Slide 1: GRP Limited Investor Presentation August 2019
GRP Limited Investor Presentation August 2019
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by GRP Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and s
Slide 3: Performance Highlights
Performance Highlights GRP» IMPACT POSITIVE
Slide 4: Performance Highlights for Q1FY20
Performance Highlights for Q1FY20* (in Rs. Mn) Revenue Gross Profit EBIDTA PAT +16% +4% +1,076% -7% 896.9 423.3 440.5 53.6 41.9 49.9 775.4 3.6 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Revenue / Profitability ▪ Revenue growth of 16% Y-o-Y on back of increased volumes, higher realizatio
Slide 5: Quarterly Trends
Quarterly Trends* (in Rs. Mn) Revenue EBIDTA PAT 976.5 94.2 41.9 899.0 918.7 896.9 35.0 775.4 64.3 53.6 49.9 22.0 37.6 3.6 3.3 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 *Data On Standalone Basis 5
Slide 6: Operational Highlights
Operational Highlights The company has achieved growth in volumes 1 Franchisee added in GRP- Marangoni Re-treading in this difficult environment in the domestic in Q1FY20 taking the total franchisees to 8 tyre industry Drop in operating margins is on account of Automation remains a key focus area to
Slide 7: Reclaim Rubber Highlights
Reclaim Rubber Highlights Reclaim Rubber 3 New Customers in Q1FY20 2 Customers from top 15 global tyres companies and 1 is a top tyre manufacturer in India Focus on Multiple Segment & Low Represented International Markets Focus on automotive and non-automotive segment. Significant volume growth regi
Slide 8: Non-Reclaim Rubber Highlights
Non-Reclaim Rubber Highlights Re-treading New Franchisee in Chennai 1st metro city franchisee commissioned in Chennai which is among top 5 truck tyre market in India No. of Franchisees 8 Ringtread Ringtread (imported) contributes 40% to our re-tread sales Ringtread sells at a premium to standard re-
Slide 9: Segment Wise Performance Trend
Segment Wise Performance Trend* Revenue Revenue Geographical Break-Up Business Segments Break-Up 3.3% 3.5% 5.4% 6.5% 5.9% 29% 24% 27% 38% 38% 96.7% 96.5% 94.6% 93.5% 94.1% 71% 76% 73% 62% 62% Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Domestic Non-Reclaim Rubber Export Rec
Slide 10: Segmental Financial Highlights
Segmental Financial Highlights* Reclaim Rubber Non-Reclaim Rubber Particulars (in Rs. Mn)* Q1FY19 Q1FY20 % Growth Q1FY19 Q1FY20 % Growth Revenue (Net of Taxes) 748.0 842.2 12.6% 27.5 54.8 99.5% Raw Material 340.3 433.1 11.9 23.3 Other Expenses 354.7 366.8 15.9 23.9 EBIDTA 53.9 42.3 -22.0% -0.3 7.6 -
Slide 11: Standalone Q1FY20 Profit & Loss Statement
Standalone Q1FY20 Profit & Loss Statement Profit & Loss (Rs. Mn) Q1 FY20 Q1 FY19 Y-o-Y Q4 FY19 Q-o-Q FY19 Revenue (Net of Taxes) 896.9 775.4 16% 918.7 -2% 3,569.6 Cost of Goods Sold 456.4 352.1 459.4 1,719.3 Gross Profit 440.5 423.3 4% 459.3 -4% 1,850.3 Gross Profit Margin 49.1% 54.6% 50.0% 51.8% Em
Slide 12: Consolidated Q1FY20 Profit & Loss Statement
Consolidated Q1FY20 Profit & Loss Statement Profit & Loss (Rs. Mn) Q1 FY20 Q1 FY19 Y-o-Y Q4 FY19 Q-o-Q FY19 Revenue (Net of Taxes) 898.3 776.0 16% 918.5 -2% 3,573.7 Cost of Goods Sold 453.5 350.2 453.7 1706.8 Gross Profit 444.8 425.8 4% 464.8 -4% 1,866.9 Gross Profit Margin 49.5% 54.9% 50.6% 52.2% E
Slide 13: Introduction
Introduction GRP» IMPACT POSITIVE
Slide 14: Tyre Graveyards are increasing across the Globe
Tyre Graveyards are increasing across the Globe 7.6 Billion people 1.7 billion new Creating huge in the world tyres produced a year TYRE GRAVEYARDS… 1.4 Billion Over 1 billion waste vehicles on the road tyres generated per year … HUGE OPPORTUNITY 14
Slide 15: Presenting a Huge Opportunity
…presenting a HUGE OPPORTUNITY Huge tyre graveyards that can be seen GRP uses end-of-life tyres to Reclaimed rubber, Engineering plastics, Die- from Space recycle and manufacture cut products & Polymer Composite Products 15
Slide 16: It is our raison d'etre
It is our raison d’etre Recover, Recycle, Reuse’ is GRP’s raison d’etre as well as mantra for creating a clean planet ▪ GRP is one of the leading producers of reclaim rubber ▪ It recycles end- of-life tyres, automotive inner tubes, automobile profiles and moulded rubber products to produce consisten
Slide 17: To Reduce, Reuse & Recycle
…to Reduce, Reuse & Recycle TYRE POLYMER REDUCE RETREADING COMPOSITES • Process to extend the life of • Manufactured from 100% Commercial Vehicle tyres recycled rubber and plastics beyond single use • Product is environmental • Environmental friendly friendly, strong and durable as process ensuring
Slide 18: Our Business
Our Business GRP» IMPACT POSITIVE
Slide 19: Believing in possibility of better tomorrow
Believing in possibility of better tomorrow… 8 Manufacturing Units with 72,700 Export presence in 60+ Countries tons/year capacity across 300+ customers 18% share in Indian Market & 50% of ~1.2 Mn End-of-Life tyres saved from India’s Export in reclaimed rubber reaching landfills Every Year Supplies
Slide 20: Since Four Decades & Counting
… since Four Decade & Counting Gujarat Reclaim and 1st Unit at Got its first ever Rubber Products Ankleshwar export order Limited incorporated 1974 1978 1984 2011 2006 1997 4th unit established 3rd Unit established Diversified in at Solapur at Panoli Custom Die Forms 2012 2014 2015 2017 5th Unit est
Slide 21: Serving the needs of Global Mobility Industry
…serving the needs of Global Mobility Industry 60+ 300+ Countries Customers Distributors 400+ Panoli Indore across 20 Vendors Ankleshwar countries Mumbai Sholapur Headquarters Reclaim Rubber C-DF 8 ~1800 Industrial Polymers Perundurai R&D Centre Manufacturing Units Employees >75% customers belong to
Slide 22: Self designed Manufacturing Facilities
…supported by self designed Manufacturing Facilities Installed Capacity in MT Build up capacity for Reclaimed Rubber over the years 66,000 66,000 2,600 2,600 66,000 58,200 7,800 10,000 48,200 1,500 20,000 28,200 21,000 7,200 Industrial Custom Polymer Reclaimed 2,400 4,800 Polymers Die Forms Composit
Slide 23: With our R&D Capabilities
…with our R & D Capabilities Product Process Application ▪ Developing New ▪ Continuous ▪ Automation of Application across Development of New Processes diversified Industries Products ▪ Environment friendly ▪ Products designed ▪ Expansion in New – Zero Discharge based on Customer Product Categories a
Slide 24: Reclaim Rubber Diversified Product Applications
…with Diversified Product Applications Tyre Application Inner Liner Inner Tubes Tyre Side Walls Tyre Piles Tyre Treads & Retreads Reclaim Rubber Non - Tyre Application Conveyor Belts Adhesives Automotive Roofing Footwear Profiles Moulded Goods Matting 24
Slide 25: Across Business Verticals
…across Business Verticals Industrial Polymers Custom Die Forms Industry Application Application Consumer Automotive Link Mats Door Mats Electrical & Electronics Industrial Industrial Mats Dock Bumpers Reprocessed Nylon Reprocessed Nylon Modified Nylon Dock Bumpers Door Mats Industrial Mats Glass Fi
Slide 26: All Major Tyre and Non Tyre Customer Relationships
…all Major Tyre and Non Tyre Customer Relationships The Brand Names mentioned are the property of their respective owners and are used here for identification purpose only. 26
Slide 27: Global Partnerships for Business Growth
…Global Partnerships for Business Growth Reclaim Rubber Tyre Retreading Successful in setting up a Joint venture with an Italian reclaim rubber unit in company since 2015 for building a Malaysia and handed over to tyre retreading franchise business the local partner in India Custom Die Form Polymer
Slide 28: Distinguished Board of Directors
…Distinguished Board of Directors Dr. Peter Philip Rajendra Gandhi Harsh Gandhi Rajeev Pandia Chairman & Non-Executive Director Managing Director Joint Managing Director Independent Director No. of Years of Experience : More than No. of Years of Experience : More No. of Years of Experience : 15 year
Slide 29: Distinguished Board of Directors
…Distinguished Board of Directors Mahesh Gandhi Alpana Parida Saurabh Shah Nayna Gandhi Non-Executive Director Independent Director Independent Director Non-Executive Director No. of Years of Experience : More than No. of Years of Experience : 30 year No. of Years of Experience : More than No. of Ye
Slide 30: Experienced Management Team
…with Experienced Management Team Rajen Doshi President & COO Ganesh Ghangurde Shilpa Mehta Sanjeeb Lahri Kush Giramkar Chief Compliance Officer Hemant Kaul Head HR & • MBA Georgia State, Business Head Industrial Chief Financial Officer Administration President Marketing & MS, IIT Mumbai Polymers &
Slide 31: Awards & Accolades
Awards & Accolades – Testimony to our raison d’etre EcoVadis CSR Rating 2017: BRONZE 2019: SILVER 2017 At GRP, we are committed to transitioning from a ‘recycled material company ’ to a ‘Sustainable Raw Material Company’. Therefore, embracing the certifications, partnerships required for achieving t
Slide 32: CSR – Impact Positive Initiatives
CSR – Impact Positive Initiatives ▪ Our CSR vision – "to contribute towards social and economic development of the communities where we operate in. And while doing the same, we want to build a sustainable way of life for all sections of society”. ▪ GRP believes in doing business the right way and en
Slide 33: Business Verticals
Business Verticals GRP» IMPACT POSITIVE
Slide 34: Manufacturer of sustainable products through 5 Business Verticals
…Manufacturer of sustainable products through 5 Business Verticals 34
Slide 35: Reclaim Rubber - Industry Leading Technology
Reclaim Rubber - Industry Leading Technology 1ST Company in India to design, fabricate and install an entire plant & machinery for manufacture of reclaim rubber from complete indigenous components VALUE PROPOSITION Strong focus on innovation and R & D with DSIR approved lab, 1st company in India to
Slide 36: Reclaim Rubber – Cost Effective Alternative
Reclaim Rubber – Cost Effective Alternative PRODUCT OFFERING NATURAL RUBBER RECLAIM • Whole Tyre Reclaim • Ultra High & High Tensile Reclaim • Natural Tube Reclaim SYNTHETIC RUBBER RECLAIM • Butyl & Chlorobutyl Reclaim • EPDM Reclaim SPECIALITY RUBBER RECLAIM • NBR Polycoat APPLICATIONS ▪ Tyres ▪ Wa
Slide 37: Industrial Polymer – Valuable Engineering Plastic
Industrial Polymer – Valuable Engineering Plastic INDUSTRY LEADING TECHNOLOGY TARGET MARKET & APPLICATIONS Fasteners, Clips, Bushes, Plugs, 1st Indian company to commercialize the concept of Cable Ties, Sleeves, Main fold recovery and reuse of polyamide from end-of-life AUTOMOTIVE Developed in-house
Slide 38: Custom Die Forms – Diverse Product Portfolio
Custom Die Forms – Diverse Product Portfolio PRODUCTS Converts end-of-life tyres to design products used for civil & agricultural applications Custom Die Forms are meant to absorb vibrations in heavy equipment and for insulation against sound GRP – C-DF has produces these products in collaboration w
Slide 39: Retreading - Marangoni Joint Venture
Retreading - Marangoni Joint Venture Marangoni S.P.A, World’s Leading Tyre Retreading Company with a legacy of 70+ years + GRP Ltd, India’s largest and world’s leading rubber recycling company = The JV will aim to leverage the strengths of the two partners: Marangoni as a retreading technology speci
Slide 40: Retreading across Segments
…Retreading across Segments Industry Leading Range ABOUT RINGTREAD ▪ Ringtread Concept: Tyres are circular in structure and rotate when they Premium, Spice-less Retread work, therefore the new tread must be perfectly circular in order to integrate harmoniously with the casings and recreate a perfect
Slide 41: New Business Initiative - Polymer Composite Products
New Business Initiative - Polymer Composite Products ABOUT Polymer Composite Products ▪ GRP is the exclusive manufacturer to a US based company for supply of composite products Plastics Additive ▪ The composite products are manufactured from 100% recycled rubber and plastics ▪ The product is environ
Slide 42: Growth Drivers
Growth Drivers GRP» IMPACT POSITIVE
Slide 43: We have built Sustainable Business
We have built Sustainable Business Brand GRP carries with it Upgradation of Process and Cost Effective by replacing 8 Manufacturing Units, 20 Trust of 4 Decades Products through innovation Virgin Rubber Polymer Distributors and 200 Vendors In-house Manufacturing Brand GRP Cost Technology & Effective
Slide 44: Usage of Reclaimed Rubber on a Growth Path
Usage of Reclaimed Rubber on a Growth Path Reclaimed Rubber Demand (Kilo Tonnes) ▪ Growing awareness regarding COST - EFFECTIVE and ECO - FRIENDLY alternatives for virgin rubber 7,729 ▪ Owing to its versatility, durability, reduced pollution and low processing 10.3% costs, WTR is expected to witness
Slide 45: Strategic shift towards increasing Reclaimed Rubber
With strategic shift towards increasing Reclaimed Rubber To Reduce, Reuse and Recycle the use of fossil fuels and strategic shift towards Reclaimed Rubber. By 2050 companies envisages higher use of Recycled Rubber Source: Bridgestone Corporate Site 45
Slide 46: By major tyre manufacturing companies
By major tyre manufacturing companies “ In the Rubber Group, the use of recycled materials is assuming an increasingly important role. Production waste generated in physical/chemical processes is used as reclaim and adhesive mixtures as recycled products. “ In the year under review, the percentage o
Slide 47: Historical Financials
Historical Financials GRP» IMPACT POSITIVE
Slide 48: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Profit & Loss (Rs. in Mn.) FY19 FY18 FY17 FY16 Revenue* 3,574 2,998 3,038 3,150 Cost of Goods Sold 1,707 1,373 1,387 1,488 Employee Cost 586 525 535 493 Other Expenses 1,027 911 855 881 EBIDTA 254 189 261 288 Other Income 4 7 27 4 Depreciation 133 139 143 142 Fin
Slide 49: Consolidated Balance Sheet
Consolidated Balance Sheet* Liabilities (Rs. Mn) Mar-19 Mar-18 Assets (Rs. Mn) Mar-19 Mar-18 Equity Share Capital 13 13 Non-Current Assets 1,289 1,331 Other Equity 1,285 1,227 Property, Plant and Equipment 1,207 1,246 Equity attributable to owners of the Capital work in progress 10 22 1,298 1,241 Co
Slide 50: CIN: L25191GJ1974PLC002555
Company : Investor Relations Advisors : CIN: L25191GJ1974PLC002555 CIN: U74140MH2010PTC204285 Mr. Ganesh Ghangurde Mr. Sagar Shroff / Mr. Shrenik Shah Chief Compliance Officer sagar.shroff@sgapl.net / shrenik.shah@sgapl.net ganesh.ghangurde@grpweb.com +91 98205 19303 / +91 99664764465 www.sgapl.net