth
FY 14 vs. FY 13 Growth NET SALES EBITDA 3% 11% 17168 3000 2641 2711 17000 INR Million 15503 INR Million 2000 15000 13000 1000 11000 0 12-13 13-14 12-13 13-14 PROFIT BEFORE TAX 2000 1388 INR Million 1500 -30% -27% 975 1000 500 0 12-13 13-14 Note: Figures of FY 2013-14 includes GPPL figures, as GPPL i
Slide 37: H1 FY vs. H1 FY Growth
H1 FY 15 vs. H1 FY 14 Growth NET SALES EBITDA 12% 39% 1435 10500 8243 1200 1029 INR Million 7382 INR Million 7000 800 3500 400 0 0 H1 '13-14 H1 '14-15 H1 '13-14 H1 '14-15 NET PROFIT EBIT 500 50% 870 126% 900 400 341 INR Million INR Million 578 300 600 200 151 300 100 0 0 H1 '13-14 H1 '14-15 H1 '13-1
Slide 38: HSIL Major Milestones
HSIL Major Milestones 1960: Incorporated as Hindustan Twyfords Ltd to introduce vitreous china for the first time in India 1981: Acquired Associated Glass Industries Ltd. 1989: Acquired Krishna Ceramics in South India 1999: Acquired Raasi Ceramics to further expand its Sanitaryware business 2009: Na
Slide 39: In conclusion….
In conclusion…. A leader in two great businesses Fifty Four years history in the industry Mission to grow at 20% + CAGR over next 3 years in Building Products Division & 10% + in Packaging Products Division Favourable competitive dynamics Highly profitable Visionary and experienced management Total
Slide 40: Thank You
30/10/2014 Thank You 40