Gulf Oil Lubricants India Ltd · NSE:GULFOILLUB
Gulf Oil Lubricants India — Investor Presentation (June 2024)
41 slides from Gulf Oil Lubricants India's investor presentation, Jun 20, 2024
Slide 1: Investor Meet Outcome - Investor Presentation cover letter
June 20, 2024 BSE Limited National Stock Exchange of India Ltd Scrip Code: 538567 Scrip symbol: GULFOILLUB Through: BSE Listing Centre Through: NEAPS Dear Sir/ Madam, Sub.: Investor Meet Outcome - Investor Presentation Ref: i. Regulation 30 read with Para A Part A of Schedule III of the Securities a
Slide 2: Gulf Oil Lubricants India Ltd. Investor Meet 2024
Gulf Oil Lubricants India Ltd. Investor Meet 2024 20th June, 2024 1
Slide 3: Safe Harbour Statement
Safe Harbour Statement This presentation and the accompanying slides (the “Presentation”) have been prepared by Gulf Oil Lubricants India Limited (the “Company”) solely for informational purposes. They do not constitute an offer, recommendation, or invitation to purchase or subscribe for any securit
Slide 4: Year in Review
Year in Review
Slide 5: Another Unstoppable Year !!
Another Unstoppable Year !! Quarter 1 Quarter 2 +4%* Volume Growth > 2x times Industry growth * +6% Volume Growth w/o Factory Fill Revenue +15% EBITDA +9% PAT +23% Revenue +13% EBITDA +17% PAT +32% Quarter 3 Quarter 4 Revenue EBITDA ₹3284 Crs Y-o-Y ₹419 Crs Y-o-Y 9.5% 22.3% Hitting back-to-back cent
Slide 6: We Have Retained Our Strong Position
We Have Retained Our Strong Position Indian Lubricant Market 2-3% -5-7% 3-4% Growth Estimates 2019-2022 2022-24 Volume +14% 2016-19 High Growth Phase Auto sector downturn, Economic Back to Growth phase – Pick up in slowdown, Covid-19 led restrictions economic activity, uptick in Auto sales 15% Gulf
Slide 7: Indian Lubricants Industry
Indian Lubricants Industry
Slide 8: Unlocking growth opportunities in the Indian Lubricants Industry
Unlocking growth opportunities in the Indian Lubricants Industry Lubricant Demand (Mn Tonnes) Volume Growth supported by even stronger value growth (CAGR 2022-32) 3rd 2022 2.9 Despite Volume Growth 3% Most of the panelists found projections conservative; foresee substantial industry Largest De- Prem
Slide 9: Growth Enablers for automotive lubricants industry
Beneficial Macros 1 Rising per capita income crossing $2,700 p.a. 2 Current low per capita vehicle penetration in India (8% owns cars, 47% owns 2Ws) Strong prospects of the rural economy and rising farm income to boost tractor sales 3 and MCO sales 4 Robust GDP growth forecast: 7.2% for FY25 on stro
Slide 10: Growth Enablers for industrial lubricants industry
Growth Enablers for industrial lubricants industry - India taking bold steps Industrial/Hydraulic Oils Increasing foreign and government investment making India as a Manufacturing hub Flagship Programs Metalworking fluids India’s investments in infrastructure will rise to Rs 143 trillion between FY
Slide 11: Gulf Oil Lubricants - Business Model
Gulf Oil Lubricants- Business Model
Slide 12: Dynamic Business Framework supported by a Varied Product Portfolio
Dynamic Business Framework supported by a Varied Product Portfolio Business Model (RTM) *Industry Product Mix (FY24) 15% Domestic Gulf Oil Exports 21% 43% Automotive Industrial ~95% India ~5% 21% DEO Personal Mobility Industrial Others *Internal estimates B2C/ Automotive Channel B2B *Gulf Oil Produc
Slide 13: Our Key Business Strategies Continue To Drive Our Success And Growth
Our Key Business Strategies Continue To Drive Our Success And Growth Passion, our key ingredient Nurturing & Growing OEM & B2B Relationships Leveraging Technology & Powering UP our Brand Strength Innovative CVP’s Successful Segment - Making a Play in EV value Chain wise Approach
Slide 14: Stellar Pan India Network
Stellar Pan India Network B2C Network B2B Network 85,000+ ~1,000 3,000+ 500+ Touchpoints Gulf Rural Stockists Secondary B2B Direct Customers Customers 300+ ~11,800 ~70 Auto Distributors Gulf Bike Stops (~8,700) & Industrial 820+ Car Stops (~3,100) Distributors IMF Customers across 522 cities in Indi
Slide 15: OEM Tie ups
From 1 OEM in 2006-07 to over 40 OEMs OEM Tie ups Automotive OEMs Construction OEMs Industrial OEMs EV Fluids OEMs AdBlue OEMs
Slide 16: Our Brand Strength
Our Brand Strength
Slide 17: Powering Up our Brand Strength
Powering Up our Brand Strength Gulf Brand has been built over 14-15 years with significant investments Sponsorship of teams in IPL – 11 Years with CSK Appointment of M S Dhoni as Brand Ambassador since 2011 Innovative brand promotions, Extensive ATL & BTL activities Leveraging Global Brand associati
Slide 18: Gulf Brand Track
Gulf Brand Track Strongly positioned at No 2/3 in Awareness and Consideration across all cohorts END CONSUMER Positioned as AWARENESS – NO. 2 CONSIDERATION – NO. 3 No 2/3 Lubricants Brand in India Brand Consideration and Awareness 2-3x MECHANIC amongst the Players RETAILER AWARENESS – NO 2 Below Top
Slide 19: Manufacturing Facilities
Manufacturing Facilities Silvassa Plant (West India) • Lubricants manufacturing Capacity* of 90,000 KL Automated Storage and Retrieval System per annum (ASRS) • AdBlue® manufacturing capacity of 36,000 KL • Robust Safety & Disaster Management per annum Systems and supports • Key certifications inclu
Slide 20: Leadership Team
Leadership Team Mr. Ravi Chawla Mr. Manish Gangwal Mr. Somesh Sabhani Mr. Nilesh Garg Mr. Shiva Raj Mehra Mr. Anand Sathaye Mr. K. Swaminathan Sr. Vice President - Managing Director & Chief Financial Officer Business Head – B2C - Vice President & Head - Sr. General Manager Sr. General Manager – Indu
Slide 21: Unlock 2.0
Unlock 2.0 Accelerate. Premiumize. Transform
Slide 22: Unlock 2.0 – Unlocking the Next Level of Growth and Success
Unlock 2.0 – Unlocking the Next Level of Growth and Success Getting Future Ready ACCELERATE Robust Business Model India Growth 2-3x Volume Growth Story Market Share Growth Profitable Growth Brand Strength PREMIUMIZE 3% 6% Volume Value Higher Synthetics Passenger EV FY22-32 CAGR Growth Technology Sem
Slide 23: Accelerate
Accelerate Among The Fastest Growing Major Economies Robust GDP growth projection Robust Business Model +6-8% Most Populous Country High Local Consumption BRAND Favorable Demographics STRENGTH India Shining Bright Infra US$ 1.7 trillion FY24-30 – Growth in Construction, Roads, Transport, Steel, Ceme
Slide 24: Premiumize
Premiumize India Lubricants Market Projections: Value is expected to grow faster than Volume in both Consumer and B2B segments in the next decade Premium Products Passenger Car Motor Oil EV Fluids Power Brands Synthetics Semi-Synthetics Source: Kline’s Global Lubricants 2022: Market Analysis and Ass
Slide 25: Transform
Transform NEW PRODUCTS S&OP 2.0 Establishing New Products, ATP, Delivery App, Order Status Visibility, IBP NPI Tracking, focus on Enhancements, Route/Load Optimization, DIGITAL premium and synthetics Transport Module, S&OP Dashboards TRANSFORMATION Cultivating a digital-centric organizational cultur
Slide 26: Volume Growth, Gain Market Share, Premiumization
Volume Grow in Growth attractive segments Gain Market Drive share in low Premiumization market share areas Continued Brand Investments- Profitable ATL/BTL growth Strategic growth in EV Value Chain Increase Distribution Use digitization and digital assets
Slide 27: Financial Strength
Financial Strength Let the numbers speak
Slide 28: Standalone - Financial Highlights
Standalone- Financial Highlights Operational Revenue (Rs Cr.) EBITDA (Rs Cr.) & Margins PBT (Rs Cr.) 3,284 2,999 500 17.7% 17.5% 20.0 16.6% 419 413 16.1% 400 343 2,192 15.0 313 287 284 1,706 300 283 265 285 243 275 265 269 1,644 1,652 236 13.0% 12.8% 10.0 1,378 11.4% 200 5.0 100 0 0.0 FY18 FY19 FY20
Slide 29: Ownership and Stakeholder Value creation
Ownership and Stakeholder Value creation Declared Total Dividend Rs 36.00; Dividend Yield stands at 3.4% (as on 22nd May, 2024); 1800% on FV of Rs 2 each at the end of Mar’24 Continuous increase in dividend with For FY24 & FY23 Payout ratio stands at 57% & 23.2% CAGR (from FY15 to FY24) Total quantu
Slide 30: AdBlue®
AdBlue®
Slide 31: AdBlue® - Eco friendly / Urea based solution
AdBlue® - Eco friendly / Urea based solution Complementary product; Huge synergy in supply chain, distribution and end customer segments Mullti-foldgrowth in volume (KL) 1,28,000 Urea-based eco-friendly product for diesel vehicles, reducing NOx emissions and complying 77,500 with BS-VI standards Gul
Slide 32: AdBlue® manufacturing capacity with Satellite Plants
AdBlue® manufacturing capacity: ~75,000 KL in-house, >2,79,000 KL with over 13 Satellite Plants Alwar Guwahati Kanpur Varana si Indore Raipur Howra Kolkat h Silvassa a Navi Patalganga Mumbai Hyderabad Gulf Plant Satellite Plant Chennai Hosur
Slide 33: Battery Business
Battery Business
Slide 34: Battery - Among the top five players in the replacement two-wheeler segment
Battery - Among the top five players in the replacement two-wheeler segment • Began 7-8 years ago; launched Gulf Pride quality batteries to enhance our brand strength in 2-Wheelers, an extension to Gulf Pride Motor Cycle Oil brand • To leverage our lubricants retail distribution (~40% synergy) • Fil
Slide 35: E-Mobility/ EV Value Chain
E-Mobility/ EV Value Chain
Slide 36: Strategic Levers (Enablers) EV eco-system Play for Gulf Oil
Strategic Levers (Enablers) EV eco-system Play for Gulf Oil Strong Brand Image Access & strong relationship Good association with Good presence, pan India with 2W & Passenger Car Construction/ Infra Cos in network of distribution points OEMs in India India & servicing stations – Gulf Bike Stops & Ca
Slide 37: India Automobile Sector
India Automobile Sector FY28P 4 Yr- CAGR ICE Parc Vehicle Annual ICE+EV in Million Units Vehicle Parc Annual Sales EV Penetration (Lube Opportunity) Parc Sales 2W 354 25.9-26.1 18-20% 338 8% 11% 3W 12 1.2-1.4 60-65% 8 14% 9% PV 66 5.2-5.4 10-15% 64 8% 8% CV 18 1.3-1.5 2-3% 18 8% 10% Total 450 33.4 1
Slide 38: Gulf Oil gets Future Ready with EV Fluids
Gulf Oil gets Future Ready with EV Fluids Key strengths to keep Gulf Launched globally as well as ahead of competition: in India in 2021 Strong Brand Image Formulated specifically for Access & strong relationship Hybrid and Fully EVs for with 2W & Passenger Car optimal performance to help OEMs in In
Slide 39: Strategic initiatives to participate in end-to-end EV Value Chain
Strategic initiatives to participate in end-to-end EV Value Chain 2021 2023 Indra Renewable Technologies 2022 Techperspect Software Pvt Ltd. Tirex Transmission ~INR 30 Crore (~7.5% Stake) Gulf Group globally holds controlling ~INR 15 Crore (26% Stake) ~INR 103 Crore (~51% Stake) stake Slow Home AC C
Slide 40: Key Take-Aways for Next Level of Growth
Key Take-Aways for Next Level of Growth As per Kline and industry experts, Indian Lubricants Effective margin management, enhancing Market will continue to grow at least over the next 10- profitability and maximizing return to shareholders 15 years despite de-carbonization. 11 01 Gulf will continue
Slide 41: Thank You !
Thank You ! For further information: Ms. Ekta Srivastava – Investor Relations – Gulf Oil Lubricants India Ltd. Email: ekta.srivastava@gulfoil.co.in Mr. Snighter Albuquerque – Adfactors PR Pvt. Ltd. Email: snighter.a@adfactorspr.com
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