Flair Writing Industries Limited · NSE:FLAIR
Flair Writing Industries — Q2 FY2024 Earnings Presentation
48 slides from Flair Writing Industries's earnings presentation, 2023
Slide 1: Flair Writing Industries
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Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Flair Writing Industries Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 3: Successful IPO Listing
Successful IPO Listing Shareholding Pattern (As on 1st December 2023) 9.3% Flair Writing Industries 2.3% Ltd (FWIL) got Listed at a 9.8% valuation of ~ ₹ 4,771 Crs on 1st December, 2023 78.6% Promoters DII FII Public Initial Public Offer Details IPO Subscription ✓ Listing done on BSE & NSE Category
Slide 4: Company Overview
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Slide 5: Flair - At a Glance
Flair - At a Glance (FY 23) Extensive Product Portfolio Largest Player in the pens Largest Distribution Network in Global Reach Healthy Geographic Mix in segment in India by India revenue revenue – FY23 ₹ 750 crs+ 699 130 crore pcs 7,754 315K 97 countries 80 % : 20 % # Of Products # Of Pens Sold Dis
Slide 6: Key Milestones
Key Milestones 1976 1998 2008 2009 2014 “Flair” brand was registered We commenced production at one of our Introduction of Flair Calculators Manufacturing plant was set up NPPI* acquired certain manufacturing units in Daman (UT of in Dehradun (Uttarakhand) trademarks of the “Hauser” brand Dadra & Na
Slide 7: Business Segments
BUSINESS SEGMENTS
Slide 8: Segments – Writing Instruments
Segments – Writing Instruments Market presence of over 45 years Extensive range of products across various price points Products are sold under our “Flair” brand, “Flair Creative”, our and cater to a broad range of consumers, including Writing principal brands “Hauser” and “Pierre Cardin and Recentl
Slide 9: Writing & Creative Instruments Industry Overview
Writing & Creative Instruments Industry Overview THE INDIAN WRITING AND CREATIVE INSTRUMENTS INDUSTRY IS POISED TO GROW STEADILY… Indian writing and creative instruments industry, by manufacturers realization (₹bn) Breakdown (by product) KEY DRIVERS Market size of ₹ 138bn+ in FY23E at MRP; poised to
Slide 10: Key Trends within Each Category of the Industry
Key Trends within Each Category of the Industry GROWTH OUTLOOK FOR KEY CATEGORIES Pen Breakdown (by price point)* Pen segment market size (INRbn) Strong drivers in place for the category’s success 5%-10% 62-65 • Premiumisation Mass 43 15%-20% • Shifting preference towards pens as a writing instrumen
Slide 11: Segments – Steel Bottles
Segments – Steel Bottles FCIPL (subsidiary) is engaged in manufacturing of steel We have received a letter of intent from one of bottles. Steel Bottles our key OEM customers with whom our Company has a relationship of more than 15 years. One manufacturing line has been commissioned & we intend Lever
Slide 12: Steel Bottles Industry Overview
Steel Bottles Industry Overview Steel Bottles Industry Dominated By Unorganized Players Poised To Grow Rapidly Indian steel bottle market size (₹bn) Types of steel bottles Market led by unorganized players Key drivers for the sector 75 - 80 Breakdown (by player type) • Safer & hygienic versus plasti
Slide 13: Key Strengths
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Slide 14: Flair – Competitive Edge
Flair – Competitive Edge Flair Writing Industries Limited Largest distribution Quality Strong financial Experienced Largest Player Diversified product Global Footprint network Manufacturing performance Promoters Largest player in the Diversified product Largest pan-India Ability to partner with High
Slide 15: Largest Player in the Pens Segment in India
Largest Player in the Pens Segment in India Delivered Strong Volume Growth 01 02 03 Number of pens sold in FY (in crs) SKUs +107.6% +33.5% Largest player Demonstrated higher Portfolio of iconic brands 130 2,308 growth Market leader in the pens Outpaced the industry with 1,729 category in India with
Slide 16: Diversified Products – Across Price Points
Diversified Products – Across Price Points PRODUCTS ACROSS VARIOUS PRICE POINTS Premium (>₹ 100) Expanding across price points Maintain leadership with higher margins Mid-premium (₹ 16-₹ 100) Expansion within each price segment Premiumization strategy achieving better margins is crucial to tap deman
Slide 17: Expanding Product Portfolio led by Innovation in Product
Expanding Product Portfolio led by Innovation in Product 1 2 3 +25% 774 676 699 619 Flair Writo-Meter Ball Pen Flair Glitter Gel Pen Flair Yolo Ball Pen our longest writing pen and writes up to has a metallic glitter ink effect has a laser carbon finish in body 10,000 meters 4 5 6 FY 2021 FY 2022 FY
Slide 18: Diversifying Portfolio - Moving Beyond Pens
Diversifying Portfolio - Moving Beyond Pens LEVERAGING FLAIR’S STRENGTH TO SCALE NEW CATEGORIES – CREATING A LONG-TERM VALUE FOR THE BUSINESS Flair’s Strength Expansion Provides access to wider consumer base Premiumization Presence across price points Flair’s brand strength Higher margin products as
Slide 19: State-of-the-art Manufacturing Facilities
State-of-the-art Manufacturing Facilities 11 Strategically Located Manufacturing Plants Increased Production Capacity To ~2bn Pieces Per Annum Effective production capacity (crs pieces) Effective capacity utilization was Dehradun (Uttarakhand) +13% 74.49% as of FY23. 2 units, 435mn p.a capacity 198
Slide 20: Pan India Distribution Network
Pan India Distribution Network Largest distribution network* amongst key peers lends a strong advantage for Flair in the industry GROWTH IN DOMESTIC DISTRIBUTION NETWORK ZONE WISE SALES (H1 FY24) Wholesaler/Retailer count (lacs) Dealer/Distributor count 3.15 7,754 7,307 2.35 5,638 +38% North +75% 1.
Slide 21: Globally Recognised Player with Long Standing Relationships
Globally Recognised Player with Long Standing Relationships EXPORTS IS A SIZEABLE OPPORTUNITY FOR EXPANDING PRESENCE IN INTERNATIONAL FLAIR IS A GATEWAY TO INDIA FOR INTERNATIONAL BRANDS FLAIR MARKETS Export Sales (₹ Crs) CAGR 185 Others ✓ Enjoys trust & reliability with reputed international brands
Slide 22: Advertisement and Promotional Activities
Advertisement and Promotional Activities Continue to enhance brand awareness and customer loyalty through mass media activities include brand ambassadors and celebrity endorsements, television and print advertisements and social media outreach and direct outreach activities comprise billboards, post
Slide 23: Exhibition & Trade Fair
Exhibition & Trade Fair 23
Slide 24: Product Launches – H1 FY24
Product Launches — Hi FY24 Writo-meter™ Silke BALL PEN - GEL PEN LIQUID INK FOUNTAIN PEN
Slide 25: Product Launches – H1 FY24
Product Launches — Hi FY24 EXTRA LARGE NK TANK | Refill | \ | \ TREK WOODY == BALL PEN == ‘@lue SISIASS watt pen
Slide 26: Product Launches – H1 FY24
Product Launches — Hi FY24 ‘| HAUSER Germany 26
Slide 27: Product Launches – H1 FY24
Product Launches — Hi FY24 pierre cardin pierre cardin Panis TIMELESS < Infinity
Slide 28: Product Launches – H1 FY24
Product Launches — Hi FY24 pierre cardin pierre cardin PROCESS PENS | FASHION
Slide 29: Product Launches – H1 FY24
Product Launches — Hi FY24 ‘© Compact & Ergonomic Eraser ‘olours 29
Slide 30: Product Launches – H1 FY24
Product Launches – H1 FY24 EXTENSIVE PORTFOLIO OF 774 Products (as on September 2023) # no of Products 261 193 153 145 19 3 Flair Pens Flair Creatives / Flair Calculators Hauser Pens Pierre Cardin Pens ZOOX pens Stationery Flair has the most comprehensive product portfolio in the writing and creativ
Slide 31: Product Launches – H1 FY24
Product Launches — Hi FY24 Ma Fils 31
Slide 32: Experience at Helm - Board of Directors
Experience at Helm - Board of Directors Mr. Khubilal Jugraj Rathod, Chairman • He has 48+ years of experience in the writing instruments industry • Received the Lifetime Achievement Award and the Udyog Rattan Award from the Institute of Economic Studies, the Lifetime Achievement Award from The Bomba
Slide 33: Experience at Helm - Board of Directors & Senior Management Team
Experience at Helm - Board of Directors & Senior Management Team Mr. Bishan Singh Rawat, Independent Director Management Team • Holds a Bachelor of Science degree from Meerut University and a Bachelor of Laws degree from Garhwal University, Uttarakhand. He is enrolled with the Bar Council of Uttarak
Slide 34: Corporate Social Responsibility
Corporate Social Responsibility Our CSR Policy is aimed at demonstrating care for the community and our commitment to create social value. Our Company has undertaken various active CSR initiatives to contribute to the community where we have operations. We believe in empowerment through employment -
Slide 35: Awards
Awards 2020-21 2020-21 2019-20 2018-19 2017-18 2016-17 Award for Top Exporter to the Award for Top Exporter to the Award for Top Exporter to the Export Award to the Company from Award for Second Best Exporter to the Award for No. 1 Exporter to the Flair Company from the PEPC in the Company from the
Slide 36: Way Forward
WAY FORWARD
Slide 37: Strategy for Growth
Strategy for Growth Product portfolio Premiumization Enhance capacity o Aim to strengthen and expand our o Emphasis on Mid-premium Segment o Increase production capacity to drive existing product portfolio by growing and Premium Segment to increase further volume growth across price segments margins
Slide 38: Financial Highlights
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Slide 39: Q2 & H1FY24 Key Performance Metrics
Q2 & H1FY24 Key Performance Metrics Revenue from Operations EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) ₹ in Crs ₹ in Crs 21.1% 21.2% 20.9% ₹ in Crs 13.0% 13.0% 12.9% 503.7 106.2 65.3 +4.2% +2.9% +3.2% 246.7 257.0 52.3 53.8 32.1 33.2 H1FY24 Q1FY24 Q2FY24 H1FY24 Q1FY24 Q2FY24 H1FY24 Q1FY24 Q2FY24
Slide 40: Consolidated Profit & Loss Statement – Q2 & H1 FY24
Consolidated Profit & Loss Statement – Q2 & H1 FY24 Profit & Loss Statement (₹ in crs) Q2 FY24 Q1 FY24 Q-o-Q H1 FY24 Revenue from Operations 257.0 246.7 4.2% 503.7 Cost of Materials Consumed 125.9 141.4 267.3 Purchase of stock-in-trade 2.2 1.1 3.3 Changes in Inventories of Finished Goods and Work in
Slide 41: Consolidated Balance Sheet
Consolidated Balance Sheet EQUITY & LIABILITIES (₹ in crs) Sep-23 Mar-23 ASSETS (₹ in crs) Sep-23 Mar-23 (a) Equity Share Capital 46.7 46.7 (a) Property, plant and equipment 254.0 240.1 (b) Other Equity 452.5 388.3 (b) Capital Work-in-Progress 21.9 1.6 (c) Non-controlling interest 0.1 0.3 (c) Right-
Slide 42: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (₹ in crs) Sep-23 Cash Flow from Operating Activities Profit before Tax 87.2 Adjustment for Non-Operating Items -23.3 Operating Profit before Working Capital Changes 110.5 Changes in Working Capital -51.1 Cash Generated from Operations 59.3 Less: Direct T
Slide 43: Annexure
Unlimited Fun! ANNEXURE
Slide 44: Performance in Charts
Performance in Charts Revenues EBITDA & EBITDA % PAT & PAT % ₹ in Crs ₹ in Crs 19.5% 16.9% 7.7% ₹ in Crs 12.5% 9.6% 0.3% 942.7 183.5 118.1 +78% +182% +992% 577.4 97.6 55.2 298.0 23.0 1.0 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 RoCE (%) RoE (%) *Debt to Equity (x) 31.2% 31.2% 0.53 0.41 17.4% 18.
Slide 45: Historical Consolidated Profit & Loss Statement
Historical Consolidated Profit & Loss Statement Particulars (₹ in crs) FY23 FY22 FY21 Revenue from Operations 942.7 577.4 298.0 Cost of Materials Consumed 508.2 333.6 146.1 Purchase of stock in trade 6.2 4.7 4.8 Changes in Inventories of Finished Goods and Work in Progress -5.5 -30.2 15.6 Gross Prof
Slide 46: Historical Balance Sheet
Historical Balance Sheet EQUITY & LIABILITIES (₹ in crs) Mar-23 Mar-22 Mar-21 ASSETS (₹ in crs) Mar-23 Mar-22 Mar-21 (a) Equity Share Capital 46.7 23.3 23.3 (a) Property, plant and equipment 240.1 190.1 176.4 (b) Other Equity 388.3 293.6 238.3 (b) Capital Work-in-Progress 1.6 1.8 0.0 (c) Non-control
Slide 47: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (₹ in crs) Mar-23 Mar-22 Mar-21 Profit before Tax 158.8 73.4 2.1 Adjustment for Non-Operating Items -36.3 -32.6 -28.6 Operating Profit before Working Capital Changes 195.1 106.1 30.8 Changes in Working Capital -55.3 -60.3 29.8 Cash Generated from Operatio
Slide 48: Thank You
COMPANY : Flair Writing Industries Limited CIN : U51100MH2016PLC284727 Mr. Mayur Gala (Chief Financial Officer) Email: mayur@flairpens.com www.flairpens.com INVESTOR RELATIONS ADVISORS : Thank You Orient Capital (a division of Link Group) Mr. Irfan Raeen Mr. Devansh Dedhia +91 9773778669 +91 9930147
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