Kansai Nerolac Paints Limited Corporate Presentation March 2018 March 2018
CORPORATE OVERVIEW March 2018
Kansai Nerolac Paints Ltd. Parameter Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial Paints Turnover (FY17 - standalone) Rs. 49360 Mn. PBT (FY17 - standalone) Rs. 7590 Mn. Market Cap (31 st March 2017) Rs. 203680 Mn. 2017 Plimsoll Analysis* Ranked Globally 49th by sales revenue Ranked Globally 19 th most profitable * - world's 1129 largest Paint & Coating Manufacturing Companies March 2018
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. March 2018
Company Core Values • Committed to provide the best services to customer driven by quick Response turnaround time, attitude and high customer orientation • Constant Endeavor to drive innovative approach through out the Innovation organization • Open and lateral channels of communication within teams and Team between cross-functional teams to encourage ideas and information Orientation • Drives the originality of thinking, practicality of execution and the Entrepreneurial responsibility to see your idea through • Focus on Response in hours and with a concrete deadline. Speed Combination of speed, flexibility, dynamism in a stable frame to provide agility to the organization March 2018
Strong Legacy 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 March 2018
Kansai Paints, Japan • Japan’s largest paint company • 9 th largest Paint company globally • Among top 5 global automotive paint companies • Presence in 80 countries via 152 companies • Gross sales over 3B USD March 2018
Shareholding Pattern (31 st Dec, 17) KPJ Institutional Non Institutional 9.43% 15.58% 74.99% March 2018
INDUSTRY OVERVIEW March 2018
Indian Economy Political Stability Fiscal Prudence Series of reforms Ease of Doing Business Ranking Pro- Industry environment 2015 2016 2017 2018 Strong Governance 142 130 130 100 *Source: World bank Increasing GDP Increasing Per Capita Income *Source: World bank (in USD) March 2018
Indian Paint Industry Facts Parameter Facts Size Rs. 430000 Million (approx) Growth Rates Double digit since 1991 Organized : Un-organized Market 78:22 Per Capita consumption 4 kg Favorable demographics Rapid urbanization Future Growth Drivers Make in India Affordable Housing March 2018
Government Programs – Impact on Coatings & Chemical Industry GDP Growth Protective Powder >7% Wood Deco Auto Implementation of GST, Labour Tax Reforms, REITs and InvITs Reforms Low Cost Airports, Diamond Infrastructure Quadrilateral, Sagar Mala Project 100 Smart Cities, Upgraded Urban Infrastructure, Metro Projects Development 100% FDI in Defense, Freight Manufacturing and Industrial Corridor Improve Supply, Incentivize food processing Industries, Food Inflation 100% FDI in Food Retail Single window Clearances, E – governance Digitization of Records, Wi-Fi Zones Water Conservation, Irrigation Environment Projects, Rain Water Harvesting Augmented Capacity, Develop Energy Solar & Nuclear Projects Policy March 2018
KANSAI NEROLAC PAINTS LTD March 2018
Powder Coatings General Industrial High performance Coatings Coatings Business Emerging Segment (Cons. Chemicals / Markets Floor Coating) Decorative Coatings Automotive Coatings Auto Refinish (ARF) Coatings March 2018
Decorative Coatings Exterior Popular Premium Super Premium Economy Interior Premium Popular Economy Decorative Range: Enamels, Distemper, Emulsions, Primers, Putty, Wood finishes March 2018
Automotive Coatings Automotive : Leadership with Full system (Primer+ Top Coat + Clear Coat, including plastic paints) March 2018
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 March 2018
High Performance Coatings Petroleum / Petrochemical Metal Industries Fertilizer Industries Cement Industry Railways Infra High Protective Coatings: Wide range to tackle corrosion protection March 2018
Powder Coatings Light Fixtures Electrical Equipments Fans Auto Ancillary Refigerators Washing Machine Air Conditioner Microwaves Powder Coatings: Leadership through a variety of products March 2018
Selective List of Customers Automotive Coatings And many more... March 2018
Selective List of Customers General Industrial Coating High Performance Coating Powder Coating And many more... March 2018
International Nepal • Operations Started in 2012 • Fastest growing company • 3 rd biggest player in Nepal Amt Rs NPR Mn On Acquisition March 2017 Turnover 250.0 921.0 PBT (10.0) 112.0 Sri Lanka • Operations Started in 2017 • Tie-up with one of the largest conglomerates in Lanka March 2018
Known for Innovation - Branding Pioneering concepts (Lead free, Low VOC, Healthy Home Paints) Products Use of Social, Digital & Mobile Celebrity Endorsement Modern Retail Use of Sports for Endorsement March 2018
Known for Innovation - Technology Collaborations R&D Prowess Technology Innovations Technology Innovations March 2018
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) March 2018
Manufacturing Facilities Manufacturing Facilities Japanese Technology British Safety Award ZERO liquid Discharge OHSAS 18001 ISO 14001 March 2018
Capacity Year Addition Planned in KL/MT Annual Capacity in KL/MT Existing 2016-17 3,64,000 Planned Addition 2017-18 67,000 431,000 2018-19 53,000 484,000 2019-20 484,000 2020-21 60,000 544,000 3 Green field Projects in Pipeline March 2018
Distribution reach 109 BRANCHES PAN INDIA 20000+ DEALER NETWORK March 2018
Environmental Initiatives Publishing Report since 2005. Sustainability report as per GRI Implemented SAP EHS in 2011 guidelines since 2012 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 March 2018
People Initiatives Young Vibrant organization with Professionally run & managed average age of organization 35 Core Values & Competency Transparent Performance Framework defined Management System March 2018
Our CSR Activities March 2018
Strength of the Nerolac brand One of India’s most trusted Brand March 2018
Few Important Awards - 2016 - 2005 - 2017 - 2006 - 2016 - 2015 - 2017 -2008 Customer Corporate -2008 - 2006 - (2008 - 2012) - 2015 Brand Marketing March 2018
Few Important Awards - 2010 - 2006 - 2009 - 2012, 2014, 2017 - 2010 Environment Manufacturing - 2010, 2011 - 2010 - 2016 Product March 2018
Few Important Awards - 2012, 2014, 2016 - 2014 - 2014 - 2008 - 2017 - 2008 - 2005 - 2005 Information technology Leadership - 2007 - 2009 Reports March 2018
FINANCIALS March 2018
Financial Ratios Sales (in Rs Mn) 60000 49361 50000 46044 42120 37390 40000 33760 30000 20000 10000 0 13 14 15 16 17 March 2018
Financial Ratios 8000 PBDIT (in Rs Mn) 7300 7000 5800 6000 5000 4448 3621 4000 3361 3000 2000 1000 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 March 2018
Financial Ratios Shareholder Funds (in Rs Mn) RETURN ON CAPITAL EMPLOYED (%) 28053 30000 25029 25000 30 26.9 26.8 24.2 23.9 25 20000 20.8 15970 20 14230 15000 12860 15 10000 10 5000 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 March 2018
Financial Ratios Market Capitalisation (in Rs Dividend (%) Mn) 350.0 305.0 300.0 300.0 250000 203685 250.0 200000 151706 200.0 150000 140.0 116514 150.0 110.0 110.0 100000 66700 63010 100.0 50000 50.0 0 0.0 13 14 15 16 17 13 14 15 16 17 March 2018
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