Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Investor Presentation (November 2023)
40 slides from Grasim Industries's investor presentation, Nov 27, 2023
Slide 1: Exchange cover letter for investor presentation
Ref No. GIL/CFD/SEC/24/254/SE 27th November 2023 BSE Limited National Stock Exchange of India Limited Dalal Street, Exchange Plaza, 5th Floor, Plot No. C/1, Phiroze Jeejeebhoy Towers, G Block, Bandra - Kurla Complex, Fort, Mumbai - 400 001 Bandra (East), Mumbai - 400 051 Scrip Code: 500300 Symbol: G
Slide 2: Grasim Industries Limited Investor Presentation November 2023
GRASIM INDUSTRIES LIMITED Investor Presentation November 2023
Slide 3: Disclaimer
DISCLAIMER This presentation is issued by Grasim Industries Limited (the “Company”) for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute any recommendation or form
Slide 4: Table of Contents
TABLE OF CONTENTS 1 Introduction 2 Key Investment Highlights 3 Business Overview 4 Financial Overview 5 Appendix Grasim Industries Limited Investor Presentation 3
Slide 5: Introduction
INTRODUCTION Grasim Industries Limited Investor Presentation
Slide 6: Aditya Birla Group – One of India's Largest Business Groups
ADITYA BIRLA GROUP – ONE OF INDIA’S LARGEST BUSINESS GROUPS Aditya Birla Group Key Group Companies Leading global producer of VSF Amongst the top fashion and One of India's biggest and VFY lifestyle player in India aluminium manufacturing Values company c Largest manufacturer of grey A global carbon
Slide 7: Grasim – Portfolio of Diversified Businesses (1/2)
GRASIM – PORTFOLIO OF DIVERSIFIED BUSINESSES (1/2) Viscose Chemicals Others ◼ Pioneers of ◼ Prominent producer Textiles Insulators Renewables Paints B2B E-Commerce manufacturing of caustic soda and Viscose staple fibre epoxy polymers & ◼ Presence in ◼ One of the ◼ Clean energy ◼ Announced ◼ Platform
Slide 8: Grasim – Portfolio of Diversified Businesses (2/2)
GRASIM – PORTFOLIO OF DIVERSIFIED BUSINESSES (2/2) Cement Financial Services (UltraTech Cement Limited) (Aditya Birla Capital Limited) ◼ Diversified Financial Services Platform from a Trusted conglomerate ◼ India’s largest manufacturer of grey cement and ready-mix concrete ◼ Presence in non-banking
Slide 9: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Grasim Industries Limited Investor Presentation
Slide 10: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS 1 Well Established Track Record of Scaling Businesses and Building Brands 2 R&D and Innovation Focus - Expanding Portfolio of Value-Added Products 3 Cost Optimization with Strong Backward Integration 4 Sustainable Business Practices and Initiatives 5 Standalone % in consoli
Slide 11: Well Established Track Record of Scaling Businesses and Building Brands (1/2)
1 WELL ESTABLISHED TRACK RECORD OF SCALING BUSINESSES AND BUILDING BRANDS (1/2) Revenue of Viscose segment (₹ Cr.) ◼ Leading global producer of VSF and VFY 15,149 Viscose ◼ Products portfolio across all three generation of viscose fibres - Birla Viscose, Birla 5,428 Modal and Birla Excel FY13 FY23 R
Slide 12: Well Established Track Record of Scaling Businesses and Building Brands (2/2)
1 WELL ESTABLISHED TRACK RECORD OF SCALING BUSINESSES AND BUILDING BRANDS (2/2) VISCOSE CHEMICALS TEXTILES * OTHER SUCCESSFUL BRANDS CREATED BY KEY SUBSIDARIES * Using these brands under a license from Soktas Tekstil Sanayi Ve Ticaret Anonim Sirketi in key territories including India, Bangladesh and
Slide 13: R&D and Innovation Focus - Expanding Portfolio of Value-Added Products
2 R&D AND INNOVATION FOCUS - EXPANDING PORTFOLIO OF VALUE-ADDED PRODUCTS 1 5 2 1 4 n Ne dev w 1 Corporate R&D Exclusive Exclusive R&D R&D Centre atio el pr pmen s od iti Centre R&D Centres (Paints) o Centres Dig uct (VSF) (Chemicals/Others) Key t Focus Key Strengths ip Auto nova Areas rd s h In ma t
Slide 14: Cost Optimization with Strong Backward Integration
3 COST OPTIMIZATION WITH STRONG BACKWARD INTEGRATION Key Raw Materials Key measures undertaken Dissolving Captive dissolving grade pulp plant at Harihar; joint-venture entities in Grade Pulp Canada and Sweden for securing supplies Viscose Caustic Soda Largely met by captive facilities Power & Steam
Slide 15: Sustainable Business Practices and Initiatives
4 SUSTAINABLE BUSINESS PRACTICES AND INITIATIVES Sustainable Products & Circular Economy Water Stewardship ◼ Grasim has implemented ZLD(1) plants at Nagda, Renukoot, ◼ Sustainable innovations – LivaEco, Lyocell, Dope dyed, Liva Reviva Ganjam, Rehla, and BB Puram for chlor-alkali business ◼ Focus on
Slide 16: Defined Drivers to Ride the Next Wave of Growth (1/2)
5 DEFINED DRIVERS TO RIDE THE NEXT WAVE OF GROWTH (1/2) Decorative Paints We aim to create PAN INDIA REACH WIDE PRODUCT OFFERING DISTRIBUTION PROWESS MANUFACTURING EXCELLENCE ESTABLISHED ECOSYSTEM Capacity 1,332 MLPA^ Ludhiana Panipat Mahad Kharagpur Chamarajanagar Cheyyar Large competitive capaciti
Slide 17: Defined Drivers to Ride the Next Wave of Growth (2/2)
5 DEFINED DRIVERS TO RIDE THE NEXT WAVE OF GROWTH (2/2) B2B E-Commerce VALUE PROPOSITION PRODUCT CATEGORIES COMPETITIVE PRICING CEMENT & STEEL ASSURED QUALITY SANITARYWARE, TILES, PIPES & FITTINGS GUARANTEED DELIVERY Build. Grow. Transform PAINTS FINANCING SOLUTIONS DOORS, WINDOWS & KITCHEN ◼ Elevat
Slide 18: Financial Highlights
FINANCIAL HIGHLIGHTS Grasim Industries Limited Investor Presentation
Slide 19: H1FY24 Performance Highlights
H1FY24 PERFORMANCE HIGHLIGHTS Standalone Revenue (₹ Cr.) EBITDA (₹ Cr.) (1) PAT (₹ Cr.) (2) 19.7% 15.6% 22.0% 16.9% 12.9% 7.9% 12.7% 9.1% 26,840 4,198 4,111 2,695 20,857 2,124 3,076 1,773 13,998 12,680 2,143 1,150 FY22 FY23 H1FY23 H1FY24 FY22 FY23 H1FY23 H1FY24 FY22 FY23 H1FY23 H1FY24 Consolidated R
Slide 20: Strong Balance Sheet
STRONG BALANCE SHEET Standalone Consolidated Particulars FY22 FY23 H1FY23 H1FY24 Particulars FY22 FY23 H1FY23 H1FY24 Debt - Equity Ratio 0.08x 0.11x 0.10x 0.16x Debt - Equity Ratio 0.63x 0.82x 0.73x 0.92x Current Ratio 1.46x 1.30x 1.48x 1.28x Current Ratio 1.81x 1.93x 1.94x 2.17x Total debts to Tota
Slide 21: Business Overview
BUSINESS OVERVIEW Grasim Industries Limited Investor Presentation
Slide 22: Viscose
VISCOSE Grasim Industries Limited Investor Presentation
Slide 23: Viscose - Key Operational Metrics
VISCOSE - KEY OPERATIONAL METRICS VSF Sales (KT) VFY Sales (KT) 711 44 44 602 366 397 22 20 FY22 FY23 H1FY23 H1FY24 FY22 FY23 H1FY23 H1FY24 VSF sales volume increased by 8% YoY in H1FY24 on back of improvement in demand Domestic demand has seen improvement due to festive orders - however export led
Slide 24: Viscose - Financial Performance
VISCOSE - FINANCIAL PERFORMANCE Revenue (₹ Cr.) EBITDA (₹ Cr.) (1) 14.1% 6.8% 10.0% 11.5% 15,149 1,721 12,210 8,203 1,031 7,472 824 858 FY22 FY23 H1FY23 H1FY24 FY22 FY23 H1FY23 H1FY24 Gradual recovery in VSF was offset by subdued performance in VFY Softening of key input prices (pulp, caustic and po
Slide 25: Chemicals
CHEMICALS (CAUSTIC SODA, CHLORINE DERIVATES & SPECIALITY CHEMICALS*) * Speciality Chemicals include Epoxy resins and curing agents Grasim Industries Limited Investor Presentation
Slide 26: Chemicals - Key Operational Metrics
CHEMICALS - KEY OPERATIONAL METRICS Caustic Soda Sales (KT) Grasim – ECU (₹/Ton) 1,145 51,468 47,951 1,044 36,034 33,337 574 598 FY22 FY23 H1FY23 H1FY24 FY22 FY23 H1FY23 H1FY24 Caustic volumes grew by 4% YoY in H1FY24 on back of domestic demand The ECU declined in H1FY24 - in line with international
Slide 27: Chemicals - Financial Performance
CHEMICALS - FINANCIAL PERFORMANCE Revenue (₹ Cr.) EBITDA (₹ Cr.) (1) 19.4% 21.8% 26.0% 14.4% 10,422 2,271 7,888 1,534 1,415 5,442 4,134 595 FY22 FY23 H1FY23 H1FY24 FY22 FY23 H1FY23 H1FY24 Chemicals revenue declined by 24% YoY in H1FY24 majorly due to decline in caustic soda prices EBITDA impacted by
Slide 28: Other Businesses
OTHER BUSINESSES (PAINTS, B2B E-COMMERCE, TEXTILES, INSULATORS AND RENEWABLES) Grasim Industries Limited Investor Presentation
Slide 29: Paints (Birla Opus) - Progress Update
PAINTS (BIRLA OPUS) - PROGRESS UPDATE Consent to Operate received for Panipat, Ludhiana and Cheyyar plants - Operations commencement estimated in Q4FY24 “Allwood” Italian wood finishes range launched, and field validations are being conducted Painting services offering “PaintCraft” launched in 8 maj
Slide 30: B2B E-Commerce (Birla Pivot) - Progress Update
B2B E-COMMERCE (BIRLA PIVOT) - PROGRESS UPDATE In fiscal year 2023, entered into integrated B2B e-commerce business offering procurement solutions with primary focus on MSMEs for different categories of building materials Private label launched in Tiles segment, other categories being explored Healt
Slide 31: Other Businesses - Financial Performance
OTHER BUSINESSES (1) - FINANCIAL PERFORMANCE Revenue (₹ Cr.) EBITDA (₹ Cr.) (2) 3,232 14.2% 9.0% 14.6% 3.0% 2,321 330 290 1,789 233 1,600 53 FY22 FY23 H1FY23 H1FY24 FY22 FY23 H1FY23 H1FY24 Textiles: ▪ Festive demand in high-end textile products remained subdued ▪ Higher flax fibre prices resulted de
Slide 32: Subsidiaries
SUBSIDIARIES Grasim Industries Limited Investor Presentation
Slide 33: Cement (UltraTech) - Financial Performance
CEMENT (ULTRATECH) - FINANCIAL PERFORMANCE Revenue (₹ Cr.) EBITDA (₹ Cr.) (1) 22.9% 17.6% 18.0% 17.6% 63,240 52,599 12,022 11,123 33,749 29,057 5,941 5,216 FY22 FY23 H1FY23 H1FY24 FY22 FY23 H1FY23 H1FY24 Consolidated Net Sales increased by 15% to ₹33,749 Cr. over the corresponding period of the prev
Slide 34: Financial Services (Aditya Birla Capital) - Financial Performance
FINANCIAL SERVICES (ADITYA BIRLA CAPITAL) - FINANCIAL PERFORMANCE Revenue (₹ Cr.) EBITDA (₹ Cr.) (1) 27,365 9.4% 20.5% 10.2% 13.1% 22,094 5,603 14,738 12,388 2,069 1,927 1,264 FY22 FY23 H1FY23 H1FY24 FY22 FY23 H1FY23 H1FY24 The strong momentum across businesses let the Consolidated Revenue grew by 1
Slide 35: Appendix
APPENDIX Grasim Industries Limited Investor Presentation
Slide 36: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Particulars (₹ Cr.) FY22 FY23 % Change H1FY23 H1FY24 % Change Revenue from Operations 95,701 1,17,627 23 55,527 61,286 10 Other Income 821 3,612 340 420 580 38 EBITDA 17,772 20,478 15 9,016 9,491 5 EBIDTA Margin (%) 18% 17% 16% 15% Finance Cost 1,296 1,320 2 642 759 18
Slide 37: Consolidated Balance Sheet (1/2) - Assets
CONSOLIDATED BALANCE SHEET (1/2) - ASSETS March 31, 2023 September 30, 2023 Particulars (₹ Cr.) (Audited) (Unaudited) 1. Non-current Assets (a) Property, Plant and Equipment 63,754 65,692 (b) Capital Work-in-Progress 7,730 12,765 (c) Investment Property 14 14 (d) Goodwill 20,138 20,148 (e) Other Int
Slide 38: Consolidated Balance Sheet (2/2) - Equity & Liabilities
CONSOLIDATED BALANCE SHEET (2/2) - EQUITY & LIABILITIES March 31, 2023 September 30, 2023 Particulars (₹ Cr.) (Audited) (Unaudited) 1. Equity (a) Equity Share Capital 132 132 (b) Other Equity 78,610 83,039 (c) Share Application Money Pending Allotment - - Sub-total - Equity Attributable to owners of
Slide 39: Grasim Group Structure
GRASIM GROUP STRUCTURE Grasim Industries Limited Viscose Chemicals New Businesses Textiles Overseas Pulp & VSF JVs Subsidiaries AV Group NB Inc. (Canada) VSF Vilayat Paints Rishra UltraTech Cement (57.27%)** (45.0%)* Domsjo (Sweden) Vilayat Nagda Panipat Malanpur Grey Cement Domestic (33.3%)* AV Ter
Slide 40: Thank You
THANK YOU Investor Relations Team grasim.ir@adityabirla.com +91 22 2499 5657 Grasim Industries Limited Investor Presentation
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