Globus Spirits Limited · NSE:GLOBUSSPR
Globus Spirits — Investor Presentation (September 2015)
35 slides from Globus Spirits's investor presentation, September 2015
Slide 1: Corporate Presentation September 2015
GLOB U S S P IRI T S L IMI T E D CORPORATE PRESENTATION SEPTEMBER 2015
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Globus Spirits’ future business developments and economic performance. W
Slide 3: Leading Spirits Company in North India
LEADING SPIRITS COMPANY IN NORTH INDIA Unique 360⁰ model straddling the entire Established consumer business in North India alcohol value chain • Pioneered IMIL branding, leading player in Rajasthan, Haryana and Delhi • Young IMFL portfolio of 3 mainstream brands IMIL Large, efficient manufacturing
Slide 4: Table of Contents
TABLE OF CONTENTS • Indian Alcobev Sector – A High Potential, High Growth Market • GSL, leading Spirits company • Growth strategy to be pan-India 360⁰ player • Financial overview • Shareholding and Board of Directors • Annexure 4
Slide 5: Indian Alcobev – An Attractive Market
INDIAN ALCOBEV – AN ATTRACTIVE MARKET • 2 nd largest in the world by volumes, preceded only by China • 3 rd largest by value, Indian alcobev industry is estimated over $23bn • Per-capita consumption of double-digit growth driven by attractive demographics 14% CAGR in Per-capita Consumption Ample Sco
Slide 6: Three Main Segments
THREE MAIN SEGMENTS In beverage alcohol, IMFL is the largest segment followed by Beer & IMIL. Spirits industry comprises IMFL and IMIL. Beverage Alcohol Split in 2013 Mostly beer – 251mn cases and Wine – 2.4mn cases OTHERS IMIL 31% 31% 249mn cases IMFL 311mn cases 38% Source: International Wine & Sp
Slide 7: IMIL & IMFL: Different Spirits Markets
IMIL & IMFL: DIFFERENT SPIRITS MARKETS IMIL IMFL Lower income, SEC D,E segment, Consumer More affluent, SEC C+ segments ~40% of population excl BPL Segment ~11% CAGR** for households - HPI* ~14%+ CAGR for households - HPI >10 Segment Growth between 6-10 (~SEC D) (SEC C+) Flavor dominated market, Nor
Slide 8: IMFL Delivering a Robust Performance
IMFL DELIVERING A ROBUST PERFORMANCE IMFL Consumption in India in 2013 WHITE SPIRITS 4% OTHERS 1% Super Premium / Foreign Premium RUM 15% Prestige WHISKY BRANDY 56% 24% Regular Cheap / Medium Source: Motilal Oswal Equity Research – classification for 2012 • IMFL volume growth at 7.3% (5-Year CAGR) P
Slide 9: IMFL: Robust Growth Aided by Premiumisation
IMFL: ROBUST GROWTH AIDED BY PREMIUMISATION IMFL led by double-digit growth in affluent population Attractive Households with HPI>20 growing above 20% demographics Female drinkers on rise Indian houses move towards premium products, exit cheaper brands Premiumisation Imported spirits are gro
Slide 10: IMIL: Healthy Industry Volumes
IMIL: HEALTHY INDUSTRY VOLUMES • Large industry catering to lower income, which 229 198 215 comprises ~40% of 164 184 population Mn Cases FY09 FY10 FY11 FY12 FY13 • Dominated by fruit and herbal flavours, typical alcohol strength being 30% Haryana Bihar 23 mn cases, -4% CAGR 22 mn cases, 20% CAGR •
Slide 11: IMIL: Branding a Game Changer
IMIL: BRANDING A GAME CHANGER Paradigm shift towards consumerism and branding from commoditized country liquor Sizable consumer ~41% of population belongs to SEC-D and SEC-E excluding the base BPL population Consumer pull for branded products providing stickiness to Branding on rise sales volumes Ev
Slide 12: Table of Contents
TABLE OF CONTENTS • Indian Alcobev Sector – A High Potential, High Growth Market • GSL - Leading Spirits Company • Growth strategy to be pan-India 360⁰ player • Financial overview • Shareholding and Board of Directors • Annexure 12
Slide 13: Evolved from 'Bulk' to Unique '360º' Model
EVOLVED FROM ‘BULK’ TO UNIQUE ‘360º’ MODEL 2014-15 2013 • Entry into attractive East India market, beginning with IMIL in Bihar Raised • Launch of profitable value added by-product (DDGS) 2012 investment from • Started construction in East India for greenfield projects Templeton 2010-11 Merged with
Slide 14: Strong Performance
STRONG PERFORMANCE Robust revenue growth at ~13% CAGR (FY11-15), manufacturing and consumer revenue ratio at ~45:55 (average) in last five years Net Revenue Break-up Revenues in Rs Million 5,857 MANUFACTURING - 29% REVENUE CAGR • Domestic – 34.0 Mn Litres 4,891 5,017 4,965 • International – 12.8 Mn
Slide 15: Amongst the Largest Grain Distillers in India
AMONGST THE LARGEST GRAIN DISTILLERS IN INDIA • State of the art manufacturing facilities in Rajasthan and Haryana, annual operating capacity of ~90 Mn Litres • Based on ‘multi-pressure’ distillation technology combined with ‘zero discharge’ and ‘integrated evaporation’ ensuring superior quality, hi
Slide 16: Large Opportunity in DDGS
LARGE OPPORTUNITY IN DISTILLERS DRIED GRAINS WITH SOLUBLES (DDGS) • Launched Globus ProRice, a high-protein, high energy animal feed ingredient in FY2014-15 • Globus ProRice is a value added by-product of alcohol manufacturing process, known as rice based DDGS – provides an attractive replacement op
Slide 17: Manufacturing: Backbone for Consumer Operations
MANUFACTURING: BACKBONE FOR CONSUMER OPERATIONS Strong traction in manufacturing revenues (Rs Bn) • Manufacturing has shown strong growth with operating capacity up 3x since FY10 to ~90mn BL 3.3 2.3 2.7 • Alcohol recovery rate is one of the 1.2 1.6 highest in the country, achieved FY11 FY12 FY13 FY1
Slide 18: Manufacturing: Bulk & Bottling Grow Rapidly
MANUFACTURING: BULK & BOTTLING GROW RAPIDLY Bulk volumes growing at 25% CAGR* 60 87% 76% 100% 72% 75% 77% • Bulk revenues* grew at high CAGR of 40 33%, driven by 25% CAGR in volumes 50% 20 over FY11-15 19 23 35 42 47 0 0% FY11 FY12 FY13 FY14 FY15 • Quick scale up to high utilization after addition o
Slide 19: Sustainable Multi-State IMIL Footprint
AMONGST THE FEW IMIL PLAYERS WITH A SUSTAINABLE MULTI-STATE FOOTPRINT Strong brands with flavours customized to meet regional / local preferences Bihar • Exclusive access to prestigious Patna District for 5 years, from FY15 Rajasthan • ~85% distribution coverage at retailer level • Outperformed indu
Slide 20: IMIL: Growth Amid Challenges
IMIL: GROWTH AMID CHALLENGES IMIL Volumes & Realization 15.0 288 295 300 • Revenues resilient driven by high growth 259 10.0 250 248 in Rajasthan at over 25% CAGR during 250 12.4 FY11-FY15 5.0 8.8 10.2 7.9 8.6 0.0 200 • Partly offset by weakness in Haryana FY11 FY12 FY13 FY14 FY15 due to increasing
Slide 21: Globus Presence in IMFL
GLOBUS PRESENCE IN IMFL • Established 3 mainstream brands in key IMFL segments, Sales volumes of ~130,000 cases in FY15 WHISKY RUM WHITE SPIRITS Whisky product targeted Strong traction in para-military 3 rd largest selling gin in towards young professionals its category in Rajasthan
Slide 22: Table of Contents
TABLE OF CONTENTS • Indian Alcobev Sector – A High Potential, High Growth Market • GSL, leading Spirits company • Growth strategy to be pan-India 360⁰ player • Financial overview • Shareholding and Board of Directors • Annexure 22
Slide 23: Globus Plans
GLOBUS PLANS PRESENT NEAR TERM STRATEGY FUTURE • Established 360⁰ model in • Enter fast growing liquor • Large market share in IMIL North India (Haryana & markets of West Bengal & by offering quality Rajasthan) Bihar with complete 360⁰ products to the consumer offering • Strong IMIL brands that have
Slide 24: Expansion into East
EXPANSION INTO EAST Greenfield facilities in West Bengal/ Bihar Existing facilities at (Under Construction) Haryana & Rajasthan • Strong fit with 360⁰ Model • Large alcohol deficit, growing IMIL industry@20%+ levels Severe Alcohol Deficit in East India (mn ltrs)
Slide 25: Table of Contents
TABLE OF CONTENTS • Indian Alcobev Sector – A High Potential, High Growth Market • GSL, leading Spirits company • Growth strategy to be pan-India 360⁰ player • Financial overview • Shareholding and Board of Directors • Annexure 25
Slide 26: Robust Revenues, Strong Balance Sheet
ROBUST REVENUES, STRONG BALANCE SHEET 13% CAGR in Revenues Net Profit (Rs Mn) 6000 18% 15% 19% 14% 399 409 5,857 342 5,017 4,965 14% 4000 4,891 8% 9% 3,545 9% 2000 4% 43 71 0 -1% FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 Revenue (Rs Mn) EBITDA Margin 14% CAGR in Networth Healthy leverage (De
Slide 27: Table of Contents
TABLE OF CONTENTS • Indian Alcobev Sector – A High Potential, High Growth Market • GSL, leading Spirits company • Growth strategy to be pan-India 360⁰ player • Financial overview • Shareholding and Board of Directors • Annexure 27
Slide 28: Shareholding Pattern
SHAREHOLDING PATTERN As on 31st March, 2015 Outstanding shares – 28.8 mn Public & Others, Major Non-Promoter Shareholders % shareholding 17.0% Templeton Strategic Emerging Markets 17.49% Corporate, 2.4% Fund IV, LDC SBI Emerging Business Fund 6.40% Templeton Strategic Promoters, Emerging 56.4% Marke
Slide 29: Board of Directors
BOARD OF DIRECTORS Over 20 years experience in the industry in senior leadership roles. Mr Gupta is Joint Mr. Vivek Gupta Managing Director of Delton Cables Ltd. Mr. Gupta completed his schooling from Doon Non-Executive Chairman School, Dehrandun and holds a B.Com (Honours) degree from Hans Raj Coll
Slide 30: Board of Directors
BOARD OF DIRECTORS Over 46 years of experience in various industries including liquor. Served with major spirit Mr. Joginder Singh Damija companies including UB Group in multiple positions and as Director and Vice chairman of Independent Director SAB India. Mr. Santosh Kumar Bishwal Extensive experi
Slide 31: Table of Contents
TABLE OF CONTENTS • Indian Alcobev Sector – A High Potential, High Growth Market • GSL, leading Spirits company • Growth strategy to be pan-India 360⁰ player • Financial overview • Shareholding and Board of Directors • Annexure 31
Slide 32: Historical Financials: Profit and Loss
HISTORICAL FINANCIALS: PROFIT AND LOSS Particulars (In Rs Mn) FY11 FY12 FY13 FY14 FY15 Revenue from Operations 3,545 4,891 5,017 4,965 5,857 EBITDA 645 743 703 450 487 EBITDA Margin % 18% 15% 14% 9% 8% Depreciation 69 123 165 285* 287* EBIT 576 620 538 165 200 Other Income 7 7 49 29 44 Finance Cost
Slide 33: Historical Financials: Healthy Balance Sheet
HISTORICAL FINANCIALS: HEALTHY BALANCE SHEET Particulars (In Rs Mn) FY11 FY12 FY13 FY14 FY15 Shareholders Funds 2,085 2,473 3,503 3,508 3,551 Debt 510 1,064 730 895 1,238 Deferred Tax & Other Liabilities 267 344 396 505 480 Current Liabilities 749 1,114 1,307 1,059 1,177 Total Liabilities 3,611 4,99
Slide 34: About Us
ABOUT US Established in 1992, Globus Sprits Limited (BSE code: 533104, NSE Id: GLOBUSSPR, ISIN Id:INE615I01010) is engaged in manufacturing, marketing and sale of Indian Made Indian Liquor(IMIL), Indian Made Foreign Liquor (IMFL), Bulk Alcohol and contract bottling for established IMFL brands. The C
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