Corporate Presentation
Kansai Nerolac Paints Limited
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 19th most profitable
June 1, 2017
* - world's 1129 largest Paint & Coating Manufacturing Companies
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.)
Future Growth Drivers
Favorable demographics Rapid urbanization
Make in India Affordable Housing
June 1, 2017
Shareholding Pattern (31st Mar, 17)
75%
15%
10%
KPJ Institutional Non Institutional
June 1, 2017
Kansai Paints, Japan
• Japan’s largest paint company
• 9th 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
Business Markets
Automotive Coatings
General Industrial Coatings
Powder Coatings
High performance Coatings
Decorative Coatings
Auto Refinish (ARF) Coatings
June 1, 2017
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
June 1, 2017
Automotive : Leadership with Full system (Primer+ Top Coat + Clear Coat, including plastic paints)
Automotive Coatings
June 1, 2017
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
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
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
Selective List of Customers
And many more...
Automotive Coatings
June 1, 2017
Selective List of Customers
And many more...
General Industrial Coating
High Performance Coating
Powder Coating
June 1, 2017
One of India’s most trusted Brand
Strength of the Nerolac brand
June 1, 2017
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
Known for Innovation - Technology
Collaborations R&D Prowess
Technology Innovations
June 1, 2017
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
June 1, 2017
Manufacturing Facilities Manufacturing Facilities
Japanese Technology
British Safety Award
OHSAS 18001 ISO 14001
ZERO liquid Discharge
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 tracking
Zero Liquid discharge at all 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 Framework defined
Transparent Performance Management System
June 1, 2017
Industry Recognition
Corporate Customer
Brand Marketing
June 1, 2017
Industry Recognition
Manufacturing Environment
Product
June 1, 2017
Industry Recognition
Information technology Leadership
Reports
June 1, 2017
Financial Ratios
3376 3739
4212 4604
4936
0
1000
2000
3000
4000
5000
6000
13 14 15 16 17
Sales (in Rs Cr)
June 1, 2017
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 (%)
June 1, 2017
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)
June 1, 2017
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 (%)
June 1, 2017
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
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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