Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan...

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Corporate Presentation Kansai Nerolac Paints Limited June 1, 2017

Transcript of Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan...

Page 1: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Corporate Presentation

Kansai Nerolac Paints Limited

June 1, 2017

Page 2: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

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 19th most profitable

June 1, 2017

* - world's 1129 largest Paint & Coating Manufacturing Companies

Page 4: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

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.)

Future Growth Drivers

Favorable demographics Rapid urbanization

Make in India Affordable Housing

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Page 5: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Shareholding Pattern (31st Mar, 17)

75%

15%

10%

KPJ Institutional Non Institutional

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Page 6: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Kansai Paints, Japan

• Japan’s largest paint company

• 9th largest Paint company globally

• Gross sales 3 B USD

• 49 JVs, subsidiaries around the globe

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Page 7: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

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

Page 8: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

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.

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Page 10: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Decorative Coatings

Economy Popular Premium Super Premium

Economy Popular Premium

Decorative Range: Enamels, Distemper, Emulsions, Primers, Putty, Wood finishes

Exte

rio

r In

teri

or

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Page 11: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Automotive : Leadership with Full system (Primer+ Top Coat + Clear Coat, including plastic paints)

Automotive Coatings

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Page 12: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Drums & Barrel Gas Cylinder

Electrical Equipments

Helmet Coating

Agricultural Equipment

Sewing Machine

Generator Sets

Security Equipment

ZIp Pre Engineering Building

General Industrial Coatings

General Industrial : Market leader with wide range to cater to a variety of Industries

June 1, 2017

Page 13: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

High Performance Coatings

Floor Coating

Petroleum / Petrochemical Metal Industries

Railways

Fertilizer Industries

Cement Industry Infra

High Protective Coatings: Wide range to tackle corrosion protection

June 1, 2017

Page 14: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Powder Coatings

Electrical Equipments Light Fixtures Fans

Air Conditioner Washing Machine Microwaves Refigerators

Auto Ancillary

Powder Coatings: Leadership through a variety of products

June 1, 2017

Page 15: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Selective List of Customers

And many more...

Automotive Coatings

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Page 16: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Selective List of Customers

And many more...

General Industrial Coating

High Performance Coating

Powder Coating

June 1, 2017

Page 17: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

One of India’s most trusted Brand

Strength of the Nerolac brand

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Page 18: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Known for Innovation

Products

Celebrity Endorsement

Use of Sports for Endorsement

Pioneering concepts (Lead free, Low VOC, Healthy Home Paints)

Use of Social, Digital & Mobile

Modern Retail

June 1, 2017

Page 19: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Known for Innovation - Technology

Collaborations R&D Prowess

Technology Innovations

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Page 20: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Known for Innovation - IT

ERP Supply Chain

CRM

Analytics Engine

Ariba Vendor Portal

EHS

Completely IT Enabled Business running on SAP HANA (Early Adopters of New Technology)

Dealer Portal

HR

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Page 21: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Manufacturing Facilities Manufacturing Facilities

Japanese Technology

British Safety Award

OHSAS 18001 ISO 14001

ZERO liquid Discharge

Existing capacity: 364000 KL New capacity: 136000 KL

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Page 22: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Distribution reach

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Page 23: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Environmental Initiatives

Publishing Report since 2005 Implemented SAP EHS in 2011

Water and Carbon Foot print tracking

Zero Liquid discharge at all manufacturing facilities

Products meeting VOC regulation Reduction in Co2 emissions

Green Program with vendors

June 1, 2017

Page 24: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Our CSR Activities

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Page 25: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

People Initiatives

Young Vibrant organization Professionally run & managed

Core Values & Competency Framework defined

Transparent Performance Management System

June 1, 2017

Page 26: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Industry Recognition

Corporate Customer

Brand Marketing

June 1, 2017

Page 27: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Industry Recognition

Manufacturing Environment

Product

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Page 28: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Industry Recognition

Information technology Leadership

Reports

June 1, 2017

Page 29: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Financial Ratios

3376 3739

4212 4604

4936

0

1000

2000

3000

4000

5000

6000

13 14 15 16 17

Sales (in Rs Cr)

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Page 30: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Financial Ratios

336 362

445

580

730

0

100

200

300

400

500

600

700

800

13 14 15 16 17

PBDIT (in Rs Cr)

11.8 11.4 12.5

13.7

16.1

0.0

5.0

10.0

15.0

20.0

13 14 15 16 17

PBDIT (%)

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Page 31: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Financial Ratios

1286 1423

1597

2503 2805

0

500

1000

1500

2000

2500

3000

13 14 15 16 17

Shareholder Funds (in Rs Cr)

23.9 20.8

24.2 26.9 26.8

0

5

10

15

20

25

30

13 14 15 16 17

RETURN ON CAPITAL EMPLOYED (%)

17.8

14.5

17.0 18.5 18.0

0.0

5.0

10.0

15.0

20.0

13 14 15 16 17

RETURN ON NET WORTH (%)

4.0 3.8

5.0

6.7

9.4

0.0

2.0

4.0

6.0

8.0

10.0

13 14 15 16 17

EARNINGS PER SHARE (EPS)

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Page 32: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Financial Ratios

6670 6301

11651

15171

20368

0

5000

10000

15000

20000

25000

13 14 15 16 17

Market Capitalisation (in Rs Cr)

110.0 110.0 140.0

305.0 300.0

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

13 14 15 16 17

Dividend (%)

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Page 33: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Snap Shot

Year 2001 Year 2017 CAGR

Sales Rs. cr. 683 4936 13.2

PBDIT Rs. cr. 48 731 18.5

PBT Rs. cr. 33 759 21.6

EPS Rs 0.44 9.39 21 times

Market Capitalization Rs Cr

138 20368 147 times

Dealers Nos. 10300 18300

No. of Distribution Centers Nos.

60 102

June 1, 2017

Page 34: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

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

Page 35: Kansai Nerolac Paints Limited · 2017-06-05 · Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial

Thank You

June 1, 2017