Welspun Living Limited · NSE:WELSPUNLIV
Welspun Living — Welspun India — Investor Presentation (February 2022)
50 slides from Welspun Living's investor presentation, February 2022
Slide 1: Investor Presentation
Investor Presentation Welspun India Limited Home Textile | Advance Textile | Flooring Feb 2022 NSE: WELSPUNIND Bloomberg: WLSI:IN Reuters: WLSP.NS welspunind ia. co m
Slide 2: Inside this Presentation
Inside this Presentation Welspun Group 03 Welspun India 04 Market Opportunity 12 Welspun 2.0 17 Brands 19 Advanced Textile 24 Flooring Solution 25 E-Commerce 27 Innovation 30 Digitalization 32 ESG 35 Robust Financial Performance 39 Prudent Capital Allocation Strategy 44 Investment Rationale 47
Slide 3: Welspun Group
Welspun Group Global Conglomerate The USD 2.7 Bn Welspun Group is one of India’s fastest growing global conglomerates with business interests in Line Pipes, Home Textiles, Infrastructure, Steel, Advanced Textiles, Warehousing and Flooring solutions. Global leader in Home Textiles Amongst world’s lar
Slide 4: Welspun India – Who are we?
Welspun India – Who are we?
Slide 5: Welspun India #1 Global Home Textiles Leader
Welspun India #1 Global Home Textiles Leader Multipronged Welspun India Ltd (WIL), E-Commerce part of $2.7 bn Welspun Group, is a Strategy to accelerate ESG Focused global leader in the Home Textiles growth & capture organization with landscape. With a strong global larger share of the well-defined
Slide 6: Strong Global Presence
Strong Global Presence Key Customer Partnership North America UK & Europe India #1 Ranking In “Top 15 Home Textile Supplier Giants to USA” ROW Over 50 Countries Presence welspunindia.com 6
Slide 7: 360 degrees capabilities from Farm to Shelf
360 degrees capabilities from Farm to Shelf 1. Well Researched Innovative Offerings backed by deep Consumer understanding 6. Environment, 1. Consumer 2. Vertically integrated facilities Social, Research & with seamless connectivity to Governance Innovation (ESG) Global Supply chains 3. Global Distri
Slide 8: Vertically Integrated presence with Significant Capabilities
Vertically Integrated presence with Significant Capabilities Annual Particulars UOM Capacity Bath Linen MT 85,400 Bed Linen Mn mtrs 90 Home Textile Rugs & Carpets Mn sq mtrs 12.0 Advanced Textile Spunlace MT 10,000 Needle Punch MT 3,026 Wet Wipes Mn Packs 100 Annual Capacity Flooring Particulars UOM
Slide 9: Awards & Recognition – Testimony of Excellence
Awards & Recognition – Testimony of Excellence Feathers in our cap Most Influential Woman Sustainability & CSR Global Textile Company of the Year 2020 2021 2021 Dipali’s Contribution to Amongst Top 100 Companies Industry & Society in India Read More Dipali Goenka: Unstoppable Tycoon US FDA Greenguar
Slide 10: Trend of Financial Performance
Trend of Financial Performance Total Income EBITDA (₹ Million) (₹ Million, %) 24.8% 18,000 30.0% 19.2% 16,000 19.6% 19.2% 25.0% 17.4% 14,000 12,000 20.0% 10,000 15.0% 8,000 74,080 66,084 68,362 14,198 12,046 13,098 16,639 61,318 67,211 11,467 6,000 10.0% 4,000 5.0% 2,000 0 0.0% FY17 FY18 FY19 FY20 F
Slide 11: Leadership
Leadership Board of Directors Management Team Mr. B. K. Goenka CHAIRMAN Mr. Rajesh Mandawewala Ms. Dipali Goenka Mr. Sanjay Gupta Mr. Keyur Parekh Amongst India’s most dynamic businessmen MD; MEMBER OF BOARD C E O & JT . M D ; President (Finance) G l o b a l He a d Past President ASSOCHAM (2019)
Slide 12: Global Home Textile Opportunity
Global Home Textile Opportunity Global Home Textile Market Addressable US Home Textile Market (2020) (USD Bn) (USD Bn) (Wholesale level) 176 Market Composition 150 2.7% 200 US 31% 180 6.3 Bn 160 140 34% $ 120 51 60 100 80 Europe 60 CAGR ROW 35% 40 20 Strong Presence of Welspun Next Opportunity for W
Slide 13: US imports and Welspun's Market Share
US imports and Welspun's Market Share India - Largest Player in US Market (Towel) Welspun’s Towel Market share in US (In %) (In %) 25% 44% 42% 38% 15% 25% 22% 16% 15% 15% 19% 21% 21% 21% CY2015 CY2020 CYTD Nov'21 CY2013 CY2021 India - Largest Player in US Market (Sheet + Pillow) Welspun’s Sheet Mark
Slide 14: Global Advanced Textile Opportunity
Global Advanced Textile Opportunity Global Advanced Textile $ 33 Bn Global Addressable Advanced Textile End User Opportunity (2020) Opportunity (2020) Industry Segmentation (In %) ($ 180-190 Bn) Market growing at 5% CAGR ~5% CAGR Post Covid Health & Hygiene has seen focus US 25% MEDITECH - gro
Slide 15: Global Flooring Opportunity
Global Flooring Opportunity Global Flooring Market (2020) Addressable Global Market for Welspun (2020) – USD 290 Bn – USD 20 Bn 50% Broadloom ~5% CAGR USA $10 Bn 25% Carpet Tiles Market 25% LVT Asia Pacific 131, 45% USA 116, 40% 40% Broadloom $7.5 Bn Europe 35% Carpet tiles Market Europe 2
Slide 16: Evolution of Welspun India
Evolution of Welspun India Phase I : Till 2010 Phase II : 2010 - 2020 Phase III : Going forward Evolving to Welspun 2.0 with Transforming from a manufacturing 6 key value drivers company to brand-oriented, Direct Transforming from being textile manufacturer to to Consumer company Growth Value rank
Slide 17: Welspun 2.0
Welspun 2.0 Ce ©}
Slide 18: Welspun 2.0
Welspun 2.0 Growth drivers Value enablers Brands Emerging E-Commerce Innovation Digitalization ESG Businesses Brand Portfolio – Flooring Multi-pronged Thought leader Organization wide Encompassing all Owned & Licensed E-commerce Strategy in Home Textiles transformation stakeholders with
Slide 19: Brands: Dominating Global Consumer Landscape
Brands : Dominating Global Consumer Landscape Brand Strategy Owned Brands India Global Strengthening 1. owned and licensed portfolio Penetration 2. of consumer business across geographies Licensed Brands Securing 3. additional India Global shelf space Alternate 4. Revenue Streams welspunindia.com Re
Slide 20: Owned Brands - Domestic
Owned Brands - Domestic Festive Collection: Launch of Healthy Life Campaign: Rangana Campaign Anti Viral Brand Positioning Premium Mass Thoughtfulness Presence Click here to view Click here to view 2,300+ outlets 5,400+ outlets 240+ shop-in-shop locations 100+ cities & 450+ towns Top
Slide 21: Domestic Business
Domestic Business Opportunity Aiming to be “Har Ghar Welspun” Market size To be Leader in home textiles space in India by Addressable market size is currently 2023 about ₹ 12,000 cr. and is expected to move up to ₹ 23,000 cr. by 2025. Major part of market is unorganized and Innovative, Quality p
Slide 22: Owned Brands - Global
Owned Brands - Global Brand Positioning 170-year-old heritage Luxury Presence Moving from Phygital to Global Digital Repositioning for Millennials Early Success 35% Christy business now comes from E-Commerce channel welspunindia.com Return to Welspun 2.0 22
Slide 23: Licensed Brands
Licensed Brands Licensed brand brings us new opportunity pockets by Expected annualized revenue from licensed opening-up new channels and shelf space without brands to cross $100 mn by FY23 cannibalizing our existing business Martha Scott Living Strong performance across channels Healthy contribut
Slide 24: Advanced Textiles
Advanced Textiles Emerging segment of Wet Wipes textile products Tailor-made wet wipes for end Innovative product applications applications like baby care, personal hygiene, cosmetics, industrial use, and Facility located in Anjar, Gujarat (India) home care. Planned to augment Spunlace & Wet
Slide 25: Flooring Solutions
Flooring Solutions Technologically advanced Flooring Solutions Greenfield Fully Flooring for Home, Hospitality and Commercial segment. Integrated facility Aiming to revolutionize the renovation segment of Indian spread over 600 acres of flooring market. land in Telangana Flooring still conside
Slide 26: Flooring Product Offerings
Flooring Product Offerings Click N Lock® Tiles Carpet Tiles Wall to Wall carpets Greens Features Features Features Features Healthy Floors Highly Durable Multiple Design Anti- viral Multiple Design Anti -viral No Cropping No Watering Possibilities Possibilities Less than a Noise & Dust Free Easy to
Slide 27: E-Commerce – Multipronged strategy to drive growth
E-Commerce – Multipronged strategy to drive growth Project WAVE Accelerating E-Commerce growth 3 Target Annualized Share (%) $ 100 Mn+ Geographies in focus 70% 15% - 20% 7% - 10% Target Revenue Run rate by US UK India US UK India Q4FY23 Ecommerce Build & Grow Robust Supply Strong Technology Right Ch
Slide 28: E-Commerce – (Contd.)
E-Commerce – (Contd.) Value Earth Friendly Health & Wellness Fashion Luxury Growth platforms Digital Marketing Sharp Product Marketplaces, D2C, Omni and Activation Assortment Capabilities Organization & People Brilliant Basics Analytics led control tower Up skilling & Talent acquisition Middlewa
Slide 29: Well-researched offerings backed by deep consumer understanding
Well-researched offerings backed by deep consumer understanding Market Analysis Enables us to develop relevant Consumer Solutions and Innovations in Sleep, Comfort. Wellness & Performance Guides our decision making with regards to product development, Industry Assortment Research Analysis consum
Slide 30: Innovation – Our strong suite
Innovation – Our strong suite 32 Patented Technologies Key Innovations Filed globally HYGROCOTTON Thought leader Collaboration With Tamper-proof Blockchain WI NNE R Patented spinning technology makes towel platform for state-of-the-art transparency for CLARIVATE SOUTH AND softer loftier and sheet te
Slide 31: Innovations in Advance Textile and Flooring
Innovations Innovations in in Advance textile and Advance Flooring Textiles Innovations in Flooring products HealthyFloor TM Engine air and cabin air filter Unique & patented blend* Pleatable filter media SPC and Carpet Tiles with Antiviral media and Antimicrobial Properties. It kills MID ra
Slide 32: Innovations in Flooring
Innovations in Flooring Resilon Welspun EcoliteTM HealthyFloorTM Resilon yarn (recycled PET) Revolutionary backing made SPC and Carpet Tiles with up of lightweight PVC Antiviral and Antimicrobial ensures the carpets are extremely durable and can ensuring 40% less Properties. It kills 99.68 % environ
Slide 33: Digitalization - Digital Transformation at Welspun
Digitalization - Digital Transformation at Welspun Supplier Manufacturing Product Supply Chain Sales & Marketing Management E-Sourcing Industry 4.0 Collaborative E-PLM E-Documentation Digital Customer Computer vision Digitization of Product (Bolero Platform) Engagement E-Procure to Pay based QC
Slide 34: Digitally Engaging with our customers
Digitally Engaging with our customers Virtual Showroom & Virtual Shop floor Virtual Quality Customer Design Microsite walkthrough Inspections Feedback Audio-Video quality was so good that I could feel myself sitting in cart and visiting the plants. Very good synergy among team members and could see
Slide 35: Welspun ESG way: Encompassing all stakeholders
Welspun ESG way: Encompassing all stakeholders Welspun is going through Environmental Social Governance a major transformation where Engaged with Cotton Farmers to we are embedding sustainability Implemented ISO 14001 train & enable them grow Board Committee on ESG and circularity in every rea
Slide 36: ESG Journey till date
ESG Journey till date … Dow Jones Sustainability Index (DJSI): Welspun India rated 62% higher than industry average score in DJSI Corporate Sustainability Assessment 2021 Journey Till Date (nos. are on YTD basis) 100,000+ acres 3,278 million 1,38,419 GJEnergy 44% 8,380 tons Landbank of sustainable L
Slide 37: Our ESG journey and envisaged outcomes
Our ESG journey and envisaged outcomes What are we doing? Comparison of ESG-related Identifying, refining, and Identification of current gaps Formulation of a strategic Public reporting and disclosures systems and processes across assessing numerous potential and/or improvement areas roadmap outlini
Slide 38: Sustainability targets
Sustainability targets Aspects Q3FY22 Goal 2025 Goal 2030 Key Highlight of Q3FY21 Projects Under consideration: Solar PV on STP pumping stations (1MW), Floating solar PV @ Anjar (11MW) Carbon Neutral WIP 20% RE 100% RE Increase use of wood briquettes, Rice Husks and ETP dried sludge (measured as % R
Slide 39: Robust Financial Performance
Robust Financial Performance
Slide 40: Profit & Loss Summary
Profit & Loss Summary (₹ Million) Particulars FY17 FY18 FY19 FY20 FY21 Total Income 67,211 61,318 66,084 68,362 74,080 Growth % 11.8% -8.8% 7.8% 3.4% 8.4% EBITDA 16,639 12,046 11,467 13,098 14,198 EBITDA Margin 24.8% 19.6% 17.4% 19.2% 19.2% Depreciation 5,054 5,042 4,358 4,811 4,536 Finance cost 1,5
Slide 41: Balance Sheet Summary
Balance Sheet Summary (₹ Million) Particulars 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 Net Worth 23,971 26,057 27,793 29,721 36,447 Short Term Loans 11,721 12,580 14,080 17,717 17,452 Long Term Loans 21,393 20,228 19,024 16,704 10,962 of which Flooring Debt - - 2,870 6,378 7,112 Gross Debt
Slide 42: Ratios Summary
Ratios Summary FY17 FY18 FY19 FY20 FY21 Net Debt/Equity 1.27 1.16 1.09 1.00 0.64 Solvency Net Debt/EBITDA 1.83 2.51 2.64 2.26 1.64 ratios EBIT/Interest 7.32 4.98 4.46 4.66 4.89 Current ratio 1.41 1.42 1.25 1.19 1.33 Fixed asset turnover 1.86 1.80 1.81 1.77 1.93 Total asset turnover 0.91 0.84 0.84 0.
Slide 43: Focus on Shareholder Value Creation
Focus on Shareholder Value Creation (₹ Million) Significant improvement in FCF and continuous payout thru dividend / 6,290 2,650 2,240 1,574 buyback 859 786 907 785 787 773 FY17 FY18 FY19 FY20 FY21* Note: FCF Dividend / Buyback cash outflow • *Includes Buyback, Buyback tax and Dividend • *Outflow wi
Slide 44: Prudent Capital Allocation Strategy
Prudent Capital Allocation Strategy Core Philosophy in Capital Allocation Decisions Investment toward profitability-margin Areas of Dividend / assertive product categories CAPEX Net Debt Investment Buyback Consistent track record of distribution through Dividend / Buyback Dividend / Buyback (Pay
Slide 45: Enhancing capacity; catering to growing demand
Enhancing capacity; catering to growing demand HOME TEXTILE: Capacity expansion at Vapi and Anjar Rise of homebody economy & focus on hygiene driving increased consumption of Home textile products underway Enhancing our capacity through de-bottlenecking & rebalancing facilities to cater to thi
Slide 46: Share Holding Summary
Share Holding Summary Shareholding Pattern (Dec 2021) Top Institutional Shareholders Promoter Group 70.4% LIC of India FPIs 9.1% L&T Mutual Fund Mutual Funds/AIF 2.6% DSP Mutual Fund Insurance Co’s 2.4% Aditya Birla Sunlife MF Public 15.7% Tata Mutual Fund welspunindia.com 46
Slide 47: Investment Rationale – What makes it an interesting play?
Investment Rationale – What makes it an interesting play?
Slide 48: Investment Rationale
Investment Rationale Strengthening A strong focus on Balance sheet with innovation with 32 patents low leverage and and collaborations with allocation of capital to technology partners and high ROCE businesses industry associations ESG initiatives are the Focus on ‘Direct to Customers’ through corne
Slide 49: Disclaimer
Disclaimer The information contained in this presentation is provided by Welspun India Limited (the “Company”), although care has been taken to ensure that the information in this presentation is accurate, and that the opinions expressed are fair and reasonable, the information is subject to change
Slide 50: Let’s connect
Let’s connect For further details please contact Mr. Sanjay Gupta President (Finance) & CFO Mr. Vikash Verma Welspun India Limited Christensen Advisory sanjay_gupta1@welspun.com Vverma@christensenir.com Mob: +91 - 96640 09029 Mr. Rohit Anand Mr. Abhinandan Singh Christensen Advisory Group Head – Inv
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