Borosil Ltd · NSE:BOROLTD
Borosil — Q4 FY2023 Earnings Presentation
59 slides from Borosil's earnings presentation, May 29, 2023
Slide 1: Intimation of Investor Conference Call and Presentation
May 29, 2023 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block - G, Dalal Street, Bandra Kurla Complex, Mumbai - 400 001 Bandra (East), Mumbai - 400 051 Scrip Code: 543212 Symbol: BOROLTD Dear Sirs, Sub : Intimation of Analysts / Institutional
Slide 2: Conference Call Invitation: 4QFY23 Results
MONARCH CORDIALLY INVITES YOU TO A CONFERENCE CALL WITH THE MANAGEMENT OF 30th MAY, TUESDAY 03:00 PM (IST) AGENDA: DISCUSSION ON 4QFY23 RESULTS AND OUTLOOK OF THE BUSINESS EXPRESS JOIN WITH DIAMOND PASS CLICK HERE COMPANY MANAGEMENT MR. SHREEVAR KHERUKA MR. RAJESH KUMAR CHAUDHARY MR. ANAND SULTANIA
Slide 3: Borosil Limited Investor Presentation Q4FY23
Borosil Limited Investor Presentation Q4FY23 Borosil Investor presentation - Q4FY23 01
Slide 4: Safe Harbour Statement
Safe Harbour Statement “ This investor presentation has been prepared by Borosil Limited (”Borosil” or “Company”) on a strictly con dential basis. Certain statements in this presentation may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward looking
Slide 5: About Borosil
About Borosil Brand with a 50+ year legacy Enjoys strong consumer equity in serving-ware, kitchen appliances and storage National leader in laboratory glassware Borosil Investor presentation - Q4FY23 03
Slide 6: Vision
Vision To be the most customer-centric company in India Offer products that perform beautifully Develop innovative products to meet evolving customer needs Be a dependable partner that creates value for customers Nurture long-term relationships with all stakeholders Borosil Investor presentation - Q4
Slide 7: Re-Imagining Consumer Products Division
Re-Imagining Consumer Products Division Glass Products Consumer Brands Company Company Daily Use Occasional Use (Serving ware, Storage, (Microwavable) Appliances) Single Brand Adding Brands BOROSIL BOROSIL, LARAH General Trade General Trade Modern Trade E-Commerce Borosil Investor presentation - Q4F
Slide 8: Re-Imagining Scientific Products Division
Re-Imagining Scienti c Products Division Single Brand Three Brands BOROSIL BOROSIL, LabQuest, Klasspack Lab Glassware Lab Glassware Only Lab Instruments Pharma Packaging Domestic Business Domestic Business International Business Borosil Investor presentation - Q4FY23 06
Slide 9: Journey Over Last 6 Years
Journey Over Last 6 Years 20% Operating SALES CAGR : 19% EBITDA CAGR : 1027 149 436 61 2017-18 2022-23 2017-18 2022-23 The gures are in INR Crore Borosil Investor presentation - Q4FY23 07
Slide 10: Financial Overview Q4FY23 (Consolidated)
Financial Overview Q4FY23 (Consolidated) INR Crore Q4FY21 Q4FY22 Q4 FY23 Growth % Net Sales 184.1 220.1 258.9 17.6% EBITDA 37.9 39.6 44.8 13.1% EBITDA (Before exceptional and one time items) 37.9 44.4 45.5 2.6% EBITDA (%) 20.6% 20.2% 17.6% EBIT 28.6 36.4 30.8 (15.5)% (Before exceptional and one time
Slide 11: Financial Overview FY23 (Consolidated)
Financial Overview FY23 (Consolidated) INR Crore FY21 FY22 FY23 Growth % Net Sales 584.8 839.9 1027.1 22.3% EBITDA 99.1 157.0 160.5 2.2% EBITDA (Before exceptional and one time items) 102.7 168.2 138.3 (17.8)% EBITDA (%) 17.6% 20.0% 13.5% EBIT 67.3 (Before exceptional and one time items) 134.3 99.1
Slide 12: Financial Overview Q4 FY23 Consumerware Division
Financial Overview Q4 FY23 Consumerware Division INR Crore Q4 FY21 Q4 FY22 Q4 FY23 Growth % Net Sales 118.1 137.5 176.6 28.4% EBITDA 19.6 17.2 25.0 45.3% EBITDA (Before exceptional and one time items) 19.6 19.6 25.4 29.8% EBITDA (%) 16.6% 14.3% 14.4% EBIT 13.6 14.2 13.7 (3.6)% (Before exceptional an
Slide 13: Financial Overview FY23 Consumer Division
Financial Overview FY23 Consumer Division INR Crore FY21 FY22 FY23 Growth % Net Sales 384.8 573.0 741.8 29.5% EBITDA 47.7 88.6 97.4 10.0% EBITDA 84.7 (10.1)% (Before exceptional and one time items) 49.5 94.2 EBITDA (%) 12.9% 16.4% 11.4% EBIT 27.0 71.5 57.1 (20.2)% (Before exceptional and one time it
Slide 14: Category wise sales (Consumerware)
Category wise sales (Consumerware) INR Crore INR Crore Q4 Q4 Category FY22 FY23 Growth % FY22 FY23 Growth % Glassware 37.2 40.1 7.9% 146.0 178.0 21.9% Non Glassware 50.0 68.3 36.6% 207.4 303.2 46.2% Opalware 50.3 68.1 35.5% 219.6 260.6 18.7% Total Consumerware 137.5 176.6 28.4% 573.0 741.8 29.5% Bor
Slide 15: Financial Overview Q4FY23 Scientific Division (Consolidated)
Financial Overview Q4FY23 Scienti c Division (Consolidated) INR Crore Q4 FY21 Q4 FY22 Q4 FY23 Growth % Net Sales 66.0 82.6 82.3 (0.3)% EBITDA 16.1 20.4 18.3 (10.1)% EBITDA (Before exceptional and one time items) 16.1 22.8 18.6 (18.1)% EBITDA (%) 24.4% 27.6% 22.6% EBIT 12.8 20.1 15.6 (22.8)% (Before
Slide 16: Financial Overview FY23 Scientific Division (Consolidated)
Financial Overview FY23 Scienti c Division (Consolidated) INR Crore FY21 FY22 FY23 Growth % Net Sales 200.0 266.9 285.3 6.9% EBITDA 42.2 54.7 61.1 11.6% EBITDA (Before exceptional and one time items) 44.0 60.4 51.7 (14.4)% EBITDA (%) 22.0% 22.6% 18.1% EBIT 31.0 49.2 40.0 (18.6)% (Before exceptional
Slide 17: Category wise sales (Scientific)
Category wise sales (Scienti c) INR Crore INR Crore Q4 Q4 Category FY22 FY23 Growth % FY22 FY23 Growth % Laboratory Glassware 52.4 55.5 5.9% 156.2 187.2 19.9% Lab Instrumentation 7.9 8.9 12.8% 21.3 25.6 20.3% Pharma Packaging 22.2 17.8 (19.7)% 89.5 72.5 (19.0)% Total Scienti c 82.6 82.3 (0.3)% 266.9
Slide 18: ROCE (Consolidated)
ROCE (Consolidated) INR Crore FY 22 FY 23 Shareholders' Funds 783.3 880.0 Less : Intangible Assets (Goodwill) (67.7) (67.7) Tangible Net Worth 715.6 812.3 Add : Defferred Tax Liability 18.6 18.9 Add : Total Debt 0.0 97.1 Capital Employed 734.2 928.2 Less : CWIP & Investments (223.2) (370.1) Operating
Slide 19: Capital Employed (Consolidated)
Capital Employed (Consolidated) INR Crore Consumerware Scienti c Borosil FY 22 FY 23 FY 22 FY 23 FY 22 FY 23 Working Capital Employed 92.7 112.4 79.2 87.2 171.9 199.6 Working Capital (Days of Sale) 59 55 108 112 75 71 Operating Capital Employed 297.8 324.0 213.2 234.1 511.0 558.2 Operational ROCE 24
Slide 20: Rationale for Restructuring
Rationale for Restructuring Both businesses already run as separate pro t centers with largely differentiated teams Both businesses have different capital and operating requirements Different organic and inorganic growth potential and capital raising requirements Each business has a different investor p
Slide 21: Restructuring Process
Restructuring Process Steps for making effective composite scheme for arrangement Expected Activity Timeline Board approval of the companies involved in the Scheme Completed Submission of Scheme along with supporting documents to BSE & NSE Completed BSE & NSE shall issue a Observation Letter / NOC af
Slide 22: Current Holding Structure
Current Holding Structure Promoters Public 70.28% 29.72% BL (CP and SIP Business) 82.49% 100% KPL BTL - Borosil Limited ( ‘BL’ or ‘Demerged Company’) (listed on BSE and NSE). - Klass Pack Limited (’KPL’ or Resulting Company / Transferee Company’) is a 82.49% subsidiary of BL. - Borosil Technologies
Slide 23: Resultant Holding Structure
Resultant Holding Structure Promotors Promoters Public Promotors Promoters Public 70.28% 29.72% 68.01% 31.99% BorosilBL Limited Borosil Scienti BL c Limited (CP (CP andBusiness) SIP Business (CP(SIP andBusiness) SIP Business - It is proposed to demerge SIP business of BL into KPL and in consideratio
Slide 24: Consumer Products Division
Consumer Products Division Borosil Investor presentation - Q4FY23 22
Slide 25: Borosil Range - Storage, Cooking, and Serving Needs of a Modern Kitchen
Borosil Range - Storage, Cooking, and Serving Needs of a Modern Kitchen Expanding from being synonymous with microwavable glass to storage, serving-ware, and domestic appliances PREPARE COOK SERVE HEAT STORE Contemporary Everyday Use Performs Beautifully Ally to the progressive homemaker Borosil Inv
Slide 26: Market Opportunity - Consumer Products
Market Opportunity - Consumer Products Category Market Size - Branded (Crs.) Market Growth % Glass Microwavables 230 10% Tumblers 520 10% Storage 700 15% to 20% Insulated Bottle Range 1100 10% Opalware 900 15% to 20% Tea / Coffee 400 (Incl ceramicware) 15% Domestic Appliances 9000 10% Estimated marke
Slide 27: Consumer Products Division Growth Theme
Consumer Products Division Growth Theme Made in India - Enhance/ build manufacturing capacity for Opal Glass and Borosilicate Glass New product development To promote Borosil glassware for daily use To make glassware affordable for mass consumers Borosil Investor presentation - Q4FY23 25
Slide 28: Ally Of Progressive Homemaker
Ally Of Progressive Homemaker #Morning Prep, Chai, Breakfast Appliances Storage 6 AM Dinnerware Cookware #Dinner Prep, Evening Tea, 9 9 #Lunch, Dinner Serving PM AM Husband, Kids Borosil Consumer Pro le: Progressive Homemaker SEC A1-A2 Lunch Box Urban Metro, Mini Metros, A & B Cities Age Group : 25-
Slide 29: Some Key Large Format Store - Trade Partners
Some Key Large Format Store - Trade Partners Borosil Investor presentation - Q4FY23 27
Slide 30: Some Key Institutional Customers
Some Key Institutional Customers Borosil Investor presentation - Q4FY23 28
Slide 31: Consumer Products Portfolio - Growth Pillars
Consumer Products Portfolio - Growth Pillars Core microwavable Larah-Opalware dinnerware: Storage products: products Mass market/daily use Domestic appliances Kitchen & on the go Bring more users Upgrade consumers from Convert from plastics Expand range into category Melamine etc.. Invest in awarene
Slide 32: Larah Opalware - Category Gaining Salience
Larah Opalware - Category Gaining Salience #2 player in approx. INR 900 cr category Adoption being led by - Gained share - Urbanization and nuclearization of families - Increase in entertaining guests at home Focus on market expansion Capacity expansion - Healthier, economic and aesthetic alternativ
Slide 33: Storage Range - Thoughtful Products Creating A New Pillar of Growth
Storage Range - Thoughtful Products Creating A New Pillar of Growth Indian kitchen storage dominated by plastic and steel - Very low penetration of glass storage Awareness of glass as a superior option on the rise - No health hazard as in some type of plastic - Transparent as against opaque steel &
Slide 34: Domestic Appliances - New Engine of Growth
Domestic Appliances - New Engine of Growth - Large market with growth accelerated post Covid - Opportunity to create a high quality mass premium range leveraging the Borosil brand - Commenced without investments in manufacturing assets - Expanding range of product offerings - Increase Made in India p
Slide 35: Consumer Products - Medium-Term Thrust Areas
Consumer Products - Medium-Term Thrust Areas Achieve revenue CAGR of more than 20% Become brand of consumer choice - Increase penetration of glass storage and Opalware - Maintain investments in brand building - Introduce high-quality & innovative To-Go storage - Introduce new and improved range of p
Slide 36: Scientific Products
Scienti c Products Borosil Investor presentation - Q4FY23 34
Slide 37: Scientific Products Range
Scienti c Products Range Laboratory Lab Pharma Glassware Instrumentation Packaging - Volumetric asks - Magnetic Stirrer - Glass Vials - Burettes - Block Digester - Glass Ampoules - Pipettes - Multi-Tube Vortexer - Liquid handling systems Borosil Investor presentation - Q4FY23 35
Slide 38: Market Opportunity - Scientific Products
Market Opportunity - Scienti c Products Lab Glassware Lab Glassware Lab Pharma Packaging India Exports Instrumentation (Vials & Ampoules) Market size 250 4000 570 1175 (INR Cr.) Estimated market ~8-10% ~2-3% ~8-10% ~10-12% growth Pharma R&D & QC, Pharma R&D, QC Pharma R&D & QC, Pharma companies Cust
Slide 39: Scientific Products Division Growth Theme
Scienti c Products Division Growth Theme Made in India - Build manufacturing capacity for raw material - tubing production New product development Substantially enhance capacity for ampoules and vials production Borosil Investor presentation - Q4FY23 37
Slide 40: Scientific Products - Some Key Customers
Scienti c Products - Some Key Customers Borosil Investor presentation - Q4FY23 38
Slide 41: Scientific Products Portfolio - Growth Pillars
Scienti c Products Portfolio - Growth Pillars Core laboratory LabQuest benchtop Klasspack: primary glass International expansion for glassware instruments packaging for pharma lab glassware industry Steady Business with New product range to New product range to Focus on Middle East, Africa, modest g
Slide 42: Scientific Products: Medium-Term Thrust Areas
Scienti c Products : Medium-Term Thrust Areas Achieve revenue CAGR of ~15% - Maintain dominant share in pharma lab glassware - Build export market in Lab Glassware & pharma packaging - Drive import substitution in Lab Instrumentation - increase product range - Add new customers & products in vials &
Slide 43: Scientific Products - Laboratory Glassware
Scienti c Products - Laboratory Glassware Meeting wide product range need of customer - Single supplier convenient for laboratory for multiple critical yet low priced SKUs - Not easily replicable by competition - Reliable supplier for right quality at competitive cost -Expansion into customized lab
Slide 44: Scientific Products - Lab Instrumentation
Scienti c Products - Lab Instrumentation Portfolio of Lab Essentials, Nutrition & Environment, Life Sciences, analytical Chemistry Leverage existing reach among pharma customers with new products in their existing work ow Build technological advantage through Borosil Technologies with focus on Nutri
Slide 45: Klasspack: Primary Packaging for Pharma
Klasspack: Primary Packaging for Pharma Glass ampoules & tubular glass vials for packaging pharmaceutical products Applications: Packaging of injectable formulations, ophthalmic, dental products, sample carrier for analytical instruments Provides Borosil’s pharmaceuticals customers credible second a
Slide 46: Acquisition in Process Chemistry Business - Goel Scientific
Acquisition in Process Chemistry Business - Goel Scienti c Borosil Investor presentation - Q4FY23 44
Slide 47: About Process Systems
About Process Systems Process systems refers to systems and components that can aid a chemical process at laboratory, pilot or plant scale. Glass and glass lined components are preferred for process systems due to their inertness. Process Systems Application Dissolution of Solids Chemical Reactions
Slide 48: Types of Process Systems
Types of Process Systems Batch Kilo Labs & Industrial Systems Reactors Pilot Plants Borosil Investor presentation - Q4FY23 46
Slide 49: Goel Scientific - Background
Goel Scienti c - Background Goel Scienti c Glass Works Ltd (GSGWL), one of India’s leading scienti c glass fabricators and exporter. GSGWL are experts in design, fabrication and installation of Industrial Process Systems for Production Plant and Pilot Plants Dedicated team of glass blowers with hand
Slide 50: Goel Scientific - Industry Segments
Goel Scienti c - Industry Segments Chemical Industry Research & Development Pigment and Dies Pharmaceutical Perfumery Industry Fertiliser Industry Precious Metal Essential Oils Borosil Investor presentation - Q4FY23 48
Slide 51: Goel Scientific - Industrial Process Systems
Goel Scienti c - Industrial Process Systems Shell & Tube Heat Exchangers Industrial Glass Column Sections Industrial Glass Pipe Sections Borosil Investor presentation - Q4FY23 49
Slide 52: Objective and Effects of Acquisition
Objective and E ects of Acquisition Borosil GSWL Borosil + GSWL Expertise & market Leader in Expertise in Chemical Process With this union the Goel skill backed by Borosil investment Systems, Reactors & Accessories muscle, we have a potential of becoming the the world's Laboratory Glasswares & Equip
Slide 53: Synergies of Proposed Acquisitions
Synergies of Proposed Acquisitions Revenue Potential Leveraging GSWL lower overheads & glass blowing expertise to Target International OEMs Lab glassware supplies Tube made bottles of large sizes & odd capacities e.g 15 L , 25 L , Customized sizes & capacities for domestic Lab Glassware customers. G
Slide 54: Our understanding of ESG
Our understanding of ESG ESG for us is about how we create pro ts. It is outcome driven and not just good intentions. Environment Social Governance - Emissions - Employee health - Risk management Investors - Water and safety system - Energy - Labour practices - Code of conduct - Customer relation -
Slide 55: Borosil 2.0: Leading a responsible tomorrow
Borosil 2.0: Leading a responsible tomorrow Borosil Limited is on a transformational journey to address key ESG opportunities and create long term value for our customers. Our strategic ESG priorities Our actions in FY23 Social - Completed GHG monitoring and inventorization to track emissions - Aim
Slide 56: Board of Directors
Board of Directors Pradeep Kumar Kheruka Shreevar Kheruka Rajesh Kumar Chaudhary Chairman Vice Chairman & M.D & CEO Whole Time Director Anupa Rajeev Sahney Kewal Kundanlal Handa Kanwar Bir Singh Anand Naveen Kumar Kshatriya Independent Director Independent Director Independent Director Independent D
Slide 57: Equity Information
Equity Information No.of Shares issued of Re. 1 each: 11,44,14,487 Share holding pattern 70.28% Promoters 1369812D:IN BOROLTD 27.40% Others 543212 INR 3746 Cr as on-31 March 2023: 0.18% Other 2.14% Foreign portfolio investors Borosil Investor presentation - Q4FY23 55
Slide 58: Investors Relations Details
Investors Relations Details Company’s Address Company’s Website Borosil Limited www.borosil.com 1101, Crescenzo, G - Block, www.myborosil.com Opposite MCA Club, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051, India. Investor Relations Anand Sultania, Chief Financial Officer (anand.sultania@bo
Slide 59: Thank You
Thank You Borosil Investor presentation - Q4FY23 57