Hindware Home Innovation Limited · NSE:HINDWAREAP
Hindware Home Innovation — Somany Home Innovation — Investor Presentation (July 2021)
29 slides from Hindware Home Innovation's investor presentation, July 2021
Slide 1: Driving Customer Aspirations
Driving Customer Aspirations Enriching Experiences | Innovative Offerings July 2021
Slide 2: About SHIL
About SHIL Consumer Somany Home Appliance Business Innovation Limited Retail & Franchise Furniture Business Wholly Owned Subsidiary Companies JV Building Products Business Consumer Water & Electrical Online Retail Furniture Portal Heating Business Sanitaryware & Faucets Evok.in 50:50 Joint Venture w
Slide 3: Revenue Mix
Revenue Mix Revenue Mix (%) (₹ in crore) 3.7 14.6 4.3 4.2 18.1 21.4 5.6 5.6 3.3 FY19 FY20 FY21 76.1 72.0 71.1 Consumer Appliance Business # Retail Furniture Business* Building Product Business Water Heating Business** Revenue FY 19 FY 20 FY 21 Consumer Appliance Business # 244 292 379 Retail Furnitu
Slide 4: Our Strategy for Growth
Our Strategy for Growth Leverage & monetize brand “Hindware” and its distribution channels to diversify into newer segments & product categories Allocate capital to maximize returns, into segments where brand “Hindware” can emerge amongst the top 3 players Creation of distinct business verticals led
Slide 5: How we walked our strategy
How we walked our strategy…. Over last 5-6 years, brand Hindware has consolidated its presence in homes and kitchens Leader in segments on e- A decade ago, Today, in addition to being a leader in commerce platforms too Hindware was a leader Sanitaryware, brand Hindware has only in the established it
Slide 6: Our Journey: Expanding horizons to unlock value
Our Journey: Expanding horizons to unlock value Consumer Appliances Plastic Pipes and Fans and Kitchen Sanitaryware Faucets Business Fittings Fittings 2020 2018 2015 2014 ~ ₹40,000 cr 2012 ~ ₹35,000 cr ~ ₹25,000 cr ~ ₹11,000 cr ~ ₹4,000 cr Addressable market size grown by ~10x 6
Slide 7: Brand Hindware
Brand Hindware Brand Hindware is owned by SHIL and Brilloca 7
Slide 8: Leadership Team executing the strategy
Leadership Team executing the strategy RAKESH KAUL SUDHANSHU POKHRIYAL Whole-time Director & CEO, SHIL CEO - Bath Business, Brilloca Limited Over 25 years of experience in consumer business, media, Over 20 years of experience in FMCG, building products, sales retail, etc. and marketing, etc. NAVEEN
Slide 9: SHIL Board of Directors
SHIL Board of Directors SANDIP SOMANY ASHOK JAIPURIA Chairman and Non-Executive Director Independent Director Over three decades of experience in consumer and packaging He is a businessman with a strong vision, business. He is also the Past President of Federation of Indian who made Cosmo Films Ltd.
Slide 10: Somany Home Innovation Limited
E > Somany Home | Innovation Limited 10
Slide 11: Consumer Appliances Business
Consumer Appliances Business Widest range of connected and smart appliances with an emphasis on innovation #2 Player in the Kitchen Established strong Omni presence across channels with a focus on consumer Chimney Segment service #5 Player in the Air Cooler Segment Portfolio across categories: kitch
Slide 12: Diverse and Exciting Products & Brands
Diverse and Exciting Products & Brands Kitchen Appliances Water Heaters Air Coolers 12 Fans Water Purifiers Kitchen & Furniture Fittings
Slide 13: Consumer Centric Innovation: New Launches
Consumer Centric Innovation: New Launches i-Fold 90L Desert Cooler Spectra iPro & Acura iPro Activio Food Sanitizer Hindware Purge Elara iPro India’s first foldable air IoT enabled smart desert Utilizes all-natural Ozone Surface disinfectant Second IoT enabled RO + cooler (patented) and personal air
Slide 14: Emphasis on R&D and Innovation
Emphasis on R&D and Innovation Total patents: 31 patents over last 5 years Optimus iPro Chimney Spectra iPro • India’s 1st ever IoT – • Equipped with features such enabled chimney as Geo-fencing and Wi-Fi • Hindware Konnect, Hindware’s IoT platform, • MaxX Silence Direct, and Alexa-controlled brings
Slide 15: Consumer Appliance Business: Continuously improving bottom line
Consumer Appliance Business# : Continuously improving bottom line Annual Revenue (₹ in crore) 22% CAGR 454.7 EBIT Margin (%) 361.6 305.6 26 -4 6 -1% 6% 2% FY 19 FY 20 FY 21 FY 19 FY 20 FY 21 EBIT Margin (%) Quarterly Revenue 16 Q4 Q2 Q3 Q1 Q2 Q3 Q1 156 Q4 11 141 7 3 3 4 114 112 -6 1 1 2 -1 -8 97 9
Slide 16: Retail Business
Retail Business Home interior products through modern format stores Strong e-commerce presence through online portal EVOK.in and other 2 Company owned sites like Amazon, Flipkart, Pepperfry, etc. stores Emphasis on minimising overheads; improving profitability – move from Cash burn to Cash earn Q4FY
Slide 17: Retail business profitable: Post stores closure
Retail business profitable : Post stores closure Annual (₹ in crore) Revenue EBIT Margin (%) 94 91 59 -8 -14 -15 FY 19 FY 20 FY 21 FY 19 FY 20 FY 21 EBIT Margin (%) Quarterly Revenue Q1 Q3 Q4 Q1 Q2 Q3 Q4 Q2 24 25 24 25 22 23 21 -3 1 20 -1 -4 -7 -3 -4 -3 -3 -7 -4 1 18 17 13 8 -6% -16% -88% -10% -17%
Slide 18: Brilloca
VAp BRILLOCA
Slide 19: Building Products Business
Building Products Business Leading player in Sanitaryware & Faucets segments Wide array of products available across the price spectrum Strong Network of distribution and service LUXURY PREMIUM MASS Strong Network of distribution and service ● 228 Brand Stores for an immersive customer experience ●
Slide 20: Diverse and Exciting Product Ranges
Diverse and Exciting Product Ranges Water Closets Wash Basins Faucets Showers Tiles Bathtubs 20
Slide 21: Industry First Innovative: Design Led Products
Industry First Innovative : Design Led Products 21
Slide 22: Industry First Innovative: Design Led Products
Industry First Innovative : Design Led Products 22
Slide 23: Industry First Innovative: Design Led Products
Industry First Innovative : Design Led Products 23
Slide 24: Marquee Clients
af coewm. — CounTRY GAR #y— Infosys IndianOil Somany e ed Home & Innovation > Limited sae MAHAGUN — Narniott. code) CIES oe PROVIDENT’ PURAVANKARA’ it Qo Sati SAROVAR S TAJ Hotels Resorts and Palaces Vaishnavi ‘Tapa Bulls Groun |
Slide 25: Drivers of Growth
Drivers of Growth Innovation and Brand Focus Focused Channel Based Expanding Reach Approach Modernizing and premiumisation Adding 100+ Brand Stores in One of portfolio aligned to market Creation of institutional Channel Lac Plus POP towns • Touchless series vertical contributing 30% of • Innovations
Slide 26: Drivers of Growth
Drivers of Growth Delivering Margins Leveraging Digital Enhancing After Sales Service Driving Phygital through digital Mitigating higher input costs by lead generation Expansion of Service infrastructure by franchised HSPs • Value Engineering Customized ads for large brand (Hindware Service provider
Slide 27: Plastic Pipes & Fittings
Plastic Pipes & Fittings TRUFLO by Hindware™, is the fastest growing Plastic pipes and fittings brand in India TRUFLO aims to be amongst the top 5 players in 3 years With 1,100+ SKUs, it offers best-in-class, NSF-certified, CPVC pipes along with lead-free UPVC pipes, SWR pipes and PVC pipes for pota
Slide 28: Building Products Business
Building Products Business Annual (₹ in crore) Revenue 134 EBIT and Margin (%) 1,272 1,262 1,161 106 77 11% 7% 8% FY 19 FY 20 FY 21 FY 19 FY 20 FY 21 EBIT and Margin (%) Quarterly Revenue Q1 Q2 Q3 Q4 55 48 Q1 Q2 Q3 Q4 40 40 459 34 32 27 377 377 304 308 20 22 275 300 292 307 18 16 274 240 -10 134 13%
Slide 29: The Way Forward
The Way Forward Market Leadership Enhance “Be among the Improve Capital Shareholder Top 3 in Efficiency Returns categories we operate in” Increase Consumer Connect & Expand Distribution Leverage Digital Attract & Retain Best Talent 29
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