Greenply Industries Ltd · NSE:GREENPLY
Greenply Industries — Investor Presentation (July 2011)
47 slides from Greenply Industries's investor presentation, Jul 21, 2011
Slide 1: Analyst Meet Presentation
Analyst Meet Presentation 21st July, 2011
Slide 2: Safe Harbor
Safe Harbor This presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward looking statements. The future involves certain risks and uncertainties that could cause actual results to differ materially from the current views being expr
Slide 3: Presentation Structure
Presentation Structure • Environment & Growth Drivers • Industry Overview • Greenply at a glance • Numbers Speak: – Segmental Review – Our Green Credentials – Capacity Review – Financials – Initiatives – Investment Highlights
Slide 4: Environment
Environment • Economy did well on the back of strong domestic demand and buoyant exports • GDP growth at around 8.5% for FY 2010-11 vis-à-vis 8% FY 2009-10 • The demand for interior infrastructure products in second half of the year was better than demand during the first half of the year. Demand
Slide 5: Growth Drivers
Growth Drivers • Per Capita Income: – Doubled in last 7 years – Expected to increase to US$ 2000 by 2017 and US$ 4000 by 2025 – Increase in per capita income strengthen the consumption of life style products like furniture's & interiors. • Indian Real estate sector : – Expected to grow from US$14 Bi
Slide 6: Growth Drivers
Growth Drivers • Organized Industry Growth: – Due to rationalisation of taxes & duties, organized players secured a competing edge – Organized players are growing at 20% compared to industry growth of 5-7% over a five year period from FY 04-05 to FY09-10 • Increasing Urbanization – As per Crisil urb
Slide 7: Industry Overview
Industry Overview aes 2 iy Pe PW FB W iena Trust & Relationship Industries Limited
Slide 8: Industry at a glance
Industry at a glance Rs. in Crores Industry Size: Rs. 18000 Cr 3000 3000 15 % 12000 Plywood Laminate MDF & particle Board
Slide 9: Organized vs Unorganized share
Organized vs Unorganized share Rs. in Crores 8000 9600 7000 6000 5000 4000 3000 0 1200 2000 3000 2400 1000 1800 0 Plyw ood Lam inate MDF & Particle board Organised Unorganised
Slide 10: Industry Growth over Greenply Growth
Industry Growth over Greenply Growth • Preference for branded products has given a boost to the growth of organised players and led to a decline in market share of the unorganised sector. • Industry has grown at 5-7% over the five years from FY 2004-05 to FY 2009-10. • Organised players have grown a
Slide 11: Greenply at a glance
Greenply at a glance ®@ i feiteit f fF. Ve Trust & Relationship Industries Limited
Slide 12: About Greenply
About Greenply • With a consolidated turnover of Rs.1420cr. ($322.7million) we are the largest company in the interior infrastructure space. • We are the only integrated manufacturer in the industry catering to all the product segments of interior infrastructure industry. • 7 State–of-art manufactur
Slide 13: Our Capacities
Our Capacities Plywood : 28.35 mn Sqm. Tizit: 4.50 mn. Sqm Kriparampur: 6.00 mn. Sqm Pantnagar: 10.50 mn. Sqm Bamanbore: 7.35 mn. Sqm Laminate : 10.02 mn sheets Behror: 5.34mn sheets Nalagarh 4.68mn sheets Decorative Veneers: 4.20 mn.sqm Behror MDF: 0.18 mn. Cbm Pantnagar
Slide 14: About Greenply (Contd.)
About Greenply (Contd.) • With 38 Domestic offices, 8 International office and over 4000 employees Greenply offers the largest range of products to over 65 countries through largest network of 13000+ retail outlets. • Greenply Industries is the undisputed Market leader with product offerings in both
Slide 15: Largest Laminate company in Asia
Today, Greenply has become the Largest Laminate company in Asia
Slide 16: Largest Globally
& th 5 largest Globally
Slide 17: Largest Brand Portfolio
Largest Brand Portfolio ®@ gs ac tai Ff Trust & Relationship Industries Limited
Slide 18: Brands & Products
Brands & Products catering to all segments of the market
Slide 19: Flagship Brands
Flagship Brands ® LAMINATES GREEN We MDF BOARD Industries Limited
Slide 20: Space we add life to..
Space we add life to.. Hotel Residential Office Spaces
Slide 21: Space we add life to..
Space we add life to.. Commercial Retail Hospitals
Slide 22: Segmental Review
Segmental Review g aes | 2 ZEREemie” Wi Trust & Relationship Industries Limited
Slide 23: Plywood & Allied Products
Plywood & Allied Products Rs. in Crores Particulars Q1FY12 Q1FY11 % Change FY11 FY10 % Change Gross Turnover 206.19 170.44 27.53 767.84 577.62 32.93 EBIDTA Margin (%) 13.29 13.81 20.98 13.03 10.89 Particulars Q1FY12 Q1FY11 % Change FY11 FY10 % Change Annual Capacity (mn.sq.m.) 28.35 24.00 26.55 24.0
Slide 24: Plywood & Allied Products (FY Highlights)
Plywood & Allied Products (FY 11 HIGHLIGHTS) • Grew 32.93% in value terms and 20.61% in volume terms. • Enhanced overall capacity utilization from 110% in FY 2010 to 119% in FY 2011. • Increased production from 26.36 mn. sq mtrs. In FY 2010 to 29.70 mn sq meters. in FY 2011. • Added compreg plywood
Slide 25: Laminates
Laminates Rs. in Crores Particulars Q1FY12 Q1FY11 % Change FY11 FY10 % Change Gross Turnover Laminates 120.12 103.09 16.52 459.50 320.90 43.19 Gross Turnover Decorative Veneers 24.06 23.70 1.52 104.51 80.98 29.06 EBIDTA Margin (%) 9.13 8.54 9.54 10.52 Particulars Q1FY12 Q1FY11 % Change FY11 FY10 % C
Slide 26: Laminates (FY 10-11 Highlights)
Laminates (FY 10-11 Highlights) • Grew 30.35% in value terms and 30.14% in volume terms. • Increased production from 7.20 mn sheets In FY 2010 to 9.37 mn sheets In FY 2011. • Average Realisation increased from Rs 436 per sheet to Rs 480 per sheet. • Capacity Utilisation at 94% on enhanced capacity o
Slide 27: Laminate Plant at HP.
Laminate Plant at HP. • The plant manufactures compact laminates in thickness ranging from 3 mm to 25 mm & in dimensions up to 6’ x12’ and laminates in different dimensions such as 5’X12’, 4.25’x10’, apart from the present (4’ x 8’). This has opened up international markets like United States, Europ
Slide 28: Decorative Veneers
Decorative Veneers Rs. in Crores Particulars Q1FY12 Q1FY11 % Change FY11 FY10 % Change Annual capacity in mn. Sqm 4.20 4.20 4.20 4.20 Production (mn.sq.m.) 0.30 0.32 (6.25) 1.39 1.19 16.81 Sales (mn.sq.m.) 0.30 0.33 (9.09) 1.45 1.22 18.85 Capacity Utilisation (%) 29 31 33 28 Average Realisation (Rs.
Slide 29: Decorative Veneers (FY11 Highlights)
Decorative Veneers (FY11 Highlights) • Increased production by 16.81% from 1.19 mn sq meters in FY 2010 to 1.39 mn sq meters in FY 2011. • Capacity Utilisation improved from 28% in FY 2010 to 33% in FY 2011. • Increased average realisation from Rs 662 per sq meter in FY 2010 to Rs 723 per sq meter.
Slide 30: About MDF
About MDF • MDF is a very versatile product with wide applications, primarily in paneling, wide range of furniture, windows & doors frames, handicraft industry, display or exhibition stands and signage's, false ceiling, toys, carving & molding panels, partitions, shoe industry and educational equipm
Slide 31: MDF – Market Size Scenario Before Green's Introduction
MDF – MARKET SIZE SCENARIO BEFORE GREEN’S INTRODUCTION MDF VS MDF Total Market Size = 3.60 Lacs. CBM Per Annum Green’s Capacity = 1.80 Lacs CBM i.e. 50% of Market Size
Slide 32: Medium Density Fibreboards (MDF)
Medium Density Fibreboards (MDF) • Achieved a Gross Turnover of Rs 46.11 crores in FY 2011. • Average capacity utilization of 36% during the period from Nov. 2010, to March 2011. • Product accepted and appreciated, unit offered more sizes and options than competitors. – Plain MDF – Thicknesses: 2.3m
Slide 33: Medium Density Fibreboards (MDF)
Medium Density Fibreboards (MDF) • Unit received FSC Certification of Controlled Wood and Chain of Custody, works on new resin technology meeting worldwide standards on formaldehyde emission and also obtained E-1 and CARB certifications. • This plant is based on the latest Continuous Press Technolog
Slide 34: Our Green Credentials
Our Green Credentials • First in Indian industry and the only non-US company to receive the coveted Greenguard Certificate for Indore Air Quality and Greenguard certificate for children and schools. • Our initiatives on sustainability goes back till around a decade back, since when we have been work
Slide 35: Capacity Utilization Plywood
Capacity Utilization Plywood 31 119% 125% 29 110% 115% 27 105% mn.sq.m. 25 96% 23 95% 21 85% 19 75% 17 15 65% FY09 FY10 FY11 Capacity Production Utilisation Rate
Slide 36: Capacity Utilization Laminates
Capacity Utilization Laminates(annualised) 107% 107% 11 110% 10 105% 9 mn.sheets 8 100% 7 94% 95% 6 5 90% 4 85% 3 2 80% FY09 FY10 FY11 Capacity Production Utilisation Rate
Slide 37: Capacity Utilisation Decorative Veneer
Capacity Utilisation Decorative Veneer 4.5 33% 33% 4 32% 3.5 31% mn.sq.m. 3 30% 2.5 30% 2 29% 1.5 28% 28% 1 0.5 27% 0 26% FY09 FY10 FY11 Capacity Production Utilisation Rate
Slide 38: Financial Highlights
Financial Highlights aes 2 iy Pe PW FB W iena Trust & Relationship Industries Limited
Slide 39: Highlights – Q1FY12
Highlights – Q1FY12 • Net Sales up by 34.44% at Rs. 352.32 crores – Plywood & Allied Products : Rs. 178.43 crores, up by 19% – Laminates & Allied Products : Rs. 127.73 crores, up by 1% – Medium Density Fibre-Boards : Rs. 46.14 crores. • EBIDTA (excluding foreign currency gains) up by 76% at Rs. 42.3
Slide 40: Highlights – FY11
Highlights – FY11 • Net Sales up by 39.55% at Rs. 1216.09 crores – Plywood & Allied Products : Rs. 674.32 crores, up by 30% – Laminates & Allied Products : Rs. 496.18 crores, up by 40% – Medium Density Fibre-Boards : Rs. 45.41 crores • EBIDTA up by 24.44% at Rs. 116.44 crores • EBIDTA Margin down by
Slide 41: Financial Performance
Financial Performance Rs. in Crores Q1FY12 Q1FY11 FY11 FY10 Key Ratios ROCE (%) 12.33 13.89 8.77 15.78 ROE (%) 15.46 14.79 7.79 18.32 Net Debt / Equity (x) 1.57 1.58 1.60 1.51 Inventory Days (Gross Sales) 58 79 61 74 Receivable Days (Gross Sales) 56 66 56 56 Payable Days 93 111 99 115 Update on Bala
Slide 42: Sales Break Up
Sales Break Up FY11 FY10 Others 4% Deco Veneer Deco Veneer 8% Others 8% 5% MDF 3% Ply 53% Lam 32% Lam Ply 32% 55%
Slide 43: Growth Momentum
Growth Momentum Net Sales CAGR 25% 1400 1200 EBIDTA 1000 800 CAGR 20% 600 400 100 200 FY07 FY08 FY09 FY10 FY11 80 60 40 20 FY07 FY08 FY09 FY10 FY11
Slide 44: Initiatives
Initiatives • Positioned our brands on the platform of Green through specific initiatives • Launched 9 new Green Design Studios ( signature store) to give customer a world class shopping experience for interior related products • On going investment in brand building • Strengthened BTL drives to imp
Slide 45: Initiatives (Contd.)
Initiatives (Contd.) • Launched anti-bacterial laminates and “Greenlam Xtraordinaire” brand of super premium laminates (digitally printed, customized and Unicore laminates). • Introduced products in the technical plywood segment for transportation industry • Implemented applications like Business In
Slide 46: Investment Highlights
Investment Highlights • Established brands with strong presence and market share • Further utilization at new plants would substantially boost revenues and profits in the next 3 years • Existing business is expected to grow at 20-25% • Recovery in residential and commercial property market and overa
Slide 47: Thank You
Thank You Corporate Office: 16A, Shakespeare Sarani, New Phone: +91 33 3051 – 5000 B.K. Market, 2nd Floor, Kolkata – Fax: +91 33 3051-5010 700 071, West Bengal, India investors@greenply.com www.greenply.com
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