Kansai Nerolac Paints Limited Corporate Presentation June 1, 2017
Corporate Profile Parameter Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial Paints Turnover Rs. 4936 Cr. PBT Rs. 759 Cr. Market Cap Rs. 20368 Cr. 2017 Plimsoll Analysis* Ranked Globally 49th by sales revenue Ranked Globally 19 th most profitable * - world's 1129 largest Paint & Coating Manufacturing Companies June 1, 2017
Indian Economy Political Stability Fiscal Prudence Series of reforms Pro- Industry environment Strong Governance Increasing GDP Increasing Per Capita Income *Source: Bloomberg June 1, 2017
Indian Paint Industry Facts Parameter Facts Size Rs. 43000 Crores (Approx.) Growth Rates Double digit for last 25 years Organized : Un-organized Market 78:22 (Approx.) Per Capita consumption 4 kg (Approx.) Favorable demographics Rapid urbanization Future Growth Drivers Make in India Affordable Housing June 1, 2017
Shareholding Pattern (31 st Mar, 17) KPJ Institutional Non Institutional 10% 15% 75% June 1, 2017
Kansai Paints, Japan • Japan’s largest paint company • 9 th largest Paint company globally • Gross sales 3 B USD • 49 JVs, subsidiaries around the globe June 1, 2017
97 Years History Year Key Milestone 1920 Started as Gahagan Paints and Varnish Co. Ltd 1957 Changed name to Goodlass Nerolac Paints Ltd. 1976 Became Part of TATA group 1986 Acquisition of stake by Kansai Paints, Japan 2000 Became subsidiary of Kansai Paints, Japan 2006 Change of name to Kansai Nerolac Paints Ltd. 2012 Acquisition in Nepal 2017 Commencement of operations in Sri Lanka June 1, 2017
Company Vision To leverage global technology , for serving our customers with superior coating systems built on innovative and superior products and world class solutions , to strengthen our leadership in Industrial coatings and propel for leadership in Architectural coatings , all to the delight of our stakeholders. June 1, 2017
Powder Coatings High performance Coatings General Industrial Coatings Business Markets Automotive Coatings Decorative Coatings Auto Refinish (ARF) Coatings June 1, 2017
Decorative Coatings Exterior Popular Premium Super Premium Economy Interior Premium Popular Economy Decorative Range: Enamels, Distemper, Emulsions, Primers, Putty, Wood finishes June 1, 2017
Automotive Coatings Automotive : Leadership with Full system (Primer+ Top Coat + Clear Coat, including plastic paints) June 1, 2017
General Industrial Coatings Sewing Machine Drums & Barrel Gas Cylinder Helmet Coating Security Equipment Electrical Equipments ZIp Agricultural Equipment Generator Sets Pre Engineering Building General Industrial : Market leader with wide range to cater to a variety of Industries June 1, 2017
High Performance Coatings Petroleum / Petrochemical Metal Industries Fertilizer Industries Infra Cement Industry Railways Floor Coating High Protective Coatings: Wide range to tackle corrosion protection June 1, 2017
Powder Coatings Light Fixtures Electrical Equipments Fans Auto Ancillary Refigerators Washing Machine Air Conditioner Microwaves Powder Coatings: Leadership through a variety of products June 1, 2017
Selective List of Customers Automotive Coatings And many more... June 1, 2017
Selective List of Customers General Industrial Coating High Performance Coating Powder Coating And many more... June 1, 2017
Strength of the Nerolac brand One of India’s most trusted Brand June 1, 2017
Known for Innovation Products Pioneering concepts (Lead free, Low VOC, Healthy Home Paints) Use of Social, Digital & Mobile Celebrity Endorsement Modern Retail Use of Sports for Endorsement June 1, 2017
Known for Innovation - Technology Collaborations R&D Prowess Technology Innovations June 1, 2017
Known for Innovation - IT Supply Dealer Vendor ERP CRM Ariba EHS HR Chain Portal Portal Analytics Engine Completely IT Enabled Business running on SAP HANA (Early Adopters of New Technology) June 1, 2017
Manufacturing Facilities Manufacturing Facilities Japanese Technology British Safety Award ZERO liquid Discharge OHSAS 18001 ISO 14001 Existing capacity: 364000 KL New capacity: 136000 KL June 1, 2017
Distribution reach June 1, 2017
Environmental Initiatives Publishing Report since 2005 Implemented SAP EHS in 2011 Water and Carbon Foot print Zero Liquid discharge at all tracking manufacturing facilities Products meeting VOC regulation Reduction in Co2 emissions Green Program with vendors June 1, 2017
Our CSR Activities June 1, 2017
People Initiatives Young Vibrant organization Professionally run & managed Core Values & Competency Transparent Performance Framework defined Management System June 1, 2017
Industry Recognition Customer Corporate Brand Marketing June 1, 2017
Industry Recognition Environment Manufacturing Product June 1, 2017
Industry Recognition Information technology Leadership Reports June 1, 2017
Financial Ratios Sales (in Rs Cr) 6000 4936 5000 4604 4212 3739 4000 3376 3000 2000 1000 0 13 14 15 16 17 June 1, 2017
Financial Ratios 800 PBDIT (in Rs Cr) 730 700 580 600 500 445 362 400 336 300 200 100 0 13 14 15 16 17 20.0 PBDIT (%) 16.1 15.0 13.7 12.5 11.8 11.4 10.0 5.0 0.0 13 14 15 16 17 June 1, 2017
Financial Ratios Shareholder Funds (in Rs Cr) RETURN ON CAPITAL EMPLOYED (%) 2805 3000 2503 2500 30 26.9 26.8 24.2 23.9 25 2000 20.8 1597 20 1423 1500 1286 15 1000 10 500 5 0 0 13 14 15 16 17 13 14 15 16 17 RETURN ON NET WORTH (%) EARNINGS PER SHARE (EPS) 9.4 20.0 18.5 10.0 18.0 17.8 17.0 8.0 14.5 6.7 15.0 6.0 5.0 10.0 4.0 3.8 4.0 5.0 2.0 0.0 0.0 13 14 15 16 17 13 14 15 16 17 June 1, 2017
Financial Ratios Market Capitalisation (in Rs Cr) Dividend (%) 25000 350.0 305.0 300.0 20368 300.0 20000 250.0 15171 15000 200.0 11651 140.0 150.0 10000 110.0 110.0 6670 6301 100.0 5000 50.0 0 0.0 13 14 15 16 17 13 14 15 16 17 June 1, 2017
Snap Shot Year 2001 Year 2017 CAGR 683 Sales Rs. cr. 4936 13.2 48 PBDIT Rs. cr. 731 18.5 PBT Rs. cr. 33 759 21.6 EPS Rs 0.44 9.39 21 times Market 138 20368 147 times Capitalization Rs Cr Dealers Nos. 10300 18300 No. of Distribution 60 102 Centers Nos. June 1, 2017
International Operations Nepal Operation – 2012 Amt Rs NPR On Acquisition March 2017 Turnover 25.0 92.1 PBT (1.00) 11.2 Sri Lanka Operation – 2017 June 1, 2017
Thank You June 1, 2017
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