Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Investor Presentation (March 2016)
28 slides from Grasim Industries's investor presentation, Mar 30, 2016
Slide 1: Letter to stock exchanges on investors and analysts visit
30" March 2016 BSE Ltd. Department of Corporate Services ADITYA BIRLA GRASIM The Secretary 1* Floor, New Trading Ring, Exchange Plaza Rotunda Building, P J Towers, Dalal Street, Fort, Mumbai - 400 001 Fax: 022-22723121/ 3719/ 2037/ 2039 Dear Sir, Sub: Investors & Analysts visit at Vilayat Plant on 3
Slide 2: Grasim Industries Limited: Vilayat Plant Visit
Grasim Industries Limited A VSF and Cement Major Vilayat Plant Visit
Slide 3: Cautionary Statement
Cautionary Statement Statements in this ‘Presentation’ describing the Company’s objectives, estimates, expectations or predictions may be ‘forward looking statements’ within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or impl
Slide 4: Presentation Structure
Presentation Structure Introduction VSF Business Chemical Business Vilayat Facility 3
Slide 5: Grasim: Market leader across Business Segments
Grasim: Market leader across Business Segments Viscose Staple Leading Global Player Fibre – Capacity : 498K TPA Revenue ` 73 Bn. – Grasim commands 9% global share; ABG share 17% (US$ 1.1 Bn.) – Integrated model with experience of more than six decades Largest Chlor-Alkali Manufacturer in India Chemi
Slide 6: Investment in Growth
Investment in Growth ….. Substantial Investment made across Businesses – US$ 4 Bn. over last five years VSF KTPA* Caustic KTPA* Cement Mn. TPA* Gross Fixed Asset Rs. Bn. 50% 210% 78% 105% 498 804 92.3 468 334 69.9 51.8 228 258 FY 11 FY 16 FY 11 FY 16 FY 11 FY16 Post JPA Mar' 11 Dec' 15 Acq. Leading
Slide 7: Yielding Results
……Yielding Results Standalone ` bn. Revenue EBITDA Net Profit 64% 49% 40% 13.7 7.5 64.4 50% 46.0 128% 8.3 5.0 178% 23.4 4.8 2.6 15.6 2.1 0.9 Q3FY15 Q3FY16 9MFY15 9MFY16 Q3FY15 Q3FY16 9MFY15 9MFY16 Q3FY15 Q3FY16 9MFY15 9MFY16 LFL Growth 28% 19% 93% 36% 162% 35% Consolidated Revenue EBITDA Net Profit
Slide 8: Balance Sheet Continues to be Strong
…..Balance Sheet Continues to be Strong Standalone Consolidated ` bn. 9M 2015-16 FY 2014-15 Particulars 9M 2015-16 FY 2014-15 124 112 Net Worth 253 231 22 11 Debt 117 119 7 0.2 Net Debt 58 61 0.18 0.10 Debt:Equity (x) 0.35 0.39 0.06 - Net Debt: Equity (x) 0.17 0.20 0.39 - Net Debt / EBIDTA 0.88 1.08
Slide 9: Presentation Structure
Presentation Structure Introduction VSF Business Chemical Business Vilayat Facility 8
Slide 10: Viscose Staple Fibre (VSF)
Viscose Staple Fibre (VSF) Birla Viscose Birla Modal Birla Excel
Slide 11: VSF: Cellulosic Fibre With Many Unique Attributes
VSF: Cellulosic Fibre With Many Unique Attributes Natural fibres Man made fibres From From From Natural Natural fibres Synthetic inorganic Sources Polymers substances Protein- Cellulose Cellulose based based based Polyester Carbon Nylon Ceramics Wool Viscose Polypropylene Cotton Glass Silk Modal Pol
Slide 12: VSF: Global Industry Scenario
VSF: Global Industry Scenario Global Fibre Pie (95 Mn. MT) VSF: A cellulosic fibre Others VSF 5% of global fibre market 1% 5% Cotton 7% of global man-made fibre market 26% Wool 1% Major Global Players’ Capacity ‘000 TPA Synthetic ABG group (incl. Grasim) : 935 67% of which Grasim : 498
Slide 13: Grasim: Rightly Placed
Grasim : Rightly Placed Presence in Right Market …...and Right Product Apparel Growth 2009 – 2014 (%) Fibre Growth 2009 – 2014 (%) 8 12 7 9 4 4 4 1 India China RoW World Advanced VSF PFY PSF Cotton Economies -1 Market size 4.8 30.3 15.5 24.0 (2014, Mn. Tons) Source : Euro Monitor Source : Fibre Orga
Slide 14: VSF: Global Presence
VSF: Global Presence Sweden • Domsjo pulp plant China,Hubei Canada JV • VSF JV • 3 Pulp plants JVs India • 4 VSF plants South East Asia • 1 Pulp plant • 2 VSF plants of AVB • 2 Caustic soda Group Cos. plants VSF Plant - Own VSF Plant - JV VSF Plant - Group Cos. Pulp Plant - Own Pulp Plant - JV 13
Slide 15: VSF: High Backward Integration
VSF: High Backward Integration Input % of Cost Capacity Requirement Met • Dissolving Grade • 55% - 60% • 4 Manufacturing plants • 55% - 60% Pulp (India : 1 & Overseas : 3) • Caustic Soda • 10% - 15% • 804K TPA • Fully captive • Power & Steam • 10% • 290 MW • Fully captive at all locations Sustainabl
Slide 16: VSF: Greater Connect with Consumers thru' Liva
VSF : Greater Connect with Consumers thru’ Liva A Co-branded partner uses a “liva tag” on each garment 15
Slide 17: VSF: 9M FY16 Performance
VSF: 9M FY16 Performance 9M Global Industry Scenario (` Bn.) 2013-14 2014-15 2015-16 Global prices witnessed uptrend in first half Capacity (‘000 TPA)* 375 434 374 Business performance Sales Volume (‘000 MT) 367 403 337 Robust volume growth - up by 19% YoY Intensive business development activi
Slide 18: Presentation Structure
Presentation Structure Introduction VSF Business Chemical Business Vilayat Facility 17
Slide 19: Chemical
Chemical Largest Chlor - Alkali manufacturer in India Largest producer of Epoxy Resins in India Largest value-added product portfolio including water treatment chemicals 18
Slide 20: Chlor Alkali Industry
Chlor Alkali Industry Caustic Soda Usage in India Caustic Soda demand of 3.2 Mn. TPA in FY15 in India Others Textiles Caustic Soda has developed end-user market in 24% 20% India Pesticides 4% Alumina Top 5 players account for 60% of market share 17% Soaps & Detergent 7% Paper Manufacturing c
Slide 21: Chemical Business: On a strong growth path
Chemical Business : On a strong growth path….. Merger of ABCIL & Vilayat Greenfield Capacity – Market share more than doubled 22% 13% 10% 11% FY12 FY14 FY15 FY16E * Source : AMAI and Company data Volume (‘000 Tons) EBITDA (` Bn.) 6.9 745 287 3.1 3.8 458 2.9 314 409 2.3 266 1.6 FY12 FY14 FY15 FY16E *
Slide 22: Chemical Business: Footprints
Chemical Business : Footprints Renukoot Nagda Rehla Vilayat Ganjam Grasim Plants ABCIL Plants Karwar Map not to scale Geographical diversification with ABCIL merger 21
Slide 23: Value Added Products: Provide Competitive Strength
Value Added Products : Provide Competitive Strength Product Major Uses • Water treatment – drinking and waste water treatment Polyaluminium chloride (PAC) • Paper sizing agent • Disinfection Stable bleaching powder (SBP) • Bleaching • Plasticizer for PVC pipes and cables Chlorinated paraffin (CPW) •
Slide 24: Chemical Business: 9M FY16 Performance
Chemical Business : 9M FY16 Performance 9M# Business Performance (` Bn.) 2013-14 2014-15 2015-16 Revenue doubled YoY (LFL increase 20%) Capacity (000’ TPA)* 352 452 559 Caustic volume up 84% Merger of ABCIL Sales Volume 314 409 558 Vilayat Caustic plant achieved 100% capacity Caustic Soda (‘
Slide 25: Presentation Structure
Presentation Structure Introduction VSF Business Chemical Business Vilayat Facility 24
Slide 26: Vilayat Facility – Salient Features
Vilayat Facility – Salient Features Vilayat Complex 3 main product plants and various auxiliary plants Co-gen captive Thermal Power Plant to meet power and steam requirement Viscose Staple Fibre Capacity : 120K TPA Focus on Specialty Fibre (Modal & Micro Modal) Integration with Chemical Pl
Slide 27: Vilayat Facility – Salient Features
Vilayat Facility – Salient Features Caustic Soda Capacity : 182K TPA State of the art latest technology plant Raw material (salt) sources are located nearby Portfolio of Value Added Products for effective chlorine usage Epoxy Capacity : 52K TPA, largest in India Portfolio of Value Added
Slide 28: Thank You
Thank You Contacts: Grasim Industries Limited (Corporate Finance Division) Aditya Birla Centre, S.K. Ahire Marg, Worli, Mumbai - 400 030 CIN: L17124MP1947PLC000410 Sharad Agarwal +91-22-66525062 [email protected] Shirin Sancheti +91-22-66525097 [email protected]
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