Sirca Paints India Limited

Investor Presentation

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Company Overview 04-0
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Industry and Market Overview 2
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Business Overview 8
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Financial Snapshot 0
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Initial Public Offer 8
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Final Thoughts

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 Disclaimer
This investor Presentation has been prepared by Sirca Paints India Limited (“Sirca”) for investors, solely for informational
purpose.

The Information contained herein has been prepared to assist prospective investors in making their own evaluation of the
Company and does not purport to be all-inclusive or to contain all of the information a prospective or existing investor may
desire. In all cases, interested parties should conduct their own investigation and analysis of the Company and the data set forth
in this information. Sirca makes no representation or warranty as to the accuracy or completeness of this information and shall
not have any liability for any representations (expressed or implied) regarding information contained in, or for any omissions
from, this information or any other written or oral communications transmitted to the recipient in the course of its evaluation of
the Company.

This Information includes certain statements and estimates provided by the Company with respect to the projected future
performance of the Company. Such statements, estimates and projections reflect various assumptions by management concerning
possible anticipated results, which assumptions may or may not be correct. No representations are made as to the accuracy of
such statements, estimates or projections. Prospective investors will be expected to have conducted their own due diligence
investigation regarding these and all other matters pertinent to investment in the Company.

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 Sirca India- At a Glance

 Originally incorporated in New Delhi as “Sircolor Wood Coatings Private Limited” on 19 th

Company January, 2006 Thereafter, Name of the Company changed in 2017 to “Sirca Paints India
Private Limited”

 Sirca Spa ( Italy) - Exclusive selling rights for India, Srilanka, Bangladesh, Nepal
- Is a shareholder of 3.83% in Sirca India
International Tie- Ups - Provides technical knowhow for proposed manufacturing facility
 BPS Srl ( Italy )

 Engaged in business of manufacturing, production , formulate, develop, derive, discover,

prepare , promote, pack or otherwise deal in all varieties of melamine paints, metallic paints,
Nature of Business distempers, primers , oxides, resins, adhesive, varnishes, thinners etc. Company is further
engaged in buy , sell, import, export and otherwise deal in all kind of wood coatings

 Trusted business partners - long and trusted business relations with Indoline
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Key Customers Industries, JSL Lifestyle, Alsorg Interiors India Pvt. Ltd., Spacewood, Magpie etc.

 Provides high quality Coatings to be used in domestic and industrial use. Companies
unique selling proposition - offering quality of water and solvent based products for
wood and metal care and protection. Also provides technical assistance to its
Unique Value Proposition customers which leads to healthy customer relationship

 Proceeds of raised funds through IPO to be utilized primarily for Installing new
manufacturing capacity, Brand Building of Sirca and for meeting day to day working capital
Object of issue requirements. Anticipating global growth rate in paint industry and to reap economies of
scale, Company has decide to enter manufacturing 5
 Sirca Paints India - Overview

Background Products Infrastructure

 Started by Mr. Sanjay Agarwal and 1. Wood Coatings  Head Office in Delhi
Mr. Gurjit Singh Bains. in 2006  Wood Stains
 Company started import and trading  Polyurethane Polish ( PU )  Present in various geographical
of PU products from Italy and Korea  Polyester ( Lamination ) regions of India with branches in
 Over next few years Sircolor became  Acrylic Finishes Mumbai, Chennai , Surat and
leading PU Polish trading company in  Wood fillers Ahmadabad etc.
North India and expanded its  Wood Care Products
  Distributors in more than 16
network in south and west India Hand Made Effects
 In May 2017 Sircolor Wood Coatings
states across India
Pvt. Ltd. Became Sirca Paints India 2. Metal Coatings
Pvt. Ltd.  Clear Coating
 Pigmented Coatings

Sirca ITALY 3. Glass Coatings

 Pigmented Finish
 Reputed Group  Special Effects
Strong Group with turnover of more than
120 million Euro and 4 production plants –
Sirca an integral part of this Group,
together with Durante & Vivan Sirca Paints (India)
Back in early 70s Tarcisio and Luigi
Durante brothers established Sirca  Founded : 2006
company  - today one of leading Italian  Headquarter : New Delhi
Companies in wood coatings market, with  Branches : 7
widespread network of specialized  Products : PU Polish and Wood
distributors in more than 40 Countries, Care Products 6
anywhere from Europe to Russia and India
 Journey So Far

2006 2010 2013 2017

 Started its business  Sircolor wood
 Company shifted from  Became first
operations with name coatings private
manual tinning to company to launch
sircolor wood coatings limited - renamed
automatic tinning lead free pigments in
private limited. Since then Sirca paints and
which assures high India which are opened new office
Group has gained rich
accuracy environment friendly at New Delhi with
experience of over a decade
water borne 15,000 sq. ft area
in paint industry
products

2008 2012 2016 2018

 Became  Company  Sirca India launched  listed on NSE
first
company to launch introduced non metal coatings and Emerge platform of
wood filler in India yellowing celebrated its 50th NSE
and opened its products with retail outlet and  Acquired a land at
wholly owned acrylic range of 400th shop boards Sonipat to provide
branches in products across India approx 7895 Sq yard
Mumbai and for setting up the 7
Chennai manufacturing plant
Key Management Team

 Qualified Chartered accountant

 With 20 years of Experience in wood coating industry
Mr. Sanjay Agarwal  Worked as pioneer and leader in this segment and marked
presence of brand Sirca in every part of India
Chairman Cum  His vision - to set up manufacturing plant and begin with exports
Managing Director of Sirca Products to neighboring countries

 Experience of more than 20 years in wood coatings and Italian

Mr. Gurjit Singh Furniture Industry
 holds degree of masters in economics from University of Venice
Bains
 First to introduce branded Italian furniture in India
(Promoter)  As a co-founder of Sirca paints India pvt ltd , built Brand Sirca In
Director Indian market

 Experience of more than 8 years in Italian Furniture and Italian wood coatings
 Holds degree of masters in Finance and marketing from IIPM and Degree of
Mr. Apoorv Agarwal Commerce from university of Delhi
 Started career with Sirca wood coatings Italy , Managing sales and marketing and
(Promoter) later took training with many renowned Furniture brands from Italy
Joint Managing  Formed La Tendenza , a unique destination to experience high quality European
Director furniture with Brands like BEB Italia , Reflex , Laura meroni , Simone Cenedese
etc.
 Participated in all seminars and activities conducted by IICCI
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Key Management Team

 He is MBBS and DCH (Diploma of Child Health) with 20 years of

Mr. Sanjay Kapoor  experience as Child Experience and padiatrics Department.
(Non Executive and  He has been on the Board of the Company since December, 2017
Independent
Director)

Mrs. Archana   She is Architect by profession and having more than 23 years
Agarwal experience in designing the buildings.
(Non Executive and  She has been on the Board of Company since January, 2018.
Independent
Director)

Mr. Ugo Pelosin

• Have more than 20 years of experience in export of
(Non Executive coatings globally , is the export director in sirca spa
Director) • He was appointed on as the Non Executive Director of
our Company on 27/09/2018, as Nominated by Sirca
S.p.A, Italy under Shareholder Agreement entered
between the Companies.
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Industry
and
Market
Overview
 What we Do??????
The Company is engaged in importing, trading and repacking of polyurethane coatings, water-based coatings, melamine and
NC products, wood care products, wood fillers, abrasives, buffing compounds, and thinners.
 
Our Company is in marketing and trading/distribution of paints and allied products after repackaging the same. Our
Company use to procure the products majorly from SIRCA SPA ITALY through Import and selling them in India through its
Distributors , dealers and oems. In additional, Our Company also procure the products (Thinner, Abrasives and Buffing
Cream) from other suppliers based in India. Except Thinner and Abrasives which are purchased from domestic suppliers, all
other 100% Purchases are made from Outside India and the products which are purchased from domestic suppliers are
sold in India Only. SIRCA products are mainly intended for the furnishing segment and are often developed in collaboration
with some of Italy’s most prestigious furniture stores and designers.

Our Company has entered into a Distributorship Contract dated 1st January, 2018 with SIRCA SPA ITALY wherein Our
Company got the Exclusive Right to promote the sale of PU & Metal Coating under trademark SIRCA in the territory of
India, Sri Lanka, Bangladesh and Nepal.

The Company Have wide range of branches, distributors and customers, which is spreading across the India and beyond its
borders.

Wide product range that our company offers are depicted further in this presentation in detail.

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 Industrial Universe

 The India paints & coatings market is estimated to register a growth rate of 7.10% during the forecast period (2018- 2023);
 Architectural segment is estimated to lead the market, due to rapid rise in investments by the government in the country.
Water-based coatings are expected to be the fastest-growing type, by technology;
 Indian paint industry, which is comprised of organized and a huge unorganized sector [accounts for 35 percent of the total
volume] is expecting to reduce the proportion of unorganized sector with the implementation of Goods & Service Tax (GST).
In the unorganized segment, there are about 2,000 units having small and medium sized paint manufacturing plants;
 Currently, Asia accounts for 52 percent of the volume and 45 percent of the value of the global coatings market. Asia is
also the fastest growing market;
 In 2017, the Asian coatings industry was estimated to have grown by 5.7 percent in volume and 6.3 percent in value. Not
surprisingly, the largest coatings market in Asia is China, with 56 percent of the market and a value of US$53.3 billion.
The next largest Asian markets are India and Japan;
 Indian Paint Association has highlighted that Indian paint market which was around INR 40,300 crores in 2014-15 is
expected to reach INR 70, 875 crores by 2019-2020;
 With 66 percent of its population under the age of 35, India is home to the largest population of young people in the world
– 825 million. The median age of the country is just 27 years, much below 37 in the U.S. and 46 in Japan;
 India's demographic profile is changing in a way that is quite favorable to the growth of the paint and coatings industry.
 
References:
Consolidation of the paints and coatings: Article by KPMG;
 Indian Paint Industry - Gaining Steam: By Coating World;
Paint India 2018: By Coating World.
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 Comparison with peer groups

Face Total Income

PAT(Rs.
Companies EPS PE Ratio RoNW Value(Rs. (Rs. In
In Crores)
Per Share) Crores)

Sirca Paints India Limited 15.61* 15.63* 28.67* 10 93.57* 19.39*

Peer Group**

Asian Paints Ltd 19.75 69.70 24.25 1 14,837.05 1,890.83

Kansai Nerolac Paints

9.58 50.65 16.49 1 4809.43 515.31
Ltd

For Calculating PE Ratio, current opening
market price of our company as on
02/01/2019 i.e., Rs. 244 is divided by
EPS. Further, all the figures has been
taken from the financial statement of the
FY ended 31/03/2018.
** Source: Annual Report for the year ended
as on 31st March, 2018. For calculating PE
Ratio, opening market price of the respective
company as on 02/01/2019 are been taken.
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Need high quality images

Business
Overview
 Products
Offers wide range of wood care products like Polyurethane , Polyester , Acrylics and other Wood Care
Products for Wood , Metal and Glass

Portfolio of Products

Current Products Proposed Products

1. Wood Coatings
1. Wood Coatings
 Wood Stains
 Polyurethane Polish ( PU )  PU Clear Sealer
 Polyester ( Lamination )
 PU Clear Matt
 Acrylic Finishes
 Wood fillers  PU White Sealer
 Wood Care Products
 Melamine Sealer
 Hand Made Effects
 Water Based  Melamine Matt and Gloss
 UV Coating
 NC range of product
2. Metal Coatings
 Clear Coating  All Type of Thinner
 Pigmented Coatings
 Economical PU Polish
3. Glass Coatings
 Pigmented Finish
 Special Effects 15
 Unique Selling Proposition

Strong Brand in Market - Technical Support

Client base of committed to delivery best of available at all
leading OEMs quality products and services locations and In-
with strong and house R&D
long term Department at New
relationships Delhi Head office

Wide and Strong Presence in

complete range all major locations of
of Eco friendly India. Availability of
and water products through
based products dealers and
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distributors
 Our Competitive Edge

Technology & Technical & Sales Global

Innovation Support Strong Brand Image
Visibility

 Internal Resin  Technical Staff at all  SIRCA consumed by  “Productivity

Technology locations Leading furniture Forever”
manufacturers Commitment
 In-house R & D team  Maximize sales and
productivity for  Availability of Stocks  ONE global Team:
 Latest Lab customer at all Major Dealers Commercial,
Equipments Technology and OPS
 Support Distributors  Shop board and
and Dealers other branding  “We are where our
activities customers are”

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 Infrastructure – Across India

Company’s Branches, Distributors and exclusive studios

 Mumbai - Nearest Port Nhava

sheva and have depot - helps
distribute products in central
part of India

 Chennai - Nearest Port Chennai

and have depot - helps
distribute products in southern
part of India

 Surat - Branch supplies to

southern part of Gujarat

 Ahmedabad - Branch supplies

to major locations in Gujarat
and Rajasthan 18
India - Infrastructure contd...

Our Studio Highlights

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 Company Recognitions

SIRCA has showcased its products quality and capabilities in various events across the nation which has given a lot recognition in India. Some of these
events where our Company has participated is as follow:
 
Wood Expo,
ACETECH - Build Expo – Dhaka,
1 2 3
2018, Delhi Bairely Bangladesh
India Woods – Int - Ext Expo,
4 5 6 ABID – Guwahati
Bangalore Ludhiana

ACETECH,
7
Mumbai

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Prominent Customer Base

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 Future Prospects
Finalized deal for land 1.75 Acers at Sonipat where proposed manufacturing plant will be build in
technical collaboration with Sirca under the manufacturing agreement with Sirca S.P.A. Italy. The
site is under construction and probably the manufacturing will be starting in the May, 2019. This
expansion will lead to the following:
• Horizontal and vertical expansion of companies product range and networks
•Developing Economical Range of PU, Melamine and NC Products to compete with Asian and
other brand economical PU range will give competitive edge in boosting sales of Company
•Company has plans to come up with complete new range of the products like Wall Paints and
decorative paints
•With this manufacturing unit will start Export to sub continental countries which includes Sri
Lanka, Nepal , Bangladesh for which we already have an exclusive Agreement with SIRCA Italy
•We will also look forward to increase existing distribution network and maximize reach to
potential customers  
Proposed Production Capacity: Presuming 300 operating days in a year and single Shift (12
Hours)-working basis, the production capacity of the unit is mfg. of 3000000 Ltr of PU Thinner and
7000000 Ltr of NC Lacquers, melamine and Polyurethane products per annum initially as per the
Requirement, which is likely to be increased in the subsequent years. Actual utilization is expected
to be 30% in Ist year, 60 % in IInd year, approx 100% in IIIrd year and above in further years.
 Journey past few years

 Financial year 2012 – 13 was ended with the profit of Rs. 5,039,855.79/-;
 while Financial year 2017-18 ended with the profit of Rs. 193,898,320.92/-.

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Earning Before Interest, Tax, Depreciation and Amortization

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Consistent Growth and Profitability

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Consistent Growth and Profitability (Half Year)

There is a raise of 46.12% in

the sale of the current half
year as compare to previous.

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 Balance Sheet Metrics

2018 2017 2016 2015 2014 2013

Current Ratio 2.71 1.9 1.64 1.47 1.18 1.17

Working Capital
4554.35 2420.1 1578.13 931.03 378.82 257.65
(In Lacs) (Rs.)

Debt to Equity
0.4 0.8 1.21 1.54 3.21 3.34
Ratio

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 In Brief..............

As mentioned in the previous slides, on 30th Day of May, 2018 our company listed its shares on NSE Emerge platform of
National Stock Exchange with an overwhelming response i.e., oversubscription of 10.99 times. Here we would like to discuss
the utilisation of the proceeds received through IPO from the following classification:

The details of the proceeds of the Issue are summarized below:

S.No Particulars Amount (Rs. In Lacs)

1. Gross Proceeds 7791.36
2. (Less) Issue related expenses 572.00
3. Net Proceeds 7219.36

We intend to utilise the Net Proceeds from the Issue, in the manner set below:
Estimated Amount (Rs. In
S.No Particulars
Lacs)
To Finance the expenditure of Site Development and Purchase of
1. 3320.00
Plant and Machinery
2. To part finance working capital requirements of the Company 2500.00
3. General corporate purposes 1399.36
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Total 7219.36
 Why Choose Us…!

I. Efficient and Experienced Management

01 - MR. SANJAY 02 - MR. GURJIT 03 - MR. APOORV 04 – MR. UGO

AGARWAL
(CMD)
With 20 years of Experience in
wood coating industry, he has
worked as a pioneer and leader
in this segment and has marked
the presence of brand Sirca in
India quite strongly . He holds
the degree of chartered
accountant and is handling the
accounts and finance division
in the company .
SINGH BAINS AGARWAL PELOSIN
(DIRECTOR) (JMD)
Experience of more than 20 Experience of more than 8
years in wood coatings and years in Italian Furniture and With more than 15 years of
Italian Furniture industry. Italian wood coatings industry. experience in global wood
Became the first individual to Started a career with Sirca coatings industry he is the
launch luxury furnitue brands wood coatings Italy, Managing export director of sirca spa and
in indian market. Had sales and marketing and later now an executive director in
completed his studies from took training with many sirca paints india ltd..
university of venice renowned Furniture brands
from Italy.

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 Why Choose Us…!

II. SIRCA SPA, ITALY

International Assistance Technical Agreement

1
SIRCA SPA is form part of top 5
international paint and wood coating
company. There guidance is enough
to make us stand out of all.
On 16/02/2018 we entered into an
agreement with SIRCA Spa, where
2 we will manufacture products that we
are currently trading in under their
technical assistance.

Manufacturing Quality
3
unit Benchmarked
Manufacturing unit going to set up in
India in New year along with the technical Together with them we
assistance of Sirca SPA Italy, will help us 4 assure the best in
in providing bestin class Quality product quality products.
at comparatively Cheaper rate, setting us
apart from our competitors in matter of
Quality and Price
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 Why Choose Us…!

III. Environment Sustainability and Quality Assurance

We pay close attention to the growing demand for products certified for specific uses, such as quality, eco – friendly. Our
Research and Development team along with SIRCA SPA Italy, continuously focus to develop techniques that can minimize any
effect of chemicals mixed in the paints or coatings.

WE STRIVE FOR PROFITS BUT NOT ON THE COST OF QUALITY, EFFICIENCY AND HEALTH OF OUR
CUSTOMERS AND END USER.

Sirca therefore constantly monitors the change or creation of new standards and
certifications, both nationally and internationally, and formulates, amends and tests its products to meet these requirements. Some
of these Certificates are:

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 Why Choose Us…!

III. Efficient Human Resource

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 Benchmarks Set During Our Journey

Listed shares of the

Company on
30/05/2018 with an
oversubscription of Setting up
10.99 times manufacturing
unit in the new
year under a
Incorporated technical
on 19/01/2006 agreement with
SIRCA SPA,
letting to provide
Achieved best in class
growth of product a t
883.7% in the comparatively
Net profit in cheaper price.
the period of
past 5 (Five)
Years
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Contact us At
Corporate Office: Regd. Office:
Sirca Paints India Ltd. 504, NDM-II, Netaji Subash Place,
Plot No-50, Phase -2, Badli, Industrial Wazirpur, Pitampura, New Delhi-
Area, Nr. Tata Power Office, Delhi-110042 110034
011-42083083, 47533213 + 91 11 42083083

admin@sircapaints.com Toll Free:

cs@sircapaints.com 1800-3002-2939

https://sircapaints.com/

@sircapaintsindia

https://instagram.com/sircapaints?utm_source=ig_profile_share&igshid=1nwebka5ktk72
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