AVON MOLDPLAST LIMITED INVESTOR PRESENTATION AGENDA S.No. - - PowerPoint PPT Presentation
AVON MOLDPLAST LIMITED INVESTOR PRESENTATION AGENDA S.No. Sections Page No. 1 Investment Overview 03 - 05 2 Global MarketOverview 06 - 10 3 Business
एवन भारत का सबसे लोकप्ऱय फनचर
S.No. Sections Page No.
1 Investment Overview 03 - 05 2 Global MarketOverview 06 - 10 3 Business Overview 11 - 30 4 Growth Strategy 31 - 32 5 Financial Highlights 33 - 39 6 Investment Highlights 40 7 Disclaimer 41
AVON MOLDPLAST LTD (“AVON”, “Company”) is a company manufacturing quality plastic molded furniture in the brand name of AVON. AVON has its Registered Office at A-7/36-39, South of G. T . Road Industrial Area, Electro Steel Casting Compound, Ghaziabad, Uttar Pradesh, India. The Corporate Identification Number of AVON isU25200UP1996PLC101013.
Manufacture, Sale and Distribution of high quality plastic molded furniture – tables, chairs, stools, baby chairs, etc Manufacturing facility at Ghaziabad, Uttar Pradesh, India since 2002 All India network for distribution of finishedproducts Products branded and sold under “AVON’brand
Global plastics market is projected to grow at a CAGR of 7.03% from 2017 to2025 Plastics are used in a variety of industries: construction, packaging, appliance, automobile, textile, transportation, and many others. Established business model, with good Indian players rapidly achieving significant revenues withprofitability
Vintage relationship with suppliers of raw material in India and a stable clientbase Rising sales of INR 18.9 Cr for 10 Months of FY17-18 (INR 6.1 Cr inFY13-14) EBITDA positive and profitable with profit margin of 3.66% (10 Months for FY2017-18).
Entrepreneurial team with experience and spiritto take the business forward;
SME IPO on proposes to raise INR 450.84 lacs during Q1 FY18-19 (Draft prospectus approved by NSE Emerge) The issue proceeds shall be used for acquisition of additional molds, to meet incremental working capital needs and for general corporate purpose.
Global plastics market is projected to grow at a CAGR of 7.03% from 2017 to 2025, as per OrianResearch. Plastics are used in a variety of industries: construction, packaging, appliance, automobile, textile, transportation, and many others. A large number of manufacturers supply many different products to numerous end-users for a multitude of applications. Thus, plastics can be regarded as synthetic or semi-synthetic organic solids which canbe transformed into several useful products. Also, the paradigm shift of technology to recycle plastics for end-use applications provide significant opportunities to the entire supply chain of the plasticsmarket. The growing automotive and construction sectors in countries such as India and China with the adoption ofrapid technological advancement has significantly boosted Asia-Pacific's plasticsmarket.
Brief Profile Comments Other Remark
Public listedcompany Founded in 1942 Listed on NSE andBSE Public listedcompany Founded in 1934 Founders @ Vaman Rai V Parekh & Sharad V Parekh Listed on NSE andBSE Handles over 320,000MTof polymer p.a. Manufacturers Industrial and engineering molded Furniture products, etc. Headquartered in Mumbai, India Employees over 15,000employees Market cap of INR 17,225 Crores and P/E of 40.45 Company has low debt Has manufacturing facilities in Samba, Greater Noida, Pondicherry, Barjora, Sinnar, Nashik, Silvassa. It's the world's largest manufacture
Headquartered in Maharashtra Market capitalization of INR 2529 Crores and P/E of 20.42 www.nilkamal.com Company has low debt
S
e financ e (sc r e e ne r .in), BSE (bse indi a.c o m)
The industry has some of the leading players with SUPREME PLASTICS being the largest by market capitalization….
Incorporated in year 1982 Listed on BSE Incorporated in year 1995 Listed on BSE 4th largest company in the industry
Exports to USA, Africa and MiddleEast Manufactures Chairs, Tables, Trolleys, Baby products, Miscellaneous products Headquartered in Mumbai, India Marketcap of INR 195 Crores and P/E
Virtually debt free Consistent profit growth of 35% over 5 years Engaged in manufacture of Plastic molded and extruded articles. Products include CelloImage, Comfort Series, Premium Range, High Back Range, Standra,etc. Headquartered in Mumbai, India Employees over 15,000 employees Market cap of INR 1,367Crores and P/E of 29.52 Virtually debt free Promoters’equitys take has decreased
S
e financ e (sc r e e ne r .in), BSE (bse indi a.c o m)
Company
NILKAMAL
Turnover
(In Lakhs)
2,09,484
Profit After Tax
(Inr Lakhs)
11,845
EPS
(INR)
79.38
Market Price AsOn
23 / 06 / 2018 (Per Share INR)
1,698.30
SUPREME INDUSTRIES
4,46,177 37,930 29.86 1,221.35
WIM PLAST
42,840 4,857 40.46 901.50
PRIMA PLASTICS
9,569 976 8.87 142.90
AVON MOLDPLAST
1385 9.96 0.42 Issue Price Rs. 51.00
Company
NILKAMAL
FACE VALUE (INR)
Per Equity Share
10.0
P.E. RATIO
20.42
RONW (% )
16.98%
BOOK VALUE(INR)
Per Equity Share
467.17
SUPREME INDUSTRIES
2.0 40.45 24.28% 122.29
WIM PLAST
10.0 29.52 18.50% 218.77
PRIMA PLASTICS
10.0 20.33 17.27% 51.37
AVON MOLDPLAST
10.0 121.43 3.70% 11.37
Avon Moldplast - Based on Basic and Diluted Earnings per Share of Rs. 3.51 for the ten months period ended January 31, 2018 (annualised) as per Restated Standalone Financial Statements, P/E Ratio is 14.51 in relation to the Issue Price of Rs. 51 per Equity Share.
Well established player with state-of-the-art manufacturing facility and long history of operations… Founded in 1996, AVON manufactures and sells Plastic furniture to clients across India and has plans to cater to MNCs, large format retailers, E-commerce,etc. Promoter Shareholding: 81.01% (authorized capital of INR 5.0 crores and paid-up capital of INR 2.37Crores) Manufacturing facility is based in Ghaziabad (UP)– India and has been in operation since 2002. Operating capacity/ utilisation has been good and sales has beenrising each year in last 5 years with good grossmargins. Stable customer base of Indian companies and a pan Indiannetwork Highlights of Business model are:
Key Licenses and Approvals
Development Officer, Bangalore
permission dated February 20, 2009 from Chief Controller of Explosives, Petroleum and Explosive Safety Organization (PESO)
Rules,1956 for operation of a diesel generating set of capacity 500 KVA and Transformer of (630 KVA) at the Manufacturing plant in Ghaziabad, UP
Product Focus
desks
Manufacturing Facility
The Company has a fully functional manufacturing facility located at A-7/ 7/36 36-39, 39, South South of
G.T.
ndus ustrial ial Area, ea,Elec lec- tr tro
teel Casting tingCom
Ghazia aziabad ad 201009, 201009,Utt ttar Prad ades esh, India
also houses the Registered and Corporate O f f i c e of the Company.
01 01 Well established (16 yrs. of trust) 02 02 Highly specialized facilities 03 03 Access to skilled personnel 04 ISO 9001:2015 certified 05 05 Wide range of products and more under development/ pipeline 06 06 Proximity to Metro/Delhi-NCR/ Industry hub 07 07 Vintage relationship with Suppliers and Clients in the industry Readying to cater to MNCs, large format retailers, E-commerce 08 08
The company has several unique strengths and stands to build on it…..
Well established organisation with overall strategy managed by board of directors…
BOARD RD OFDIR IRECTOR OR Chair airman an Managi ging ng Directo ector
COMPA PANY SEC SECRETARY HEAD AD–ACCOUNTS &FINA NANCE HEA HEAD D SALES S &MARK MARKETING MKTG TG HEA HEAD D MAH MAHARAS ARASHTRA RA MG MGR–ACC &FIN INAN ANCE PURCH CHASE E EXECUT UTIV IVE HEA HEAD D PROD ODUCTI TION ON QUALITY TY ASSUR SSURANCE CE
*6 Dire c to rs o f whic h 2 ar e E xe c utive and 3 ar e I nde pe nde nt dire c to rs
The Company has adequate employees in manufacturing, logistics, purchase, packaging, dispatch which are notshown above.
Paid-up capital base stands at INR 2.37 Crores for FY17-18 –to be augmented further with SME IPO (post issue share capital of INR3.25 crores)…
NAME OF SHAREHOLDER % SHARES TOTAL SHARES
Mar ar 2018 Mar ar 2018
29.11 690,000
32.91 780,000
18.99 450,000
TOTAL 81.01 1920,000
PROMOTERS
The Company has only one class of Equity shares having a par value of INR 10/- per share. Each holder of Equity shares is entitled to 1 vote per
S
AVON
3.16 75,000 M/s. Sushil Kumar Aggarwal(HUF) 3.16 75,000 M/s. Sahil Aggarwal(HUF) 3.16 75,000
TOTAL 12.64 3,00,000
3.16 75,000 PROMOTER GROUP (OTHER THAN PROMOTERS)
NAME OF SHAREHOLDER % SHARES TOTAL SHARES
The Company has only one class of Equity shares having a par value of INR 10/- per share. Each holder of Equity shares is entitled to 1 vote per
S
AVON
The company has 6 directors on the board for guiding its overall corporate strategy…
NAME OF DIRECTOR AGE DIN REMARKS
57 00248707 ExecutiveDirector
27 02515025 ExecutiveDirector
53 00248972 Non-Executive Director
44 0737782 Independent Director
36 00013488 Independent Director
26 08092194 Independent Director So urce : AVON
GODOWNS Plot No. A-7/1/2, S.S.G.T . Road, Industrial Area, Ghaziabad-201009, UP Area @ 694 sq.mt Godown No. 6, Building No. D/2, H.No 877/6-Dapode Jai Shree Ram Complex, District Thane Area @ 3,400 sq.ft Ground Floor, Moh – Pratap Nagar, Near Krishna Niketan School, P .S. – Ramkrishna Nagar, Plot No. 4, Distt. Patna, Bihar Area @ 5000 sq.ft
WATER: The water is required only for cooling process, which is again recycled in coolingtower. The
requirement of water is met from groundwater. POWER:
: AVON has adequate power supply arrangements for its Manufacturing unitfrom
Paschimanchal Vidyut Vitran Nigam Limited, with a contracted demand of 405KW. Further, it also has a 400 KVA Diesel Generating set as alternate power back uparrangement.
MANUFACTURING PLANT
The manufacturing facility is located at A-7/36-39, South of G. T . Road Industrial Area, Electrosteel Casting Compound, Ghaziabad 201009, UP . The Company has taken the stated land on leasefrom
. State Industrial Development Corporation Limited. The plot of land measures approximately 2006.64 sqm with a built up area of approximately 22,000 sq.ft.
RAW MATERIALS
The primary Raw Material for manufacturing molded furniture is Polypropylene Co-polymer (PPCP). This is easily available from vendors like Reliance Industries Limited, Indian Oil Corporation, Haldia Petrochemicals Limited and from other local sources. PPCP is also available from internationalvendors.
Scalable platform established for rapid expansion and consistent growth in sales...
01 02 03 04 05 06
1996
Company Setup
2003
Manufacturing Facility AtGhaziabad, UP
MAR 2018
Conversion Into a Public LimitedCo.
07
MAY 2018
ISO Certification 9001:2015
2002
Company Renamed To Avon Moldplast Private Limited Shifted To U.P.State
JAN 2018
Registered office Ready For Rapid Growth
Q1 2018-19
SME IPO on NSE EMERGE
Incubation and BusinessDevelopment Roadmap For SME IPO on NSE Emerge Start Of Manufacturing Quality Certification
INR CRORES
5 10 15 20
FY13-14 FY15-16 FY16-17 10 Months
FY14-15
6.1 8.0 9.9 13.8 18.9
S
Experienced management team with significant operating experience…
SUSHIL KUMAR AGGARWAL, CHAIRMAN AND WHOLE TIME DIRECTOR
SAHIL AGGARWAL, MANAGINGDIRECTOR
added products.
“Smile” foundation with the only mission to promote girl child to provide education to under privileged children, girl and give support for poor children’s health.
Strong internal processes to handle raw material procurement order, storage, production and dispatch Procurement of Raw Material & Storage Inward Logistics & Inventory Management Raw Material Mixing Raw Material Pre-heating Raw Material Feeding into Hopper Furniture Molding Furniture Finishing Furniture Branding and Packaging Storage of Finished Products Dispatch to Customers Invoice & collection
Well defined product portfolio with focus on innovation and a pipeline of new products to be launched in the coming years
Body At Ease
Workstations for Home
Add new Scale profitably, Increase operating efficiency, Strengthen relationships with distributors, Strengthen competitive position….. AVON’s vision is to become a renowned and major manufacturer of molded furniture by providing cost-effectiveand quality products. In line with this vision, the company’s strategy is to capitalize on its core strengths and thus enhance the volume of its business. The company intend to focus on its existing range of products with specific emphasis on the following as a part of its growth strategy:
To make optimal utilization of resources
To improve our productivity levels by optimum resource utilization, improvement in manufacturing process,skill up-gradation of our workers, modernization of machineries to achieve better asset turnover. We regularly analyze our existing raw material procurement policy and manufacturing processes to identify the areas of bottlenecks and timely correct the same. This helps us in improving efficiency and putting resources to optimal use.
Scaling up the production and increasing the design portfolio of the existing products
To increase the scale of its operations and also increase its design portfolio of the existing products. With increase in scale of operations and increase in design portfolio of existing products, the Company is positive that it would more visibility and competitive edge to the brand“AVON”.
To strengthen our relationships with existing distributors network and to develop relationships with new distributors
To increase its reach in India as well as in International Markets. The Company proposes to consolidate and strengthen its relationship with existing Distributors Network by providing them with quality products within competitive timelines and at the same time will consistently strive to expand the distributor’s network by developing new relations.
To strengthen our competitive position
To strengthen the competitive position of our products by undertaking brand-building exercise. We would focuson providing quality products at competitive prices.
Increase Market Share in the Domestic Market
We believe that by undertaking Brand building exercise and by increasing our existing chain of distributors, we would be in a position to increase the visibility of our products throughout India, which would in turn assist us in increasing
Share capital of AVON as at the date of filing of Draft Prospectus with NSE EMERGE is set forth below:
PARTICULARS (Amounts in INRLakhs)
AUTHORISED CAPITAL 500.0 237 .0
AGGREGATE VALUE A T FACE VALUE SHARE CAPITAL AGGREGATE VALUE A T ISSUE PRICE
(50,00,000 equity share of INR10 each) Issued, Subscribed and Paid-up capital before the Issue (23,70,000equity share of INR 10each fully paid up) PRESENT ISSUE IN TERMS OF PROSPECTUS 88.4 450.84 8,84,000 equity sharesof INR 10each fully paid up Comprising of : 4.60 23.46 Market makerportion: (46,000equity shares of INR 10each fully paid up) NET ISSUE TO PUBLIC: 838,000 EQUITY SHARES OF INR 10EACH 325.40 83.8 427 .38 Paid UP Equity Capital after the Issue (32,54,000equity sharesof INR 10each fully paid up)
The company has currently touched a revenue of INR 18.9 crores in 10M of FY 2017-18 and has a strong balance sheet. (Amount In lakhs)
PARTICULARS 10M Jan 2018 FY 16-17 FY 15-16 FY 14-15 FY 13-14
TotalRevenue 1892.44 1385.06 999.79 803.98 617.57 EBITDA 216.66 148.37 127.55 92.57 54.59 PAT 69.32 9.97 5.55 3.65 4.89 PAT% 3.66 0.71 0.55 0.45 0.79 Earnings Per Share(INR) 2.93 0.42 0.23 0.15 0.21 Shareholder Equity 338.83 269.50 259.53 253.98 250.38 TotalLiabilities 864.18 749.34 544.77 423.97 229.59 Tot Total Liab iabil ilit itie ies and ndEqui uity ty 120 1203.01 01 101 1018. 8.84 84 80 804.30 30 67 677.95 95 47 479.97 97 Current Assets 764.79 622.88 441.79 362.84 294.66 Fixed Assets 438.22 395.96 362.51 315.11 185.31 Tot Total Asse sets ts 1203.01 1018.84 804.30 677.95 479.97
BALANCE SHEET PROFIT &LOSS
5 10 15 20
10M Jan 2018 2015-16 FY14-15 FY13-14 FY16-17
18.9 13.8 9.99 8.03 6.17 Total Revenue in INRCrores Revenue and PAT has been consistently increasing over the past several years which reflects well on the strong business focus and management efforts
10M Jan 2018 2015-16 FY14-15 FY13-14 FY16-17
3.66% 0.71% 0.55% 0.54% 0.79%
Profit after tax% Profit Margin % increased in 10 months
company made efforts to enhance performance and manage running costs well.
SME IPO will augment company’s balance sheet by raising INR 4.50 crores USE OF SME IPO - MONEY
Working Capital requirements General Corporate Expenses Molds
INR CRORES
S
SME IPO on NSE Emerge will ouer 884,000 Equity Shares @ INR 10 each for cash at a price of INR 51 per equity share (including a share premium of INR 41 per Equity Share), aggregating INR 450.84Lacs
0.5 1.0 1.5 2.0 2.5
Post Issue share capital shall be INR 3.25 crores and promoters holding will drop to 72.83%
PROPOSED IPODETAILS
Issue Size (No. of Shares) 8,84,000 Fresh Issue (NoofShares) 8,84,000
SHARE HOLDING PATTERN (POST ISSUE)
Promoter shareholding postissue 72.83% Public shareholding postissue 27 .17%
BID LOT SIZE
Retail individualinvestor 2000 (Per application amount) 1,02,000 Other ThenRII 2000 & inmultiples
IssueSize IN INR R 450. 50.84 84Lacs cs Face Value INR 10 Issue Price INR 51 Pre Issue Paid upCapital INR 2,37,00,000 Post Issue Paid upCapital INR 3,25,40,000 Fresh Issue (No. ofshares) 8,84,000
RESERVATION FOR
46,000 Pre Issue 23,70,000
4,19,000 Post Issue 32,54,000
4,1 ,19,00 000 LEAD MANAGER TO THEISSUE: Turnaround Corporate Advisors Pvt.Limited REGISTRAR TO THEISSUE: Mas Services limitedDelhi Advisors To The Company: Rajan Bhatia &Company Initial Public Issue of 884,000 equity shares of face value of INR 10 each (“Equity Shares”) of AVON for cash at a price of INR 51per equity share (including a share premium of INR 41 per equity share) (“Issue Price”) aggregating to INR 450.84 Lacs (“Issue”). The Issue will constitute 27.17% of the fully diluted post-Issue paid-up equity share capital of AVON.
Established Plastic furniture company since 1996 and sells under “AVON’ brand Wide range of product portfolio withcontinuous innovation and diversification across MNCs, large retailers and E-commerce in nearfuture Experienced management team (16 yrs. +) with strong relationships in theindustry Quality controls and processes in place to ensure client loyalty & trust (ISO9001:2015) Strong distribution network spread across PAN India – strong supply chain and distribution mechanism to ensure timely delivery of products
investment decision
information that might be considered forward-looking.
subject to risks and uncertainties that could cause actual results to diuermaterially.
changes, local political or economic developments, and many other factors thatcould cause actual results to diuer materially from those contemplated by therelevant forward-looking statements.
एवन भारत का सबसे लोकप्ऱय फनचर
0120-4376091 | 9910039125 | info@avonmpl.com | www.avonmpl.com Follow Us On:
A-7/36-39, South of G.T Road, Industrial Area (Opp. Rathi Udyog Ltd), Electrosteel Casting Comound Ghaziabad – 201009 (UP), INDIA
REGISTERED OFFICE BRANCH OFFICES
PATNA DEPOT : Ground Floor, Plot No. 04, Pratap Vihar, Krishna Niketan School, Ramkrishna Nagar, Patna, Bihar - 800001 BHIWANDI : H.No 877/6, Building No. D/2, Jai Shree Ram Complex, Dapode, Village, Bhiwandi Thane, Maharashtra - 421302