Garware Hi-tech Films Limited · NSE:GRWRHITECH
Garware Hi-tech Films — Q4 and FY24 Earnings Presentation
65 slides from Garware Hi-tech Films's earnings presentation, May 29, 2024
Slide 1: Exchange filing cover letter
May 29, 2024 The Compliance Manager The Manager, Listing Department BSE Limited National Stock Exchange of India Limited Corporate Relationship Dept. Exchange Plaza, Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Dalal Street, Mumbai 400001. Bandra (East), Mumbai 400 051. Sc
Slide 2: Garware Hi-Tech Films Ltd. Investor Presentation Q4 and FY24
Garware Hi-Tech Films Ltd. (GHFL) Investor Presentation Q4 and FY24
Slide 3: Safeharbor
Safeharbor 2 Our discussion may include predictions, estimates or other information that might be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to
Slide 4: Contents
Automobile Window Architecture Safety Contents 3 01 Q4 & FY24 Highlights 02 Company Overview Product Overview 03 ⁻ ⁻ SCF PPF Paint Protection Shrink Industrial ⁻ IPD Marketing & Branding 04 Initiatives 05 Annexures
Slide 5: Q4 & FY24 Highlights
4 1 Q4 & FY24 Highlights
Slide 6: Message from the CMD
Message from the CMD 5 Dr. S B Garware Chairman and Managing Director "We are pleased to report another strong financial year performance, driven by our strategic expansion and our commitment to offer superior quality products to customers, combined with robust R&D efforts and effective sales and ma
Slide 7: Robust Performance | Record-high annual PAT exceeded ₹200 cr
Robust Performance | Achieved record-high annual PAT exceeded ₹200 cr 6 Q4FY23 Q4FY24 Margin Q4FY24 (in ₹Cr) FY23 FY24 Margin FY24 (in ₹Cr) 349.0 1438.0 Revenue Revenue Revenue Revenue 446.6 + 28.0% 1677.0 + 16.6% YoY YoY 20.2% 18.7% 70.4 EBITDA 269.4 EBITDA EBITDA EBITDA 89.7 + 27.5% 321.1 + 19.2%
Slide 8: Earnings Quality
Earnings Quality | Robust sales and marketing efforts to yield long-term benefits 7 EBITDA Bridge (In cr) Comments Q4FY24 Q4FY24 vs Q4FY23 ⁻ EBITDA increased primarily due to higher sales volume of PPF and SCF films, driven by strategic marketing and sales initiatives. ⁻ EBITDA% remained stable, des
Slide 9: New Initiatives and Developments
New Initiatives and Developments 8 1. Product range expansion : ₋ Launch of Titanium PPF with lifetime warranty ₋ PPF range is complete – Matte, Black, White, Plus, Premium and Titanium ₋ Launch of architectural films – DecoVista (decorative series) and Spectra Pro, at Dealer Meets (Delhi, Mumbai, C
Slide 10: Quarterly Financial Performance – Q4 & FY24
Quarterly Financial Performance – Q4 & FY24 9 Comments Revenue In cr Q4 FY24 Growth Q4FY24 vs Q4FY23 QoQ -1.6% ⁻ Revenue stood at ₹447 crore, up 28% YoY, with sales increases YoY 28.0% across all segments: SCF, PPF, and IPD. 370 395 324 349 380 397 454 447 FY24 Growth ⁻ EBITDA stood at ₹89.7 cr, up
Slide 11: Company Overview
GARWARE HI-TECH FILMS 2 Company Overview CARMARE INNOVATIVE FILMS as Quelay & Global Trust
Slide 12: Product Strategy | Premium Market Positioning
Product Strategy | Premium Market Positioning 11 Our 'Global' and 'Garware' brands target the high-end market, setting them Tier 1 Brand Exclusive Tech apart from international competitors in the premium and economy categories. A premium global brand, One of only 2 with dyed SCF ranking top 3 in USA
Slide 13: Business Strategy | Four Pillars
Business Strategy | Four Pillars 12 Customer-Centric Growth Value-Added Manufacturing Strengthening Domestic Fostering Sustainable Specialty films Excellence Market Share Financial Performance ➢ Manufacturers & suppliers of ➢ Fully vertically integrated chips-to- ➢ Solid sales & marketing strategy t
Slide 14: Transitioned into a Value-Added Product Business
Transitioned into a Value-Added Product Business 13 GHFL has ventured into value-added products like Solar Control, Paint Protection and Shrink Film, resulting in better recovery of revenue, and improved margins. FY17 & Prior 11% FY18 & Beyond 20% 52% ➢ GHFL was one of largest exporter of polyester
Slide 15: Geographical Strategy | Mature Market with High-end Customer Base
Geographical Strategy | Mature Market with High-end Customer Base 14 Global Presence India, USA, UK India 90+ Countries 3 Sales Offices 2 Manufacturing locations 5000+ Tinters across the globe Europe FY24 Revenue Share Export Revenue 77.6% 11.5% Share in FY24 North America ➢ Strong global distributi
Slide 16: GHFL Manufacturing footprints
GHFL Manufacturing footprints Pioneering the Future of Specialty Polyester Films 15 Fungible Capacity Fully Vertically integrated 2 Manufacturing Locations ➢ Crucial for improving sales mix & responding to stable demand ➢ Enables shift between value-added and commodity products Waluj, Chhatrapati Ch
Slide 17: Consolidated Annual Performance
Consolidated Annual Performance 16 Revenue from Operations EBITDA PAT EBITDA Margin PAT Margin (₹ crores) (₹ crores) (₹ crores) 23.6% 12.7% 12.8% 21.3% 400 220 11.6% 12.1% 13. 0% 18.8% 18.7% 19.1% 9.3% 350 16.1% 20.0% 11. 0% 300 170 8.6% 9.0 % 15.0% 250 10.6% 200 120 7.0 % 10.0% 3.9% 150 5.0 % 70 10
Slide 18: Diversified Portfolio driving GHFL's Success
Product Overview Diversified Portfolio driving GHFL's Success 17 Revenue Mix Consumer Product Division (CPD) VAP mix – FY23 VAP mix – FY24 45% Value Added Products 20% 11% 49% 65% • Automotive Solar Control Film • Architectural Solar Control Film 80% 89% • Paint Protection Film • Safety Film Commodi
Slide 19: Product Overview
Product Overview GiopAL® | GLOBAL GARWARE
Slide 20: Solar Control Films (SCF)
Automobile and Solar Control Films (SCF) Architectural Film
Slide 21: Competitive Advantage - SCF
Solar Control Film Competitive Advantage - SCF 20 Only company in the world with backward integration and extensive in- ➢ Only company in the world with backward integration (Chip- house manufacturing processes for SCF Premium to-films) Leading Brand ➢ The largest global capacity at one location & a
Slide 22: Key Growth Drivers - SCF
Solar Control Film Key Growth Drivers - SCF 21 Untapped domestic market ➢ Reintroduction of GHFL ‘safety glazing’ window film in India ➢ Fully compliant with 50/70 VLT government regulations Product extension in SCF business Global SCF Market US$ billion 11.1 ➢ Expected robust growth in complementar
Slide 23: Architectural Film | Next Engine of Growth for SCF
Solar Control Film Architectural Film | Next Engine of Growth for SCF 22 Unique range Privacy Films Sun Control Films Safety & Security Films • 1 Applied to the inside surface of •1 Holds broken glass shards intact & Glass Windows minimizes chances of injuries 2• Reduces solar heat, UV light & •2 Ma
Slide 24: Architectural Film | Products Designed to Meet Various Customer Requirement
Solar Control Film Architectural Film | Products Designed to Meet Various Customer Requirement 23 TSER (Heat Rejection) TSER: Higher the better Few illustrative SKUs from all series VLT: Depends on usage 100% 80% 60% 40% 20% 0% 20% 40% 60% 80% Visible Light Transmission (VLT) Spectrally Selective Fi
Slide 25: New Launch | Spectra Pro Architectural Films
Solar Control Film New Launch | Spectra Pro Architectural Films 24 Designed for high heat rejection & high VLT Objective • A product that provides high performance, maximum clarity and impeccable durability that metallic films can't match Application • Application of film to be done from exterior or
Slide 26: New Launch | DecoVista Series Decorative Film
Solar Control Film New Launch | DecoVista Series Decorative Film 25 Elevate the Style of Your Homes and Offices New range of interior decorative films will redefine your experience with elegance and innovation Non-Exhaustive Along with a wide range of other designs
Slide 27: New Project | One of the biggest Malls in Mohali Punjab
Solar Control Film 26 New Project | One of the biggest Malls in Mohali Punjab New project at one of the largest malls in Mohali, Punjab, supplying of architectural films. This property is part of the Homeland/Unity Group. For more - Linkedin Link
Slide 28: Architectural Films
Solar Control Film Bank of Brazil Imperial College, Taj Amer, London Jaipur Our Global Marquee Clients in Architectural Films Changi Airport, Bengaluru Airport, Luton Airport, Singapore Bengaluru London
Slide 29: Paint Protection Films (PPF)
Paint Protection Films (PPF) Automobile
Slide 30: Competitive Advantage (PPF)
Paint Protection Film Competitive Advantage (PPF) 29 ➢ GHFL is the only producer of professional-grade Premium paint protection film Sole Producer (PPF) in India Vertically ➢ A single-source manufacturing facility with in a state-of-the-art, ISO-9001:2015 Integrated certification capable to produces
Slide 31: Key Growth Drivers (PPF)
Paint Protection Film Key Growth Drivers (PPF) 30 Under penetrated and untapped PPF market in India To cater growth demand for PPF, Board of ➢ Indian market is in the early stages of “building awareness” - scratch resistance, Directors approved new line of 300 LSF pa hydrophobicity, self-healing, an
Slide 32: Launch | PPF Titanium with lifetime warranty
Paint Protection Film Launch | PPF Titanium with lifetime warranty 31 Aim is to reinforce Garware's reputation for delivering high quality and best-in-class PPF 1 2 Exclusively available only at Lifetime warranty to be GAS studios provided to Garware GAS customers 3 4 Best-in-class PPF quality, High
Slide 33: Domestic PPF | Driven by 600+ OEM Dealerships and 120+ channel partners
Paint Protection Film Domestic PPF | Driven by 600+ OEM Dealerships and 120+ channel partners 32 Garware Application Studios (GAS) : Detailing and Car care Studios for exclusive access to Garware's premium safety glazing films and PPF Introducing a D2C channel of certified and trained applicators Ai
Slide 34: Building Robust Sales Network | Installation Training for Applicators
Paint Protection Film Building Robust Sales Network | Installation Training for Applicators 33 Ensure a High-Quality Finish Cutting-Edge Training Center Deeper Penetration Applicator Network expansion Established the Garware training Starting with region wise (Tier deliberate endeavor, recognizing c
Slide 35: Case Study: Product Innovation | Advanced Adhesives
Paint Protection Film Case Study : Product Innovation | Advanced Adhesives for superior protection 34 Problem : Drawbacks of Solution : GHFL’s Advanced Traditional Adhesives Adhesive Properties ➢ Heat sensitivity: can lose bond strength in extreme heat ➢ Yellowing: reducing the film's clarity and ae
Slide 36: Industrial Product Division (IPD)
Shrink, Low Oligomer , Industrial Product Division (IPD) Release Liners, Packaging etc.
Slide 37: Commodity Products
Industrial products Division | Integral to GHFL’s leadership in Poly-films 36 Shrink Film Thermal Lamination Wrapping & labelling plastic bottles, Provide heat insulation, energy efficiency, containers, cans, cups, etc. of various sizes increased comfort & protection in various applications like Boo
Slide 38: Competitive Advantage - Shrink Film
Shrink Films Competitive Advantage - Shrink Film 37 Product USP Wide variety ➢ 12 variants (under High, Medium and Low Shrink options) powered by a strong focus on R&D Robust entry ➢ Implementing products at customer’s end requires extensive Niche area of Excellent Ease of barrier & trial periods, a
Slide 39: Key Growth Drivers
Shrink Films Key Growth Drivers 38 India's Rising Role in Shrink Film Manufacturing Global shrink film is expected to grow at a CAGR of 5.4% from 2022 to 2031 India has a great scope to emerge as a sizable player in shrink film manufacturing as part of China-plus-one diversification strategy (in US$
Slide 40: Case Study: Product Innovation | Pearl Float
Shrink Films Case Study : Product Innovation | Pearl Float, Revolutionizing Sustainability & Protection39 Problem : Environmental Impact of Solution : Pearl Float Shrink film, a Traditional Shrinkwrap sustainable alternative ➢ Urgency for Sustainable Alternatives: Traditional PVC based shrink films
Slide 41: Marketing, Branding & Network Expansion Initiatives
40 Marketing, Branding & Network 3 Expansion Initiatives
Slide 42: Expansion | Targeting Tier-2 & Tier-3 Cities in India and International Markets
Expansion | Targeting Tier-2 & Tier-3 Cities in India and International Markets 41 New GAS in Tier-2 & Tier-3 Cities : Prime Car Care in Belgaum and in Goa. Global Window Films & PPF Retail store New GASs in Lucknow and Kanpur opens in South Korea
Slide 43: Events, Exhibitions & Seminars | Product Showcases
Events, Exhibitions & Seminars | Product Showcases 42 Green Building Argentina - Seminar on Energy Efficiency and Thermal Comfort with the Garware Window Films addressing more than 60 architects and engineers Cars And Coffee Event (Chile) BMW Jersey Launch Architecture Meet : Chennai and Delhi
Slide 44: Digital Campaigns | Making Waves in Social Media
Digital Campaigns | Making Waves in Social Media 43 Influencer Programs Instagram Link
Slide 45: Improve India Revenue Mix | PPF & SCF business
Improve India Revenue Mix | PPF & SCF business 44 Marketing Strategy for Exponential Domestic Market Growth from SCF and PPF Reintroducing Safety Glazing Film with favorable shift in Indian Regulations, leveraging local manufacturing and strong brand recall Accelerated expansion of the Garware Appli
Slide 46: Impactful Results | Prior Marketing and Sales Initiatives
Impactful Results | Prior Marketing and Sales Initiatives 45 Harnessing our digital platforms to boost customer impressions. 5x Growth in PPF sales in FY24 vs FY23 SCF Growth in number of new retail counters 1.9x added in FY 24 compared to FY23 85% Increase in our reach – as measured by PPF the pin
Slide 47: Past Participations | Major academic events & conferences
Past Participations | Major academic events & conferences 46 SEMA Show – November 2023 International WF Conference & Tint-off (Ruby Sponsor) Wide Open Rallies | Sponsorship Social Media Campaigns
Slide 48: Annexure
47 4 Annexure
Slide 49: R&D | Innovation at our core
R&D | Innovation at our core 48 2023 – Top 50 innovative company award • Recognition by Indian Dep. of Scientific & Industrial Research (DSIR) • TPM Excellence Award by JIPM VAP for stable revenue and high margin growth • BRCGS Certified (Food & Packaging Grade) Continuous Interaction & 50 dedicated
Slide 50: Product Division Summary - CPD
Product Division Summary - 1 49 CPD Consumer Product Division Automotive Solar Paint Protection Safety Architectural Control Film Film Film Film ➢ GHFL manufactures ➢ Leveraging 6+ decades of expertise ➢ Polyester safety films provide high ➢ GHFL produces a range of automotive films with in polyeste
Slide 51: Automotive SCF | Product Range & Applications
Automotive SCF | Product Range & Applications 50 HIGH PERFORMANCE (HP) WINDOW FILMS Front Windshield Made with high quality metallised films and its tint can be profusely crafted to match customers • ARCTIC COOL SHIELD need. The visibility of these films can be modified according to desired shade. T
Slide 52: Architectural SCF | Dual Reflective Films (DEFENDO)
Architectural SCF | Dual Reflective Films (DEFENDO) 51 Designed to reduce intensity of ‘electromagnetic wave’ This film is known for its anti-radiation property that helps in reducing the intensity of ‘Electromagnetic Waves’ that can cause a variety of potential health problem. It blocks 99% harmful
Slide 53: Architectural SCF | SpectraPro Film
Architectural SCF | SpectraPro Film 52 SKU Specifications Solar Type Film SKU VLT UV Rejection IR Rejection TSER Absorptance SSF 70 70% >99%+ 97 +/- 3% 48% 36% Exterior SSF 50 54% >99%+ 97 +/- 3% 57% 49% Spectra Pro Exterior Series SSF 70 70% >99% 97 +/- 3% 47% 38% Interior SSF 50 55% >99% 97 +/- 3%
Slide 54: Paint Protection Film | Product Range & Applications
Paint Protection Film | Product Range & Applications 53 Plus Premium PPF Kits Retail – Plus, Premium 180-micron thick film with a 3- Advanced 200-micron thick Customized Kits and Matte year warranty, offers an PPF with a 5-year warranty, Garware paint protection film Finish optically clear, high-glo
Slide 55: Product Division Summary – IPD
Product Division Summary – 2 54 IPD Special Industrial Product Division (IPD) Shrink Film Electrical & Electronics Release Liners ➢ GHFL produces shrink films for wrapping ➢ Electrical and Electronics specialty films are ➢ Release liners are a specialty film coated and labeling plastic bottles, cont
Slide 56: Shrink Film | Product Range & Applications
Shrink Film| Product Range & Applications 55 Shrink Films with UV stabilization used in Key Industries dairy industry and vitamin-based Commercialization of 2 beverages to protect them from UV rays. new eco-friendly films ‘Pearl Float’ & Agriculture Food & Beverage Pharmaceutical ‘Solid White’ film
Slide 57: Industrial Product Division | EM6, EM6LO
Industrial Product Division| EM6, EM6LO 56 Industrial Application End Industrial Consumers MOTOR INSULATION TRANSFORMERS & Consumer COMPRESSORS Electronics Companies ELECTRICAL INSULATION BACKSHEET FOR SOLAR PANELS
Slide 58: Product Division Summary - Commodity IPD
Product Division Summary - 3 57 Commodity Industrial Product Division (IPD) Packaging & Lidding Thermal Lamination Plain Film Metalized Film Film ➢ They type of specialty films that are ➢ Plain films offer excellent ➢ Packaging & Lidding Films are ➢ GHFL produces custom designed to provide heat insu
Slide 59: Vertical Integration: A Strategic Advantage
Vertical Integration: A Strategic Advantage Unparalleled Competitive Advantages due to its Vertical Integration ✓ Self Sufficient Eliminates dependency on other manufacturers ✓ Raw material Ensures required and continuous availability of or outside vendors. availability quality raw materials enablin
Slide 60: Foundation for Sustainable Well-being
59 Utilizing 30% PCR materials in shrink film and other film products 1st company in India to introduce recyclable PETG replacing hazardous PVC shrink label films Solar Control films reduce 3-5% fuel consumption and carbon emissions Foundation for Sustainable Well-being Target to reduce 50% of absol
Slide 61: Two Community centres in the residential areas
60 Two Community centres in the residential areas (at Chikalthana & Waluj) helps Contribute towards Society, Rural Development, Environment & Nature.
Slide 62: Recognition Through Awards & Certifications
Recognition Through Awards & Certifications 61 1990 2019 2019 2020 2023 DSIR APR PCR EU Regulation BRC Global Certifications Accreditation ISO 9001:2015 Certification for Migration Standard R&D Centre is Globally recognized Sustainability & comply with migration For packaging & accredited by the sta
Slide 63: Profit and Loss Summary (March 2024)
Profit and Loss Summary (March 2024) 62 Consolidated In ₹Crores (except EPS) Quarter Ended Year Ended Particulars 31.03.2024 31.12.2023 31.03.2023 31.03.2024 31.03.2023 (Unaudited) (Unaudited) (Audited) (Unaudited) (Audited) Revenue from Operations 446.6 453.6 349.0 1677.0 1438.0 Other Income 11.5 9
Slide 64: Abbreviations
Abbreviations 63 Acronym Full Form CPD Consumer Product Division IPD Industrial Product Division VAP Value Added Product SCF Solar Control Film PPF Paint Protection Film GAS Garware Application Studio PV Passenger Vehicle D2C Direct to Customer OEM Original Equipment Manufacturer LSF Lakh Square Fee
Slide 65: Thank You
Thank You Garware Hi-Tech Films Limited. Ernst & Young LLP CIN: L10889MH1957PLC010889 Investor Relation Advisory Ashish Samal Vikash Verma Sumedh Desai ir@garwarehitech.com Vikash.Verma1@in.ey.com Sumedh.desai@in.ey.com
Garware Hi-Tech Films — Q4 and FY24 Earnings Presentation on 6ix