Tilaknagar Industries Limited · NSE:TI
Tilaknagar Industries — Investor Presentation (September 2021)
27 slides from Tilaknagar Industries's investor presentation, September 2021
Slide 1: Tilaknagar Industries Ltd. Investor Presentation
Tilaknagar Industries Ltd. 9/2/2021 Investor Presentation September 2021 Tilaknagar Industries | Investor Presentation 1
Slide 2: Our DNA
OUR DNA Tilaknagar Industries | Investor Presentation 2
Slide 3: Meet the Passionate Experts
Meet the Passionate Experts From our founding years, our story is one of obsession with customer delight. Created by Babasaheb Dahanukar in 1933, Tilaknagar is the culmination of years of experience and knowledge coming together to create the ultimate liquor experience. Tilaknagar Industries | Inves
Slide 4: Our purpose: rich experiences for consumers
We channel this passion into a clear purpose To deliver rich experiences for consumers by blending decades of experience with continuous innovation. Tilaknagar Industries | Investor Presentation 4
Slide 5: Tilaknagar at a Glance
TILAKNAGAR AT A GLANCE Tilaknagar Industries | Investor Presentation 5
Slide 6: About the Company
About the Company Largest premium brandy manufacturer in India with presence across all segments of IMFL Manufacturing units across 11 states Share of Brandy as % 16 Owned: 4 units 15+ Brands across products 92% of total volumes Tie-up: 12 units 87% Sales through: 5.45 Volumes (in cases) Share of sa
Slide 7: We sell millions of cases across India
We sell millions of cases across India MANSION HOUSE Mansion House is a millionaire brand (more than 4.4 mn cases sold in FY21) Mansion House is the highest selling premium brandy in India Manufactured across all units A brand with a high brand loyalty driving repeat purchases COURRIER NAPOL
Slide 8: Brandy & South India – Playing to our strengths
Brandy & South India – Playing to our strengths Market leadership in the 2nd largest IMFL segment in the largest alcohol consuming region of India Category-wise spirits sales (in volumes) Region-wise IMFL sales 4% 12% Rest of India 40% 60% Whiskey South India Brandy 19% Rum White Spirits Telangana &
Slide 9: India's undisputed Brandy king
India’s undisputed Brandy king Largest manufacturer of Brandy is 2nd largest product Dominant presence in South premium Brandy in India segment in IMFL India Huge opportunity in untapped markets – both product and geography Mansion House - India’s most Brandy is the most versatile of Basket of Brand
Slide 10: Our manufacturing and consumption footprint
Our manufacturing and consumption footprint Head office Sales through State Corporations Company-owned units: 4 units Sales through Distribution Jammu (x1) Lease / Tied-up units: 12 units Mohali (Punjab) (Army dedicated) – PunjabExpo Breweries Sikkim Assam (x1) Assam West Bengal (x1) West Bengal Shr
Slide 11: Roadmap and Team
ROADMAP AND TEAM Tilaknagar Industries | Investor Presentation 11
Slide 12: Our journey
Our journey At the cusp of a turnaround Beginning 2008-2014 2014-2017 2018 onwards Founded in 1933 as Maharashtra Acquired subsidiaries Vahni Expansion project at Prag stalled Restructuring of debt completed Sugar Mills Ltd. (MSML) to Distilleries (Karnataka), Prag with EARC manufacture suga
Slide 13: Business Strategic Roadmap
Business Strategic Roadmap Focus on margins, cash-flows & Brandy focus Drive scale deleveraging Drive market leadership in Strong volumes despite Impact of operating leverage brandy - Mansion House sells imposition of AED due to Strengthen balance sheet more than 4 mn cases annually Covid-19
Slide 14: Our strategy to reduce debt
Our strategy to reduce debt Operating leverage Volume growth in existing markets + Favorable product mix Margin expansion Entry into new fast-growing brandy markets + Asset-light model Expansion through bottling tie-ups = Cash-flow generation Working capital efficiencies Debt restructuring (already
Slide 15: Experienced and energized team at the helm
Experienced and energized team at the helm Amit Dahanukar, Ajit Sirsat, Varadarajan Srinivasaraghavan, Ameya Deshpande, Chairman & Managing Director Chief Financial Officer General Manager – Head – Corporate Manufacturing Development & Strategy 45 years of age, he has over 20 Has over 26 years o
Slide 16: Financials
FINANCIALS Tilaknagar Industries | Investor Presentation 16
Slide 17: Debt restructuring update
Debt restructuring update Debt as of 31-Mar-21 (a)(b) EARC Term Loan 1,252 crs 182 EARC debt is at 9% p.a. Cash Credit EARC balance debt of Rs. 145 crs will be waived 627 crs off on satisfactory repayment 336 Other Debt 70% of EARC Term Loan is repayable after 2 81 Trade Deposits years 28 (Uns
Slide 18: Improving business fundamentals
Improving business fundamentals Premiumisation strategy to enhance margins and cash flows Total Volumes Sold (mn cases) Brandy Sales (mn cases) 84% 89% 91% 92% 5.92 6.64 6.44 5.45 4.98 5.92 5.86 5.03 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Share of Brandy to total volumes sold NSR per case (Rs.) Rob
Slide 19: Focus on margins and cashflows
Focus on margins and cashflows Most of write-offs impacting EBITDA have been undertaken Net Revenues (Rs. Mn) Gross Profit (Rs. Mn) and Gross Margin (%) 51% 52% 49% 46% 5,778 6,613 6,528 5,488 2,934 3,417 3,006 2,714 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 EBITDA (Rs. Mn) and EBITDA Margin (%) Finan
Slide 20: FY21 revenues vs. FY20 revenues
FY21 revenues vs. FY20 revenues Rs. Mn FY20 Brandy Others Brandy Others FY21 Net Revenue Net Revenue Volume Impact Price Impact * Net revenue is pertaining to IMFL sales only and excludes revenues from sale of spirits and packing material Revenues for FY21 predominantly impacted due to fall in volum
Slide 21: Financial Summary – Income Statement
Financial Summary – Income Statement (Rs. Mn) FY18 FY19 FY20 FY21 Gross Revenue 12,916 15,255 14,835 14,184 Less: Excise Duty 7,138 8,642 8,306 8,696 Net Revenue 5,778 6,613 6,528 5,488 Gross Profit 2,934 3,417 3,006 2,714 Gross Margin % 51% 52% 46% 49% Employee Costs 220 333 296 252 As % of Net Rev
Slide 22: Q1 FY22 Result Update
Q1 FY22 Result Update Tilaknagar Industries | Investor Presentation 22
Slide 23: Management commentary on Q1 FY22 results
Management commentary on Q1 FY22 results From the desk of Mr. Amit Dahanukar, Chairman & Managing Director While the last couple of years were invested in restructuring our debt, the next couple of years will be invested towards building the business to a scale which enables us to generate cash-fl
Slide 24: Q1 FY22 Volumes
Q1 FY22 Volumes Approaching normal levels of business; July and August touches more than 6 lacs cases Q1 FY22 vs. Q4 FY21 – On the path to complete recovery Cases in lacs Since 2017, the volumes for the month of June have been outpaced by subsequent months for that financial year Jan-21 Feb-21 Mar-2
Slide 25: Strong Q1 FY22 performance
Strong Q1 FY22 performance… …Despite impact of state-level lockdowns across the country; significant margin expansion compared to a normal like-to-like quarter i.e. Q1 FY20 Q1 FY22 vs Y-o-Y Q1 FY20 Q-o-Q Q1 FY22 Q1 FY21 growth % Q1 FY20 growth % Q4 FY21 growth % Volumes (in lacs): Brandy volumes 10.
Slide 26: Disclaimer
Disclaimer This presentation may include statements which may constitute forward-looking statements including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Tilaknagar Industries’ future business developments and economic
Slide 27: Thank You
For further information, please contact: Ameya Deshpande Head – Corporate Development & Strategy Email: adeshpande@tilind.com THANK YOU
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