Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Investor Presentation (June 2022)
55 slides from Grasim Industries's investor presentation, June 2022
Slide 1: Partners in nation-building
Partners in nation-building 1947 Grasim Corporate Presentation | June 2022 Grasim Industries Limited | Corporate Presentation June 2022
Slide 2: Key Milestones
KEY MILESTONES 1947 1957 1997 2007 2018 1956 1996 2006 2017 Grasim acquires controlling Acquired stake in Merger of ABNL with Grasim VSF and Pulp Grasim and subsequent industries plants at Harihar stake in UltraTech Cement Domsjo, Sweden to Ltd. from L&T further integrate listing of Aditya Birla inc
Slide 3: Key Milestones
KEY MILESTONES 2019 2020 2021-22 Commissioned a new state-of-the- Launch of Liva Vilayat VSF brownfield art Lyocell plant at Kharach based Antimicrobial. An expansion of 219 KTPA on inhouse technology innovative fibre that gives commissioned taking the the wearer longer lasting total capacity to 824
Slide 4: Big in Your Life
BIG IN YOUR LIFE # 1 In Viscose @ # 1 In Chlor - Alkali* # 1 In Advanced Material* 57.27% 54.18% Market Cap (June 06th, 2022): INR 87,327 Crore (USD 11.25 Billion) Market Cap Market Cap (June 06th, 2022): (June 06th, 2022): INR 1.61 Lakh Crore INR 24,924 Crore (USD 20.76 Billion) (USD 3.21 Billion)
Slide 5: Our Leadership Businesses
OUR LEADERSHIP BUSINESSES Flagship company of Aditya Birla Group comprising of diversified businesses spread across globe Viscose Chemicals Other Businesses Cement Financial Services New Business - Paints Through Viscose and Through Through UltraTech Through Aditya Birla Yarn, we are present Chemica
Slide 6: Our Strategy
OUR STRATEGY Pillars of our Strategy LEADERSHIP ACROSS COST INNOVATION AND NEW BUSINESSES OPTIMISATION PRODUCT DEVELOPMENT • Leadership position in our • Constantly on the quest of • Strong R&D capability, businesses gives us the identifying cost optimisation Launched innovative advantage of scale,
Slide 7: Our Financial Strengths
OUR FINANCIAL STRENGTHS Optimal Capital Structure Value Creation Optimization of working Capital (Significant Reduction in FY22) Value creation for our shareholders Prudent Cash Flow Management Return-based Approach Constant focus on reducing Product innovation Net Debt/EBITDA Constant focus to driv
Slide 8: Strategic Actions
STRATEGIC ACTIONS Entry into Paints Business • Decorative paints market has witnessed significant growth in last few yours • The project cost of ₹10,000 Cr is reflective of our plan to accelerate capacity implementation given the optimistic growth outlook. This acceleration with revision in plant co
Slide 9: Financial Overview
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Slide 10: Strong Overall Performance
STRONG OVERALL PERFORMANCE Revenue ( ₹ Cr.) EBITDA (₹ Cr.) 22% 21% FY22 FY22 ₹95,701 Cr ₹17,772 Cr (~$12.63 Bn) (~$2.34 Bn) Viscose Chemicals Cement Financial Services Others Viscose Chemicals Cement Financial Services Others 13% 8% 55% 23% 1% 10% 9% 68% 12% 2% Revenue and EBITDA (₹ Cr.) Viscose Che
Slide 11: Financial Highlights: Consolidated
FINANCIAL HIGHLIGHTS: CONSOLIDATED Revenue (₹ Cr.) EBITDA (₹ Cr.) 14% CAGR 13% CAGR 17,772 95,701 (~$2.34 Bn) (~$12.63 Bn) 15,766 77,200 75,141 76,404 13,404 13,615 10,883 55,894 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Profit before tax1 (₹ Cr.) Margins (%) 18% CAGR 12,316 (~$1.62 Bn) 20.4
Slide 12: Financial Highlights: Standalone
FINANCIAL HIGHLIGHTS: STANDALONE Revenue (₹ Cr.) EBITDA (₹ Cr.) 20,857 20,550 (~$2.75 Bn) 4,639 4,111 (~$0.54 Bn) 15,786 16,082 3,542 12,386 2,661 2,078 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Margins (%) Dividend Per Share (₹) 22.0 10 9 21.8 18.9 16.0 16.1 7 12.9 6.2 12.2 12.2 4 9.7 7.6 F
Slide 13: Financial Highlights: Quarterly Performance
FINANCIAL HIGHLIGHTS: QUARTERLY PERFORMANCE Standalone Revenue (₹ Cr.) EBITDA (₹ Cr.) PAT (₹ Cr.) 6,376 1,504 1,068 5,785 979 4,933 963 3,763 805 840 482 522 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY22 Q2FY22* Q3FY22 Q4FY22 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Consolidated Revenue (₹ Cr.) EBITDA (₹ Cr.) PAT (₹ Cr.) 2
Slide 14: Strong Balance Sheet
STRONG BALANCE SHEET Consolidated (₹ Cr.) FY21 FY22 FY20 25,879 15,727 29,031 11,427 20,882 17,249 8,630 4,300 8,149 Debt Liquid Net Debt Debt Liquid Net Debt Debt Liquid Net Debt Investments Investments Investments Standalone (₹ Cr.) FY20 FY21 FY22 4,163 5,092 4,857 3,249 4,304 2,999 2,093 914 Debt
Slide 15: Capex Plan: Standalone Level
CAPEX PLAN: STANDALONE LEVEL EBITDA and Capex Spent (₹ Cr.) 4,639 4,111 3,542 2,828 2,629 2,661 2,092 2,078 1,958 1,508 1,105 438 FY17 FY18 FY19 FY20 FY21 FY22 EBITDA Capex Spent Grasim Industries Limited | Corporate Presentation June 2022 15
Slide 16: Viscose Staple Fibre
• Viscose Staple Fibre – Fastest Growing Fibre
Slide 17: Current Fibre Basket
CURRENT FIBRE BASKET Fibres from nature Synthetic fibres Protein-based Cellulose based From Synthetic From inorganic Polymers substances Wool, Silk, Cashmere Cotton, Jute Polyester Viscose Staple Carbon Nylon Fibre (VSF) Ceramics Polypropylene Glass Polyurethane Metal Birla Viscose Modal Lyocell Acr
Slide 18: VSF: Forest to Fashion
VSF: FOREST TO FASHION FOREST WOOD PULP VSF YARN FABRIC GARMENT BRAND & RETAIL Sourced from Manufactured in India Work with value chain partners to create VSF awareness and demand Canada, Canada, Sweden Sweden & India & India Grasim Industries Limited | Corporate Presentation June 2022 18
Slide 19: State-of-the-art R&D Centres Offer Creative Solutions Across Value Chain
STATE-OF-THE-ART R&D CENTRES OFFER CREATIVE SOLUTIONS ACROSS VALUE CHAIN PULP FIBRE PLANTATION TEXTILE VALUE CHAIN PARTNER Clonal Production Pulp and Fibre Innovation Birla Research Institute Textile Research and Centre, Harihar, Centre (PFIC), Taloja, & Next Generation Fibre Application India Mahar
Slide 20: Inter Fibre Dynamics – Cellulosic Gap
INTER FIBRE DYNAMICS – CELLULOSIC GAP GLOBAL CHINA INDIA Cotton 15% Cotton Other 26% Viscose MMF 7% 41% Cotton Viscose 55% Other 6% MMF 68% Other MMF Viscose 78% 4% Cotton remains the preferred fibre in India – 55% share of fibre pie as against 26% global average Viscose share in India is 4% as
Slide 21: LIVA: Creating Demand Pull in India
LIVA: CREATING DEMAND PULL IN INDIA LIVA is Grasim’s ingredient branding with a natural fluid fashion promise to the customers. LIVA assures high quality fabric applied through accredited value chain termed as Liva Accredited Partner forum (LAPF) LIVA Eco system delivers consumers continuous innovat
Slide 22: LIVA: Creating Demand Pull in India
LIVA: CREATING DEMAND PULL IN INDIA LIVA Tags 24 18 19 18 13 32 27 29 9 18 23 7 11 2016 2017 2018 2019 2020 2021 2022 Spring Summer Autum Winter Tags (In mn) Launched brand ‘Navyasa created by Liva’ for range of fluid sarees Re-Positioning Saree as a ‘Garment of Choice’ with contemporary print desig
Slide 23: Viscose Performance
VISCOSE PERFORMANCE Global Prices Trend ($/Kg) 3.60 3.10 2.60 2.10 1.60 1.10 0.60 Source: CCF and other industry sources Grey VSF - CCF Cotton (Cotlook) PSF China VSF Plant Operating Rate (in Percentage) China VSF Plant Inventory (in Days) 40 79 83 81 69 75 74 64 66 30 27 26 22 20 13 11 Spread betwe
Slide 24: Viscose Performance
VISCOSE PERFORMANCE VSF Sales Volume (KT)* Revenue (₹ Cr.) EBITDA (₹ Cr.) 3,766 580 179 3,335 154 157 3,005 488 401 112 2,103 252 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY22 Q2FY22 Q3FY22 Q4FY22 VAP share in overall portfolio increased to 26% in FY22 from 22% in FY21 Share of dome
Slide 25: Financial Performance Driven by Operational Improvement
FINANCIAL PERFORMANCE DRIVEN BY OPERATIONAL IMPROVEMENT Revenue1 (₹ Cr.) EBITDA (₹ Cr.) 12,210 (~$1.61 Bn) 2,052 1,721 10,325 1,680 (~$0.23 Bn) 9,235 8,374 1,339 6,965 1,187 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 The 600TPD expansion is fully operational and Capital Employed (incl. CWIP)
Slide 26: Chemicals
• Chemicals
Slide 27: Chlor Alkali Portfolio
CHLOR ALKALI PORTFOLIO Salt + Electricity Caustic Soda Chlorine Pulp & Viscose Poly-Aluminium Chlorinated Phosphoric Paper Staple Fibre Chloride Paraffin Acid #1 Producer in India #1 Producer in India #1 Producer in India Textile Detergent Stable Bleaching Aluminium Alumina Chloromethane And others
Slide 28: Caustic Soda: Capacity Ramp Up
CAUSTIC SODA: CAPACITY RAMP UP Chlor-Alkali plant in Rehla (Capacity: 91 KTPA) 1,290 Chlor-Alkali plant in Chlor-Alkali plant in BB KTPA Ganjam from Puram Nagda Jayshree Chemicals Ltd (Capacity: 55 KTPA) 270 (Capacity: 57 KTPA) KTPA Chlor-Alkali plant in 2019 2021- Vilayat Karwar from 2022 365 Solar
Slide 29: Strong Presence in High Growth Businesses: Caustic Soda
STRONG PRESENCE IN HIGH GROWTH BUSINESSES: CAUSTIC SODA Top-3 players account for about 50% of capacity Grasim: Pan India Player Chemicals Nagda, Madhya Pradesh Chemicals Renukoot, Uttar Pradesh Chemicals Vilayat, Gujarat Chemicals 26% Rehla, Jharkhand 4.8 MTPA Mar’22 14% Chemicals Ganjam, Odisha Ch
Slide 30: Chlor Alkali Industry
CHLOR ALKALI INDUSTRY Caustic Realisation Grasim – ECU 47,267 55,000 54,198 54,093 48,000 50,000 50,510 43,000 45,000 40,000 42,360 43,706 38,000 35,000 31,185 30,000 26,658 33,000 24,775 25,000 21,584 19,745 25,664 26,181 20,119 25,215 28,000 20,000 22,781 22,851 22,25819,433 26,227 15,000 18,668 1
Slide 31: Focus on Chlorine Integration
FOCUS ON CHLORINE INTEGRATION Key Applications of Chlorine in India Captive Chlorine Consumption 2,78,827 2,80,357 Our Others 2,34,128 CPW Presence Vinyls (incl PVC) Inorganics HCL Organics Chlorometh anes Water Treatment 28% 28% 28% FY20 FY21 FY22 Source: Company estimates Grasim Industries Limited
Slide 32: Financial Performance Driven by Operational Improvement
FINANCIAL PERFORMANCE DRIVEN BY OPERATIONAL IMPROVEMENT Chemicals Sales Volume (KT)* Revenue (₹ Cr.) EBITDA (₹ Cr.) 528 499 279 2,487 273 2,338 254 1,627 1,436 275 232 238 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Chlor-Alkali business reported stellar perfo
Slide 33: Chemicals Performance
CHEMICALS PERFORMANCE Revenue (₹ Cr.) EBITDA (₹ Cr.) 7,888 1,827 (~$1.04 Bn) 1,534 (~$0.20 Bn) 6,437 1,300 5,502 5,004 4,581 1,008 590 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Capital Employed (incl. CWIP) in ₹ Cr. and ROCE A significant part (~48%) of energy requirement is met through Capt
Slide 34: Paints Business
é 2 Ae ~~ fire a GRASIM ¢ Paints Business
Slide 35: Paints: Business Plan Update
PAINTS: BUSINESS PLAN UPDATE Project cost of ₹10,000 Cr. by FY25 1,332 MLPA with commissioning of plants starting Q4FY24 Acceleration of capacity implementation given changing market structure and industry growth with optimistic outlook Inflationary pressure on project cost is mitigated by change in
Slide 36: Paints: Project Progress Update
PAINTS: PROJECT PROGRESS UPDATE Land possession and registration completed for 5 sites, Land registration pending for 1 site EC Received: Panipat, Ludhiana and Chamarajanagar Basic and Detailed Engineering contract awarded for all six sites Civil Work commenced at Panipat and Ludhiana sites Overall
Slide 37: Other Businesses
é 2 Ae ~~ fire a GRASIM ¢ Other Businesses
Slide 38: Other Businesses
OTHER BUSINESSES Textile Insulator Revenue (₹ Cr.) Revenue (₹ Cr.) 1,696 390 (~$0.22 Bn) (~$0.05 Bn) 920 352 FY21 FY22 FY21 FY22 EBITDA (₹ Cr.) EBITDA (₹ Cr.) 28 160 (~$0.004 Bn) (~$0.021 Bn) 21 FY21 FY22 FY21 FY22 -53 Grasim Industries Limited | Corporate Presentation June 2022 38
Slide 39: Consolidating Subsidiaries
• Consolidating Subsidiaries
Slide 40: UltraTech Cement Limited
ULTRATECH CEMENT LIMITED Revenue (₹ Cr.) EBITDA (₹ Cr.) 102.75 MTPA* 114.8 MTPA* 116.8 MTPA* 119.95 MTPA* 52,599 12,022 (~$6.94 Bn) 12,302 (~$1.59 Bn) 42,430 44,726 41,609 9,898 7,810 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 Consolidated sales volume grew by 9% YoY to 94 MTPA in FY22, capacity utilis
Slide 41: Aditya Birla Capital Limited
ADITYA BIRLA CAPITAL LIMITED Consolidated Revenue1 (₹ Cr.) Aggregate PAT (₹ Cr.) 1,706 23,633 (~$0.23 Bn) (~$3.12 Bn) 20,453 16,570 17,927 1,127 871 920 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 Lending Book (₹ Cr.) Gross Premium (₹ Cr.) 13,867 67,185 (~$8.86 Bn) (~$1.83 Bn) 11,076 63,119 8,882 8,008
Slide 42: Financial Performance – Other Subsidiaries
FINANCIAL PERFORMANCE – OTHER SUBSIDIARIES Aditya Birla Renewables (Solar Power) Solar Power Capacity (MWp) ₹ Cr. 941 Particulars FY20 FY21 FY22 Revenue 117 177 233 551 502 EBITDA 64 136 188 320 EBIT 38 92 129 Capital Employed (Incl. 1,412 1,774 2,020 CWIP) FY20 FY21 FY22 FY23E 49 MWp solar capacity
Slide 43: Environment, Social, Governance
• Environment • Social • Governance
Slide 44: Sustainability: Our Approach
SUSTAINABILITY: Our Approach Holistic Aims to achieve our green goals by employing a 360-degree sustainability approach for each business. Materiality-Oriented Periodically undertake assessment Leveraging Technology with our stakeholders, to define our sustainability goals and their Continuously ado
Slide 45: Sustainability Highlights
SUSTAINABILITY HIGHLIGHTS Nagda plant becomes the first VSF plant globally to achieve Zero Liquid Discharge (ZLD) The VSF has taken target to reduce GHG emissions intensity by 50% by 2030 and achieve carbon neutrality by 2040 in scope 1,2 and 3 GHG emissions Increase production of Circular Products
Slide 46: Select Environmental Targets and Performance
SELECT ENVIRONMENTAL TARGETS AND PERFORMANCE VSF Indicator/Parameter Target Baseline Status in FY22 Implemented at 1 site (Vilayat) Work-in-progress at other 3 sites Adoption of EU BAT technology EU BAT implementation and endeavor is to complete the for VSF manufacturing at India site by C22 FY18 sa
Slide 47: Caring for Our Community
CARING FOR OUR COMMUNITY Key Focus Areas Impact We Made 2,177 girl children 1301 bright students Education supported to pursue were awarded formal education scholarships 1,57,237 children immunized against polio; 16,817 Health Care women and girl children reached through health and hygiene awareness
Slide 48: R&D an Enabler - Investment in Future Products
R&D AN ENABLER-INVESTMENT IN FUTURE PRODUCTS Key Strengths World-class Infrastructure Consistently developing world-class labs with capabilities to serve across the entire value spectrum Highly Experienced Researchers Highly qualified researchers spearheading our company's development efforts on man
Slide 49: Governance Structure
GOVERNANCE STRUCTURE Sustainable Governance o Our comprehensive governance framework not only provides us with the transparency and accountability across management levels but also enhances our corporate image and integrity. o Extends from the Board of Directors through to the senior management to a
Slide 50: Empowering Our Employees
EMPOWERING OUR EMPLOYEES Key Focus Areas Recruitment and Leadership Pipeline Ratio of 1:1 identified successors for more than 300 leadership roles across the company. Learning and Development Nurtured our people to realise their full potential by learning and development initiatives. Employee Health
Slide 51: Appendix
é 2 Ae ~~ fire a GRASIM * Appendix
Slide 52: Cash Flow Focus
CASH FLOW FOCUS Release of Working Capital (₹ Cr.) Cash from Operations (₹ Cr.) 1,261 3,315 2,656 940 2,402 13 FY20 FY21 FY22 FY20 FY21 FY22 Dividend Flow (₹ Cr.) Cash Flow Movement 5,539 5,556 643 Interest Paid 592 643 Dividend & 263 Others 592 Dividend Paid 460 Proceed from 650 Taxes Paid 262 1,59
Slide 53: Awards & Accolades – 2021-22
AWARDS & ACCOLADES – 2021-22 Grasim received Gold Shield award for Integrated reporting and “Excellence in Financial Reporting” by Institute of Chartered Accountants of India (ICAI) for FY 20-21 Grasim participated in S&P (DJSI) in 2021 and received a score which was at a higher percentile of 76% co
Slide 54: Glossary
GLOSSARY Abbreviation Particulars AAUM Average Asset Under Management CAGR Compound annual growth rate CPP/MWp Captive Power Plant/ Megawatt Peak CPW Chlorinated Paraffin Wax ECU Electrochemical Unit FY Financial Year Exchange Rate Closing USD-INR : 75.7887 HCL Hydrochloric Acid IRDAI The Insurance
Slide 55: Thank you
Thank you Grasim Industries Ltd. Investor relations Team Aditya Birla Centre Email: [email protected] 'A' Wing, 2nd Floor, S.K. Ahire Marg ,Worli Mumbai 400 030 ,India
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