एवन भारत का सबसे लोक�प्ऱय फन�चर AVON MOLDPLAST LIMITED INVESTOR PRESENTATION
AGENDA 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
1. INVESTMENT OVERVIEW Company 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. Business Model 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
Attractive Market Opportunity 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 Investment Thesis 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).
Experienced Team & Facility Entrepreneurial team with experience and spiritto take the business forward; Future Roadmap 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.
2. GLOBAL MARKETOVERVIEW Global plastics market to register CAGR of 7.03%from 2017-2025 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.
KEY INDIAPLAYERS The industry has some of the leading players with SUPREME PLASTICS being the largest by market capitalization …. Brief Profile Comments Other Remark Public listedcompany Has manufacturing facilities in Samba, Headquartered in Maharashtra Greater Noida, Pondicherry, Barjora, Founded in 1934 Market capitalization of Sinnar, Nashik, Silvassa. INR 2529 Crores and P/E of 20.42 Founders @ Vaman Rai V It's the world's largest manufacture www.nilkamal.com Parekh & Sharad V Parekh of molds Company has low debt Listed on NSE andBSE Public listedcompany Handles over 320,000MTof Headquartered in Mumbai, India polymer p.a. Founded in 1942 Employees over 15,000employees Manufacturers Industrial and Listed on NSE andBSE Market cap of INR 17,225 Crores and engineering molded Furniture P/E of 40.45 products, etc. Company has low debt S o urc e : *Go o gl e financ e (sc r e e ne r .in), BSE (bse indi a.c o m)
Incorporated in year 1982 Engaged in manufacture of Plastic Headquartered in Mumbai, India molded and extruded articles. Listed on BSE Employees over 15,000 employees Products include CelloImage, Market cap of INR 1,367Crores Comfort Series, Premium Range, and P/E of 29.52 High Back Range, Standra,etc. Virtually debt free Promoters’equitys take has decreased Incorporated in year 1995 4th largest company in the industry Headquartered in Mumbai, India of plastic furniture Listed on BSE Marketcap of INR 195 Crores and P/E of 20.33 Exports to USA, Africa and MiddleEast Virtually debt free Manufactures Chairs, Tables, Trolleys, Baby products, Miscellaneous Consistent profit growth of 35% over products 5 years S o urc e : *Go o gl e financ e (sc r e e ne r .in), BSE (bse indi a.c o m)
Turnover Profit After Tax Market Price AsOn Company EPS (INR) (In Lakhs) (Inr Lakhs) 23 / 06 / 2018 (Per Share INR) 79.38 2,09,484 11,845 1,698.30 NILKAMAL 4,46,177 37,930 29.86 1,221.35 SUPREME INDUSTRIES 42,840 4,857 40.46 901.50 WIM PLAST 9,569 976 8.87 142.90 PRIMA PLASTICS 1385 9.96 0.42 Issue Price Rs. 51.00 AVON MOLDPLAST
FACE VALUE (INR) BOOK VALUE (INR) Company P.E. RATIO RONW (% ) Per Equity Share Per Equity Share 20.42 16.98% 10.0 467.17 NILKAMAL 2.0 40.45 24.28% 122.29 SUPREME INDUSTRIES 10.0 29.52 18.50% 218.77 WIM PLAST 10.0 20.33 17.27% 51.37 PRIMA PLASTICS 10.0 121.43 3.70% 11.37 AVON MOLDPLAST 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.
3. BUSINESS OVERVIEW 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: • Designing and Manufacturingof Plastic Furniture • Sale of finished products to All India Network • Product innovation and Inventory management
Key Licenses and Approvals • ISO 9001:2015certified • Certificate of Import Export Code dated December 31, 2002 bearing issued by the Foreign Trade Development Officer, Bangalore • Udyog Aadhar Registration bearing No. UP29C0007374 issued by the MSME, Government of India permission dated February 20, 2009 from Chief Controller of Explosives, Petroleum and Explosive Safety Organization (PESO) • Permission dated February 22, 2018 from Deputy Director, Electrical Safety, UP under IndianElectricity 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 Manufacturing Facility Product Focus • Cupboards The Company has a fully functional manufacturing facility • Shoe racks located at A-7/ 7/36 36-39, 39, South South of of • Drawers & Chester G.T. T. Road oad Ind ndus ustrial ial Area, ea,Elec lec- • Racks & Pellets tro tr o steel teel Casting tingCom ompound ound, • Stools Ghazia aziabad ad 201009, 201009,Utt ttar Prad ades esh, India ia. The said facilityis • Chairs and Tables also houses the Registered and • Baby chairs and Corporate O f f i c e of desks the Company.
UNIQUE SELLINGPOINTS The company has several unique strengths and stands to build on it….. 01 01 02 02 03 03 04 Well established Highly Access to ISO 9001:2015 (16 yrs. of trust) specialized facilities skilled personnel certified 05 05 06 06 07 07 08 08 Vintage relationship Wide range of Proximity to Readying to cater to with Suppliers and products and more under Metro/Delhi-NCR/ MNCs, large format retailers, development/ pipeline Industry hub E-commerce Clients in the industry
ORGANISATION STRUCTURE 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 HEA HEAD D SALES S MKTG TG HEA HEAD D HEAD AD–ACCOUNTS SECRETARY SEC &MARK MARKETING MAH MAHARAS ARASHTRA RA &FINA NANCE MG MGR–ACC HEA HEAD D QUALITY TY PURCH CHASE E &FIN INAN ANCE PROD ODUCTI TION ON ASSUR SSURANCE CE EXECUT UTIV IVE *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.
SHAREHOLDING PATTERN 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 PROMOTERS Mrs. AnitaAggarwal 29.11 690,000 Mr. Sushil KumarAggarwal 32.91 780,000 Mr. Sahil Aggarwal 18.99 450,000 TOTAL 81.01 1920,000 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 share. The Company declares and pays dividends in INR. S o urc e : AVON
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