Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Investor Presentation (December 2024)
60 slides from Grasim Industries's investor presentation, December 2024
Slide 1: Investor Presentation December 2024: Grasim, a Play on India Growth Story
Investor Presentation December 2024 GRASIM : A PLAY ON INDIA GROWTH STORY Grasim Industries Limited Investor Presentation 1
Slide 2: 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 3: Driven by Our Purpose. Led by Our Values
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 4: Aditya Birla Group and Our Key Group Companies
ADITYA BIRLA GROUP IS… A US$ 66 billion* conglomerate Consolidated market cap of US$ 111# billion OUR KEY GROUP COMPANIES Across 6 continents and 40 countries Present across 20+ sectors 180+ state-of-the-art manufacturing units globally 187,000+ employees of over 100 nationalities 300M+ Loyal custom
Slide 5: 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 6: 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 7: Stronglomerate: Key Strengths
STRONGLOMORATE : KEY STRENGTHS 5 6 7 History of continuous Strong Balance Sheet Value Creation Dividend Distribution with “AAA/Stable” rating ~2x/~3x For Consolidated outperformance >60 years D*/E 0.25x in stock returns vs. benchmark^ over 10Yr/5Yr period * Excluding Borrowing related to Financial S
Slide 8: Value Creation Strategy
VALUE CREATION STRATEGY Grasim Industries Limited Investor Presentation 8
Slide 9: Pillars of Our Strategy
PILLARS OF OUR STRATEGY BUSINESS COST SUSTAINABILITY LEADERSHIP LEADERSHIP INNOVATION Eco-friendly products CAPITAL Attain leadership & responsible ALLOCATION Continuous cost position in all our Focus on innovation manufacturing optimisation businesses in products and Investments in core processes a
Slide 10: Leadership Across Diversified Businesses
LEADERSHIP ACROSS DIVERSIFIED BUSINESSES Building Materials Businesses Other Businesses Cellulosic B2B Financial Chemicals Cement Paints Textiles Renewables Insulators Fibres E-Commerce Services Leading Leading UltraTech: 2nd largest Digital Aditya Birla Premium Presence in Leading producer of produ
Slide 11: Track Record of Creating Large Businesses & Brands
TRACK RECORD OF CREATING LARGE BUSINESSES & BRANDS Cellulosic Fibres Chemicals Building Materials Financial Services* Revenue ( ₹ crore) 14,949 71,953 8,213 34,008 5,428 21,324 8,953 951 FY13 FY24 FY13 FY24 FY13 FY24 FY18 FY24 OUR LEADING BRANDS *Financials considered post-merger of Aditya Birla Nuv
Slide 12: 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 13: Sustainable Business Practices and Initiatives
SUSTAINABLE BUSINESS PRACTICES AND INITIATIVES SUSTAINABILITY RATINGS 71 BBB B 27.2 DJSI(4) MSCI CDP Sustainalystics Sustainable Products & Circular Economy Global ESG ESG Ratings Climate Change ESG ▪ Innovations - LivaEco, Lyocell, Dope dyed, Liva Reviva score Risk Rating ▪ Sustainable textiles: Li
Slide 14: Capital Allocation: Focus on Growth Businesses
CAPITAL ALLOCATION FOCUS ON GROWTH BUSINESSES Total Consolidated ₹11,388 Cr. Capex# (₹ Cr.) 20,199 23% ₹50,178* 12,147 Cr. 9,017 77% 4,860 3,954 ₹38,790 Cr. FY20 FY21 FY22 FY23 FY24 #Calculation based on the movement in gross block and CWIP. * Capex over 5-YR (FY20 to FY24). Grasim Industries Limite
Slide 15: 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 16: Financial Highlights
FINANCIAL HIGHLIGHTS Grasim Industries Limited Investor Presentation 16
Slide 17: Track Record of Consistent Growth
TRACK RECORD OF CONSISTENT GROWTH REVENUE (₹ Cr.) EBITDA (₹ Cr.) 20,837 20,148 1,30,978 1,37,116 17,772 17,723* 1,17,627 15,766 95,701 76,404 FY21 FY22 FY23 FY24 TTM FY21 FY22 FY23 FY24 TTM Robust performance of Cement and Financial EBITDA declined marginally due to lower Services business coupled w
Slide 18: Consistent Growth Leading to Strong Financials
CONSISTENT GROWTH LEADING TO STRONG FINANCIALS CONSOLIDATED As on As on As on Particulars 31st Mar 2023 31st Mar 2024 30th Sep 2024 Net worth (₹ Cr.) 78,742 88,652 92,918 Debt - Equity Ratio 0.82x 0.97x 1.07x Debt* - Equity Ratio 0.15x 0.19x 0.25x Net debt* (₹ Cr.) 6,978 15,436 23,539 Total debts to
Slide 19: Cellulosic Fibres Business
CELLULOSIC FIBRES BUSINESS Grasim Industries Limited Investor Presentation 19
Slide 20: Cellulosic Fibres: Fastest Growing Fibre
CELLULOSIC FIBRES : FASTEST GROWING FIBRE GLOBAL INDIA 12.8% CAGR 4.0% CAGR INDIA CELLULOSIC FIBRE GROWING 0.3% CAGR (0.8%) CAGR FASTEST WITH CAGR >2x 3.8% CAGR 4.3% CAGR CY15 CY23 CY15 CY23 OF OTHER FIBRES Synthetic Cotton Cellulosic Fibres Synthetic Cotton Cellulosic Fibres ~6% CELLULOSIC LIVA MOS
Slide 21: Cellulosic Fibres: Innovation
CELLULOSIC FIBRES : INNOVATION Circular Fashion Traceability: Forest to Fashion Scan here to know more CANOPY HOT BUTTON - HIGHEST RATING 5 YEAR IN A ROW 2020 2021 2022 2023 2024 Grasim Industries Limited Investor Presentation 21
Slide 22: Cellulosic Fibres: Key Macro Trends
CELLULOSIC FIBRES : KEY MACRO TRENDS CHINA OPERATING RATE AND INVENTORY DAYS GLOBAL PRICES TREND ($/KG) 85 82 86 2.11 1.91 1.79 1.55 1.64 1.65 12 12 8 0.93 0.94 0.95 Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25 China Operating Rates China Plant Inventory CSF - CCF Cotton (Cotlook) PSF Cellulosic Staple
Slide 23: Cellulosic Fibres: Key Operational Metrics
CELLULOSIC FIBRES : KEY OPERATIONAL METRICS CELLULOSIC STAPLE FIBRE (CSF) SALES (KT) CELLULOSIC FASHION YARN (CFY) SALES (KT) 11.0 11.1 219 9.5 212 210 Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25 CFY volume Specialty volumes improved marginally Highest ever quarterly share improved to by 1% YoY, howev
Slide 24: Cellulosic Fibres: Financial Performance
CELLULOSIC FIBRES : FINANCIAL PERFORMANCE REVENUE (₹ Cr.) EBITDA (₹ Cr.) 4,125 494 468 405 3,889 3,787 Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25 Revenue grew 6% YoY EBITDA was higher Input (DG pulp, led by volume growth by 6% YoY mainly Caustic and Sulphur) and improved led by higher prices showing
Slide 25: Chemicals Business
CHEMICALS BUSINESS Grasim Industries Limited Investor Presentation 25
Slide 26: Diversified Chemicals Portfolio
DIVERSIFIED CHEMICALS PORTFOLIO CHEMICALS’ CAPACITIES CHLOR- ALKALI FY26 1,168 Q1FY27 1,530 139 25 2% 14% 1,029 246 1,505 CHEMICALS CHLORINE DERIVATIVES PORTFOLIO Chlor-Alkali Chlorine Derivatives Speciality Chemicals Existing Capacity (KTPA) Capacity Expansion (KTPA) REVENUE BREAK-UP (%) SPECIALTY
Slide 27: Chemicals: Focus Areas
CHEMICALS : FOCUS AREAS CHLORINE INTEGRATION* LEVELS (%) 65 62 60 58 Doubled Capacity of Epoxy polymers and curing agents to 246 KTPA, in December SPECIALITY 2023. Evaluating further doubling of Epoxy CHEMICALS capacity with integrated ECH to maintain market share in the growing market FY22 FY23 FY2
Slide 28: 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 29: Chlor-Alkali: Key Operational Metrics
CHLOR-ALKALI : KEY OPERATIONAL METRICS CAUSTIC SODA SALES (KT) GRASIM – ECU (₹/TON) 306 32,008 32,529 30,650 282 295 Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25 Caustic Soda sales International average volume was down by Caustic soda prices Caustic realisation 4% YoY, impacted by (CFR-SEA) improved by
Slide 30: Chemicals: Financial Performance
CHEMICALS : FINANCIAL PERFORMANCE REVENUE (₹ Cr.) EBITDA (₹ Cr.) 2,066 2,054 310 1,988 273 236 Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25 10% volume growth Chemicals business Chemicals business in Chlorine EBITDA up by 16% revenue stood flattish Derivatives coupled YoY driven by higher due to lower v
Slide 31: Building Materials Business
BUILDING MATERIALS BUSINESS Grasim Industries Limited Investor Presentation 31
Slide 32: Cement Business
CEMENT BUSINESS Grasim Industries Limited Investor Presentation 32
Slide 33: India Cement Industry Growth Drivers
INDIA CEMENT INDUSTRY GROWTH DRIVERS India is the second largest cement but remains a highly underpenetrated market producer in the world, Global Cement Production Per capita Consumption (kg/annum) 1,410-1,420 1,110-1,130 32.2% 950-970 750-770 51.1% 1.6% 420-470 420-430 1.2% 1.6% 300-330 ~295 9.6% 2
Slide 34: Cement: Our Strengths, UltraTech India's Largest Selling Cement Brand
CEMENT : OUR STRENGTHS ULTRATECH : INDIA’S LARGEST SELLING CEMENT BRAND Leading Player of White One-stop building solution Scientifically engineered India’s Largest Largest manufacturer of Cement and Cement- 250 RMC plants in for the retail customer products to cater to Grey Cement Capacity RMC^ in
Slide 35: Cement: Performance Update
CEMENT: PERFORMANCE UPDATE During the year, Grey Green Power Mix UltraTech Building cement capacity expanded Q2FY25 EBITDA de- improved to 32% (22% Solutions (UBS) outlets by 10.5 MT till Nov’24. Total grew by 18% YoY at in Q2FY24) including increased to 4,236; grey cement capacity (India ₹2,239 Cr.
Slide 36: Decorative Paints Business
DECORATIVE PAINTS BUSINESS Grasim Industries Limited Investor Presentation 36
Slide 37: Decorative Paints: Growth Drivers
DECORATIVE PAINTS : GROWTH DRIVERS DECORATIVE PAINTS MARKET OPPORTUINITY Decorative Paints market is estimated to INDUSTRY SIZE UNORGANISED MARKET PER-CAPITA CONSUMPTION grow at CAGR of >10% over the next decade ₹ ~80,000 Cr. ~25% 3.5 kg (FY25e) (vs. Global average of 10 kg) Urbanisation Housing Dem
Slide 38: 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 39: 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 center Option of adding at lower capital cost PROWE
Slide 40: New Growth Business Performance Update
Operations ramping up at three plants commenced in Apr’24. Commercial production started at Chamarajanagar and trial run production started at Mahad in Q2FY25 Pan-India dealer and franchise onboarding Total capex spent remains on track. Good NEW GROWTH stood at ~₹8,470 Cr. as demand witnessed from o
Slide 41: B2B E-Commerce Business
B2B E-COMMERCE BUSINESS Grasim Industries Limited Investor Presentation 41
Slide 42: 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 43: Birla Pivot: Strategy for Scale Up
BIRLA PIVOT: STRATEGY FOR SCALE UP ASPIRATION OF $1 BILLION REVENUE IN THREE YEARS 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 acro
Slide 44: Birla Pivot: Performance Update
BIRLA PIVOT : PERFORMANCE UPDATE Healthy revenue scale Continuous up across categories, upgradation of the Building a retail dealers Scaling up credit geographies and new platform for seamless network for Private programs with multiple customers. The user experience and labels “Birla Pivot Tiles len
Slide 45: Building Materials: Financial Performance
BUILDING MATERIALS : FINANCIAL PERFORMANCE REVENUE (₹ Cr.) EBITDA (₹ Cr.) 18,701 2,909 16,156 16,683 2,610 1,886 Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25 EBITDA declined due Revenue grew by 3% Cement business to lower profitability in YoY to ₹16,683 Cr. revenue stood at Cement business and aided by
Slide 46: Financial Services Business
FINANCIAL SERVICES BUSINESS Grasim Industries Limited Investor Presentation 46
Slide 47: Financial Services: Our Strengths
FINANCIAL SERVICES : OUR STRENGTHS ADITYA BIRLA CAPITAL : DIVERSIFIED FINANCIAL SERVICES PLATFORM NBFC Housing Asset Management Life Health Insurance Insurance ₹ 1,37,946 Cr. ₹ 5,01,152 Cr. ₹ 10,828 Cr. Total Lending Portfolio1 Total AUM2 Half Yearly Gross Premium3 ₹ 74,911 Cr. ₹ 3,83,309 Cr. 4.4%/9
Slide 48: Aditya Birla Capital: Omni Channel Architecture
ADITYA BIRLA CAPITAL : OMNI CHANNEL ARCHITECTURE ABCD*-D2C platform for customers Udyog Plus-B2B Robust & agile digital platforms platform for MSMEs B2D platform for channel partners One ABC 866 co-located branches Dedicated customer service locations across 238 locations managers for cross sell One
Slide 49: ABCD D2C Platform
ABCD D2C PLATFORM : 1 LAKH+ REGISTRATIONS ABCD APP & REFRESHED WEBSITE LAUNCHED IN APRIL 2024 FOR COMPLETE OMNICHANNEL2 EXPERIENCE Everything Finance As Simple As ABCD Simplicity • Unique and engaging design • Uncluttered layout with intuitive navigation 2.5Mn+ 1.2Mn+ 22+ • Enabling ease of action w
Slide 50: Aditya Birla Capital: Financial Performance
ADITYA BIRLA CAPITAL : FINANCIAL PERFORMANCE TOTAL LENDING BOOK* (₹ Cr.) ASSET QUALITY TREND# (₹ Cr.) 1,37,946 93,685 1,07,292 1,14,205 1,27,705 1,08,961 2.64% 2.54% 2.50% 1.91% 1.74% 2.61% 95.55% 95.76% 94.76% Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25 Gross Stage 1 Gross Stage 2 Gross Stage 3 TOTAL
Slide 51: Aditya Birla Capital: Financial Performance
ADITYA BIRLA CAPITAL : FINANCIAL PERFORMANCE REVENUE# (₹ Cr.) PAT^ (₹ Cr.) 10,252 8,807 7,708 829 673 715 Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25 Consolidated Revenue grew by 33% YoY driven by robust growth PAT^ grew by 23% YoY driven by all reported by all business segments. round performance acr
Slide 52: Others
OTHERS Grasim Industries Limited Investor Presentation 52
Slide 53: Other Businesses: Financial Performance
OTHER BUSINESSES* : FINANCIAL PERFORMANCE REVENUE* (₹ Cr.) EBITDA* (₹ Cr.) 761 798 778 111 109 45 Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25 TEXTILES Revenue de-grew by 1% YoY to ₹552 Cr. with EBITDA loss of ₹17 Cr. mainly due to exceptionally RENEWABLES high input prices in linen The cumulative segm
Slide 54: Appendix
APPENDIX
Slide 55: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Particulars (₹ Cr.) Q2FY25 Q2FY24 % Change Q1FY25 % Change Revenue from Operations 33,563 30,221 11 33,861 (1) Other Income 395 285 39 300 32 EBITDA* 4,042 4,509 (10) 4,760 (15) EBITDA Margin (%) 12% 15% 14% Finance Cost 581 398 46 481 21 Depreciation 1,496 1,245 20 1,3
Slide 56: Standalone Income Statement
STANDALONE INCOME STATEMENT Particulars (₹ Cr.) Q2FY25 Q2FY24 % Change Q1FY25 % Change Revenue from Operations 7,623 6,442 18 6,894 11 Other Income 1,294 760 70 93 - EBITDA 1,619 1,354 20 418 - EBITDA Margin (%) 18% 19% 6% Finance Cost 161 107 51 140 15 Depreciation 406 292 39 349 16 PBT 1,052 955 1
Slide 57: Standalone Capex Plan
STANDALONE CAPEX PLAN Planned Capex Capex Spent Particulars (₹ Cr.) FY25 H1FY25 Cellulosic Fibres Business 826 204 Capacity Expansion (including debottlenecking) 218 39 Modernisation and Maintenance Capex 608 165 Chemicals Business (A+B+C) 800 240 (A) Capacity Expansion - Chlor-Alkali & Chlorine Der
Slide 58: Balance Sheet
Standalone (₹ Cr.) BALANCE SHEET Consolidated (₹ Cr.) 30th Sep'24 31st Mar'24 EQUITY & LIABILITIES 30th Sep'24 31st Mar'24 (Unaudited) (Audited) (Unaudited) (Audited) 55,003 52,115 Net Worth 92,918 88,652 - - Non Controlling Interest 52,804 50,286 - - Borrowings related to Financial Services 1,19,56
Slide 59: Grasim Group Structure
GRASIM GROUP STRUCTURE Grasim Industries Limited Cellulosic Fibres Chemicals New Businesses Textiles Overseas Pulp & Fibre Subsidiaries JVs Staple Fibre Vilayat Paints Rishra UltraTech Cement (57.27%)** AV Group NB Inc. Grey Cement Vilayat Nagda Panipat Malanpur (Canada) (45.0%)* o India Operations
Slide 60: Thank You
THANK YOU Investor Relations Team grasim.ir@adityabirla.com +91 22 2499 5657
Grasim Industries — Investor Presentation (December 2024) on 6ix