Crompton Greaves Consumer Electricals Ltd. · NSE:CROMPTON
Crompton Greaves Consumer Electricals — Non-Deal Roadshow (November 2023)
36 slides from Crompton Greaves Consumer Electricals's roadshow presentation, Nov 24, 2023
Slide 1: Exchange filing cover letter for investor presentation
Crompton Greaves Consumer Electricals Limited Registered & Corporate Office: Tower 3, 1st Floor, East Wing, Equinox Business Park, LBS Marg, Kurla (West), Mumbai - 400 070.India T: +91 22 6167 8499 F: +91 22 6167 8383 W: www.crompton.co.in CIN: L31900MH2015PLC262254 Date: November 24, 2023 To, To, B
Slide 2: Investor Presentation November 2023
Investor Presentation NOVEMBER 2023
Slide 3: Disclaimer
Disclaimer This presentation does not constitute an offer from Crompton Greaves Consumer Electricals Ltd. or any of its affiliates (“Crompton”) to any party and the information contained herein will not form the basis of any contract. Neither Crompton nor any of their respective affiliates, sharehol
Slide 4: Index
Crompton at a glance Crompton 2.0: Transformation in Progress Index Quarter Highlights Financial Statements 2
Slide 5: Crompton at a glance
Crompton at a glance ...
Slide 6: Change in Chairman & New Appointments to Board
Change in Chairman & New Appointments to Board Mr. D. Sundaram New Appointments Mr. D. Sundaram Mr. Anil Chaudhry Mr. Sanjiv Kakkar Chairman, Independent Director Independent Director Independent Director • Ex CEO & MD of Schneider Electric • Distinguished career at Unilever • On Board of Crompton s
Slide 7: We are an independent Board-led and professionally managed company
We are an independent Board-led and professionally managed company Board of Directors Mr. D. Sundaram Mr. Shantanu Khosla Mr. Promeet Ghosh Mr. P. M. Murty Ms. Smita Anand Chairman, Independent Director Executive Vice Chairman Managing Director & CEO Independent Director Independent Director Mr. P.
Slide 8: Business unit leaders having 125+ years of industry experience
… with business unit leaders having 125+ years of industry experience … Business Unit Heads Mr. Sriram Rangarajan1 Mr. Sachin Phartiyal Mr. Rajat Chopra Kitchen Appliances Home Electricals Pumps 26+ 2012 25+ 2018 30+ 1997 Mr. Shaleen Nayak Mr. Nitesh Mathur Mr. Anand Kumar N. Lighting New Business S
Slide 9: Functional leadership and expertise of 150+ years
… and functional leadership & expertise of 150+ years Functional Heads Mr. Sanjeev Agrawal Mr. Pravin Saraf Mr. Manoj Kumar Ms. Pragya Bijalwan Innovation & ESG Manufacturing & Quality Procurement Marketing 32+ 2019 30+ 2022 27+ 2023 19+ 2021 Mr. Kaleeswaran Arunachalam Mr. Prasanth Nair Mr. Vikram
Slide 10: We have a pan-India channel and manufacturing presence
We have a pan-India channel and manufacturing presence Pan India sales footprint (incl. Butterfly): 5 manufacturing locations 4.5k+ distributors, 175k+ retailers Vadodara (1) Baddi (2) Ahmednagar (1) Goa (2) Mumbai Mfg. plants 25 Branches (No. of units) 26 Warehouses Chennai1 (3) Innovation center 8
Slide 11: Market leadership in core categories, forayed into new growth categories
We have reinforced market leadership in core categories, and forayed into new growth categories Home electricals Pumps Large domestic Fans Residential Non-residential1 appliances Market size (INR Cr) >11k >6k >3k >3.5k Lorem position ipsum #3-Geysers Market #1 #3-Coolers #1 Kitchen appliances Lighti
Slide 12: Strong financial performance in FY23
Strong financial performance in FY23, with industry leading EBITDA margins and strong cash generation Consolidated financials INR INR 11.2% 15% 1.2x 7.7x 6,870 Cr 476 Cr 3 yr. revenue Cash conversion Interest Revenue EBITDA margin PAT growth1 ratio2 coverage3 10 1. Revenue growth from FY20 to FY23,
Slide 13: Crompton 2.0: Transformation in Progress
Crompton 2.0: Transformation in Progress 11
Slide 14: Mega trends are creating tailwinds for consumer consumption
Mega trends are creating tailwinds for consumer consumption Macro-economic trends in India Government of India initiatives Increasing Growing per Accelerated Cooking gas: urbanization capita income electrification Increase in coverage Increasing share of Rising focus on Potable water Development of
Slide 15: Industry evolving rapidly, multiple opportunities for growth
…industry also evolving rapidly, we see multiple opportunities for growth Multi-category Move towards Bespoke GTM presence by omnichannel models & D2C sales companies Consumers Shortened cycle Continuous willing to pay from consumer disruptions premium for insights to and multiple differentiated pro
Slide 16: Crompton 2.0: Key tenets to drive future growth
Crompton 2.0: Key tenets to drive future growth Crompton 2.0 Enabled & empowered organization Crompton 1.0 Consumer need led innovation Pole position in core categories Premiumization of the portfolio XXXX Successful foray into the kitchen Supply chain excellence (quality, cost) Innovation capabilit
Slide 17: Organization structure revamped to drive company objectives
Organization structure revamped to drive company objectives New organization structure Key org. structure changes BUs clustered basis common 1 segments Managing Director & CEO New BU created for strategic 2 initiatives Business Units Sales & GTM excellence team Home Pumps: Kitchen New Lighting 3 cre
Slide 18: Transformation in Progress: Crompton 2.0 Update
Transformation in Progress: Crompton 2.0 Update ▪ Premium Fans saliency improved to 28% ▪ Alternate channel saliency improved to 17% (+250 bps YoY) in Q2 in Q2 vs 13% LY GTM Fans ▪ Largest range of premium BLDC fans in the ▪ Doubled E-commerce business to deliver industry Excellence Rs. 100 Cr+ in Q
Slide 19: Project Unnati to continue driving cost excellence
Operational Project Unnati to continue driving cost excellence excellence Ongoing VAVE1 & Reinvest savings from commercial initiatives new areas into growth Fans: Cost & Drive Butterfly-Crompton synergy: energy Increase utilization of effectiveness Butterfly manufacturing assets & consolidate vendor
Slide 20: Fans: Consolidate leadership through portfolio premiumization
Fans | Consolidate leadership through portfolio premiumization Category landscape Growth levers Market statistics Strengthen the core & increase share in premium segments >11k >7% FY23 Mkt. size (INR Cr) FY 18-23 Mkt. CAGR Greater Bolster GTM FY 18-23 Mkt. CAGR innovation & leadership excellence agi
Slide 21: Large domestic appliances: Reach, range expansion to drive growth
Large domestic appliances | Reach, range expansion to drive growth Category landscape Growth levers Market statistics Continue to drive market leading growth >6k ~5% FY23 Mkt. size (INR Cr) FY 18-23 Mkt. CAGR Leverage Range FY 18-23 Mkt. CAGR synergy in Further build expansion the home E-Commerce ac
Slide 22: Pumps: Consolidate leadership in residential, expand agricultural
Pumps | Consolidate leadership in residential pumps, expand agricultural pumps portfolio Category landscape Growth levers Market statistics Redefine brand position & increase agri-footprint >7k ~1% FY23 Mkt. size (INR Cr) FY 18-23 Mkt. CAGR Residential: Agricultural: Solar and FY 18-23 Mkt. CAGR Ext
Slide 23: Small domestic appliances: Focus on synergies between Crompton and Butterfly
Small domestic appliances | Focus on synergies between Crompton and Butterfly Category landscape Growth levers Market statistics Leverage mutual strengths to grow market position & reach ~20k >10% FY23 Mkt. size (INR Cr) FY 18-23 Mkt. CAGR Enhance brand FY 18-23 Mkt. CAGR Define brand GTM Synergies
Slide 24: Large kitchen appliances: Foray led by differentiated product offering
Large kitchen appliances | Foray led by differentiated product offering – annual revenue run rate of INR ~60cr Category landscape Growth levers Market statistics Expand category through continued product differentiation >5k ~10% FY23 Mkt. size (INR Cr) FY 18-23 Mkt. CAGR FY 18-23 Mkt. CAGR Next wave
Slide 25: Lighting: Business transformation to drive growth
Lighting | Business transformation to drive growth Category landscape Growth levers Market statistics Growth led by product & execution excellence ~15k ~7% FY23 Mkt. size (INR Cr) FY 18-23 Mkt. CAGR Product Focused GTM Range FY 18-23 Mkt. CAGR innovation & & sales expansion improved process across p
Slide 26: Thoughtfully diversifying into new categories
We will continue our journey of thoughtfully diversifying into new categories Non-exhaustive Multiple potential plays; to be evaluated for whitespaces and synergies Core Switches 8k Switch gear 4k Wires and Cables 55k Adjacency Core Air purifier 0.8k Water purifier 6k Vacuum cleaner 0.5k Modular kit
Slide 27: ESG will continue to be a focus area for Crompton
ESG will continue to be a focus area for Crompton Independent Board-led and professionally managed company Board-led ESG committee Embedded sustainability initiatives Consistent dividend payout ratio: 40% for FY23 Integrated annual reporting CSR – responsible growth 25
Slide 28: Strategic tenets for a future-ready Crompton
Strategic tenets for a future-ready Crompton Crompton 2.0: Accelerated growth at healthy margins to deliver strong TSR Protect and grow Transform Foray into new Win in the Kitchen the core Lighting business segments • Fans: Strengthen the core & • Small domestic appliances: • Product innovation & •
Slide 29: Quarter Highlights
Crompton Quarter Highlights
Slide 30: Key Highlights for the Quarter
Key Highlights for the Quarter 1 Industry leading growth of 17% YoY in ECD due to strong momentum in Fans & Small Domestic Appliances. Pumps registered growth of 10% YoY 2 Lighting EBIT margins improved by 250 bps with absolute EBIT growth of 16% YoY. Industry level challenges continued in B2C leadi
Slide 31: Crompton Consolidated Segment Performance
Crompton Consolidated Segment Performance Rs. Cr Segment Revenue Q2 FY24 Q2 FY23 YoY Q1 FY24 QoQ H1 FY24 H1 FY23 YoY ECD 1,238 1,062 17% 1,429 -13% 2,667 2,409 11% Lighting 239 270 -11% 229 4% 468 532 -12% Butterfly 306 368 -17% 219 40% 525 621 -16% Total 1,782 1,700 5% 1,877 -5% 3,659 3,562 3% Rs.
Slide 32: Financial Statements
Crompton Financial Statements
Slide 33: Consolidated Q2 Profit & Loss Statement
Consolidated Q2 Profit & Loss Statement Rs. Cr Particulars Q2 FY24 Q2 FY23 Y-o-Y Q1 FY24 Q-o-Q Highlights Net Sales 1,782 1,700 5% 1,877 -5% ▪ Revenue growth of 5% YoY driven Less: Material Cost 1,224 1,153 6% 1,298 -6% by industry leading growth in ECD Material Margin 558 546 2.2% 579 -4% at 17% Yo
Slide 34: Consolidated Balance Sheet – H1 FY24
Consolidated Balance Sheet – H1 FY24 ₹ crore ₹ crore I. ASSETS 30-Sep-23 31-Mar-23 II. EQUITY AND LIABILITIES 30-Sep-23 31-Mar-23 (1) Non-current assets Equity (a) Property, plant and equipment 408 408 (a) Equity share capital 128 127 (b) Capital work-in-progress 6 5 (b) Other equity 2,602 2,533 (c)
Slide 35: Registered Office and contact details
Registered Office: Crompton Greaves Consumer Electricals Limited, Equinox Business Park, 1st Floor, Tower 3, LBS Marg, Kurla (W), Mumbai - 400070, Maharashtra, India +91 22 6167 8499 For any query, please write us at: crompton.investorrelations@crompton.co.in Connect with us on www.crompton.co.in 33
Slide 36: Abbreviations
Abbreviations Abbreviation Full form Abbreviation Full form B2B Business to Business ESG Environmental, Social, and Governance B2C Business to Consumer GSSH Group Sales and Services Head B2G Business to Government GM Gross Margin BLDC Brushless Direct Current GTM Go To Market BU Business Unit CAGR C
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