Cera Sanitaryware Limited · NSE:CERA
Cera Sanitaryware — Investor Presentation (2016)
71 slides from Cera Sanitaryware's investor presentation, 2016
Slide 1: Presentation 2015-16: Vision that Sustains Value
PRESENTATION 2015-16 Vision that Sustains Value
Slide 2: Classy, Exquisite, Ritzy, Awesome
better expressed as... CLASSY • Admirably Skilful and Graceful EXQUISITE • Pleasing Through Beauty and Perfection RITZY • Ostentatiously Fancy and Stylish AWESOME • Inspiring Feelings of Wonder and Awe
Slide 3: Cera is the Star SME
CERA IS THE STAR SME An accolade that celebrates our spirit of The award jury cited CERA’s discipline in financial metrics and its excellence and enterprise. continuous growth in market share. It also made a special mention about CERA’s strategy for changing consumer “Cera Sanitaryware bagged the ‘S
Slide 4: From the Chairman's Desk
From Chairman’s Desk... Dear Patrons, Stakeholders and Friends, As you flip through the pages the cumulative result is for all to see. Our growth saga continues despite subdued When your efforts are well intended you are aptly rewarded market conditions. We could achieve good set of numbers for it.
Slide 5: Taking the next big leap
television campaign was supplemented by print advertisements in magazines. The exercise did make heads turn as we are now a notch above the rest. ‘ ’ With so much going we are also broadening our horizon with an exclusive tie up with Italian luxury designer At CERA, we see ourselves taking sanitaryw
Slide 6: Team and Corporate Information
Team and Corporate Information PRESENT BOARD OF DIRECTORS Name of Director Designation • Shri Vikram Somany Chairman and Managing Director • Smt. Deepshikha Khaitan Vice Chairperson (Non-Executive) • Shri Sajan Kumar Pasari Independent Director • Dr. K.N. Maiti Director • Shri Govindbhai P. Patel In
Slide 7: Index
INDEX VISION – AIMING HIGH! 10 AWARDS 44 MISSION CLEAR CUT FOCUS 11 CRISIL - IER - INDEPENDENT EQUITY RESEARCH 44 SOLID TRACK RECORD; BASE FOR SUSTAINING GROWTH MODEL 13 COMPANY OVERVIEW 47-51 THESE HELP US TO BALANCE GROWTH AND MARGINS 14-35 STYLE - NOW THINK OUT OF THE BOX 01) STRATEGIC LEADERSHIP
Slide 8: Mrs. Deepshikha Khaitan
Mrs. Deepshikha Khaitan Vice Chairperson - Non-Executive 06
Slide 9: Sparkling Journey
SPARKLING JOURNEY Inventing Brighter Future ANNUAL REPORT 2O15-16
Slide 10: Growth is a Continuous Process
GROWTH IS A CONTINUOUS PROCESS... 14% TOP LINE GROWTH 23% BOTTOM LINE GROWTH 08
Slide 11: Dividend 180%, EPS Rs. 53.36
180% DIVIDEND Rs. 53.36 EPS WE REINFORCE THIS WITH OUR ENDEAVOURS. ANNUAL REPORT 2O15-16
Slide 12: Vision: Aiming High!
Mr. S C Kothari Chief Executive Officer Vision AIMING HIGH! • Brand Power • Product positioning • Endeavour to generate and sustain ‘Returns on Investment’ for the organization as well for Share holders • Always eager to establish benchmark in upholding the highest standards of business ethics and c
Slide 13: Mission: Clear Cut Focus
Leadership by Mr. Atul Sanghvi Executive Director Mission CLEAR CUT FOCUS • Focus on Top line as well as on Bottom line. To create and build platform for sustainable top line and bottom line growth • To strengthen company’s position as a market leader across product basket so to say as total bathroo
Slide 14: 12
12
Slide 15: Solid Track Record
SOLID TRACK RECORD BASE FOR SUSTAINING GROWTH MODEL We lay more emphasis on ‘Business Model’ that we perceive; expand the product basket, in FY 2012-13 the company a ‘Powerful Manufacturing Base’ with world class technology also forayed into Tile business purely on ‘Outsourcing’ at Single Location a
Slide 16: These help us balance Growth and Margins
1 STRATEGIC LEADERSHIP 8 CAPACITY BUILDING 2 BRAND ‘CERA’ 9 PRODUCT POSITIONING & PREMIUMISATION 3 PRODUCT BASKET 10 ENHANCING DISTRIBUTION REACH 4 REVENUE STREAMS 11 OPTIMISATION 5 PRODUCTION EFFICIENCIES 12 DEBT FREE STRUCTURE 6 COST MANAGEMENT 13 WORKING CAPITAL 7 PRODUCT QUALITY 14 NEW INITIATIV
Slide 17: Strategic Leadership
1 STRATEGIC LEADERSHIP The leadership that has ethical values to inspire trust with straight forward but courageous and imaginative action plans based on good values of honesty and integrity. The management skills of decision making with enterprising temperament are true characteristics that go to b
Slide 18: Brand
2 BRAND The brand that one can rely Brand ‘CERA’ is one of the main pillars on which customer satisfaction rests on Price and Value its growth plan rests. that conforms to high class quality standards across product range. All these backed up by As part of its value system, the company responsible a
Slide 19: Product Basket
3 PRODUCT BASKET ‘CERA’, way back in 1980 began its journey as purely a sanitaryware manufacturing company. The company for the first time and so early in those days came out with a concept – 'Your Bathroom is a Room too !' - identified the bathroom as high potential business possibilities and beyon
Slide 20: Revenue Streams
4 REVENUE STREAMS Revenue stream is largely based on business model perceived by ‘CERA’. An optimal mix of 'manufacturing' and 'outsourcing' of products keeping in mind different contributory margins. A new initiative during FY 2015-16 is taken to enter into JV with controlling interest for manufact
Slide 21: Production Efficiencies
5 PRODUCTION EFFICIENCIES Production efficiencies or productivity is of vital concern at manufacturing operations. The EBDITA margins are greatly influenced with change in productivity. This area therefore is of a high critical relevance to sustainable margins. CERA management has never undermined i
Slide 22: Cost Management
6 COST MANAGEMENT The largest manufacturing plant at one location has its inherent and innumerable cost management advantages. The rationalization of manufacturing overheads has emerged as one of the key cost control measures. It not only neutralizes the cost of relatively higher freight to feed mar
Slide 23: Product Quality
7 PRODUCT QUALITY Investment in Technology is what ‘CERA’ thrives at. Following international ISO standards on quality, environment and safety standards - some of the benchmark achievements in early stages are few of many ‘Firsts’ that CERA has. Initiative to form ‘Quality Circles’ for awareness tha
Slide 24: Capacity Building
8 CAPACITY BUILDING Commissioned a state-of-art manufacturing plant for faucet ware. Initial capacity of 2,500 pcs. per day is now raised to over 7200 pcs. per day. This is further scalable to 10000 pcs. per day. Existing production capacity of sanitary ware close to 3.00 mn pcs pa CERA also entered
Slide 25: Cera Growth Trajectory
CERA GROWTH TRAJECTORY Capacity expansion in SW from 0.3 mn pcs. pa in 1979-80 to 3.0 mn pcs. pa achieved in 2014-15 Entered into Joint Venture arrangements with Anjani Tiles Ltd for manufacturing Tiles at Dist Nellore Andhra Pradesh with initial capacity of 10000 sq mtrs. Per day. CERA has controll
Slide 26: Product Positioning & Premiumisation
9 PRODUCT POSITIONING & PREMIUMISATION K ET AR T HI M EN SE GH E S M GM N AS EG EN D M S T LOWER & UPPER MIDDLE SEGMENT Despite only a single brand, ‘CERA’ products have The customer satisfaction for his spending is close significant acknowledgment for its product portfolio to our heart as we offer
Slide 27: Enhancing Distribution Reach
10 ENHANCING DISTRIBUTION REACH Works Marketing Office Sales Office Bath Studios (Company Display Centre) Company Stock Points (THE MAP IS INDICATIVE AND NOT TO THE SCALE) ‘CERA’ enjoys a strong distribution network with close to 1500 Distributors / dealers (authorized stockiest) and 15,000 retailer
Slide 28: Optimization
11 OPTIMIZATION The entire business strategies are resting on this concept. There has been a constant endeavour to optimize every revenue centre be it the products; territories or the dealers. The concept of optimization gets further expanded with managerial personnel when KRAs are drawn to get what
Slide 29: Debt-Free Structure
12 DEBT-FREE STRUCTURE 'CERA', with its wholesome conservative policies, has judiciously used dose of long term debts as and when needed. This in turn helped achieving what perhaps many Indian conglomerates would really look forward to settle at - 'Virtually a debt free company'! In fact your compan
Slide 30: Working Capital
13 WORKING CAPITAL The Working Capital cycle is constantly monitored with an eagle's eye on Inventory and Receivable Management... 28
Slide 31: Chairman's Club
14 NEW INITITATIVES This is a novel concept for the entire industry. The simple rationale behind this initiative and mooting this concept of forming 'Cera Chairman's Club' is to improve Interaction with channel partners and resultantly CHAIRMAN's to help company knowing ground realities far more bet
Slide 32: A New Showcase to a World of Excellence
A NEW SHOWCASE TO A WORLD OF EXCELLENCE CERA opens CERA Style Studio in Kolkata A touch and feel display centre ‘CERA Style Studio’ has been launched by CERA in Kolkata at Topsia Crossing. The studio is spread over 4,500 square feet, showcasing the latest range of sanitary ware, faucets, tiles and k
Slide 33: SAP - ERP
SAP - ERP Rather than viewing IT as a set of tools necessary for doing business, CERA is looking to gain value from IT investments. It is focusing on business process re-engineering and optimizing support processes and on driving IT to enabled businesses processes and improve its overall efficiencie
Slide 34: The Innovativeness
THE INNOVATIVENESS... Product Innovations that improve manoeuvrability, functional ease and also reduces product cost is a key to success. When these innovative efforts get reflected into elegant designs and styles it adds more flavour. CERA's Water Saving Mission Continues... CERA is known for its
Slide 35: E-Commerce
E - Commerce The buying habits of Indian customers are changing more so in consumer goods. ‘On-Line’ trade has done phenomenally good these days with growing interests in quite a few product categories. CERA’s products are classified under consumer durables and fits in to the category of ‘E Commerce
Slide 36: Anjani Tiles Ltd.
Cera, as policy, has decided to ride high on its strong ‘Brand’ ANJANI TILES LTD. image and perceptions, more so in case of product such as TILES where manufacturing is well supported by trusted international technology. The industry has witnessed, for many years, a proven business model of Joint Ve
Slide 37: Tie-up with ISVEA
The rational for a tie-up with ISVEA is to add flavor in a As a brand, especially widespread in Southern Italy, it step towards product premiumization more so with has found a place among the top 10 producers in the Sanitaryware to help enhance CERA's strengths further to market. - ISVEA” combat com
Slide 38: Financial Brand
FINANCIAL BRAND INVESTOR'S RELATION AND CREDIBLE BUSINESS STRATEGIES THE VISION THAT CREATES SUSTAINABLE VALUE.. SOME INVESTMENTS ARE FOREVER !! The Four 'C's that depict long term investments that create wealth are found in diamonds. ‘CLARITY' The Clarity in Vision 'CUT' - The Cutting Edge over Com
Slide 39: Preferred investment destination
Needless to add, 'CERA' now is a preferred investment destination for many years in sanitary ware industry and also in Building Material space especially in domestic bourses with clarity, cut, carats and color. ‘CERA', a product brand in its own right, has now evolved into a financial brand too with
Slide 40: The Macro View of Economy
THE MACRO VIEW OF ECONOMY PROSPECTS The sanitary ware industry as a whole is very likely to get a tremendous boost with Prime Minister's drive on much needed improvement in sanitation conditions across the nation. Initially the unorganized sector should benefit more than the organized sector players
Slide 41: Swachh Bharat Abhiyan
S±ÓÀ |¢¢Ú¼ ç}¢à¢Ý S±ÓÀ |¢¢Ú¼ The Hindu/ Deccan herald/ Financial Express »ÜU ÜUÎ}¢ S±ÓÀ¼¢ ÜUè ¥¢ïÚ 26 February, 2016 What it Means – The essentials of a good CSR programme SWACHH BHARAT Swachh Bharat Abhiyaan, launched with much fanfare last year, seems to be slowing down with every passing day. The
Slide 42: Sanitation Plus
B U T M B Build : Build adequate infrastructure for Sanitation U Use : Promote utilization and behaviour change M Maintain : Maintain Infrastructure, Cleanliness and Safety T Treat : Process the sludge generated SANITATION "Swacch Bharat' on way to switch to a broader understanding of what will make
Slide 43: Self-sufficiency in power with wind and solar
ACHIEVING NEARLY SELF-SUFFICIENCY IN POWER CONSUMPTION WITH WIND POWER AND SOLAR POWER GENERATION ANNUAL REPORT 2O15-16
Slide 44: Preferred Employers
PREFERRED We feel proud when we hear – 'Once a Ceraite; Always a Ceraite’ EMPLOYERS Faced with the economical dilemma of the times, the thrust has been on talent acquisition and improving the mind set in the industry. The Company has emerged as an equal opportunity and progressive employer in the in
Slide 45: Governance & Transparency
GOVERNANCE & 'CERA' and its entire management team firmly believes and practices philosophy of transparency. TRANSPARENCY Be it a customer, trade partners, stakeholders, bankers or the Govt., sharing of every legitimate information is done with a view to enhance credibility and foster confidence. An
Slide 46: Awards: CRISIL Independent Equity Research
AWARDS Some noteworthy extracts; “CRISIL Research has assigned a fundamental grade of 4/5 as well 4/5 for Valuation to Cera Sanitaryware Ltd. on CRISIL the back of a wide appeal for the CERA brand, established position in the organized sanitary ware industry, an extensive distribution network and st
Slide 47: Brand Ambassador
BRAND AMBASSADOR ANNUAL REPORT 2O15-16
Slide 48: Excellence is in the Detail
EXCELLENCE IS IN THE DETAIL
Slide 49: Company Overview
COMPANY OVERVIEW ANNUAL REPORT 2O15-16
Slide 50: Style: Now Think Out of the Box
STYLE NOW THINK OUT OF THE BOX Design that inspires awe CERA, synonymous with stylish ranges & innovative designs, reflects this thought with a new logo. CERA, the creator of imaginative bathroom solutions, starts on an exciting new journey, where the spirit of freshness crafts waves of spectacular
Slide 51: Trailblazing New Avenues
TRAILBLAZING NEW AVENUES CERA' is a leading ISO 9001, ISO 14001 and OHSAS 18001 • 'CERA' has been steadfastly moving towards its compliant sanitary ware and faucet ware manufacturing mission of becoming a force to be reckoned in the Company, with plant located in Kadi, District total bathroom soluti
Slide 52: Determined to Change Equations
DETERMINED TO CHANGE EQUATIONS The Company had made a modest beginning in early 80's by putting up a manufacturing facility of 0.3 million pieces p.a. of Sanitary ware. Over the years, the manufacturing capacity was raised to 2.00 million pieces p.a. During FY 2012-13, 'CERA' further raised its prod
Slide 53: Our Focus
OUR FOCUS 'CERA', at current manufacturing location, the company has been continuously striving to build a world class technology base in the sanitaryware industry; with well- established process parameters and stringent quality norms. The efforts are further extended in building and strengthening a
Slide 54: Moving Forward with the Spirit of Excellence
MOVING FORWARD WITH THE SPIRIT OF EXCELLENCE 52
Slide 55: Financial Finesse
FINANCIAL FINESSE A FRIEND IN NEED is a FRIEND INDEED, this is an old saying; INTERNAL AND EXTERNAL STAKEHOLDERS 'CERA' has successfully created a remarkable fulfilment of customers' expectations and resultant brand acceptance, which we continuously strive to achieve. We believe in proliferating by
Slide 56: 5 Years' Historical Financial Overview
5 YEARS' HISTORICAL – WHAT IS ON THE ANVIL 5 YEAR FINANCIAL OVERVIEW Particulars 2011-12 2012-13 2013-14 2014-15 2015-16 Net Income 319.39 487.87 663.69 821.67 933.69 Other Income 6.85 8.99 6.15 6.58 9.97 Total Income 326.24 496.86 669.84 828.25 943.66 EBITDA (excluding other Income) 53.36 75.33 94.
Slide 57: Net Income, Net Worth, Gross Block, PAT, EBITDA
2011-12 2012-13 2013-14 2014-15 2015-16 Net Income 319.39 487.87 663.69 821.67 933.69 2011-12 2012-13 2013-14 2014-15 2015-16 Net Worth 139.18 179.50 223.97 351.71 421.02 2011-12 2012-13 2013-14 2014-15 2015-16 Gross Block 132.41 175.29 211.68 287.92 310.53 2011-12 2012-13 2013-14 2014-15 2015-16 PA
Slide 58: Where will Cera possibly be in next 5 years
WHERE WILL CERA POSSIBLY BE IN NEXT 5 YEARS The Sanitaryware industry is generally growing at average rate of 14-16 per cent, annually. The year under review - FY 2015-16 was exceptionally subdued due to various economic reasons more for the entire realty and construction industry across pan India w
Slide 59: Expansion & Capex Funding
EXPANSION & CAPEX FUNDING As part of our growth strategy, we have chalked out 'Three Year Rolling Plan' of CAPEX of around Rs. 180 Cr.-200 Cr. spread over next three years. This, essentially is envisaged to be used to add on further manufacturing capacities in Sanitaryware and Faucet ware besides st
Slide 60: Our Identity: Packing Plenty of Punch
OUR IDENTITY PACKING PLENTY OF PUNCH The launch of CERA Studios a decade long ago in different cities, where the consumers, influencers and trade could come, look, touch and feel the entire high-end ranges of CERA has played an immense role in bringing up the brand image of CERA. The CERA Bath Studi
Slide 61: Going Far to Come Closer
'CERA' has a noteworthy nationwide presence for the entire product portfolio. Over the years, the Company has opened up its own display centres – 'CERA Style Studio' in Ahmedabad, Bengaluru, Chandigarh, Kochi, Hyderabad, Kolkata, Gurgaon, Chennai, Thiruvananthapuram and Mumbai besides it has 'CERA S
Slide 62: Product Lines & Business
PRODUCT LINES & BUSINESS 'CERA' has four product lines which majorly contribute to the business and the top line revenue stream : SANITARYWARE Though there are no authentic data available, according We have a very modern plant located at GIDC Kadi, to reliable sources, the size of Indian market is e
Slide 63: Faucetware
FAUCETWARE The manufacturing facilities at Faucet ware division is well day. This is further scalable to 10000 pcs per day across a equipped in many aspects. The Design dept. is well time span of two-three years. supported by CAD/CAM & 3D printer for developing The market size of Faucet ware, accord
Slide 64: Life Style Products and Tiles
LIFE STYLE PRODUCTS 'CERA' range of wellness and life style products include steam shower rooms, shower rooms, shower cubicles, shower partitions, whirlpool bath tubs, normal bath tubs and shower panels. Bath tubs are made from high quality acrylic with Ceramic light finish, which is environment fri
Slide 65: Our Strengths
OUR STRENGTHS THE BRAND CERA CERA's strength lies in offering innovative and high quality products with disciplined approach, responsible and customer focused attitudes – always striving for excellence, all at a price that is – Value for Money . We always deliver what we promise…. What we do, we do
Slide 66: Strength of People: Extended Family
PEOPLE STRENGTH CERA considers its trade partners as its extended family. The trade has been CERA's backbone and with their unstinted EXTENDED support, CERA has been able to wither out the worst of economic downturns. FAMILY CERA felicitated top 100 dealers of CERA at a function recently held in Apr
Slide 67: Asset Utilization
ASSET UTILIZATION SANITARYWARE At 'CERA', we believe in optimum utilization of assets. The manufacturing team is well experienced to ensure best technical output and yield on product recovery keeping stringent quality norms close to the heart. The process parameters, as established, in production ar
Slide 68: CSR Initiatives
CSR & CSR Initiatives WOMAN EMPOWERMENT 1.Activities carried out in and around Kadi Factory in nearby villages Promoting awareness amongst people and educating them to change the mindset on sanitation to accept this as a basic need to enhance value to infrastructure development program. 2. Promoting
Slide 69: Yes.. We have many feathers in our cap
YES.. ..WE HAVE MANY FEATHERS IN OUR CAP !! ANNUAL REPORT 2O15-16
Slide 70: Message to Shareholders & Investing Community
MESSAGE TO SHAREHOLDERS & INVESTING COMMUNITY AT LARGE The management would like to remind 'CERA' shareholders that at the macro level, the sanitation condition in India is pathetic. Our line of business offers ample scope to grow, so the outlook is bright. At 'CERA', we respect the holdings and inv
Slide 71: Cera Sanitaryware Limited
CERA Sanitaryware Limited Designed by ‘Sobhagya’ Ph : 079-26584264 CIN : L26910GJ1998PLC034400 Regd. Office: 9, GIDC Industrial Estate, Kadi-382 715, Dist. Mehsana, Gujarat. Phone: (02764) 242329, 262619, 262638, Fax: (02764) 242465 E-mail: kadi@cera-india.com www.cera-india.com