Supreme Industries Limited · NSE:SUPREMEIND
Supreme Industries — Investor Presentation (May 2019)
42 slides from Supreme Industries's investor presentation, May 25, 2019
Slide 1: Corporate Presentation May 2019 – Covering Letter
~® People who know plastics best Ref. No. SH/13/2019. 25th May, 2019 National Stock Exchange of India Ltd., Bombay Stock Exchange Ltd. Exchange Plaza, 5th floor, Market-Operation Dept., Plot No. C/1, G. Block, 1st Floor, New Trading Ring, Bandra-Kurla Complex, Rotunda Bldg., P.J. Towers, Bandra (Eas
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Slide 3: Flow of the Presentation
Flow of the Presentation ~® People who know plastics best • The Supreme Group • A Curtain Raiser - Supreme Industries Ltd. • Supreme Industries Ltd.- At a Glance • Shareholding Pattern • Business Verticals o Comprehensive Portfolio of Value Added Product o Revenue Break Up • Plastic Piping Division
Slide 4: The Supreme Group
~® The Supreme Group People who know plastics best Supreme Industries Ltd.: • Engaged in processing of polymers and resins into finished plastic products • 29.99 per cent stake in Supreme Petrochem Ltd. • Supreme Industries Overseas (FZE) - A wholly owned subsidiary, in the United Arab Emirates. • 2
Slide 5: A Curtain Raiser - Supreme Industries
_ct..~® A Curtain Raiser - Supreme Industries ~~~~w plastics best VISION STATEMENT {(TO GROW BUSINESSWITH DIGNITY & RESPECT" CORE VALUES • INTEGRITY • CUSTOMER'S DELIGHT • CONTINUOUS IMPROVEMENTS & INNOVATIONS • UNCOMPROMISING QUALITY • EMPOWERMENT TO INDIVIDUALS MISSIONSTATEMENT • To conduct busine
Slide 6: Supreme Industries Ltd. at a Glance
Supreme Industries Ltd. at a Glance -~.~® ~~~~w plastics best Industry Plastics and related products Business • One of the largest plastic processor in India, with a sale of Highlights about 4 lakh MT annually • Presence in the Indian plastic industry for over 53 years under present management • Div
Slide 7: Supreme Industries Ltd. at a Glance
® Supreme Industries Ltd. at a Glance - Manufacturing facilities spread acrossthe country. =Dlverslfled product portfolio with established Brand Equity -Significant Market Share in each of the verticals -Strong Cash Flows to fund expansion plans and Reducing Debt Burden - Pan India Distribution Netw
Slide 8: Shareholding Pattern
_4L.~® Shareholding Pattern ~~~~w plastics best Holding % as on 31st March, Shareholders Nos. 2019 Promoters 17 49.70% Institutional 189 29.13% - Flls/ Foreign 126 16.91% Portfolio Investors - Fls / Mutual Funds 63 12.22% Bodies Corporate 614 2.86% Individual & Others 39448 18.31% Total 40268 100.00
Slide 9: Organisation & Management Team
..§..~® Organisation & Management Team ~~~~w plastics best Board of Directors Management Team B L Taparia, Chairman A K Tripathi, Exe. Vice President (Plastic Piping System) V L Malu, Exe. Vice President (Industrial Components) M P Taparia, Managing Director P C Somani, Chief Financial Officer S J T
Slide 10: Awards and Recognitions
• Supreme was awarded the Top exporter award in "Fittings for Plastic Pipes and Hoses" and "Tarpaulin" categories consecutively for last eight years by Plexcouncil. • Supreme was awarded the Second Best exporter award in "Plastic Pipes and Hoses" category consecutively for last eight years by Plexco
Slide 11: Business Verticals
~® People who know plastics best BUSINESS VERTICALS ~ ... ~ I~ .~ Plastic Piping Consumer Packaging Industrial Division Products Products Products • Specialty Films • Industrial Componen1 • Protective Packaging Products • Material Handling Division • Cross Laminated Film Products • Composite LPG I'"
Slide 12: A comprehensive portfolio of Value Added Products
A comprehensive portfolio of Value Added Products ~® Business Product Portfolio Targeted Customer Vertical Segment T : uPVC Pipes, Injection Moulded fittings, - Potable Water Supply Plastic Piping ; Handmadefittings, Polypropylene Random, Co- - Irrigation System : polymer Pipes & Fittings, HDPE Pipe
Slide 13: Plastic Piping Division
Plastic Piping Division ® People -who know plastics best .• Leading Quality Player with 8085 products for 31 different application systems and only Company to supply pipes and fittings from major polymers like PVC, Highlights CPVC, PE & PPR. .• 15.00 % percent oftheorganised domestic plastic piping
Slide 14: Consumer Products - Furniture
Consumer Products-- Furniture Highlights • Second-largest player in the. plastic moulded Furniture with current Processing Capacity-34,OOO MT • One stop solution for varied furniture needs, made from 100% virgin polymers, using computer designed moulds at ISO certified Plants • First in the Industry
Slide 15: Packaging Products
Packaging Products A..... ® Protective Packaging Products ~~{~ Highlights • Key Categories: . Specialty Films, Protective Packaging Products & Cross Laminated Films products • Product Range: Thermoplastic PE foam sheets and profiles, cross-linked and blended PE foams (block & extruded), air bubble f
Slide 16: Packaging Products Contd
-~..... ® Packaging Products Contd ..... ~~~'1!!! Highlights Cross Laminated Film & Products • Only Indian company to have the technology to manufacture Patented Cross Laminated film Products under Brand name Silpaulin & Silpaulin STAR.It is . one-seventh the weight of conventional cotton tarpaulin,
Slide 17: Industrial Products
Industrial Products Highlights Major player in the industrial products segment manufacturing lndustrlalcomponents: • Ability to provide cockpit assemblies for the Auto Segment '. Presence in waterpurificationsegment • Presence in Electronic Voting Machine Material-handling products: • MajorSuppliert
Slide 18: Plant Locations
Plant Locations ~® People who know plastics best Industrial Consumer Packaging Plastic SrNo Location Composites , . Products Products Products Piping 1 .; .; Derabassi (Punjab) 2 .; .; Durgapur (West Bengal) 3 .; .; .; .; Gadegaon (Maharashtra) .; 4 Ghiloth (Rajasthan) era~a. .; 5 Guwahati (Assam) '
Slide 19: A Virtual Tour of the Plant - Gadegaon
A VirtualTour of the Plant - Gadegaon -,.~® ~~~~w plastics best -- Mega Project at Gadegaon spread over 132 acres 18
Slide 20: Visuals of other Plants
Visuals of other Plants -~.~® ~~~~w plastics best Durgapur Halol Hosur Jalgaon Gadegaon Kanpur Malanpur Ghiloth Kharagpur Pondicherry Noida Silvassa Talegaon Chennai 19
Slide 21: Technical Collaborations
Technical Collaborations -~.~® ~~~~w plastics best COMPANY PRODUCT LINE • Rasmussen Polymer Development, Cross-laminated Films Switzerland • Foam Partner, Switzerland Reticulated PU Foam • Sanwa Kako, Japan 2 stage Foam • PE Tech, Korea Cross Linked Foam • Kautex GMBH Composite LPG Cylinders • Spear
Slide 22: Financial Highlights (Standalone)
Financial Highlights (Standalone) Rs. In Crores 25.41 25.41 25.41 25.41 - , .............. ' .. _. Reserves & Surplus I 939.53 1206.93 1196.73 1528.04 1707.64 1967.24 I Net Worth .964.94 .. 1232.34 . 1222.14 1553.45 1733.05 1992.65 Total~sets 2102.65 2269.10 2331.80 2675.43 2774.34 3069.22 secured L
Slide 23: Financial Highlights (Standalone)
..§..~® Financial Highlights (Standalone) ~~~~w plastics best Rs. In Crores Totallncome 3912.14 4122.13 2970~88 4469.79 4961.93 5551.o~ Y-o-Y.Growth 010 15.37 5.37 . 3.94 12.84 11.01 11.88 EBIDTA 559.62 577.51 461.84 766.37 789.13 749.22 6.34 EBIDTA 0/0 14.30 14.01 15.55 17.15 15.90 13.50 Depreciati
Slide 24: Financial Highlights (Consolidated)
.-.4L.~® Financial Highlights (Consolidated) ~~~~w plastics best Rs. In Crores Share Capital 25.41 25.41 25.41 25.41 25.41 25.41 Reserves & Surplus. . 1013.75 1294.88 1290.31 1670.31 1869.49 2128.56 Net Worth 1039.16 1320.29 1315.72 1695.72 1894.90 2153.97 .Total Assets..... " ... 2059.93 .. 2357.00
Slide 25: Financial Highlights (Consolidated)
..§..~® Financial Highlights (Consolidated) ~~~~w plastics best Rs. In Crores Total Income 3914.32 4128.95 2979.04 4520.99 4983.82 - 5553.21 7.64 1 Y -0" Y Growth % -14.81 5.48 3.94 13.82 10.24 11.42 .EBIDTA 564.28 584.21 470.09 817.34 811.33 - 751.391 6.21 EBIDTA % 14.42 14.15 15.78 18.081 16.281 1
Slide 26: Financial Highlights - Segment Wise
Financial Highlights - Segment Wise 6000 Net Sales (Rs Crores) 5612 5000 4261 3972 4000 3000 2000 1000 o , 2013-14 2014-15 2015-16 -9 I 2016-17 I 2017-18 I 2018-19 Months "Plastic Piping 2060 2113 1585 2467 2729 3173 Packaging Products 811 914 728 981 1022 1042 -Industrial Products 600 649 419 624 8
Slide 27: Financial Highlights - Segment Wise
..§..~® Financial Highlights - Segment Wise ~~~~w plastics best 900 EBIDTA (Rs Crores) 803 805 800 764 700 673 600 500 400 300 200 100 I;?iffif . ... hidM I I , ..' ...J L ,:, ~-~ k··!fj4 , o I I I 2015-16-9 2013-14 2014-15 2016-17 2017-18 2018-19 Months 309 282 227 169 62 72 70 14 55 7 6 17 13 Excl
Slide 28: Financial Highlights - Segment Wise
® Financial Highlights - Segment Wise 50 EBIDTA (0/0) 45 40 35 30 25 20 15 10 5 2014-15 2016-17 2017-18 2018-19 Months 13 14 16 14 13 19 20 22 20 16 12 12 14 13 Excluding exceptional items 27
Slide 29: Financial Highlights (Consolidated) - Cash Flow Summary
Financial Highlights (Consolidated) ~~f!!!l<!'. Rs in crores Cash Flow Summary ..Cash and Cash Equivalents at Beginning of year· 19.9 23.8 178.99 23.79 75.10 31.97 Net Cash from Operating Activities 325.2 600.80 296.39 463.88 507.58 555.74 Net Cash Used in Investing Activities (133.7} (185.98) (218.
Slide 30: New Products introduced in last Three Years
New Products introduced in last Three Years ~® • Light Hazard Fire Sprinkler System .aBath Room Fittings • DWC HDPE Pipe System .• HDPE Pipes above 315 MM Dia & upto 800 MM Dia • CPVC Pipe System - 6" & above for Industrial Use • Water Tanks & Septic Tanks • Sewrage & Drainage System • Industrial Va
Slide 31: New Products Introduced in last Three Years Contd
New Products Introduced in last Three YearsContd ... ~® •. Varieties of InsulationProducts in Protective Packaging Division • Various Floor Protection & Sound Proofing Products in Protective Packaging Division • Retail Product Range In Protective Packaging Division • Blow Moulded Furniture • Several
Slide 32: The Intangibles - Beyond Numbers
The Intangibles - Beyond Numbers ~® People who know plastics best • Large and diverse production network - Saves on freight costs and time to market its products • Portfolio of several Patented Products & Brands with focus on value added products. • Fiscal benefits due to plants located in backward
Slide 33: Addressing Risks
Addressing Risks -~.~® ~~~~w plastics best • Raw Material Costs o Supreme Industries' operating profitability is moderately susceptible to volatility in prices of its key raw materials-poly vinyl chloride resin, polyethylene, and polypropylene; the prices of these commodities are linked to movements
Slide 34: The Way Forward
..§..~® The Way Forward ~~~~w plastics best Increase channel partners and widen as well as deepen the distribution network By 2020-21 Focus on technological innovation and enhance • Value to grow between . product portfolio of ,Widen Distribution 12% to 15% CAGR existing offerings as well Network as
Slide 35: Product Segment Wise Expansion Plan
_4IL.~® ~~~~w plastics best Product Segment Wise Expansion Plan .-Total plants to go up to2lfromexisting 25 by 2020-21 • Expected to add more new locations going forward • Total capex envlsagedlnthe range of Rs. 700 toRs 800 crores In 19-20 & 20-21 Proposed Locations for Division " - 2019-20 Plastic
Slide 36: Diversify Product Portfolio
.-4L.~® ~~~~w plastics best Diversify Product Portfolio • Increase range-of Products-within existing product lines • Patented Cross Plastic Film Product • Large Varieties of Pipe Fittings • Large Range of Bath Room Fittings including Electroplated Products • Fusion Furniture • Protective Packaging I
Slide 37: Expansion Strategy in Detail
Expansion Strategy in Detail Increase Share of Value Added Products .• VA products are thosewhereOPM > 17% 2017-18 2018-19 I Share of Specialty Specialty I Total Net Specialty Business Total Net Share of Specialty Business Turnover Business Turnover Turnover Business Turnover Total 4826.42 35.93% 17
Slide 38: Supreme Petrochem Limited - Introduction
-~ ••••• ~ ••• ~® Supreme Petrochem Limited - Introduction ~~fn~ >-. One of the largest single sitePclys+rene (PS) producer accounting for 2CYo of world capacity. Owns 60CYo of domestic installed capacity. .. >- Current Effective Capacity: Polystyrene (PS) 2,55,000 TPA Speciality Polymers Compound &
Slide 39: Commitment to Shareholders
Commitment to Shareholders ~!'P.!.~1!!t last 5 years Dividend Payout History Regular Bonuses since Inception 2006 ....................................... 1:1 2019 199.08 650 13.00 1992 ................................................ 1:1 2018 183.69 .......................................•• - 600 ..
Slide 40: A Responsible Corporate Citizen
...§..~® A Responsible Corporate Citizen ~~~~w plastics best • Company's CSRarm "Supreme Foundation" has initiated a project to provide teachers for educating the students in Govt. Schools in Bikaner and Ajmer division & Govt. Sanskrit Colleges in entire state of Rajasthan. • The Company's Gadegaon
Slide 41: Safe Harbour
® who know plastics best Safe Harbour This presentation and the accompanying slides (the "Presentation"), which have been prepared by Supreme Industries Limited (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purcha
Slide 42: Thank You
® who know plastics best THANK YOU Contact Point Mr. R J Saboo EmailID:rj_saboo@supreme.co.in Number: +91-22-22851656 www.supreme.co.in 41
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