Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Investor Presentation (November 2019)
45 slides from Grasim Industries's investor presentation, November 2019
Slide 1: Grasim Industries Limited Corporate Presentation November 2019
ADITYA BIRLA GRASIM Grasim Industries Limited Big In Your Life Corporate Presentation November 2019
Slide 2: Key Milestones
KEY MILESTONES 1947 1957 1977 1997 2007 1956 1976 1986 2006 2019 Grasim VSF and Pulp Vikram Grasim acquires Acquired stake in Domsjo, industries plants at Cement, controlling stake in Sweden to further integrate incorporated Harihar Grasim’s UltraTech Cement Ltd. Pulp commissioned first Cement from
Slide 3: Our Leadership Businesses
OUR LEADERSHIP BUSINESSES Viscose Chemicals Allied Cement Financial Services Through Aditya Birla Through Viscose and Capital Limited, Through Chemicals, Presence in Through UltraTech Yarn, we are present in we remain committed we are indirectly Textiles, Fertilisers, Cement Ltd, we are a the eco-fr
Slide 4: Big In Your Life
BIG IN YOUR LIFE # 1 In Viscose Staple Fibre# # 1 In& Specialty Caustic Soda Chemicals* # 1 In Premium Fabric 57% 57% Market Cap (Sep 30, 2019): INR 48,000 Crore (USD 6.8 Billion) Total Market Cap Total Market Cap (Sep 30, 2019): (Sep 30, 2019): INR 1.20 Lakh Crore INR 18,688 Crore (USD 16.9 Billion
Slide 5: Strong Overall Performance
STRONG OVERALL PERFORMANCE Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 28% 36% FY19 FY19 Rs72,971 Cr Rs.12,820 Cr (~$10 Bn) (~$1.8 Bn) Viscose Chemical Others Cement Financial Services Viscose Chemical Others Cement Financial Services 14% 9% 5% 51% 21% 16% 14% 6% 56% 8% Revenue and EBITDA (Rs. Cr.) Viscose C
Slide 6: Financial Highlights: Consolidated
FINANCIAL HIGHLIGHTS: CONSOLIDATED Revenue (Rs. Cr) EBITDA (Rs. Cr) 72,971 12,820 22% CAGR (~$10 Bn) 23% CAGR (~$1.8 Bn) 55,894 10,883 32,847 34,488 36,068 8,333 7,066 5,683 FY 15 FY 16 FY 17 FY 18 FY 19 FY 15 FY 16 FY 17 FY 18 FY19 Profit before tax* Margins (%) 7,779 22.5 23% CAGR (~$1.1 Bn) 20.1
Slide 7: Financial Highlights: Standalone
FINANCIAL HIGHLIGHTS: STANDALONE Revenue (Rs. Cr) EBITDA (Rs. Cr) 20,550 4,639 (~$2.9 Bn) 46% CAGR (~$0.7 Bn) 34% CAGR 3,542 15,786 2,629 10,346 1,851 8,980 1,013 6,333 FY 15 FY 16 FY 17 FY 18 FY 19 FY 15 FY 16 FY 17 FY 18 FY19 Margins (%) Dividend Per Share (Rs) 24.3 21.8 22.0 7.0 19.8 6.2 5.5 15.2
Slide 8: Strong Balance Sheet
STRONG BALANCE SHEET Consolidated Debt / Surplus (Rs. Cr.) FY18 FY19 H1 FY20 22,402 26,659 31,559 19,653 23,092 13,574 (~$2.8 Bn) (~$3.3 Bn) (~$1.9 Bn) 8,828 7,006 8,467 Debt Liquid Investment Net Debt Debt Liquid Investment Net Debt Debt Liquid Investment Net Debt Standalone Debt / Surplus (Rs. Cr.
Slide 9: Capacity Expansion Plans
CAPACITY EXPANSION PLANS VSF Capacity (KTPA) Caustic Soda Capacity (KTPA) 43% 27% 788 1,457 BB’Puram (146 KTPA) Vilayat expansion 146 H2 FY21 (219 KTPA) H2 FY21 438 Vilayat expansion (2 phases of 1,147 (73 KTPA) 300 TPD each) H2 FY21 383 365 365 549 164 Rehla expansion 164 (91 KTPA) 201 H1 FY21 BC K
Slide 10: Capex Plan
CAPEX PLAN Capex (Rs. Cr.) 3,935 3,814 (~$560 Mn) (~$550 Mn) 2,678 2,092 1,105 1,136 506 495 438 H1 FY20 FY15 FY16 FY17 FY18 FY19 FY20 FY21+ Represents planned Capex Grasim Industries Limited | Corporate Presentation 2019 10
Slide 11: Dow Jones Sustainability Index (DJSI)
DOW JONES SUSTAINABILITY INDEX (DJSI) Grasim has largely outperformed the global Industry average score Environmental Policy & Management Systems Corporate Citizenship and Philanthropy Grasim DJSI Customer Relationship Management Performance (on Key parameters) Risk & Crisis Management Industry peer
Slide 12: Viscose Staple Fibre – Fastest Growing Fibre
Viscose Staple Fibre – Fastest Growing Fibre
Slide 13: 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 14: 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 2019 14
Slide 15: Transforming Viscose Fibre
TRANSFORMING VISCOSE FIBRE 1,264 1,040 Domestic 930 Muted growth 853 Sales 778 621 653 664 654 631 660 volume 608 611 566 590 growth (TPD) FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 High backward integration, encompassing over 80% of costs thereby providing significan
Slide 16: High Backward Integration
HIGH BACKWARD INTEGRATION Input % of Cost Capacity Requirement Met Dissolving Grade Pulp 54% 4 Manufacturing plants 55% - 60% (India: 1 & Overseas: 3) Caustic Soda 15% 1,147K TPA Fully captive Power & Steam 8% 217 MW Fully captive (Cogeneration) Carbon Disulphide Fully captive 3% & Sulphuric Acid Po
Slide 17: State-of-the-art R&D centres across value chain
STATE-OF-THE-ART R&D CENTRES OFFER CREATIVE SOLUTIONS ACROSS VALUE CHAIN PULP FIBRE PLANTATION TEXTILE VALUE CHAIN PARTNER Grasim Forest Pulp and Fibre Innovation Birla Research Textile Research and Research Institute, Centre (PFIC), Taloja, Institute, Nagda, India Application Harihar, India Maharas
Slide 18: Birla Cellulosic Fibre is ingredient to more than 100 brands
BIRLA CELLULOSIC FIBRE IS INGREDIENT TO MORE THAN 100 BRANDS Customer base Overseas Pulp JV’s Servicing ~650 Customers Grasim Industries Limited | Corporate Presentation 2019 18
Slide 19: 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 20: LIVA: Milestones Achieved
LIVA: MILESTONES ACHIEVED LIVA Tagging (Million) Brands Out-reach SS19 3500 Stores AW19 42 SS19 40 SS19 220 220 Cities SS18 3300 Stores AW18 35 SS18 38 SS18 220 220 Cities SS17 2844 Stores AW17 24 SS17 32 SS17 190 190 Cities SS16 1819 Stores AW16 16 SS16 22 SS16 147 147 Cities SS – Spring Summer AW
Slide 21: Sustained Future Growth
SUSTAINED FUTURE GROWTH Global Fibre Demand (KTPA) Viscose Staple Fibre Demand (KTPA) 115,432 3.5% 100,343 7,542 86,484 0.9% 8% 2.3% ~6.5% 70,341 5,381 4,754 -1.2% 3.4% 2.4% 7% 2,732 4.4% 5.2% 2.8% 7.5% CAGR CAGR CAGR 2009 2014 2018 2023P CAGR CAGR CAGR 2009 2014 2018 2023P Capacity 3,532 5,416 7,04
Slide 22: Expanding Capacities in Tune to Growing Demand
EXPANDING CAPACITIES IN TUNE TO GROWING DEMAND VSF Capacity (KTPA) Capex (Rs. Cr.) 2,361 ~Rs. 3,500 Cr. (~$340 Mn) 43% expansion Capex at Vilayat, one of the 2,026 largest single location (~$290 Mn) 788 Vilayat expansion VSF site (219 KTPA) H2 FY21 (2 phases of 300 TPD each) 383 1,588 549 164 1,160
Slide 23: Sustainable Fashion Initiatives
SUSTAINABLE FASHION INITIATIVES Sustainable Forestry o 100% of wood is certified FSC® C118017 / SFI® / PEFC™; No purchase of wood R harvested from high conservation/ illegal forests o Global leader in Canopy's Hot Button Report with 'Light Green Shirt' o USDA Biobased certification for Birla Modal,
Slide 24: Sustainable Fashion Initiatives
SUSTAINABLE FASHION INITIATIVES Lowest Water Consumption o Achieved lowest water consumption per ton of VSF globally. Water consumption in FY19 reduced by 27% YoY to <20 m3/TF o Water Stewardship- We have set a target to bring down the consumption by about 60% by 2022 over 2015 (baseline) Environmen
Slide 25: Viscose Performance
VISCOSE PERFORMANCE Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 12% 10,325 45% 2,052 (~$0.2 Bn) (~$1.4 Bn) 8,374 1,680 7,101 1,439 6,643 6,022 923 459 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Capital Employed (incl. CWIP) [Rs. Cr.] and ROCE Global VSF prices have weakened as expected during th
Slide 26: Chemicals
& , > Se & a GRASIM 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 And others Powder Chlorid
Slide 28: Caustic Soda: Capacity Ramp Up
CAUSTIC SODA: CAPACITY RAMP UP 1,147 Chlor Alkali plant in KTPA Ganjam from 2019 Jayshree Chemicals Ltd Nagda 270 (Capacity: 57 KTPA) KTPA Chlor Alkali plant in Karwar from Vilayat Solaris ChemTech 365 (Capacity: 60 KTPA) KTPA 2014 2015 Renukoot 129 KTPA 2011 Acquired under- Rehla 350 construction C
Slide 29: Strong Presence in High Growth Businesses: Caustic Soda
STRONG PRESENCE IN HIGH GROWTH BUSINESSES: CAUSTIC SODA Fragment industry -23 players Grasim: Pan India Player Top-3 players account for ~50% of capacity 27% FY19 Renukoot 4% Nagda Vilayat Rehla 10% Veraval Ganjam 14% Shahad Balbadrapuram Aditya Birla DCM GACL Karwar Meghmani Others Source: Company
Slide 30: Focus on Chlorine Integration
FOCUS ON CHLORINE INTEGRATION Applications of Chlorine in India Captive Chlorine Consumption 35% 266,097 270,000 Others, 15% 28% 29% 28% 30% 260,000 Our 25% 250,000 Presence Vinyls (incl CPW, 19% 241,847 PVC), 8% 20% 240,000 15% 230,000 222,555 Inorganics, HCL, 18% 10% 220,000 9% 5% 210,000 Chlorome
Slide 31: Expanding Capacities in Tune to Growing Demand
EXPANDING CAPACITIES IN TUNE TO GROWING DEMAND Caustic Soda Capacity (KTPA) Capex (Rs. Cr) 1,542 (~$220 Mn) 27% 1,457 BB’Puram (146 KTPA) 146 H2 FY21 438 Vilayat expansion 1,038 1,147 (73 KTPA) (~$150 Mn) H2 FY21 365 365 Rehla expansion 734 (91 KTPA) 201 H1 FY21 110 110 554 789 91 91 91 Ganjam 91 91
Slide 32: Caustic Soda: Long Term Performance Indicators
CAUSTIC SODA: LONG TERM PERFORMANCE INDICATORS ,000 5,059 (~$0.7 Bn) ,000 4,039 ,000 ,000 2,813 3,106 ,000 1,307 951 1,041 ,000 781 523 493 542 319 418 ,000 FY07 Mar'07 FY08 Mar'08 FY09 Mar'09 FY10 Mar'10 FY11 Mar'11 FY12 Mar'12 FY13 Mar'13 FY14 Mar'14 FY15 Mar'15 FY16 Mar'16 FY17 Mar'17 FY18 Mar'18
Slide 33: Caustic Soda: Input Cost Structure
CAUSTIC SODA: INPUT COST STRUCTURE Input % of Cost Capacity Requirement Met Power 60% 257 MWh ~60% Salt 15% ~250 KTPA ~15% Power capacity includes shared `Note: As of FY 2019 capacity at Vilayat with Viscose Grasim Industries Limited | Corporate Presentation 2019 33
Slide 34: Chemicals Performance
CHEMICALS PERFORMANCE Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 6,436 1,827 7,000 39% (~$921 Mn) 2000 (~$261 Mn) 1800 58% 6,000 5,004 1600 1,300 5,000 1400 4,000 3,429 3,813 1200 1000 842 3,000 1,701 800 663 2,000 600 1,000 400 292 200 0 0 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Capital emplo
Slide 35: Sustainability
SUSTAINABILITY Water Focus on water consumption through reduction, recycle and reuse in all the units. Zero liquid discharge at Nagda and Renukoot achieved and Rehla and Ganjam in progress Energy Continuous focus on improving energy efficiency across businesses Adding renewable mix to the overall po
Slide 36: Allied Businesses
& , > Se & a GRASIM Allied Businesses
Slide 37: Other Businesses
OTHER BUSINESSES Fertilisers Textile Insulators Net Revenue (Rs. Cr.) Net Revenue (Rs. Cr.) Net Revenue (Rs. Cr.) 2,812 1,501 434 (~$215 Mn) (~$402 Mn) (~$62 Mn) 390 1,062 1,815 FY18 FY19 FY18 FY19 FY18 FY19 EBITDA (Rs. Cr.) EBITDA (Rs. Cr.) EBITDA (Rs. Cr.) 238 139 (~$34 Mn) (~$20 Mn) 195 34 22 62
Slide 38: Consolidating Subsidiaries
Consolidating Subsidiaries
Slide 39: UltraTech Cement Limited
ULTRATECH CEMENT LIMITED Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 37,379 7,226 (~$5.3 Bn) (~$1.1 Bn) 6,734 40,000 8,000 35,000 30,979 7,000 5,861 30,000 25,375 6,000 25,000 5,000 20,000 4,000 15,000 3,000 10,000 2,000 5,000 1,000 0 0 FY17 FY18 FY19 FY17 FY18 FY19 o The Indian cement industry grew appr
Slide 40: Aditya Birla Capital Limited
ADITYA BIRLA CAPITAL LIMITED PROTECTING INVESTING FINANCING CONSOLIDATED ~$38Bn ~$9.1Bn ~$2.3Bn ~$1.1Bn ~$125Mn Premium1 AAUM2 Lending Book3 Revenue4 PAT 1 Includes Life Insurance and Health Insurance gross total premium (as per IRDAI reporting) 2 AAUM of Asset Management business 3 Includes NBFC an
Slide 41: Other Subsidiaries
OTHER SUBSIDIARIES Solar subsidiaries Grasim Premium Fabrics (Brand Soktas) Particulars (Rs. Cr.) Q2FY20 Q1FY20 Particulars (Rs. Cr.) Q2FY20 Q1FY20 Net Revenue Rs. Cr. 20 26 Net Revenue Rs. Cr. 45 48 EBITDA Rs. Cr. 10 14 EBITDA Rs. Cr. 7 8 EBITDA Margin % 50% 54% EBITDA Margin % 16% 17% EBIT Rs. Cr.
Slide 42: Appendix
& , > Se & a GRASIM Appendix
Slide 43: Certifications & Awards
CERTIFICATIONS & AWARDS ○ Grasim Industries has been Ranked # 205 in the list of “Global 2000 – Growth Champions 2018” by Forbes Magazine, USA ○ Grasim Industries has been ranked the #154 Top Regarded Company of the World in 2018 ○ Grasim Industries Limited ranks #59 in Forbes Global 2000 Best Emplo
Slide 44: Glossary
GLOSSARY Abbreviation Particulars AAUM Average Asset Under Management CAGR Compound annual growth rate CPP Captive Power Plant CPW Chlorinated Paraffin Wax ECU Electrochemical Unit FY Financial Year Exchange Rate Avg. USD-INR : 69.905 | Closing USD-INR : 69.1612 HCL Hydrochloric Acid Ind AS Indian A
Slide 45: 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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