W` i P Ganesh Chief Financial Officer Encl: a/a Pidilite Industries - - PDF document

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W` i P Ganesh Chief Financial Officer Encl: a/a Pidilite Industries - - PDF document

Jul 11, 2023 325 likes •640 views

- a Pidilite 21' June, 2018 The Secretary The Secretary BSE Ltd. National Stock Exchange of India Ltd. Corporate Relationship Dept., Exchange Plaza, Plot no. C/1, G Block, 14' h floor, P. J. Tower, Bandra-Kurla Complex, Dalal Street, Fort Sandra

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SLIDE 1 21' June, 2018 The Secretary BSE Ltd. Corporate Relationship Dept., 14'h floor, P. J. Tower, Dalal Street, Fort Mumbai - 400 001 Stock Code — 500331 The Secretary National Stock Exchange of India Ltd. Exchange Plaza, Plot no. C/1, G Block, Bandra-Kurla Complex, Sandra (E), Mumbai - 400 051 Stock Code - PIDILITIND a
  • Pidilite
Sub: Investor Presentation Dear Sir, Please find attached an Investor Presentation. Thanking You, Yours faithfully, For Pidilite Industries Limited W`i P Ganesh Chief Financial Officer Encl: a/a
  • Regd. Office
Regent Chambers. 7th Floor Jamnatal Bajaj Marq 208 Nariman Point Mumbal 400 021 Pidilite Industries Limited Corporate Office Ramkrishna Mandir Road Andheri • E, Mumbai 400059, India T + 91 22 2835 7000 2835 7952 / 2835 7365 F + 91 22 2830 4482 www.pidilite.com CIN124100MH1969PLC014336
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SLIDE 2 Investor Presentation Investor Presentation
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SLIDE 3 , 4•••=lown., Pidilite Company Overview Business Overview Macro Indicators Strategic Direction Key Consideration Presentation Structure
  • 2
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SLIDE 4 , 4•••=lown., Pidilite Company Overview
  • Established in 1959
  • Pioneer in Consumer & Specialty Chemicals in India
  • Over 2/3rd of sales from products and segments pioneered in India
  • Strong position in most products and segments
  • Consistent growth in sales, profits and dividend payout.
  • Consolidated Gross Sales of Rs 61,727 mn in FY 17-18
  • Wide geographic presence – Domestic & International
  • Well established R&D set-up – Most products developed through in-house R&D
  • Strong leadership team
3
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SLIDE 5 Pidilite
  • ho
ti GP 4 Sustainable strong growth … Year-on-Year growth in revenue & profit over last 10 years *PBIT is Profit before exceptional item, tax, and interest In Rs Millions **Sales net of excise duty 17,082 36,579 60,324
  • 10,000
20,000 30,000 40,000 50,000 60,000 70,000 2007-08 2012-13 2017-18 Net Sales (Millions)** 2,267 6,009 13,743
  • 2,000
4,000 6,000 8,000 10,000 12,000 14,000 16,000 2007-08 2012-13 2017-18 Consolidated PBIT (Millions)*
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SLIDE 6 Pidilite 5 FY17-18 Revenue & Profit *PBIT is Profit before exceptional item, tax, and interest In Rs Millions 12,622 13,743 11,000 11,500 12,000 12,500 13,000 13,500 14,000 2016-17 2017-18 Consolidated PBIT (Millions)* 55,879 60,324 50,000 55,000 60,000 65,000 2016-17 2017-18 Net Sales (Millions)** **Sales net of excise duty
  • On a comparable basis after reflecting accounting
impact of GST, net sales grew by 11.5% (excluding sales of Cyclo division which was sold by Pidilite USA
  • Inc. in June, 2017).
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SLIDE 7 Pidilite .•••••"EN 6 ….Creating value for shareholders Market Cap growth @ 30% CAGR / Steady dividend payout 1619 1789 2561 2931 3,667 34.1 34.4 33.1 33.8 38.4 31 33 35 37 39 41 500 1000 1500 2000 2500 3000 3500 4000 FY14 FY15 FY16 FY17 FY18 Dividend Payout (Millions) % to Net Profit… 33,624 1,34,876 4,66,424
  • 50,000
1,00,000 1,50,000 2,00,000 2,50,000 3,00,000 3,50,000 4,00,000 4,50,000 5,00,000 2007-08 2012-13 2017-18 Market Cap (Millions)
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SLIDE 8 Pidilite Company Overview Business Overview Macro Indicators Strategic Direction Key Consideration Presentation Structure
  • 7
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SLIDE 9 Pi • dilite N
  • 8
Our Business Dimensions Construction/ Paint Chemicals {20%} Adhesives & Sealants {55%} Art/Craft Materials & Others {9%} Industrial Adhesives {4%} Pigment & Preparation {6%} C&B – Consumer & Bazaar, IP – Industrial Products, Others Standalone Results – % of Total Sales – As of 31 Mar 2018 Industrial Resins {5%} Others {1%} C&B 84% IP 15%
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SLIDE 10 Pidilite g k Lt bid , . 1 11. . 20r- Ihi6 1 Pirdi
  • p..a.111
A IEIIICOI MR 4 MD Iv Consumer & Bazaar Our Brands  Fevicol SH  Fevicol Marine  Fevicol SR998  Fevicol Probond  Fevikwik  Fevicol MR  M-seal  Dr Fixit  Fevicryl  Wudfin  Woodgrip 9
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SLIDE 11 , 4•••=lown., Pidilite Consumer and Bazaar Products – 84% of Company’s Sales
  • Consists of Adhesives & Sealants (55%), Construction & Paint Chemicals (20%)
and Art/Craft Materials and others (9%)
  • Market leader across adhesives and sealants, construction chemicals (retail)
and hobby colours.
  • Extensive product range, developed through strong in-house R&D
  • Strong brands – (Fevicol, Dr Fixit, Fevikwik, M Seal, Steel Grip ......)
  • Extensive distribution network
  • Significant potential to expand consumption in most products / segments
10
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SLIDE 12 Pidilite Industrial Resins & Leather chemicals Industrial & Footwear adhesives Endustrial Bonding solutions Industrial Products Industrial Products – Business Segments
  • Hot melt adhesives for end-of-line packaging, book
binding and product assembly
  • Resins for Paints, Paper & Textiles
  • Adhesives for Footwear
  • Adhesives for Leather
  • Water based adhesives for paper correcting &
lamination
  • Epoxy & Cyanoacrylates for Automotive assembly
  • Organic & high-performance Pigments sold in India
and exported to the leading global Ink, Paints and Coatings, Plastics and Rubber master batch manufacturers
  • Pigment dispersions for textile, paper and paint
applications 11
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SLIDE 13 , 4•••=lown., Pidilite Industrial Products - 15% of company’s sales
  • Consists of Industrial Adhesives (4%), Industrial Resins (5%), Pigments and Preparations
(6%)
  • Extensive range of industrial adhesives for various applications.
  • Market leader in pigment dispersions for Indian textile segments
  • Pioneer in manufacturing Pigment Violet 23 in India
  • Specialty polymers and co-polymers for various industries like paints, non-woven and
flocked fabrics, construction chemicals and leather 12
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SLIDE 14 , 4•••=lown., Pidilite Business Overview – Global Presence
  • Exports to more than 80 countries. Major exports to Middle East, Africa, USA &
Europe
  • Export Turnover of Rs. 5,185 Mn in FY’18
  • 17 Overseas subsidiaries – (5 Direct and 12 Step down)and one Joint venture.
  • Total Revenue from Overseas subsidiaries of Rs. 4,912 Mn in FY’18.
  • International manufacturing activities in USA, Brazil, Thailand, Bangladesh, Egypt,
Srilanka, Dubai and Singapore.
  • New manufacturing facilities planned in Srilanka and Ethiopia. An additional
manufacturing facility planned in Bangladesh. 13
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SLIDE 15 Pidilite 14 Business Overview : International Subsidiaries North America SAARC / SEA
  • Sargent Arts is the leading supplier of quality art materials to
the educational and retail markets throughout the United States.
  • Adult colouring segment had witnessed very high demand
last year but has seen slow-down in current year.
  • Bangladesh: No. 1 player manufacturing adhesives, sealants.
Growing & profitable business, and in the process of expanding manufacturing capacity.
  • Sri-Lanka: Acquired from CIC Holdings PLC, Chemifix trademark
and other brands associated with PVAC adhesives business in 2015.
  • SEA : Construction chemical subsidiary in Thailand, achieving
consistent growth in sales. EBITDA decline on account of higher material cost and SG&A spends MEA
  • Egypt: Manufactures & sells adhesives, sealants & other
  • products. Performance impacted due to adverse economical
situation.
  • Dubai - Modern purpose built factory at Dubai Investment
Park II. The facility manufactures and supports a proven range of construction chemicals.
  • Africa has numerous similarities with India - trade (small retail
setups), application ( No DIY concept). Most of the dealers in Africa are of Indian origin. South America
  • The business manufactures and sells Adhesives, Sealants and
Construction Chemicals.
  • Sales declined due to competitive pressure in key products.
  • Focus on new and fast moving products for improving
margin.
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SLIDE 16 „40000. Pidilite SOLUTIONS FOR A NEW HOME CALL NOW ic1800 209 5504 Doesn't bond cerieln s ne, PP,HDPE, Silicone AubbeF, PIPE, Styoroem, etc WATERPAOCif IAiG E X PEAT POINT WATERPROOFING N.-of FeVial; FeW kwik Kuch Bhi MR? for 500 mg Jodey z5/-mein We continue to deliver promise through our engaging & humorous advertisements
  • Dr. Fixit’s new TV advertisement with superstar
Amitabh Bachchan as brand ambassador was a multimedia national marketing campaign across TV, digital, radio, retail activations and innovative
  • utdoor. The films featured Mr. Bachchan talking
about proactively doing waterproofing of homes with Dr. Fixit
  • Fevicol
& Fevikwik continued its series
  • f
advertisements reinforcing the brands strength & strengthening connect with users. 15
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SLIDE 17 , 4•••=lown., Pidilite And our efforts have resulted in periodic recognition
  • Dun & Bradstreet Corporate Awards 2018 felicitated the best performing
companies in India across 50+ sectors; Pidilite was selected as the winner in the Chemical sector 16
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SLIDE 18 Pidilite Company Overview Business Overview Macro Indicators Strategic Direction Key Consideration Presentation Structure
  • 17
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SLIDE 19 Pidilite Breakthrough: Growth > 6.5%* and NUP per capita > $1000 100% 80
  • 60
  • 40-
20 - Emerging: Growth > 6.5%* or NUP per capita >$500 Steady: Growth <5.5%* and NOR per capita —S250-750 207 244 334 rGlobals Strivers Seekers Deprived 2005 2015 2020 Macro indicators provide strong impetus.. 220 290 340 590 100 200 300 400 500 600 1991 2001 2008 2030 26% 28% 30% 40% Urbanization Rate Urban Population (M) Note: Urban (GOI definition): 4,000 People/75% of men in non agricultural work/Population density of 400 per sqkm Source: MGI, Monitor Analysis GDP GROWTH STORY INTACT BY 2030, 40% OF INDIA WILL LIVE IN CITIES ……OPPORTUNITY IN TIER 2 & TIER 3 STATES …AND IN ASPIRERS / BOTP CONSUMER SEGMENTS 18 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Q1 FY 15-16 Q2 FY 15-16 Q3 FY 15-16 Q4 FY 15-16 Q1 FY 16-17 Q2 FY 16-17 Q3 FY 16-17 Q4 FY 16-17 Q1 FY 17-18 Q2 FY 17-18 Q3 FY 17-18 Q4 FY 17-18 GDP Growth (%) Source : Reserve bank of India (www.rbi.org.in)
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SLIDE 20 Pidilite Company Overview Business Overview Macro Indicators Strategic Direcutili Key Consideration Presentation Structure
  • 19
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SLIDE 21 , 4•••=lown., Pidilite Strategic directions 1 2 3 Take existing businesses to Full Potential Exploit Rural plus small town
  • pportunity
Identify & prioritize new opportunities Ensure aligned, energized organization 4 Shareholder Value 20
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SLIDE 22 , 4•••=lown., Pidilite Existing business to full potential 21
  • Accelerate Sales Growth
  • Drive penetration
  • Increase consumption
  • Improvement in market share
  • Focus on identified International Markets
  • Robust Innovation
  • Stage-gate process
  • Focus on Fewer Bigger Better innovations
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SLIDE 23 , 4•••=lown., Pidilite Exploit Rural plus small town opportunity 1Bn+ consumers Opportunity with 84% of India’s population Revamp route to market and activation process 22
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SLIDE 24 Digital is the future... and we are future ready!
  • Digital is the future… and we are future ready!
  • 23
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SLIDE 25 .„4•••••pown, Pidilite NINA WATERP RUOFIN G SYSTEMS We have strategically identified inorganic growth opportunities.. Turnkey Water Proofing Solutions Premium Wood Finish ICA PIDILITE 24 Floor Coating CIPY Polyurethanes
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SLIDE 26 , 4•••=lown., Pidilite Ensure aligned, energized organization 25 Deep insight into each domain, leading to continuous identification of Major Initiatives Persistent innovation focused on continuous improvement Holistic brand management that builds strong emotional connect with users, influencers & consumers Teams working together with passion Passionate about pioneering segments and achieving significant leadership
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SLIDE 27 , 4•••=lown., Pidilite Company Overview Business Overview Macro Indicators Strategic Direction Key Consideration Presentation Structure
  • 26
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SLIDE 28 , 4•••=lown., Pidilite In summary 27
  • Strong position in most products and segments
  • Strong portfolio of trusted brands
  • High mix of sale from products / segments pioneered by Pidilite in India
  • Track record of consistent growth in Sales and Profits
  • Enough headroom to grow domestic business in India
  • Robust cash flow and attractive Return on Capital Employed
  • Strong Balance Sheet with zero debt obligations
  • Consistent dividend pay-out over the years
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SLIDE 29 Questions Questions
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SLIDE 30 , 4•••=lown., Pidilite Pidilite Investor Contacts Savithri Parekh, Company Secretary Ramkrishna Mandir Road, Off Mathuradas Vasanji Road, Andheri (E), Mumbai - 400 059. Phone : +91 22 67697000 Fax : +91 22 28216007 Investor Relations - investor.relations@pidilite.co.in CIN : L24100MH1969PLC014336 29