Kajaria Ceramics Limited · NSE:KAJARIACER
Kajaria Ceramics — Investor Presentation (August 2011)
44 slides from Kajaria Ceramics's investor presentation, August 2011
Slide 1: Investors Presentation
Investors Presentation August 2011 INVESTOR PRESENTATION MARCH 2011 1
Slide 2: Agenda
Agenda Global Tile Industry Indian Tile Industry Kajaria Ceramics – overview Leveraging Synergies Financials Shareholding Pattern 2
Slide 3: Agenda
Agenda Global Tile Industry Indian Tile Industry Kajaria Ceramics – overview Leveraging Synergies Financials Shareholding Pattern 3
Slide 4: The production of top countries
The production of top 10 countries… (Million Sq Mtr) CY 06 CY 07 CY 08 CY 09 CHINA 3000 3200 3400 3600 42% BRAZIL 594 637 713 715 INDIA 340 385 390 490 6% ITALY 569 559 513 368 IRAN 210 250 320 350 SPAIN 608 585 495 324 VIETNAM 199 254 270 295 INDONESIA 170 235 275 278 TURKEY 265 260 225 205 EGYPT 1
Slide 5: The production of top countries
The production of top 10 countries • World Production has been growing @6-7% CAGR in the period CY 2004-2008 but hardly grew in CY 2009. • All the top producer countries in Asian Continent increased their production in particular China & India. • The 27 member EU (European Union) suffered the most s
Slide 6: The consumption of top countries
The consumption of top 10 countries… (Million Sq Mtr) CY06 CY07 CY08 CY09 CHINA 2450 2700 2830 3030 36% BRAZIL 484 535 605 645 INDIA 350 397 403 494 6% INDONESIA 148 178 262 297 IRAN 182 236 265 295 VIETNAM 145 210 220 240 EGYPT 103 105 140 180 USA 308 249 197 169 SPAIN 319 314 240 156 ITALY 199 199
Slide 7: The consumption of top countries (CY 09)
The consumption of top 10 countries (CY 09) • The break down in consumption by geographical area is very similar to that of production • Asia once again showed the largest growth in demand at 7.9%. • India showed the maximum growth in the world at 22.58%. Source: Ceramic World Review 7
Slide 8: Global Scenario
Global Scenario … Per capita consumption of tiles Source: Ceramic World Review 8
Slide 9: Agenda
Agenda Global Tile Industry Indian Tile Industry Kajaria Ceramics – overview Leveraging Synergies Financials Shareholding Pattern 9
Slide 10: Indian Tile Industry
Indian Tile Industry • Indian tile industry is around 550 million sq. mt. as of March 2011. • Industry size Rs 130 Billion • National Players control 50% of industry. • Barring Financial Year 2008-09, the industry has been growing at a CAGR of 15-16% per annum in last 5-6 years. 10
Slide 11: Indian Industry – Major Players
Indian Industry – Major Players National Players control around 50% of the Industry Turnover as on 31.03.2011 (Rs/Billion) H&R Johnson 14.72 Kajaria Ceramics 10.05 Somany Ceramics 7.58 Nitco Tiles 7.29 Asian Granito 4.82 Orient Ceramics 3.58 Euro Ceramics 2.60 Gokul Ceramics 2.00 Bell Ceramics 1.67
Slide 12: Balance 50% of the industry is represented by regional players
Balance 50% of the industry is represented by other regional players mainly present in the state of Gujarat. 12
Slide 13: Indian Industry – Segmentation
Indian Industry – Segmentation How Kajaria is Catering to all the segment of the 550 MSM tile Industry (Rs. 130 Billion) Vitrified Tiles (190 MSM / Rs. 60 Billion) Ceramic Glazed Tiles (360 MSM / Rs. 70 Billion) 13
Slide 14: Indian Industry – Segmentation
Indian Industry – Segmentation How Kajaria is Catering to all the segment of the 550 MSM tile Industry (Rs. 130 Billion) Polished Glazed Vitrified Tiles (170 MSM / Vitrified Tiles Rs. 50 Billion) (20 MSM / Rs. 10 Billion) Ceramic Glazed Tiles (360 MSM / Rs. 70 Billion) 14
Slide 15: Indian Industry – Segmentation
Indian Industry – Segmentation How Kajaria is Catering to all the segment of the 550 MSM tile Industry (Rs. 130 Billion) 8 MS M 12 MS M Have been importing from Europe and China and put up own manufacturing in Polished Gailpur in March 2011 (3 MSM p.a) Glazed Vitrified Tiles (170 MSM / Vitrified Til
Slide 16: Indian Industry – Segmentation
Indian Industry – Segmentation How Kajaria is Catering to all the segment of the 550 MSM tile Industry (Rs. 130 Billion) 20 MS 8 M MS M 150 MSM 12 MS M Have been importing from Europe and China and put up own manufacturing in Polished Have been importing from China and put up a manufacturing facilit
Slide 17: Indian Industry – Segmentation
Indian Industry – Segmentation How Kajaria is Catering to all the segment of the 550 MSM tile Industry (Rs. 130 Billion) 20 MS 8 M MS M 150 MSM 12 MS M Have been importing from Europe and China and put up own manufacturing in Polished Have been importing from China and put up a manufacturing facilit
Slide 18: Agenda
Agenda Global Tile Industry Indian Tile Industry Kajaria Ceramics – overview Leveraging Synergies Financials Shareholding Pattern 18
Slide 19: Manufacturing
Manufacturing • Kajaria started production in August 1988 at Sikandrabad (UP) with 1 million sq. mtr. per annum. • Current Capacity of Sikandrabad plant is 8.20 million sq. mtr. of ceramic glazed and vitrified tiles. 19
Slide 20: Manufacturing
Manufacturing Commissioned 2nd Plant in March 1998 at Gailpur (Rajasthan) with a capacity of 6 million sq mtr p.a. and further increased the capacity in phased manner. The present capacity of Gailpur plant is 20.10 millions sq. mtr. per annum of ceramic glazed and vitrified tiles. 20
Slide 21: First ever acquisition
First ever acquisition • Acquired 51% stake in Soriso Ceramic Private Limited, based in the State of Gujarat in February 2011. • Soriso has an annual capacity of 2.30 million sq meters per annum of ceramic floor tiles. • Expanding capacity from 2.30 MSM to 4.60 MSM (production to commence by January
Slide 22: Total present capacity is 30.60 million sq. mtr.
The total present capacity is 30.60 million sq. mtr. making Kajaria the largest manufacturer of ceramic and vitrified tiles in India 22
Slide 23: How the capacity is divided geographically
How the capacity is divided geographically 8.20 MSM Qty in million sq. mtrs. (MSM) 20.10 MSM 2.30 MSM Ceramic Vitrified Plant tiles tiles Total 1. Sikandrabad (UP) 3.20 5.00 8.20 2. Gailpur (Rajasthan) 14.10 6.00 20.10 3. Morbi (Gujarat) 2.30 0.00 2.30 19.60 11.00 30.60 23
Slide 24: Distribution network of 800 dealers
Distribution network of 800 dealers (Apart from their sub-dealers) 24
Slide 25: Display Centers at all the offices in the country
Display Centers at all the offices in the country Ludhiana Dehradun New Delhi Jaipur Lucknow Varanasi Ahmedabad Indore Kolkata Mumbai Pune Hyderabad Bengaluru Chennai Cochin Thiruvananthpuram 25
Slide 26: Prestigious Projects
PRESTIGIOUS PROJECTS Delhi Metro IT / ITES South Delhi Station Adobe Systems India Pvt. Ltd. 26
Slide 27: Prestigious Projects
PRESTIGIOUS PROJECTS Developers Schools The Close - Unitech Delhi Public School 27
Slide 28: Kajaria World
Kajaria World • Retail chain of showrooms selling high end imported tiles and sanitary ware from Spain and China. • We have 12 showrooms (8 own + 4 franchises) and 12 warehouses. • Selling leading international brands like:- Ludhiana Chennai Gurgaon 28
Slide 29: Product quality at par with international standards
Product quality at par with Product quality at par with international standards international standards 29
Slide 30: Membership of the Indian Green Building Council
Kajaria's recent membership to the Indian Green Building Council, reassures that each manufactured product is eco-friendly when offered to builders & customers across the globe 30
Slide 31: Superbrand conferred for 5th consecutive time
Only Ceramic Tile Company in India conferred with “Superbrand” for 5th consecutive time. Superbrand is a concept that originated in the UK in 1993 and currently operating in 86 countires 31
Slide 32: Agenda
Agenda Global Tile Industry Indian Tile Industry Kajaria Ceramics – overview Leveraging Synergies Financials Shareholding Pattern 32
Slide 33: Leveraging Synergies
Leveraging Synergies Leveraging the two invaluable assets – the Kajaria brand and unparalleled, multi-layer distribution network – to expand the product bouquet to cater to the growing aspirations of the discerning Indian customers. • Forayed into the high-end sanitaryware business which positions t
Slide 34: Agenda
Agenda Global Tile Industry Indian Tile Industry Kajaria Ceramics – overview Leveraging Synergies Game Changer Financials Shareholding Pattern 34
Slide 35: Game Changer
Game Changer Improved ROCE/ROE due to higher asset turn ratio • Historic high capex has capped ROCE/ROE • Asset turn ratio has been improving due to:- - Incrementally lower capex (Italian machine price came down due to China foray into machine manufacture) - Kajaria moving towards value added tiles
Slide 36: Agenda
Agenda Global Tile Industry Indian Tile Industry Kajaria Ceramics – overview Leveraging Synergies Game Changer Financials Shareholding Pattern 36
Slide 37: Segment wise Turnover Projection
Segment wise Turnover Projection Rs. in Million Ceramic Polished Vitrified Glazed Vitrified Imported Wooden Tiles Tiles Tiles Tiles Bathware Flooring Total Outso- Outso- Outso- Fin Year Mnfg. urcing Mnfg. urcing Mnfg. urcing FY 2007- 08 - (Audited) 3499 - - 1250 - 240 300 - 5289 FY 2008- 09 - (Audit
Slide 38: Net Sales and PAT
Net Sales (Rs. Million) PAT (Rs. Million) 9523 607 7355 6649 5027 4137 2006-07 2007-08 2010-11 2006-07 2007-08 2009-10 2010-11 EBDITA Margin PAT Margin 16.60 6.37 15.73 156 = 14.43 13.86 18s ir 2007-08 2009-10 2010-11 2006-07 2007-08 2009-10 2010-11 38 Kajaria
Slide 39: Capital Employed, ROCE, RONW, Debt/Equity
Capital Employed ROCE 5022 4921.00 =e 4872.00 4740 808 14.50 12.38 4522.00 ff : | ll 2006-07 2007-08 2008-09 2009-10 2010-11 2006-07 2007-08 2008-09 2009-10 2010-11 RONW Total Debt/Equity 2.35 2.18 29.45 201 20.40 1.39 1.26 10.13 5.54 5.62 (2006-07 2007-08 2008-09 2009-10 2010-11 2006-07 2007-08 200
Slide 40: Financials
Financials Rs in Million Quarter Ended Year ended Growth (%) Jun '11 # Jun '10 Growth (%) Mar '11 # Mar '10 Gross Sales 40% 2890 2071 31% 10051 7667 Net Sales 39% 2713 1951 29% 9523 7355 PBDIT 38% 433 313 29% 1490 1157 PBDIT% 16% 16% 16% 16% Less: Interest 17% 91 78 -20% 301 375 Less: Depreciation 2
Slide 41: Agenda
Agenda Global Tile Industry Indian Tile Industry Kajaria Ceramics – overview Leveraging Synergies Game Changer Financials Shareholding Pattern 41
Slide 42: Shareholding pattern (30.06.2011)
Shareholding pattern (30.06.2011) 42
Slide 43: Forward looking and cautionary statement
Forward looking and cautionary statement Certain statements in this report concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The
Slide 44: Thank You!
Thank You! Kajaria
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