Kajaria Ceramics Limited · NSE:KAJARIACER
Kajaria Ceramics — Investor Presentation (May 2012)
40 slides from Kajaria Ceramics's investor presentation, May 2012
Slide 1: Investors Presentation
Investors Presentation May 2012 1
Slide 2: Agenda
Agenda Global Tile Industry Indian Tile Industry Kajaria Ceramics – overview Game Changer Financials Shareholding Pattern 1
Slide 3: Agenda
Agenda Global Tile Industry Indian Tile Industry Kajaria Ceramics – overview Game Changer Financials Shareholding Pattern 2
Slide 4: The production of top countries
The production of top 10 countries… (Million Sq Mtr) CY06 CY07 CY08 CY09 CY10 CHINA 3000 3200 3400 3600 4200 44% BRAZIL 594 637 713 715 753 INDIA 340 385 390 490 550 6% IRAN 210 250 320 350 400 ITALY 569 559 513 368 387 VIETNAM 199 254 270 295 375 SPAIN 608 585 495 324 366 INDONESIA 170 235 275 278
Slide 5: World production Scenario
World production Scenario • World Production has grown @ 6% CAGR in the period CY 2004-2009. Grew @ 11.7% in CY 2010. • All the top producer countries in Asian Continent increased their production. Asia’s production grew by 14.9% in CY 2010 Source: Ceramic World Review 4
Slide 6: The consumption of top countries
The consumption of top 10 countries… (Million Sq Mtr) CY06 CY07 CY08 CY09 CY10 CHINA 2450 2700 2830 3030 3500 37% BRAZIL 484 535 605 645 700 INDIA 350 397 403 494 557 6% IRAN 182 236 265 295 335 VIETNAM 145 210 220 240 330 INDONESIA 148 178 262 297 277 EGYPT 103 105 140 180 200 USA 308 249 211 173 1
Slide 7: Global consumption Scenario (CY10)
Global consumption Scenario (CY10) • The break down in consumption by geographical area is very similar to that of production. • Asia once again showed the biggest growth in demand at 14% in CY10. • Indian tile industry grew by 12.2% (in volume terms) in CY10 over the last year. Source: Ceramic Worl
Slide 8: Global Scenario: Per capita consumption of tiles
Global Scenario … Per capita consumption of tile (Sq Mtr) Per capita consumption of tiles Source: Ceramic World Review 7
Slide 9: Agenda
Agenda Global Tile Industry Indian Tile Industry Kajaria Ceramics – overview Game Changer Financials Shareholding Pattern 8
Slide 10: Indian Tile Industry
Indian Tile Industry • Indian tile industry is around 557 million sq. mt. as of March 2011. • Industry size Rs 14000 crore as of March 2011. • National Brands control 50% of industry. • The industry has been growing at a CAGR of 15-16% per annum in last 4-5 years. 9
Slide 11: Indian Industry – Major Players
Indian Industry – Major Players National Brands control around 50% of the Industry Turnover as on date 31.03.2011 (Fy. 2011-12) (Rs/Cr) H&R Johnson 1472 Rs. 1729 cr. Kajaria Ceramics 1005 Rs. 1407 cr. Somany Ceramics 758 Nitco Tiles 729 Asian Granito 482 Orient Ceramics 358 Euro Ceramics 260 Gokul C
Slide 12: Balance 50% of the industry is unbranded players
Balance 50% of the industry is represented by other unbranded players mainly present in the state of Gujarat. 11
Slide 13: Indian Industry – Segmentation
Indian Industry – Segmentation How Kajaria is Catering to all the segment of the 557 MSM tile Industry (Rs 14000 Crore) Vitrified Tiles (190 MSM / Rs. 6500 Crore) Ceramic Glazed Tiles (367 MSM / Rs. 7500 Crore)
Slide 14: Indian Industry – Segmentation
Indian Industry – Segmentation How Kajaria is Catering to all the segment of the 557 MSM tile Industry (Rs 14000 Crore) Polished Glazed Vitrified Tiles (170 MSM / Vitrified Tiles Rs. 5500 Crore) (20 MSM / Rs. 1000 Crore) Ceramic Glazed Tiles (367 MSM / Rs. 7500 Crore)
Slide 15: Indian Industry – Segmentation
Indian Industry – Segmentation How Kajaria is Catering to all the segment of the 557 MSM tile Industry (Rs 14000 Crore) 8 MSM 12 MSM Earlier importing from Europe and China, commissioned a Polished manufacturing unit at Gailpur in Glazed Vitrified Tiles March 2011 (total aggregate Vitrified Tiles (1
Slide 16: Indian Industry – Segmentation
Indian Industry – Segmentation How Kajaria is Catering to all the segment of the 557 MSM tile Industry (Rs 14000 Crore) 20 MSM 8 MSM 150 MSM 12 MSM Earlier importing from Europe and Importing from China and commissioned a manufacturing unit at Sikandrabad (U P) China, commissioned a manufacturing Po
Slide 17: Indian Industry – Segmentation
Indian Industry – Segmentation How Kajaria is Catering to all the segment of the 557 MSM tile Industry (Rs 14000 Crore) 20 MSM 8 MSM 150 MSM 12 MSM Earlier importing from Europe and Importing from China and commissioned a manufacturing unit at Sikandrabad (U P) China, commissioned a manufacturing Po
Slide 18: Agenda
Agenda Global Tile Industry Indian Tile Industry Kajaria Ceramics – overview Game Changer Financials Shareholding Pattern 13
Slide 19: Manufacturing
Manufacturing • Kajaria started production in August 1988 at Sikandrabad (UP) with 1 million sq. mtr. per annum. • Current Capacity of Sikandrabad plant is 8.20 million sq. mtr. of ceramic glazed and vitrified tiles. 14
Slide 20: Manufacturing
Manufacturing Commissioned 2nd Plant in March 1998 at Gailpur (Rajasthan) with a capacity of 6 million sq mtr p.a. and further increased the capacity in phased manner. The present capacity of Gailpur plant is 20.10 millions sq. mtr. per annum of ceramic glazed and vitrified tiles. 15
Slide 21: Acquisition (Joint Ventures)
Acquisition (Joint Ventures) A. SORISO CERAMICS Acquired 51% stake in Soriso Ceramic Pvt Ltd, based in Morbi,Gujarat in February 2011 with an annual capacity of 2.30 MSM of ceramic floor tiles. Further expanded the capacity to 4.60 MSM. Production for enhanced capacity started in March 2012. B. JAXX
Slide 22: Largest manufacturer of ceramic and vitrified tiles in India
The total present capacity is 38.30 million sq. mtr. making Kajaria the largest manufacturer of ceramic and vitrified tiles in India 17
Slide 23: Geographical Spread of the Production Capacity
Geographical Spread of the Production Capacity 8.20 MSM (Sikandrabad, U P) 20.10 MSM (Gailpur, Rajasthan) 4.60 MSM (JV with Soriso, Morbi Gujarat) 3.10 MSM (JV with Jaxx, Morbi, Gujarat) Plant Ceramic Tiles Vitrified Tiles Total 1. Sikandrabad (UP) 3.20 5.00 8.20 2.30 MSM* 2. Gailpur (Rajasthan) 14.
Slide 24: Distribution network of 825 dealers
Distribution network of 825 dealers (Apart from their sub-dealers) 19
Slide 25: 21 Display Centers at all the offices in the country
21 Display Centers at all the offices in the country Amritsar Ludhiana Dehradun Chandigarh New Delhi Jaipur Lucknow Guwahati Varanasi Ahmedabad Indore Kolkata Nagpur Mumbai Pune Hyderabad Bengaluru Chennai Coimbatore Cochin Customers / Architects come to select the tiles, Thiruvananthpuram then buy
Slide 26: Prestigious Projects
PRESTIGIOUS PROJECTS Delhi Metro IT / ITES South Delhi Station Adobe Systems India Pvt. Ltd. Developers Schools The Close - Unitech Delhi Public School 21
Slide 27: Kajaria World
Kajaria World • Chain of retail showrooms selling high end tiles from Spain & China. • 17 showrooms (5 own + 12 franchises as of now. • Selling leading international brands like:- Ludhiana Chennai Gurgaon 22
Slide 28: The most certified Ceramic Tile Company in the world
Product quality at par with Product quality at par with international standards international standards The most certified Ceramic Tile Company in the world 23
Slide 29: Superbrand for Sixth consecutive time
Only Ceramic Tile Company in India conferred with “Superbrand” for Sixth consecutive time. Superbrand is a concept that originated in the UK in 1993 and currently operating in 86 countires 24
Slide 30: Agenda
Agenda Global Tile Industry Indian Tile Industry Kajaria Ceramics – overview Game Changer Financials Shareholding Pattern 25
Slide 31: Game Changer
Game Changer Improved ROCE/ROE due to higher asset turn ratio • Historic high capex has capped ROCE/ROE • Asset turn ratio has been improving due to:- - Incrementally lower capex (Italian machine price came down due to China foray into machine manufacture) - Kajaria moving towards bigger/value added
Slide 32: Agenda
Agenda Global Tile Industry Indian Tile Industry Kajaria Ceramics – overview Game Changer Financials Shareholding Pattern 27
Slide 33: Segment wise Turnover
Segment wise Turnover Rs. in Crore Bathware / Ceramic Wall & Polished Vitrified Glazed Vitrified Wooden Total Floor Tiles Tiles Tiles Flooring Outso- Outso- Outso- Fin Year Mnfg. Mnfg. Mnfg. (Outsourcing) urcing urcing urcing FY 2009-10 473 13 6 173 - 62 40 767 (Audited) - 2010-11 458 62 86 250 12 1
Slide 34: PAT and EBDITA Margin
PAT (Rs. Crore) 90 81 80 70 61 60 50 36 40 30 20 10 0 FY-10 FY-11 FY-12 EBDITA MARGIN (%) 18.00 15.73 15.60 16.00 15.37 14.00 12.00 10.00 FY-10 FY-11 FY-12 All figures and ratios are on standalone basis 29
Slide 35: All figures and ratios are on standalone basis
All figures and ratios are on standalone basis 30
Slide 36: Financials
Financials Rs in Crore Q4FY12 Q4FY11 Growth 12MFY12 12MFY11 Growth Standalone Consolidated Standalone Consolidated Standalone Consolidated Standalone Consolidated Standalone Consolidated Standalone Consolidated Gross Sales 405.06 406.60 295.90 295.90 37% 37% 1400.32 1407.21 1004.57 1004.57 39% 40% N
Slide 37: Agenda
Agenda Global Tile Industry Indian Tile Industry Kajaria Ceramics – overview Game Changer Financials Shareholding Pattern 32
Slide 38: Shareholding pattern (31.03.2012)
Shareholding pattern (31.03.2012) 33
Slide 39: Forward looking and cautionary statement
Forward looking and cautionary statement Certain statements in this report concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The
Slide 40: Thank You!
Thank You! Kajaria