Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Investor Presentation (March 2024)
52 slides from Grasim Industries's investor presentation, Mar 19, 2024
Slide 1: Stock exchange cover letter for Investor Presentation
Ref No.: GIL/CFD/SEC/24/385/SE 19th March 2024 BSE Limited National Stock Exchange of India Limited Scrip Code: 500300 Symbol: GRASIM Dear Sirs/Madam, Sub: Investor Presentation This is with reference to our letter dated 8th March 2024 regarding intimation of schedule of Analysts / Institutional Inv
Slide 2: Investor Presentation March 2024 - Grasim: A Play on India Growth Story
Investor Presentation March 2024 GRASIM : A PLAY ON INDIA GROWTH STORY Grasim Industries Limited Investor Presentation 1
Slide 3: Safe Harbor
SAFE HARBOR 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 for
Slide 4: Our Purpose
DRIVEN BY OUR PURPOSE. LED BY OUR VALUES Passion Seamlessness Integrity Commitment Speed OUR TO ENRICH LIVES BY PURPOSE BUILDING DYNAMIC AND RESPONSIBLE BUSINESSES AND INSTITUTIONS, THAT INSPIRE TRUST.
Slide 5: Aditya Birla Group and Our Key Group Companies
ADITYA BIRLA GROUP IS… A US$ 65 billion* conglomerate Consolidated market cap of US$ 90# billion Across 6 continents and 40 countries 180+ state-of-the-art manufacturing units globally 187,000+ employees of over 100 nationalities 300M+ Loyal customer base IN ALUMINIUM ROLLING RECYCLER OF ALUMINIUM G
Slide 6: Grasim's Leadership Across Key Components of Growing Economy
GRASIM’s LEADERSHIP ACROSS KEY COMPONENTS OF GROWING ECONOMY INDIA’s AMRIT KAAL KEY FACTORS Infrastructure & Housing RMC player Cement Producer Producer of White Demand Cement based Putty Strongest and fastest growing Diversified Financial Services Increasing among major economies Financialisation A
Slide 7: Stronglomerate: Key Strengths
STRONGLOMORATE : KEY STRENGTHS 1 2 3 4 A Legacy of Values Track record of Diversified Sustainable and Trust creating large Businesses with Manufacturing growing Businesses Stable cashflow and Brands generation Increasing share of Operating history Revenue growth Positive Free Renewable power of 75+
Slide 8: Stronglomerate: Key Strengths
STRONGLOMORATE : KEY STRENGTHS 5 6 7 History of continuous Strong Balance Sheet Value Creation Dividend Distribution with “AAA/Stable” rating ~2x outperformance For Consolidated D/E in stock returns vs. >60 years <1x benchmark over 20Yr and 5Yr period Grasim Industries Limited Investor Presentation
Slide 9: Value Creation Strategy
VALUE CREATION STRATEGY Grasim Industries Limited Investor Presentation 8
Slide 10: Pillars of Our Strategy
PILLARS OF OUR STRATEGY LEADERSHIP SUSTAINABILITY COST CAPITAL LEADERSHIP Attain leadership INNOVATION Eco-friendly products position in all our & responsible ALLOCATION Continuous cost businesses Focus on innovation manufacturing optimisation in products and Investments in core processes and high g
Slide 11: Leadership Across Diversified Businesses
LEADERSHIP ACROSS DIVERSIFIED BUSINESSES STANDALONE BUSINESSES KEY SUBSIDIARIES Existing Core Businesses New Growth Businesses Cellulosic B2B Financial Chemicals Paints Others Cement Renewables Fibres E-Commerce Services Leading Leading 2nd largest Digital Premium UltraTech: Aditya Birla Presence in
Slide 12: Track Record of Creating Large Businesses & Brands
TRACK RECORD OF CREATING LARGE BUSINESSES & BRANDS Cellulosic Fibres Chemicals Paints UltraTech Cement Aditya Birla Capital* Capacity (MLPA) 63,240 Revenue ( ₹ crore) 15,149 1,332 27,365 10,422 5,428 21,324 9,083 951 - FY13 FY23 FY13 FY23 FY23 FY25 FY13 FY23 FY18 FY23 OUR LEADING BRANDS *Financials
Slide 13: R&D and Innovation
R&D AND INNOVATION WORLD CLASS R&D FACILITIES COMMERCIALISED A VARIETY OF HIGH-VALUE PRODUCTS 1 5 2 1 Cellulosic Fibres Chemicals Corporate R&D R&D Centres R&D Centres R&D Centre Centre (Cellulosic (Chemicals & (Paints) Fibres) Others) Primary building blocks for Traceability of Pulp source from for
Slide 14: Sustainable Business Practices and Initiatives
SUSTAINABLE BUSINESS PRACTICES AND INITIATIVES SUSTAINABILITY RATINGS 68 BBB B DJSI(4) MSCI ESG CDP Climate Sustainable Products & Circular Economy Change score Ratings ▪ Innovations - LivaEco, Lyocell, Dope dyed, Liva Reviva Assessment ▪ Sustainable textiles: Linen, Wool & Premium cotton fabrics Re
Slide 15: Capital Allocation
CAPITAL ALLOCATION Growth Capex Maintainence Capex ₹7,260 Cr. 19% FOCUS ON CORE GROWTH KEY SUBSIDIARIES BUSINESSES Invested ₹ 1000 Cr. in Aditya Birla ₹38,152* Capital, maintaining the controlling Cr. stake Investment of ₹ 4,987 Cr. by Aditya 81% Birla Renewables in last 5 years Total Consolidated ₹
Slide 16: Cost Leadership
COST LEADERSHIP CELLULOSIC FIBRES CHEMICALS PAINTS Strong Backward Integration Power Cost Efficient Manufacturing Caustic, pulp, power and Diversified sources (captive Right size plants with high steam + grid) of power with level automation and lean improving renewable energy systems mix Cost effici
Slide 17: Financial Highlights
FINANCIAL HIGHLIGHTS Grasim Industries Limited Investor Presentation 16
Slide 18: Track Record of Consistent Growth
TRACK RECORD OF CONSISTENT GROWTH REVENUE (₹ Cr.) EBITDA (₹ Cr.) 1,26,713 1,17,627 19,513 95,701 17,772 17,723* 15,766 75,141 76,404 13,615 26,840 25,726 4,111 4,198 16,082 20,857 3,328 12,386 2,661 2,078 FY20 FY21 FY22 FY23 TTM FY20 FY21 FY22 FY23 TTM Consolidated Revenue Standalone Revenue Consoli
Slide 19: Consistent Growth Leading to Strong Financials
CONSISTENT GROWTH LEADING TO STRONG FINANCIALS STANDALONE CONSOLIDATED Particulars FY22 FY23 9MFY23 9MFY24 Particulars FY22 FY23 9MFY23 9MFY24 Debt - Equity Ratio 0.08x 0.11x 0.11x 0.18x Debt - Equity Ratio 0.63x 0.82x 0.78x 0.93x Current Ratio 1.46x 1.30x 1.54x 1.29x Current Ratio 1.81x 1.93x 2.08x
Slide 20: Cellulosic Fibres
Standalone Businesses CELLULOSIC FIBRES Grasim Industries Limited Investor Presentation 19
Slide 21: Cellulosic Fibres: Fastest Growing Fibre
CELLULOSIC FIBRES : FASTEST GROWING FIBRE GLOBAL INDIA 3.5% CAGR 11.7% CAGR INDIA CELLULOSIC 0.2% CAGR FIBRES GROWING (0.5%) CAGR FASTEST WITH CAGR 4.35% CAGR >2x CY15 3.3% CAGR CY23 CY15 CY23 OF OTHER FIBRES Synthetic Cotton Cellulosic Fibres Synthetic Cotton Cellulosic Fibres 6% CELLULOSIC LIVA MO
Slide 22: Cellulosic Fibres: Innovation
CELLULOSIC FIBRES : INNOVATION Circular Fashion Traceability: Forest to Fashion Scan here to know more CANOPY HOT BUTTON RANKING – HIGHEST RATING 2020 2021 2022 2023 Grasim Industries Limited Investor Presentation 21
Slide 23: Cellulosic Fibres: Key Macro Trends
CELLULOSIC FIBRES : KEY MACRO TRENDS CHINA OPERATING RATE AND INVENTORY DAYS GLOBAL PRICES TREND ($/KG) 85 74 2.81 69 69 2.65 2.49 2.06 24 22 22 13 1.81 1.77 1.81 1.58 1.05 1.05 1.09 0.93 FY22 FY23 9MFY23 9MFY24 FY22 FY23 9MFY23 9MFY24 Operating Rate (%) Plant Inventory (Days) Cellulosic Staple Fibr
Slide 24: Cellulosic Fibres: Key Operational Metrics
CELLULOSIC FIBRES : KEY OPERATIONAL METRICS STAPLE FIBRE SALES (KT) FILAMENT YARN SALES (KT) 711 44.2 43.7 602 602 32.7 518 30.5 FY22 FY23 9MFY23 9MFY24 FY22 FY23 9MFY23 9MFY24 Staple Fibre capacity utilization >95% Filament Yarn Speciality volume however textile value business impacted share chain
Slide 25: Cellulosic Fibres: Financial Performance
CELLULOSIC FIBRES : FINANCIAL PERFORMANCE REVENUE (₹ Cr.) EBITDA (₹ Cr.) 15,149 1,721 12,210 11,385 11,187 1,260 1,031 887 FY22 FY23 9MFY23 9MFY24 FY22 FY23 9MFY23 9MFY24 Revenue driven by volume growth, Softening of Filament Yarn business however impacted realisations were impacted due to by lower
Slide 26: Chemicals
Standalone Businesses CHEMICALS Grasim Industries Limited Investor Presentation 25
Slide 27: Diversified Chemicals Portfolio
DIVERSIFIED CHEMICALS PORTFOLIO CAPACITIES (KTPA) CHLOR- ALKALI 1,192 1,530 Q3FY25 Q4FY26 172 235 246 13% 25% 1,359 957 CHEMICALS CHLORINE DERIVATIVES PORTFOLIO Chlor-Alkali Chlorine Derivatives Speciality Chemicals Existing Capacity Capacity Expansion REVENUE BREAK-UP (%) SPECIALTY CHEMICALS 17% 17
Slide 28: Chemicals: Focus Areas
CHEMICALS : FOCUS AREAS CHLORINE INTEGRATION LEVELS (%) 63 60 Doubled Capacity of Epoxy polymers and curing agents SPECIALITY 58 to 246 KTPA, in December CHEMICALS 57 2023 FY21 FY22 FY23 Q3FY24 Target +25% renewable energy power share by FY25 compared POWER Leverage existing to 8% in FY23 leading to
Slide 29: Speciality Chemicals: Epoxy Polymers and Curing Agents
SPECIALITY CHEMICALS : EPOXY POLYMERS AND CURING AGENTS EPOXY GROWTH DRIVERS PROTECTIVE COATING CONSTRUCTION RENEWABLES AUTOMOTIVE OTHERS India Industry 26% 22% 19% 18% 9% 6% Demand Mix (%) Market Share of Grasim's epoxy resin used in Total Patents filed >50% 2 out of 3 cars 8 GRASIM In India manufa
Slide 30: Chlor-Alkali: Key Operational Metrics
CHLOR-ALKALI : KEY OPERATIONAL METRICS CAUSTIC SODA SALES (KT) GRASIM – ECU (₹/TON) 1,145 1,044 47,951 49,886 859 897 36,034 32,686 FY22 FY23 9MFY23 9MFY24 FY22 FY23 9MFY23 9MFY24 International Caustic ECU impacted by Sales volume higher soda prices remain international caustic driven by stable vola
Slide 31: Chemicals: Financial Performance
CHEMICALS : FINANCIAL PERFORMANCE REVENUE (₹ Cr.) EBITDA (₹ Cr.) 2,271 10,422 1,903 7,888 8,024 1,534 6,130 859 FY22 FY23 9MFY23 9MFY24 FY22 FY23 9MFY23 9MFY24 Chlorine derivative Revenue on YTD EBITDA declined segment also basis lower due to in line with impacted due to reduction in global reductio
Slide 32: Decorative Paints
Standalone Businesses DECORATIVE PAINTS Grasim Industries Limited Investor Presentation 31
Slide 33: Decorative Paints: Growth Drivers
DECORATIVE PAINTS : GROWTH DRIVERS INDIA NEEDS ANOTHER PAINT COMPANY Decorative Paints market is estimated to grow at CAGR of >10% over the next decade INDUSTRY SIZE UNORGANISED MARKET PER-CAPITA CONSUMPTION ₹ ~78,000 Cr. ~25% 3.5 kg (FY25) (vs. Global average of 10 kg) Urbanisation BIRLA OPUS Housi
Slide 34: Road to ₹10,000 Cr. Revenue and Profitable Player
ROAD TO ₹ 10,000 Cr. REVENUE AND PROFITABLE PLAYER DESIGN DISTRIBUTE DELIGHT Industry first wide scale Building launch, offering Superior Pan India complete and distribution network Customer superior product across 6000 towns Industry leading experience portfolio across six 6 serviced by 150 depots
Slide 35: Birla Opus: Set to Become 2nd Largest Paints Brand
BIRLA OPUS : SET TO BECOME 2nd LARGEST PAINTS BRAND Biggest Launch in the Indian Decorative Paints Market MANUFACTURING 6 1,332 MLPA 120 500 MLPA Fully backward integrated plants with Greater than combined current scientists at state-of-the-art R&D centers Option of adding at lower capital cost PROW
Slide 36: New Growth Business Progress Update
Inaugurated 3 plants with 630 MLPA capacity at Panipat, Ludhiana and Cheyyar plants Geared up to start Other 3 plants viz. NEW GROWTH sales in 3 states viz. Chamarajanagar, Punjab, Haryana Mahad and Kharagpur BUSINESS and Tamil Nadu in will be operational in March’24 itself FY25 PROGRESS UPDATE Bran
Slide 37: B2B E-Commerce
Standalone Businesses B2B E-COMMERCE Grasim Industries Limited Investor Presentation 36
Slide 38: B2B E-Commerce for Construction Materials
B2B E-COMMERCE FOR CONSTRUCTION MATERIALS INDUSTRY OPPORTUNITY Market $100 bn <2% >10% MSME Demand Market Size of Digital 3-YR CAGR across enabling efficient Opportunity Penetration building material procurement and Drivers Construction Materials Industry categories wide reach VALUE PROPOSITION PROD
Slide 39: Birla Pivot: Strategy for Scale Up
BIRLA PIVOT: STRATEGY FOR SCALE UP ASPIRATION OF $1 BILLION REVENUE IN NEXT 3-4 YRS. BUILD FRONTLINE PRIVATE FINANCIAL UNASSISTED SUPPLY SALES LABELS CREDIT JOURNEYS Deep expertise Focus on good Scale up “Birla Pivot” Scale up Financial Increase ease of and partnerships, customer experience brand ac
Slide 40: Birla Pivot: Progress Update
BIRLA PIVOT : PROGRESS UPDATE Modular Digital New geographies Annual Revenue Healthy retention rates platform with 14 core Chennai, Hyderabad, Run-rate (ARR) of customers with modules, built for Punjab, >₹ 1,500 Cr. increased frequency of future presence in buying +20 states Grasim Industries Limite
Slide 41: Other Businesses
Standalone Businesses OTHER BUSINESSES Grasim Industries Limited Investor Presentation 40
Slide 42: Other Businesses: Financial Performance
OTHER BUSINESSES : FINANCIAL PERFORMANCE REVENUE(1) (₹ Cr.) EBITDA(1) (₹ Cr.) 1,762 1,269 856 895 865 667 761 785 FY22 FY23 9MFY23 9MFY24 FY22 FY23 9MFY23 9MFY24 TEXTILES Revenue led by demand in linen, margins impacted SEGMENT EBITDA by high flax prices includes initial operating losses of new grow
Slide 43: Key Subsidiaries
KEY SUBSIDIARIES Grasim Industries Limited Investor Presentation 42
Slide 44: UltraTech Cement: Financial Performance
ULTRATECH CEMENT : FINANCIAL PERFORMANCE REVENUE (₹ Cr.) EBITDA (₹ Cr.) 63,240 12,022 11,123 52,599 50,489 9,336 44,578 7,679 FY22 FY23 9MFY23 9MFY24 FY22 FY23 9MFY23 9MFY24 Revenue driven by substantial Infrastructure Post Phase III expansion, UltraTech capacity growth activities happening across I
Slide 45: Aditya Birla Capital: Financial Performance
ADITYA BIRLA CAPITAL : FINANCIAL PERFORMANCE REVENUE* (₹ Cr.) PAT* (₹ Cr.) 27,416 2,057 2,090 23,566 22,230 1,545 19,391 1,448 FY22 FY23 9MFY23 9MFY24 FY22 FY23 9MFY23 9MFY24 Lending Portfolio (NBFC and HFC) Launched “Udyog Plus” digital crossed milestone of ₹1,15,000 Cr. platform, offering paperles
Slide 46: Aditya Birla Renewables: Financial Performance
ADITYA BIRLA RENEWABLES : FINANCIAL PERFORMANCE ADITYA BIRLA RENEWABLES (₹ Cr.) RENEWABLE POWER CAPACITY (Mwp) 872 Particulars FY22 FY23 9MFY23 9MFY24 744 Revenue 233 288 193 264 650 551 EBITDA 188 210 141 171 EBIT 129 137 89 86 Capital Employed 2,030 4,153 3,401 6,737 FY22 FY23 9MFY23 9MFY24 SUPERI
Slide 47: Grasim Group Structure
GRASIM GROUP STRUCTURE Grasim Industries Limited Cellulosic Fibres Chemicals New Businesses Textiles Overseas Pulp & Subsidiaries Staple Fibre JVs Staple Fibre Vilayat Paints Rishra UltraTech Cement (57.27%)** AV Group NB Inc. Vilayat Nagda Panipat Malanpur (Canada) (45.0%)* Grey Cement Domestic Kha
Slide 48: Appendix
APPENDIX
Slide 49: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Particulars (₹ Cr.) FY22 FY23 % Change 9MFY23 9MFY24 % Change Revenue from Operations 95,701 1,17,627 23 84,165 93,251 11 Other Income 821 3,612* 340 3,392* 837 - EBITDA 17,772 20,478 15 15,605 14,640 -6 EBITDA Margin (%) 18% 17% 18% 16% Finance Cost 1,296 1,320 2 982 1
Slide 50: Standalone Income Statement
STANDALONE INCOME STATEMENT Particulars (₹ Cr.) FY22 FY23 % Change 9MFY23 9MFY24 % Change Revenue from Operations 20,857 26,840 29 20,194 19,080 -6 Other Income 895 1,018 14 902 996 10 EBITDA 4,111 4,198 2 3,656 2,786 -24 EBITDA Margin (%) 19% 15% 17% 14% Finance Cost 247 368 49 261 320 23 Depreciat
Slide 51: Balance Sheet
BALANCE SHEET Standalone (₹ Cr.) Consolidated (₹ Cr.) 31st Dec'23 31st Mar'23 EQUITY & LIABILITIES 31st Dec'23 31st Mar'23 (Unaudited) (Audited) (Unaudited) (Audited) 52,386 46,955 Net Worth 87,141 78,742 - - Non Controlling Interest 48,889 44,171 - - Borrowings related to Financial Services 1,01,08
Slide 52: Thank You
THANK YOU Investor Relations Team grasim.ir@adityabirla.com +91 22 2499 5657
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