BUTTERFLY GANDHIMATHI APPLIANCES LIMITED RESULTS PRESENTATION Q1 F FY16 www.butterflyindia.com
Safe Harbour Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, fluctuations in earnings, our ability to manage growth, competitive intensity in our industry of operations including those factors which may affect our cost advantage, wage increases, our ability to attract and retain highly skilled professionals, sufficient availability of raw materials, our ability to successfully complete and integrate potential acquisitions, liability for damages on our contracts to supply products, the success of the companies in which Butterfly Gandhimathi Appliances Ltd has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Butterfly Gandhimathi Appliances Ltd may, from time to time, make additional written and oral forward- looking statements, including our reports to shareholders. The Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company www.butterflyindia.com 2
Contents Company ny Over erview view 1 2 Trans nsfor orma mati tion on Strateg tegy y & Operat ratio ional nal Progress ress Financi ncial al Overview rview 3 4 Q1 FY1 Y16 Operat ratin ing g Perfo formance rmance & Highlight ights Outlo look ok 5 www.butterflyindia.com 3
Company Overview 1 www.butterflyindia.com
About Us.. Leading manufacturer of Kitchen and Electrical Appliances Market Leader in India for LPG Stoves & Table Top Wet Grinders and major supplier of Mixer Grinders & Pressure Cookers The „Butterfly‟ brand is a highly respected brand synonymous with quality Established in 1986 by Shri V. Murugesa Chettiar - currently helmed by 2nd and 3rd generation of promoter family Headquartered in Tamil Nadu with Pan India presence Strong R&D focus which has led to several pioneering initiatives and continues to drive in-house development of new products Healthy Balance Sheet with continuously improving Financial Indicators Mix of industry growth and Company initiatives has led to traction in Revenues in last few years www.butterflyindia.com 5
Quick Facts IN THE TOP IN INDIA REVENUE CAGR IN INDIA FOR DOMESTIC FOR LPG STOVES FY10-15 KITCHEN APPLIANCES & TABLE TOP WET GRINDERS SALES OF BRANDED NOW PRESENT IN ALL PRODUCTS IN FY15 EXCLUSIVE STATES IN INDIA CRORE DISTRIBUTORS ACROSS INDIA NET DEBT / EQUITY OF FY15 EXPANSION IN PRODUCT RATIO REVENUES FROM NON- CATEGORIES IN LAST 24 SOUTH STATES MONTHS www.butterflyindia.com 6
Growth Levers Initiatives Impact Fresh growth avenues in existing markets o Wider der Produc duct Offe ferin ring Accelerated growth opportunity in new markets o Addressable market increases manifold o Geograp raphica ical l Expan ansio sion Wider National footprint o Expansion in blended margins o Premium ium Produ duct cts Attracts new categories of customers o Poised to address growth in demand arising o Capa pacit city y Expan ansio sion from selling & marketing initiatives and geographic expansion www.butterflyindia.com 7
Product Portfolio Every ery produc uct t exhi hibit its s the e highes ghest t stand ndard rds s in Safe fety ty, , Dura rabili lity, ty, Effic icienc ency, y, Aest sthet hetics s & & Reli liabilit ity LPG Stove Mixer Grinder Table Top Electric Chimney Wet Grinder Pressure Cooker Non Stick Cookware Induction Cooktop Electric Rice Cooker Juicer Mixer Grinder Electric Kettle Sandwich Maker Air Cooler www.butterflyindia.com 8
Product Portfolio Other her Pion onee eeri ring ng Prod oduc ucts ts Juicer Fan Washer Hand Blender Water Heater Electric Iron Pop-up Toaster www.butterflyindia.com 9
Milestones • Bagged the first • First in India to TNCSC order of Rs. be awarded ISO 285 crore for • Bagged the 9000 manufacturing of TNCSC order certification for Table Top Wet for the 4 th its LPG Stoves Grinder and Mixer consecutive and Mixer Grinders – Highest in year – latest • First to Launch Grinders the organized sector order amounts Stainless Steel • Launched • Awarded ISO • Name changed to to Rs. 510 Vacuum Flasks proprietary 3 9000 Butterfly Gandhimathi crore for in India conical stone certification Appliances Ltd from • Launched manufacturing • Launched Mixer grinding Gandhimathi for Table Top 50 new of Table Top Grinders • Listed on BSE technology Wet Grinder Appliances Ltd SKUs Wet Grinders 2002 2002 2013 2013 2015 2015 1989 1989 1999 1999 1994 1994 2011 2011 2000 2000 2005 2005 2012 2012 1986 1986 1992 1992 2014 2014 1998 1998 • Year of • Invented Brazing • Awarded • Commenced • First in India • Preferential Issue to • Launched 4 new Incorporation Machine with In- patent for exports to to receive Reliance PE – raised Rs. Product house Technology 3 conical USA, UK, „GREEN 100 crore of growth Categories • Imported which replaced stone Table Canada, LABEL‟ capital machinery to set • Added 60 SKUs to the hazardous Top Wet Mauritius, Certification up manufacturing • Net sales crossed Rs. product range copper plating Grinder Australia & for high operations 500 crore - growth of • Enhanced Pan- process for Japan thermal 140% over the previous • First to launch India presence to Pressure efficient LPG fiscal Stainless Steel include all 28 Cooker/Utensils – Stoves Pressure Cookers • Established a branch states successful in India office in the United • Acquired a indigenous Kingdom to oversee • Launched LPG division from substitution for and promote exports Stoves Associate imported in the region Company LLM technology Appliances www.butterflyindia.com 10 10
Revenue Profile Ann nnual al Reven enue e (Rs. crore) e) 839 839 807 807 CAGR: 17% 642 642 39% 577 577 46% 16% 44% 267 267 61% 84% 54% 56% 100% FY11 FY12 FY13 FY14 FY15 Branded Sales Govt Order Note: FY15 Government Tender was deferred and combined with FY16 tender which resulted in realization of revenue for only part of the year www.butterflyindia.com 11 11
Branded Retail Sales Throu rough gh Inst stitut itutions ons Brande nded d Sales s (Rs. . crore) e) • Tie ups with Gas dealers of IOCL, BPCL and HPCL CAGR: 13% • Customers for new gas connection are provided with co- 508 485 438 branded products manufactured by BGMAL 357 • This provides the Company a ready market for primary sales 267 at the point of Gas connections itself Throu rough gh Retail ail Marketin eting FY11 FY12 FY13 FY14 FY15 • Network of 400+ exclusive distributors • Distributors supply to dealer network which is customer Note: Excluding spare / component sales, Branded Revenue facing sales were largely stable at Rs. 478 crore in FY15 compared to as against Rs. 477 crore in FY14 • 3 Company retail stores in Chennai, Hyderabad and Bengaluru and one franchisee store at Pondicherry • 18,000+ retail points across the Indian map Regio ion-wise wise Break ak-up up Branded anded Product duct Distrib ributio ion n (%) %) 11% 17% 18% 18% 18% 89% 82% 83% 9% FY14 FY15 5% 77% 73% FY13 FY14 FY15 South Non-South www.butterflyindia.com 12 12
Government Orders Governm rnment nt Orde der r Sales s (Rs. Produc ucts s supplie plied d (in lakh units . crore re) ts) 369 331 16.1 15.9 92 4.5 3.0 0.7 FY13 FY14 FY15 FY13 FY14 FY15 Note: Govt. Order for FY15 was received only in Jan, TTWG Mixer Grinder 2015 hence the revenues will accrue primarily in FY16 For the last 4 years in succession, BGMAL has participated and won orders in the annual tender of Tamil Nadu Civil Supplies Corporation In January 2015, the Company bagged orders worth Rs. 510 crore for supply of Table Top Wet Grinders in CY2016 The order marks the conclusion of the TNCSC scheme as envisaged under the current government Benefi efits ts to BGMAL AL Incremental contribution to profitability, favorable payment terms enabling a positive cash flow business • Increase in volumes have elevated BGMAL‟s manufacturing and delivery capabilities • Increased number of users of the Company‟s products has led to an increase in the potential market for the Company • Creates ready customer base which will materialize at the time of product replacement or upgradation • Delivery experience has led to innovation and launch of economy models which have aided growth in Branded Sales • www.butterflyindia.com 13 13
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