Borosil Ltd · NSE:BOROLTD
Borosil — Borosil Glass Works — Q4 FY2017 Earnings Presentation
40 slides from Borosil's earnings presentation, May 15, 2017
Slide 1: Cover letter to BSE on Q4 FY17 presentation
BOROSI L° | Borosil Glass Works Limited | CIN : L99999MH1962PLC012538 | 1101, Crescenzo, G-Block, Opp. MCA Club, Bandra Kurla Complex, | Bandra (E), Mumbai - 400 051, India. T +9122 6740 6300 |W wwwborosil.com May 15, 2017 BSE Limited 1st Floor, New Trading Ring Rotunda Building P. J. Towers, Dalal
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Slide 3: Borosil Glass Works Limited
Borosil Glass Works Limited Brand with a 50+ year Market Leader in legacy Microwavable Kitchenware in Market Leader in India (Consumer Laboratory Products) Glassware in India (Scientific & Industrial Products) 2
Slide 4: FY17 Highlights – Sales
Borosil Glass Works Limited FY17 Highlights – Sales Rs. In Crores YTD Growth Segment FY16 FY17 % Labware ‐ BGWL (SIP+Others) 120.4 137.3 14.1% ‐ Klasspack* # ‐ 20.5 Total Labware 120.4 158 31.1% Consumerware ‐ BGWL 101.8 129.7 27.4% ‐ Hopewell* # 11.5 87.3 657.9% Total 113.3 217.0 91.5% Total 233.7
Slide 5: Q4FY17 Highlights – Sales
Borosil Glass Works Limited Q4FY17 Highlights – Sales Rs. In Crores Segment Q4FY16 Q4FY17 Growth % Labware ‐ BGWL (SIP+Others) 43.7 48.4 10.6% ‐ Klasspack* 7.0 Total Labware 43.7 55.4 26.6% Consumerware ‐ BGWL 20.3 26.9 32.6% ‐ Hopewell* 11.5 21.4 85.4% Total 31.8 48.3 51.8% Total 75.5 103.6 37.2% *
Slide 6: FY17 Highlights
Borosil Glass Works Limited FY17 Highlights Rs. In Crores Segment FY16 FY17 Growth % EBITDA from Operations ‐ BGWL 24.9 39.9 60.4% ‐ Klasspack # 2.6 ‐ Hopewell # 2.2 0.8 ‐64.6% Total 27.1 43.2 59.6% EBITDA% 11.6% 11.5% PAT (Including Income from Investments) ‐ BGWL 23.9 135.5 467.2% ‐ Klasspack # 0.
Slide 7: Significant Board Approvals
Borosil Glass Works Ltd. Significant Board Approvals • During the meeting held on 13th May 2017, the Board approved (subject to approval of shareholders ): – Sub-division (Split) of face value of shares from Rs. 10 to 10 shares of Re. 1 each. • Provide greater access to retail shareholders – Develop
Slide 8: Consumer Products Division (CPD)
Consumer Products Division (CPD) 7
Slide 9: Product Range & Positioning
Consumer Product Division (CPD) Product Range & Positioning Everyday Entire process of Cooking & Ally for the progressive homemaker Serving Modern,contemporary Expanding from being synonymous with microwaveable glass to storage ,tableware and appliances 8
Slide 10: Opportunity
Consumer Product Division (CPD) Opportunity • Estimated market share of Microwavables is 60%. • Tumblers universe consists of Borosilicate glass & Soda Lime glass, Borosil primarily markets Borosilicate Glasses. • Borosil has entered the other categories recently. • Note : Market size, growth & shar
Slide 11: Emerging Growth Opportunities
Consumer Product Division (CPD) Emerging Growth Opportunities • Lifestyle change towards convenience & improved presentation – Upgrading from steel & unorganized / unbranded market towards premium products • Rise of the middle class aspirational customer base • Innovation possibilities in product ca
Slide 12: Strength to leverage Opportunities
Consumer Product Division (CPD) Strength to leverage Opportunities • New product capabilities – New product range has received wide market acceptance – New Products (introduced in last 3 years) share of Total Sales ~20% • Borosil is the gold standard on quality • Strong channel loyalty – Proven by q
Slide 13: Acquisition of Hopewell (Larah)
Consumer Product Division (CPD) Acquisition of Hopewell (Larah) • Acquired 100% in January 2016 • Brand Larah – Lifestyle Opal dinnerware – Microwavable, Light, Strong, Chip-resistant for daily use • Targets mass market customers for daily use • Market dominated by a single player – Opportunity to i
Slide 14: Margin Improvement & Capacity Expansion
Margin Improvement & Capacity Expansion • Run rate on Larah sales nearly doubled since acquisition – Manufacturing capacity now close to 100% • Plan to expand capacity with new furnace & other machinery – Likely to service 50% additional sales – Improve product quality – Enhance yields / reduce wast
Slide 15: Key Modern Trade Partners
Consumer Product Division (CPD) Key Modern Trade Partners 14
Slide 16: Some Key Institutional Customers
Consumer Product Division (CPD) Some Key Institutional Customers 15
Slide 17: Scientific & Industrial Products (SIP)
Scientific & Industrial Products (SIP) 16
Slide 18: Opportunity
Scientific & Industrial Products (SIP) Opportunity • Offers Scientific & Laboratory equipment – Glassware, Instruments, Liquid handling systems • Used in Pharma, Biotechnology, Microbiology, Food & Soil testing, Educational Institutions etc • Introducing Laboratory tools & equipment under the brand
Slide 19: Product Range
Scientific & Industrial Products (SIP) Product Range 18
Slide 20: Market size and market share
Scientific & Industrial Products (SIP) • Market size – Lab Glass (Domestic) INR 220 Cr, growth 8-10% – Lab Glass (International) INR 4000 Cr, growth 0-2% - Lab instruments (Domestic) INR 150 Cr, growth at 8-10% - Pharma Packaging (Tubular Glass): INR 500 Cr, growth 10-12% • Market share – Labglass (
Slide 21: Emerging Growth Opportunities
Scientific & Industrial Products (SIP) Emerging Growth Opportunities • Growth in the customer industries in India (Pharma) • Import substitution • New product to same customers (LabQuest) • Exports to ME/SEA/Africa 20
Slide 22: Strong Barriers to Entry
Scientific & Industrial Products (SIP) Strong Barriers to Entry • Meeting wide product range customer need • Single supplier convenient for laboratory for multiple critical yet low ticket SKUs • Not easily replicable by competition • Quick & on-time delivery of SKU range • Investment in inventory, 6
Slide 23: Acquisition of Klasspack
Scientific & Industrial Products (SIP) Acquisition of Klasspack • Acquired 60.3% in July 2016 • Glass Ampoules & Tubular Glass Vials for packaging pharmaceutical products • Complements Borosil’s analytical vials range (used in the lab) • Provides Borosil’s Pharmaceutical Customers credible 2nd alter
Slide 24: Key Customers
Scientific & Industrial Products (SIP) Key Customers 23
Slide 25: BGWL Key Enablers & Capabilities
BGWL Key Enablers & Capabilities • Strong brand equity – Sustained growth momentum & margins • Strong steady SIP business to support growth in CPD business • Established network of happy channel partners – Over 200 distributors / 10,000 retailers • Strong Balance Sheet with cash surplus – Ability to
Slide 26: Gujarat Borosil Ltd.
Gujarat Borosil Ltd. 25
Slide 27: Financial Highlights – FY17
Gujarat Borosil Limited (GBL) Financial Highlights – FY17 Rs. In Crores Segment FY16 FY17 Growth % Revenue from operations (Incl. of Excise duty) 188.3 188.3 0.0% EBITDA 36.1 47.7 32.2% EBITDA % 19.1% 25.3% PAT 7.4 14.1 89.6% Operations in FY17 at full capacity 26
Slide 28: Financial Highlights – Q4FY17
Gujarat Borosil Limited (GBL) Financial Highlights – Q4FY17 Rs. In Crores Segment Q4FY16 Q4FY17 Growth % Revenue from operations (Incl. of Excise duty) 55.5 52.0 ‐6.4% EBITDA 8.8 12.2 37.6% EBITDA % 15.9% 23.4% PAT 3.0 6.4 110.8% 27
Slide 29: Strong Growth Prospects
Gujarat Borosil Limited (GBL) Strong Growth Prospects • Strong Government impetus to solar energy with 100 GW capacity target by 2022 – Policy initiatives • Exports emerging as a growth kicker • Top-tier Solar & Pattern Glass domestic & international clients • Company looking to more than double exi
Slide 30: Competitive Advantage
Gujarat Borosil Limited (GBL) Competitive Advantage • Market Leadership in Indian Solar Glass Market – Cost competitive with China supplies • Preferred brand of High quality Solar glass – Lowest iron content, world’s only antimony-free glass – Anti-reflective coating – High light transmissions & hig
Slide 31: Key Customers - Domestic
Gujarat Borosil Limited (GBL) Key Customers - Domestic
Slide 32: Key Customers – International
Gujarat Borosil Limited (GBL) Key Customers – International Spain Kenya Croatia Spain Italy Italy US US Germany Kenya Italy Greece Germany 31
Slide 33: Proposed Scheme of Amalgamation
Borosil Glass Works Limited Proposed Scheme of Amalgamation Company has proposed Scheme of Amalgamation with Related Companies : • Hopewell Tableware, 100% subsidiary in Consumer Products business • Vyline, a promoter held co & 3P manufacturer for BGWL • Fennel Investments, an associate co with cros
Slide 34: Current Holding Structure
Borosil Glass Works Limited Current Holding Structure Promoters Public 68.91% 25.72% 25.05% BGWL 100% 45.86% 5.37% 25.25% (Equity) + 45.85% 100% 100% (Pref shares) 60.3% FIFPL HTPL Klasspack VGWL GBL 8.29% 33.13% 16.57% • Borosil Glass Works limited (‘BGWL’) and Gujarat Borosil Limited (‘GBL’), list
Slide 35: Resultant Holding Structure
Borosil Glass Works Limited Resultant Holding Structure Promoters Public 76.28% 23.72% 16.57% BGWL 25.05% 58.38% Klasspac GBL k 60.3% Effective promoter and promoter group holding of BGWL to increase from 74.28% to 76.28% Scheme subject to all statutory approvals. Swap ratio : • 4 shares of BGWL aga
Slide 36: Transaction Rationale
Borosil Glass Works Limited Transaction Rationale Reduces Related Party transactions • Vyline comes within company fold • FY17 : EBITDA INR 12.4 Cr. PAT INR 3.1 Cr. (Provisional) Reduction in Cross Holdings and Simplicity of Structure Synergies of business under a single entity • Reduction in admin,
Slide 37: Five Years Financial Highlights
Borosil Glass Works Limited Five Years Financial Highlights 36
Slide 38: Financial Highlights
Borosil Glass Works Limited Financial Highlights 2015-2016 2014-2015 2013-2014 2012-2013 2011-2012 Revenue From Operations (Rs. lacs) 22,221 17,542 15,595 13,447 12,602 Profit Before Tax (Rs. lacs) 5,956 6,352 4,166 2,604 4,043 Profit Before Tax as % on Revenue From Operations 26.80 36.21 26.72 19.3
Slide 39: Disclaimer
Disclaimer “This investor presentation has been prepared by Borosil Glassworks Limited (“Borosil”) on a strictly confidential basis. Certain statements in this presentation may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward‐looking statements ref
Slide 40: Thank you
Thank you 39
Borosil Glass Works — Q4 FY2017 Earnings Presentation on 6ix