Greenlam Industries Ltd · NSE:GREENLAM
Greenlam Industries — Investor Presentation (May 2015)
54 slides from Greenlam Industries's investor presentation, May 2015
Slide 1: Greenlam Industries Ltd
Greenlam Industries Ltd Transforming Spaces, Enriching Lives. May-2015
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 15 We have what it takes to be No.1 Page 23 What lies ahead... Page 34 Financials Page 43 3
Slide 4: Demerger to unlock value
Demerger to unlock value Streamline businesses Greenply Ind. Ltd. • Greenlam – Decorative surfacing products (Laminates and Decorative Veneers) Plywood & Decorative • Greenply – Wood based products (Plywood and MDF) MDF Business Business Dedicated focus on each segment Encourage newer Product
Slide 5: Our Business
Our Business “We are into the business of Transformation. Transformation of living spaces” “We offer Surfacing & Lifestyle Solutions for both Interior and Exteriors spaces” 5
Slide 6: Who are we?
Who are we? Millions of Pleased Customer Unlimited Choices Thousands of Décor & Surface solutions Global Presence of Greenlam Brand in over 100 countries State of the art Manufacturing Facilities Top of the line Certifications 2,500+ Employees Largest Network with over 12,000+ Distributor, Dealer &
Slide 7: Largest laminate company in Asia, 3rd largest globally
Today we are The Largest laminate Company in Asia & 3rd Largest Globally 7
Slide 8: The Values that Identify Us
The Values that Identify Us Trust - We trust people to be reliable and responsible and earn their trust similarly Speed and Agility - We are quick to decide, respond and execute Performance - We value performance across products, people and processes Team Work - We achieve more by collaborat
Slide 9: 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 9
Slide 10: Management Team
Management Team Saurabh Mittal Parul Mittal Managing Director & Director Design & CEO Marketing 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 11: Product Offerings
Product Offerings Laminate & Allied Decorative Veneer & Allied Laminate Compacts MFC Decorative Engineered Engineered Veneers Wood flooring Doors 11
Slide 12: Transformation...
Transformation... • Foundation stone of First • Started Commercial • 2nd Laminate unit at • Sep: Decorative Division laminate Unit at Behror, Production of Decorative Nalagarh starts commercial demerger approved by Rajasthan Veneer production Board of Directors 1992 1993 2002 2005-08 2009 2010-11 20
Slide 13: Our Flagship Brands
Our Flagship Brands Greenlam ustries Limited ™ Greenlam LAMINATES Mikasa REAL WOOD FLOORS Jecowood PREMIUM VENEERS 13
Slide 14: Robust Product variants & offerings
Robust Product variants & offerings Laminate Compact Decorative Veneer New Product Launches Greenlam Laminates Boards • Greenlam HPL (1mm) • Compact Boards • Greenlam Post Forming • LabGaurdian Value ad Products Service Oriented solutions • Unicore Laminate • Rest room Cubicle • Digital Lami
Slide 15: Laminates & Allied Products
Laminates & Allied Products Our Product Range
Slide 16: 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 17: 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 || CLADING ( façade laminate) Greenlam Offers • Greenlam Anti-Bacterial Compact Laminates
Slide 18: Melamine Faced Chip Board
Melamine Faced Chip Board MFC - Melamine Faced Chip Board is an engineered particle wood Structure of MFC – product Pre Laminated Décor paper impregnated with Greenlam offers Melamine • Laminated MFC for the use in organised carpentry primarily by OEM‟s like Particle Board Core modular furniture
Slide 19: Decorative Veneer & Allied Products
Decorative Veneer & Allied Products Our Product Range
Slide 20: 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 Veneer designs are Natural, obtained from sliced decorative wood species Greenlam Offers • Many
Slide 21: Engineered Wood Flooring
Engineered Wood Flooring 1st Indian manufacturer of Engineered Wood Floors State of art manufacturing facility with European technology Plant Integrated with decorative veneer facility driving better synerygy in sourcing and manufacturing Highest range offering: 111 sku‟s All Raw Material
Slide 22: 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 23: We have what it takes to be No.1
We have what it takes to be No.1
Slide 24: Key Differentiators
Key Differentiators 3rd Largest Laminate producer in the World Market leader in the domestic market Largest & Widest distribution Network Largest network internationally Only producer in the country with integrated surface product lines Young team of professional driving the business F
Slide 25: 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 26: Our Strengths- Manufacturing
Our Strengths- Manufacturing Engineered Doors * * Largest capacity in Engineered • Behror Plant Asia – 10.02mn Wood flooring 0.12 Mn Doors Sheets MFC • Behror Plant - 1 • Behror plant – 2 Mn Sqm Decorative Mn Sqm Veneers Laminate & • Behror Plant – Compacts * 4.2 Mn Sqm • Behror Plant – 5.34Mn Sheet
Slide 27: 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) * To be launched by Q2 –FY16 27
Slide 28: Growth in Laminates...
Growth in Laminates... 180% 40% 20% Infrastructure available 100% 20% for 40% incremental New Press Lines capacity with minimal added for additional 2 incremental cost 10.02 Mn Current Utilisation at mn Sheets at the Cost sheets 114% achieved from of Rs 20 Crores Debottlenecking To be operational by
Slide 29: 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 29
Slide 30: Global Network Presence
Global Network Presence 10 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 30
Slide 31: Awards & Recognitions
Awards & Recognitions Power Brands Master Brand 100 Most valuable brand Largest exporter award 1st Non American brand to get Green Guard Certification 1st Company in the country to trade in FSC® product 31
Slide 32: Green Credentials...
Green Credentials... … can help Green Building Project developers take up to 10 LEED credit points 32
Slide 33: Presence across: B2B & B2C
Li? Greenlam Industries Limited Presence across: B2B & B2C We help you deliver happinsss i = Designing your new home made simple
Slide 34: What Lies Ahead…
What Lies Ahead… An Ocean Of Opportunities
Slide 35: 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 v
Slide 36: Opportunities – Decorative Veneers & Allied
Opportunities – Decorative Veneers & Allied India Focused Decorative Veneers Decorative Veneer Market Size in Rs Crores Expansion into newer product lines 11% 16% Largest capacity in the country Market Market Share Share Brand enjoys, high equity among specifer segment 800 Recognised as a tr
Slide 37: Opportunities – Engineered Wood Floors
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 38: Opportunities – Engineered Doors
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 made
Slide 39: Triggers - Domestic Environment
Triggers - Domestic Environment Per Capita Income (Rs „000) 60% of Indian population below 30 years of age * 75 69 Expanding retail penetration along with increasing aspirational value in 54 62 rural demand 46 36 41 Growth in Real Estate led by lower interest rates to provide additional delta
Slide 40: 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 41: 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 41
Slide 42: 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 42
Slide 43: Financials
Greenlam Industries Limited Financials
Slide 44: Performance: Q4 FY15 & FY15
Performance: Q4 FY15 & FY15 Segmental Revenue Revenue EBIDTA PAT Cash PAT Decorative Veneer & 231 23 14 20 Q4FY15 23 Allied 193 15% 13 5 Laminates & Allied 85% Q4FY14 Q4FY15 Q4FY14 Q4FY15 Q4FY14 Q4FY15 Q4FY14 Q4FY15 Segmental Revenue Revenue EBIDTA PAT Cash PAT Decorative Veneer & 769 845 93 93 37 5
Slide 45: Highlights: Q4 FY15
Highlights: Q4 FY15 Revenues grew by 20% in this quarter, led by good performance in laminate exports, grown by 27% in this quarter Profitability for the quarter was impacted due to overheads, Interest and depreciation charges pertaining to new products and lower realization in laminates Our d
Slide 46: Highlights: FY15
Highlights: FY15 Successfully completed the Demerger Process with subsequent listing on 2 nd March, 2015 Revenues grew by 10% to Rs 845 Crs Achieved Laminate production of 11.42 mn sheets, a growth of 6%, with a capacity utilization of 114% Achieved Veneer production of 1.06 mn sqmt Commen
Slide 47: Laminates & Allied Products
Laminates & Allied Products Rs. Crores Q4 FY15 Q4 FY14 YoY % FY15 FY14 YoY% Net Sales of Laminates & Allied 197.5 745.2 Products EBIDTA Margin % 9.0% 10.1% Capital Employed 331.8 331.8 Laminates Annual Capacity 10.02 10.02 10.02 10.02 (Mn. sheets.) Production 3.16 2.70 17% 11.42 10.76 6% (Mn. sheets
Slide 48: Decorative Veneers & Allied Products
Decorative Veneers & Allied Products Rs. Crores Q4 FY15 Q4 FY14 YoY % FY15 FY14 YoY% Net Sales of Decorative Veneers 33.8 99.4 & Allied Products EBIDTA Margin % 15.2% * 17.5%* Capital Employed 142.4 142.4 Decorative Veneers Annual Capacity (Mn sqmt) 4.20 4.20 - 4.20 4.20 - Production (Mn. sqmt) 0.34
Slide 49: Profit and Loss
Profit and Loss Rs. Crores Q4 FY15 Q4 FY14 YoY% FY15 FY14 YoY% Revenue 231.2 193.3 20% 844.6 768.8 10% Raw Material 138.6 113.4 22% 511.5 456.9 12% Employee Cost 19.7 17.3 14% 78.9 74.1 6% Other Expenses 50.1 39.3 27% 161.3 144.5 12% EBITDA 22.9 23.3 -2% 92.9 93.3 0% EBITDA Margin 9.9%* 12.1% 11.0%
Slide 50: Balance Sheet
Balance Sheet Rs. Crores Mar – 15 Mar - 14 Rs. Crores. Mar - 15 Mar - 14 Shareholder‟s Fund 227.1 202.5 Non-Current Assets 346.7 291.8 Share capital 12.1 Fixed assets 320.6 253.0 Reserves & Surplus 215.0 202.5 Non-Current Investments 17.5 17.5 Non-Current Liabilities 165.1 159.2 Other Non-Current As
Slide 51: Geographic Segments
Geographic Segments Domestic (Rs Crores) Exports (Rs Crores) +9% +11% 495 350 453 316 +16% +12% +12% -2% +6% +2% 126 123 137 87 92 94 108 78 1QFY15 2QFY15 3QFY15 4QFY15 FY14 FY15 1QFY15 2QFY15 3QFY15 4QFY15 FY14 FY15 51
Slide 52: Performance Ratios
Performance Ratios ROCE Net Working Capital Days 14.3% 88 12.6% 56 FY14 FY15 FY14 FY15 FY14 FY15 FY14 FY15 Revenue 768.8 844.6 Inventory 89 81 EBIT 74.4 64.2 Debtors 63 51 PAT 37.2 26.6 Creditors 63 76 Capital Employed 519.8 509.5 Net Working Capital 88 56 52
Slide 53: Way ahead…
Way ahead… Continue the Growth momentum in Laminate by maximizing the utilization of existing capacity 20% expansion of laminate capacity from 3rd Quarter of FY 2016 Continue expansion of sales & distribution network Expand the Decorative veneer category by adding new varieties Enhance the
Slide 54: 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: [email protected] rruch
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