Radico Khaitan Limited · NSE:RADICO
Radico Khaitan — Investor Presentation (November 2020)
41 slides from Radico Khaitan's investor presentation, November 2020
Slide 1: Radico Khaitan Ltd. Investor Presentation November 2020
Radico Khaitan Ltd. (BSE: 532497; NSE: RADICO) Investor Presentation November 2020
Slide 2: Agenda
Agenda 1. Industry dynamics 2 2. Company overview 5 3. Strategic direction 11 4. Financial performance 17 5. Branding & marketing 23 Investor Presentation | November 2020 1
Slide 3: Spirits Industry in India
Spirits Industry in India Faced by challenges in the near term; long term dynamics remain intact Sales of Spirits by Category (Volume) Sales of Spirits by Category (Value) Industry Industry 3.6% 3.7% 6.1% CAGR: 5.9% 77.1% 6.6% 76.2% CAGR: 5.7% 65.3% 64.2% 12.1% 12.6% 7.7% 8.4% Whisky: Whisky: 5.4% 5
Slide 4: Spirits Industry in India: A highly regulated industry
Spirits Industry in India A highly regulated industry with complex structure Market Structure Overview Pricing Control States A business may apply for a license for a fee defined Arunachal, Assam, Goa, Company has reasonable Free / Open market by the state government subject to license Maharashtra,
Slide 5: Spirits Industry in India: Online liquor sales
Spirits Industry in India Online liquor sales – a new route to market opportunity Online liquor sales Punjab: Retailer- New Delhi: E-Token managed home delivery service for store pickup Maharashtra: E-Token service for store pickup & retailer-managed home delivery Home delivery permitted o In contex
Slide 6: Company Overview
Company Overview One of the largest and oldest spirit manufacturers in India Strategically limiting 75 years of One of the largest interstate taxes and experience in spirits 1943 spirits making. One 165 manufacturers. 32 transport costs. Five own and 28 Year of of the most Million litres Operates th
Slide 7: Brand Portfolio
Brand Portfolio Broad choice for consumers with focus on premium brands MRP Whisky Rum Brandy Vodka Gin Ready to Drink Luxury > Rs. 4,000 Semi Luxury Rs. 1,000 – 1,500 Super Premium Rs. 700 – 1,000 Semi-Premium / Premium Rs. 500 – 700 Deluxe Rs. 400 – 500 Regular Rs. 300 – 400 Ready to Drink Rs. 100
Slide 8: Global Presence
Global Presence Significant progress in building the brand equity in the overseas markets Exports 5% FY2020 Sales Split by Geography Domestic 95% Exports to over 85 countries across the world Investor Presentation | November 2020 7
Slide 9: Manufacturing and Distribution Platform
Manufacturing and Distribution Platform Consumer centric go-to-market strategy Pan India manufacturing platform to cater to customer needs Location Distilleries Molasses Grain Malt Total Strategically located manufacturing units in two of the largest sugarcane Capacity (million litres) producing sta
Slide 10: Senior Management
Senior Management Experienced management team with in-depth industry experience Key Executives Background Dr. Lalit Khaitan, Chairman & Managing Director • Has over 50 years of industry experience • He is on the managing committee of a number of associations, including the PHD Chamber of Commerce an
Slide 11: Senior Management
Senior Management Experienced management team with in-depth industry experience Key Executives Background Dilip. K. Banthiya, Chief Financial Officer • Has over 35 years of in corporate finance, treasury, international finance and corporate mergers and acquisitions • Invited to the CFO100 Roll of Ho
Slide 12: Strategic Roadmap
Strategic Roadmap Focus on building brands and driving a profitable growth Innovation and brand building Premium growth Strong cash flow generation and deleveraging • Established track record: Magic Moments • Growth driven by Prestige & Above category • Focused on a profitable growth driven by vodka
Slide 13: Innovation and Brand Building
Innovation and Brand Building Twelve brands launched in the last decade, eleven are in premium categories Started the After creating Launched branded IMFL brands in high Jaisalmer, a luxury division and volume regular Indian craft gin, launched its first categories, launched Launched Launched two La
Slide 14: Innovation and Brand Building: Magic Moments
Innovation and Brand Building Track record of developing successful brands Magic Moments family of vodka leads the Indian vodka industry with over 60% market share 4.5 4.0 Magic Magic Moments 3.5 Moments Vodka Magic Volume (mn cases) Vodka flavours Moments 3.0 became a launched launched Verve 2.5 mi
Slide 15: Innovation and Brand Building: Morpheus and 8PM
Innovation and Brand Building Track record of developing successful brands Morpheus leads the super premium brandy segment with 56% 8PM Premium Black whisky has established its mark within a market share short span after its launch • Morpheus, India’s largest selling premium brandy, crafted by our m
Slide 16: Innovation and Brand Building: Rampur and Jaisalmer
Innovation and Brand Building Track record of developing successful brands Rampur Indian Single Malt testifies the Company’s innovation 8PM Premium Black whisky has established its mark within a and R&D strengths short span after its launch • Rampur Single Malt is a luxury brand that is • A triple-d
Slide 17: Social Responsibility
Social Responsibility Actively contributing to the development of the society CSR at Radico Khaitan is creating sustainable programs that actively contribute to and support the social and economic development of the society. The Company is committed to community development, enhancing livelihood, pr
Slide 18: Historical Financial Trend
Historical Financial Trend Strong premiumization focus with over 12.5% growth since FY2016 Prestige & Above brands (Million cases) Total volumes (Million cases) 24.30 7.05 21.61 6.12 19.50 5.05 18.19 18.26 4.40 4.75 FY2016 FY2017 FY2018 FY2019 FY2020 FY2016 FY2017 FY2018 FY2019 FY2020 Regular & Othe
Slide 19: Historical Financial Trend
Historical Financial Trend Consistent revenue growth with robust profitability Net Sales (Rs. Million) EBITDA (Rs. Million) and Margin (%) 16.7% 15.2% 14.7% 11.3% 12.5% 16,518 16,799 18,228 20,969 24,270 1,861 2,101 2,674 3,492 3,682 FY2016 FY2017 FY2018 FY2019 FY2020 FY2016 FY2017 FY2018 FY2019 FY2
Slide 20: Q2 FY2021 Highlights
Q2 FY2021 Highlights Achieved growth over the pre-COVID levels IMFL volumes (million cases) : Y-o-Y performance Q2 FY2021 Volumes up 4.6% y-o-y 6.04 5.78 Jul-19 Aug-19 Sep-19 Q2 FY2020 Jul-20 Aug-20 Sep-20 Q2 FY2021 Investor Presentation | November 2020 19
Slide 21: Q2 FY2021 Highlights
Q2 FY2021 Highlights Strong cash flow generation and net debt reduction of over ` 129 Crore in since March 2020 Cumulative net debt reduction of ` 694 Crore since FY2016 coupled with higher working capital efficiency 61 Working Capital Days* 36 947 785 162 570 215 63 382 319 250 253 129 Mar-16 Mar-1
Slide 22: Q2 FY2021 Performance Overview
Q2 FY2021 Performance Overview Q2 y-o-y H1 y-o-y FY2021 FY2020 Growth (%) FY2021 FY2020 Growth (%) Operational Performance (Million Cases) Prestige & Above 1.69 1.63 3.6% 2.74 3.62 (24.2)% Regular & Others 4.35 4.15 5.0% 6.84 8.41 (18.7)% Total Volume 6.04 5.78 4.6% 9.58 12.03 (20.4)% Prestige & Abo
Slide 23: Q2 FY2021 Performance Overview
Q2 FY2021 Performance Overview Q2 y-o-y H1 y-o-y (` Crore) FY2021 FY2020 Growth (%) FY2021 FY2020 Growth (%) Revenue from Operations (Gross) 2,740.32 2,520.05 8.7% 4,514.98 5,197.13 (13.1)% Revenue from Operations (Net) 630.05 570.17 10.5% 1,039.20 1,193.76 (12.9)% Other Income 3.75 1.87 100.2% 5.62
Slide 24: Brand Performance
Brand Performance Rampur Indian Single Malt • Select variants: o Rampur Asāva: World’s first whisky finished in Indian red wine casks; matured in American Bourbon Barrels and finished in Indian Cabernet Sauvignon Casks o Rampur Double Cask: Matured in hand-picked American Bourbon barrels and Europea
Slide 25: Brand Performance
Brand Performance Magic Moments Vodka • Magic Moments Verve in a new premium canister packaging • Marketing campaign with Bollywood stars Kartik Aryan and Jacqueline Fernandez • Continues to gain market share with Magic Moments now accounting for ~60% of the overall vodka market share and Verve acco
Slide 26: New Launch – Rampur Asava
New Launch – Rampur Asava World’s first whisky finished in Indian red wine casks Abhishek Khaitan, Managing Director of Radico Khaitan, unveiling Rampur Asāva at the Whisky Show 2020 Click to watch the launch video Investor Presentation | November 2020 25
Slide 27: Branding & Marketing
Branding & Marketing Investor Presentation | November 2020 26
Slide 28: Branding & Marketing: Jaisalmer Indian Craft Gin
Branding & Marketing Jaisalmer Indian Craft Gin Investor Presentation | November 2020 27
Slide 29: Branding & Marketing: Rampur Indian Single Malt Whisky
Branding & Marketing Rampur Indian Single Malt Whisky Rampur Indian Single Malt Whisky: Decades of Perfection Takes forward the rich heritage of Rampur, a princely state of British India and the 75 years of distillation expertise of Radico Khaitan, the pioneers of legendary spirits in India. Aged in
Slide 30: Branding & Marketing: Magic Moments vodka
Branding & Marketing Magic Moments vodka and Magic Moments Flavours Magic Moments Vodka: Zing up Life A rage overnight, the enthralling taste of Magic Moments not only set towns buzzing but also unleashing the thirst of making every moment grand. Produced from finest grains, its triple distilled pro
Slide 31: Branding & Marketing: Magic Moments Verve
Branding & Marketing Magic Moments Verve Premium Vodka Investor Presentation | November 2020 30
Slide 32: Branding & Marketing: Morpheus Brandy
Branding & Marketing Morpheus Blue and Morpheus Super Premium Brandy Investor Presentation | November 2020 31
Slide 33: Branding & Marketing: 1965 The Spirit of Victory Rum
Branding & Marketing 1965 The Spirit of Victory Premium Rum Investor Presentation | November 2020 32 32
Slide 34: Branding & Marketing: Regal Talon Whisky
Branding & Marketing Regal Talon Whisky Regal Talons Rare Generation Whisky: Unbeatable Spirit The finest blend that combines Indian grain spirits with imported aged scotch malts to deliver an exceptional smoothness. Regal Talons has been especially made for those who believe in conquering and alway
Slide 35: Branding & Marketing: Pluton Bay Rum
Branding & Marketing Pluton Bay Rum Pluton Bay Rare Exotic Rum: Spirit of Adventure A unique experience, with a perfect blend of international design and world-class packaging. Rare and smooth taste, offering a premium blend. A rich, full and spicy dark rum with caramel and spice on the nose. Smooth
Slide 36: Branding & Marketing: After Dark Whisky
Branding & Marketing After Dark Whisky After Dark Fine grain whisky: One life, many passions. Why wait? Night has different connotations for different people, it unfolds differently and brings a unique world of desire, adventure and excitement. It’s where fun and action begins and party never stop.
Slide 37: Branding & Marketing: PM Whisky
Branding & Marketing 8 PM Whisky Investor Presentation | January 2020 36 36
Slide 38: Branding & Marketing: Contessa Rum
Branding & Marketing Contessa Rum Contessa XXX rum: For the Man of Courage Another millionaire brand from Radico Khaitan’s straddle. This brand has surpassed expectations and has garnered strong foothold in the Indian market. This rum truly reflects the real meaning of courage and the taste simply t
Slide 39: Branding & Marketing: Old Admiral Brandy
Branding & Marketing Old Admiral Brandy Old Admiral Brandy: For Real Men Only Made specially for the men with pride, honour and courage. The splendid taste of this spectacular brandy celebrates the greatness achieved and passion for all good things in life. The classic taste perfectly blended with r
Slide 40: Disclaimer
Disclaimer This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Radico Khaitan’s future business developments and economic performance. W
Slide 41: Radico Khaitan Limited
Radico Khaitan Limited (CIN: L26941UP1983PLC027278) J-I, Block B-I, Mohan Co-operative Industrial Area, Mathura Road, New Delhi-110044 Ph.: +91-11-4097 5400/5500 Fax: +91-11-4167 8841/42 www.radicokhaitan.com
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