Greenlam Industries Ltd · NSE:GREENLAM
Greenlam Industries — Investor Presentation (November 2015)
56 slides from Greenlam Industries's investor presentation, November 2015
Slide 1: Greenlam Industries Ltd Investor & Analyst Presentation
Greenlam Industries Ltd Transforming Spaces, Enriching Lives. Investor & Analyst Presentation November – 2015 www.greenlamindustries.com
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Greenlam 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 any se
Slide 3: Contents
Contents Overview Slide 4 Our Product Range Page 10 We have what it takes to be No.1 Page 18 Brand Investments for Growth Page 28 What Lies Ahead… Page 34 Financials Page 44 3
Slide 4: The world's 3rd & Asia's largest laminate brand
Unique interior surfacing The world’s 3rd & Asia’s company that largest laminate brand transforms living spaces Adorns interior. Enhances pride. Respected for innovation. Growing international presence. Trusted by designers. into beautiful and aesthetic spaces.
Slide 5: Transformation...
Transformation... • Foundation stone of First • Started Commercial • 2nd Laminate unit at • Sep: Decorative Division • Mar: Listed on NSE & BSE laminate Unit at Behror, Production of Decorative Nalagarh starts demerger approved by • Sep: Engineered Door Rajasthan Veneer commercial production Board o
Slide 6: Board Members
Board Members Mr. Shiv Prakash Mittal Mr. Saurabh Mittal Chairman Managing Director & CEO Ms. Parul Mittal Mr. Vijay Kumar Chopra Director Marketing & Design Independent Director Ms. Urvashi Saxena Ms. Sonali Bhagwati Dalal Independent Director Independent Director 6
Slide 7: Management Team
Management Team Saurabh Mittal Parul Mittal Managing Director & Director Design & Marketing CEO Ashok Sharma B L Sharma Deepak Aadhar Alex Joseph Chief Financial President - Plant Vice President - Vice President - Officer Operations HR, CSR, IT & Admin Marketing Anuj Sangal Anil Tyagi Shivaji Mohint
Slide 8: Today we are
Today we are India’s only Integrated and Largest manufacturer of Decorative Surfacing Products from Laminate & Wood Panel Industry
Slide 9: Product Offerings
Product Offerings Laminate & Allied Veneer & Allied Laminate Compacts MFC Decorative Engineered Engineered Veneers Wood flooring Doors HPL Ply Based Interior Prelam MDF Based Specialty Exterior Postlam Laminate Based RC& Lockers Natural, Teak & Engineered Variants
Slide 10: Laminates & Allied Products
Laminates & Allied Products Our Product Range
Slide 11: Laminates
Laminates • Laminates are decorative surface material, used on top of a substrate like plywood, MDF or a particle board as a surface cover • Greenlam laminate is the flag ship brand of Greenlam Industries Limited • Market Leader in Laminates with a wide range of over 2500+ decors in over 50 textures
Slide 12: Compact Laminates
Compact Laminates • Self Sustainable boards panels made with decorative surface papers with décor finish on both sides Change photo • Our business is divided into three solutions • BOARD || REST ROOM CUBICLE || FAÇADE CLADING • Greenlam Offers • Greenlam Anti-Bacterial Compact Laminates are “Green G
Slide 13: Melamine Faced Chip Board
Melamine Faced Chip Board • MFC - Melamine Faced Chip Board is an engineered particle wood product Structure of MFC – Pre Laminated • Greenlam offers Décor paper impregnated with Melamine • Laminated MFC for the use in organised carpentry primarily by OEM’s like modular furniture manufacturers, kitc
Slide 14: Decorative Veneer & Allied Products
Decorative Veneer & Allied Products Our Product Range
Slide 15: Decorative Veneers
Decorative Veneers • Largest manufacturer of Natural Wood Veneer in India with the largest Structure of a Veneer manufacturing capacity • Offers over 200+ exotic & imported natural veneer wood species • We also added to the portfolio – Teak & Engineered Veneers • Greenlam Offers • Many variants as c
Slide 16: Engineered Wood Flooring
Engineered Wood Flooring • “Mi Casa , Su Casa” – Mikasa is the 1st Indian Brand of Engineered Wood Floors • State of art manufacturing facility with Latest European technology • Plant Integrated with decorative veneer facility driving better synergy in sourcing and manufacturing • Highest range offe
Slide 17: Engineered Door Solutions (Door + Frame)
Engineered Door Solutions ( Door + Frame)* • First organised company to launch engineered, factory finished, door solutions in the country • Capacity : 120,000 Doors units / annum • Investment : Rs 27 Crores • Integrated with existing decorative veneer and engineered wood flooring, driving better sy
Slide 18: We have what it takes to be No.1
We have what it takes to be No.1
Slide 19: Leadership in Manufacturing Capabilities
Leadership in Manufacturing Capabilities Laminates & Compact Laminates 12.02 mn Sheets * Largest in Asia Decorative Veneers 4.2 Mn Sqm Largest in India Complements the Melamine Faced Chipboard - MFC 2 Mn Sqm Laminates & Allied Products India’s 1st and only Engineered Wood Flooring 1 Mn Sqm manufactu
Slide 20: State of the Art Manufacturing Facilities
State of the Art Manufacturing Facilities Decorative Veneers (Behror) Laminates (Behror, Nalagarh) Engineered Wood Flooring (Behror) Engineered Doors (Behror) 20
Slide 21: Growth in Laminates...
Growth in Laminates... 150% ~33% 100% ~17% Infrastructure available for 40% incremental Current Utilisation at capacity with minimal 12.02 Mn 113% (for 10.02 mn incremental cost sheets sheets) achieved from Debottlenecking Additional to be utilised with no incremental cost Current Capacity Debottlen
Slide 22: Strong Brand Equity
Strong Brand Equity • Strong brand presences across the globe • On awareness parameters, Greenlam enjoys the highest brand recall among specifier & homeowners* • Trusted brand by designers & architects, trade & consumers for innovation in design trend, quality, availability & transparency • Highest
Slide 23: India Network Presence – The Core strength
India Network Presence – The Core strength Greenlam has the widest & largest sales and distribution network in India Pan India Presence With 9 Company owned large Regional Distribution Centers 29 Branch offices Over 500 sales staff 12000+ distributors, dealers & retailers – Largest in the country 23
Slide 24: Global Network Presence
Global Network Presence 11 International offices Over 100+ overseas employee 5 Company operated warehouses including 3 subsidiaries 100+ Countries Greenlam is the only company from India to have the largest sales and distribution network Globally 24
Slide 25: Awards & Recognitions
Awards & Recognitions Power Brands Master Brand 100 Most valuable brand Largest exporter award 1st Non American brand to get Greenguard Certification 1st Company in the country to trade in FSC® product 25
Slide 26: Green Credentials...
Greenlam Industries Limited Green Credentials... @ I ® GREENGUARD
Slide 27: Presence across: B2B & B2C
Li7 Greenlam Industries Limited Presence across: B2B & BeC Your creativity now knows 10 bounds
Slide 28: Brand Investments for Growth
Brand Investments for Growth
Slide 29: Domestic - Print Campaigns - Mikasa & Decowood
Domestic - Print Campaigns- Mikasa & Decowood 29
Slide 30: Domestic - Mikasa Floors Display Centres
Domestic - Mikasa Floors Display Centres Delhi Mumbai 30
Slide 31: Domestic - Mikasa Doors Display
Domestic - Mikasa Doors Display 31
Slide 32: International - Greenlam - Interzum 2015 - Germany
International - Greenlam - Interzum 2015 - Germany 32
Slide 33: International – Greenlam Range Launch
International – Greenlam Range Launch 33
Slide 34: What Lies Ahead… An Ocean Of Opportunities
What Lies Ahead… An Ocean Of Opportunities
Slide 35: India - Opportunities
India - Opportunities • Expanding rural retail penetration Rural Demand • Increasing exposure of branded products • There are a total of 9391 towns in India (Census 2011) Real Estate • Market size of real estate in India is expected to reach $180 bn by 2020 Demand • Growth in Real Estate led by lowe
Slide 36: India - Opportunities
India - Opportunities Compact Laminates Growing markets for Niche Growing market for uses across Products Cladding, restroom cubicles, lockers One stop shop for all decorative surface solutions Decorative Veneers Offering more than 200 wood varieties to cater to the need for natural surfacing Engine
Slide 37: India - Opportunities – Laminates & Allied
India - Opportunities – Laminates & Allied Laminates Market Size in Rs Crores Decorative Laminates 10% 18% • New product launches will help in increasing the volume and value mix Market Market Share Share • 20% Capacity expansion will help us gain more market share 4,200 3,400 800 3,400 • There is a
Slide 38: Opportunities – Decorative Veneers & Allied
Opportunities – Decorative Veneers & Allied India Focused Decorative Veneers Decorative Veneer Market Size in Rs Crores 12% 18% • Expansion into 2 newer product lines – Teak & Engineered Market Market Share Share 800 • Largest installed capacity in the country 250 550 • Brand enjoys, high equity amo
Slide 39: Opportunities – Decorative Veneers & Allied
Opportunities – Decorative Veneers & Allied India Focused Engineered Wood Floors • We are the first and only manufacturer of Engineered Wood Floors in the country • The Market is estimated at 2Mn.sqm • Mikasa’s Installed capacity is 1Mn.Sqm • Category is withnessing a 20-25% growth • No organised pl
Slide 40: Opportunities – Decorative Veneers & Allied
Opportunities – Decorative Veneers & Allied India Focused Engineered Doors (Door + Frame) • Door (including flush door) market is estimated at 24mn annually • Engineered Finished Door category is witnessing a 20 – 25% growth • Greenlam is offering for the first time in India, ready to fit factory ma
Slide 41: International Opportunities – Laminates & Allied
International Opportunities – Laminates & Allied • Laminates industry globally is at $7 Bn growing by 2% p.a. Indian laminate exports Rs 800 Crs • According to a study done by Freedonia Group the industry is expected to grow by 5.6% per year till 2018 reasons being Greenlam • Increasing manufacturin
Slide 42: Asia – Pacific (Excluding India)
Asia – Pacific (Excluding India) • Asia Pacific market covers 15 countries • Market Size – $1.5 Billion • This market is growing by 5% • Greenlam has 7 offices in the region • Major resources deployed in Asia PAC with higher scope for growth 42
Slide 43: Other Markets
Other Markets European market • Europe market covers 16 countries • Market growth is stagnant • Office in UK North & South America markets • Covers 11 countries • This market is growing by 2% • 2 Offices in United States 43
Slide 44: Financials
Greenlam Industries Limited Financials
Slide 45: Performance – Q2 & H1 FY16
Performance – Q2 & H1 FY16 Revenue EBIDTA PAT Segmental Revenue 213 230 29 10.2 9.2 Decorative 24 Veneer & Allied 13% Laminates Q2FY15 Q2FY16 Q2FY15 Q2FY16 Q2FY15 Q2FY16 & Allied 87% Revenue EBIDTA PAT Segmental Revenue 447 54 17.2 15.6 399 47 Decorative Veneer & Allied 13% Laminates H1FY15 H1FY16 H
Slide 46: Highlights – Q2 FY16
Highlights – Q2 FY16 • Revenues grew by 8% this quarter, led by good performance in • Domestic Sales with growth of 15% • Decorative veneers with growth of 21% (41% volume growth) backed by new launches • Laminate capacity utilisation of 112% • Launching of new variant led to enhanced Veneer capacit
Slide 47: Laminates & Allied Products
Laminates & Allied Products Rs. Crores Q2 FY16 Q1 FY16 Q4 FY15 Q3 FY15 FY15 Net Sales of Laminates & Allied Products 199.7 188.7 197.5 192.9 745.2 EBIDTA Margin % 13.0% 11.7% 9.0% 10.9% 10.1% Capital Employed 322.0 337.3 331.8 355.3 331.8 Note: The segments were formed post demerger, hence data for
Slide 48: Laminates & Allied Products
Laminates & Allied Products Capacity Utilization Production in Mn Sheets Annual Capacity of 10.02 Mn Sheets +5.6% 126% 3.0 3.2 121% 2.8 2.8 113% 112% 2.7 106% Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 * Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 * New capacity of 2 mn sheets introduced at the end of Q2 FY16 Sales
Slide 49: Decorative Veneers & Allied Products
Decorative Veneers & Allied Products Rs. Crores Q2 FY16 Q1 FY16 Q4 FY15 Q3 FY15 FY15 Net Sales of Decorative Veneers & 30.4 28.3 33.8 21.85 99.4 Allied Products EBIDTA Margin % 10.9%* 9.7%* 15.2% * 8.6% * 17.5% Capital Employed 174.6 156.1 142.4 130.0 142.4 Note: The segments were formed post demerg
Slide 50: Decorative Veneers
Decorative Veneers Production in Mn Sqmt Capacity Utilization Annual Capacity of 4.2 Mn Sqmt +36.4% 0.40 0.36 38% 35% 0.34 32% 0.26 25% 0.22 20% Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Sales in Mn Sqmt Average Realisation (Rs / Sqmt) -14.1% +41.5% 885 0.35 0.35 0.37 852
Slide 51: Profit and Loss
Profit and Loss Rs. Crores Q2 FY16 Q2 FY15 YoY H1 FY16 H1 FY15 YoY FY15 Revenue 230.1 212.6 8.2% 447.1 398.6 12.2% 844.6 Raw Material 128.1 131.5 254.6 242.9 511.5 Employee Cost 25.4 20.3 50.3 38.3 78.9 Other Expenses 47.2 37.1 88.0 70.2 161.3 EBITDA 29.3 23.7 23.8% 54.2 47.2 14.8% 92.9 EBITDA Margi
Slide 52: Geographic Segments
Geographic Segments Domestic (Rs Crores) Exports (Rs Crores) +15.1% +13.0% +11.0% -2.0% 145 265 87 182 85 126 234 164 Q2FY15 Q2FY16 H1FY15 H1FY16 Q2FY15 Q2FY16 H1FY15 H1FY16 52
Slide 53: Performance Ratios
Performance Ratios ROCE Net Working Capital Days 14.8% 67 13.2% 63 H1FY15 H1FY16 H1FY15 H1FY16 H1FY15 H1FY16 H1FY15 H1FY16 Revenue 398.6 447.1 Inventory 82 83 EBIT 33.51 40.07 Debtors 52 51 PAT 17.2 15.7 Creditors 67 70 Capital Employed 508.2 540.7 Net Working Capital 67 63 53
Slide 54: Balance Sheet
Balance Sheet Rs. Crores Sep – 15 Mar – 15 Rs. Crores. Sep - 15 Mar - 15 Shareholder’s Fund 242.7 227.1 Non-Current Assets 363.2 346.7 Share capital 12.1 12.1 Fixed assets 338.0 320.6 Reserves & Surplus 230.6 215.0 Non-Current Investments 17.5 17.5 Non-Current Liabilities 190.2 197.7 Other Non-Curre
Slide 55: Way ahead…
Way ahead… • Continue the Growth momentum in • Laminate & maximize the utilization of existing capacity • Expanding the distribution network for newer variants of Veneer. • Continue expansion of sales & distribution network • Enhance the sales & distribution network for Brand “Mikasa” • Engineered W
Slide 56: Thank You
Thank You For further information, please contact: Company : Investor Relations Advisors : Greenlam Industries Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: U21016AS2013PLC011624 CIN: U74140MH2010PTC204285 Mr. Ashok Sharma - CFO Ms. Ruchi Rudra/ Ms. Neha Shroff Email: ashok.sharma@greenlam.com rruch
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