Crompton Greaves Consumer Electricals Ltd. · NSE:CROMPTON
Crompton Greaves Consumer Electricals — Investor Presentation (September 2018)
20 slides from Crompton Greaves Consumer Electricals's investor presentation, September 2018
Slide 1: Investor Presentation Sept 2018
Investor Presentation Sept 2018
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer from Crompton Greaves Consumer Electricals Ltd. or any of its affiliates (“Crompton”) to any party and the information contained herein will not form the basis of any contract. Neither Crompton nor any of their respective affiliates, sharehol
Slide 3: Crompton: A New Beginning
Crompton: A New Beginning … …and fast expanding in India’s market leader in Fans Household Appliances and and Residential Pumps, with Agricultural Pumps… leading market position in Lighting… … with a 75+ year old brand legacy Key Milestones Post Demerger Oct 2015/ Apr May Oct Feb Sept Apr Jul Jan 20
Slide 4: Significant Macro Opportunity
Significant Macro Opportunity… Key Drivers in Place… Rising Disposable Increasing Increasing Thrust on Affordable Income Urbanization Electrification Housing (GDP Per Capita(1), in US$) (Urban Population, in mn) Government aims to Government aims to create affordable Housing electrify every househol
Slide 5: Crompton Poised to Capitalize on the Macro Opportunity
Crompton Poised to Capitalize on the Macro Opportunity… The Management has identified Five Strategic Levers to capture this opportunity Organizational Excellence Brand Excellence Consumer Portfolio Excellence Centric Operational Excellence Go-to-Market Excellence Market Leadership Enhanced Profitabi
Slide 6: By putting Strategic Levers to Work
… by putting Strategic Levers to Work 02 04 Portfolio Operational Excellence Excellence Drive Supply Chain Premiumization Streamlining and Optimization Consumer-centric Innovation Margin Expansion Organizational Brand Go-to-Market Excellence Excellence Excellence Building Continuous Strengthening Ca
Slide 7: Leveraging 75+ Years of Brand Heritage
Leveraging 75+ Years of Brand Heritage Durability Quality Reliability Trust 75+ years brand legacy accreditation to Fans, Superbrand Lighting and Pumps Brands of Superbrands (2004, 4 editions 2007, 2009, 2012) - only consumer electrical Air360 player to be selected LYOR Crompton leveraging its stron
Slide 8: Continuous Investments into Energizing the Brand
Continuous Investments into Energizing the Brand … TV Advertisements Print Campaign In-shop Branding 8
Slide 9: Following a Multi-Channel Holistic Approach
… Following a Multi-Channel Holistic Approach Crompton has created a compelling Brand Idea, “Let’s Hangout Ghar Pe” Brand Idea Impact New brand campaign to reach the consumer Crompton has leveraged advertising effectively in across various touch points order to improve brand recall Ad. Spend (INR Cr
Slide 10: Customer Centric Innovation Driving Portfolio Excellence
Customer Centric Innovation Driving Portfolio Excellence Premium Fans LED Lighting (% Salience) (% Salience) 15.3% 78% 1.8x 2.4x 9.7% 30% Sept '15 Jun'18 Sept '15 Jun'18 Innovation and in-store Innovation, filled portfolio gaps, led placement price disruption to drive adoption Launched innovative pr
Slide 11: Go-to-Market Strategy Tailored to Win In-Store
Go-to-Market Strategy Tailored to Win In-Store Leverage Existing Pan-India Distribution Network Jalandhar Nationwide network with 3,000+ Dehradun Ambala distributors and 100,000+ retailers Ghaziabad Delhi Faridabad Jaipur Lucknow Patna Guwahati Expanding the Current Reach Ahmedabad Indore Ranchi Kol
Slide 12: GTM Pilots Driving Structural Changes on Ground
GTM Pilots Driving Structural Changes on Ground Key Focus Areas for the Project Changes Being Driven on Ground Larger distributors with strong Sales Team being strengthened distribution background across the region Robust IT Setup • Leveraging technology to capture secondary sales data Target to agg
Slide 13: Embarked on this journey 2 years ago
Embarked on this journey 2 years ago Phase 1 Phase 2 Phase 3 (2016) (2017) Ongoing South region Pan-India West region B2C Lights GTM B2C Lights GTM Full scale GTM rollout Pilot multiple models • Territory Allocation covering all PLs • RDP implementation • Territory Allocation • Exclusive DSMs • RDP
Slide 14: Branding and Distribution Initiatives Driving Significant Increase in Reach
Branding and Distribution Initiatives Driving Significant Increase in Reach Fans LED Lighting (% Counter Reach(1)) (% Counter Reach(1)) 1.4x 15% 49% 1.7x 35% 9% Sept '15 Jun '18 Sept '15 Jun '18 (2) Why did we succeed? Building the right capability and training of the team to drive this initiative S
Slide 15: Operational Excellence Driving Margin Expansion
Operational Excellence Driving Margin Expansion Operational Consistent Gross Margin(1,2) Improvement Streamlining and Optimization In % 26.5% 26.0% Implemented sales and operational planning to improve material availability 23.9% Focusing on various initiatives to leverage IT ERP Implementation in 8
Slide 16: Financial Highlights
Financial Highlights Growing Revenues(1) Expanding EBITDA Margin(1,2) In INR Crs In % 13.7% 14.4% 4,080 12.3% 3,763 3,405 FY16 FY17 FY18 H2FY16 FY17 FY18 Increasing PAT Margin(1,3) Consistently High Returns In % ROCE(4) in % 10,160% 7.9% 7.5% 2,559% 6.3% 505% H2FY16 FY17 FY18 H2FY16 FY17 FY18 1. Rev
Slide 17: Organization Being Built for Sustained Excellence
Organization Being Built for Sustained Excellence Crompton’s Behaviour Framework Key Appointments to Drive Growth and Innovation Marketing Head Procurement Head Quality Head Risk Head Capability Building Through external hires for select positions Tie-up with external agencies Building pipeline thro
Slide 18: Experienced Management Team with Diverse Consumer Experience
Experienced Management Team with Diverse Consumer Experience Shantanu Khosla Mathew Job Sandeep Batra Managing Director Chief Executive Officer Chief Financial Officer Joined CGCEL in July 2015 Joined CGCEL in September Joined CGCEL in September Prior Experience: 2015 2015 Prior Experience
Slide 19: Distinguished Board of Directors and High Standards of Corporate Governance
Distinguished Board of Directors and High Standards of Corporate Governance Hemant Nerurkar Shantanu Khosla D Sundaram P M Murthy Managing Director Managing Director & CEO Vice-Chairman and CFO Managing Director Past/ Current Affiliations Shweta Jalan Promeet Ghosh Sahil Dalal Past/ Current Affiliat
Slide 20: In Summary
In Summary … India represents a significant consumer electricals market opportunity Crompton poised to capture the large macro opportunity Heritage of strong 75+ year old brand Customer-centric innovation driving portfolio excellence Go-to-market strategy tailored to win in-store Operational excelle
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