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Kansai Nerolac Paints Limited: Corporate Presentation
Kansai Nerolac Paints Limited: Corporate Presentation
Corporate Presentation
November 2017
November 2017
CORPORATE OVERVIEW
November 2017
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 (31st March 2017) Rs. 203680 Mn.
2017 Plimsoll Analysis* Ranked Globally 49th by sales revenue
Ranked Globally 19th most profitable
November 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.
November 2017
Company Core Values
• Committed to provide the best services to customer driven by quick
Response turnaround time, attitude and high customer orientation
November 2017
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
November 2017
Kansai Paints, Japan
• Japan’s largest paint company
• 9th largest Paint company globally
• Among top 5 global automotive paint companies
• Presence in 80 countries via 152 companies
• Gross sales over 3B USD
November 2017
Shareholding Pattern (30th Sep, 17)
KPJ Institutional Non Institutional
10.42%
14.59%
74.99%
November 2017
INDUSTRY OVERVIEW
November 2017
Indian Economy
Political Stability
Fiscal Prudence
Increasing GDP
Increasing Per Capita Income
November 2017
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
Future Growth Drivers urbanization Make in
India Affordable
Housing
November 2017
Government Programs –
Impact on Coatings & Chemical Industry
GDP Growth
Protective
>7%
Powder
Wood
Deco
Auto
Tax Implementation of GST, Labour
Reforms Reforms, REITs and InvITs
Low Cost Airports, Diamond
Infrastructure Quadrilateral, Sagar Mala Project
November 2017
KANSAI NEROLAC PAINTS LTD
November 2017
Powder Coatings
General Industrial
High performance
Coatings
Coatings
November 2017
Decorative Coatings
Exterior
Popular Premium
Economy
November 2017
Automotive Coatings
Automotive : Leadership with Full system (Primer+ Top Coat + Clear Coat, including
plastic paints)
November 2017
General Industrial Coatings
Sewing Machine Drums & Barrel Gas Cylinder Helmet Coating Security Equipment
ZIp Electrical Equipments Agricultural Equipment Generator Sets Pre Engineering Building
General Industrial : Market leader with wide range to cater to a variety of Industries
November 2017
High Performance Coatings
November 2017
Powder Coatings
November 2017
Selective List of Customers
Automotive Coatings
And many more...
November 2017
Selective List of Customers
November 2017
International
Nepal
• Operations Started in 2012
• Fastest growing company
• 3rd 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
November 2017
Known for Innovation - Branding
Products Pioneering concepts (Lead free, Low VOC, Healthy Home Paints)
Celebrity Endorsement
Use of Social, Digital & Mobile
November 2017
Known for Innovation - Technology
November 2017
Known for Innovation - IT
November 2017
Manufacturing Facilities
November 2017
Capacity
Year Addition Planned in KL/MT Annual Capacity in KL/MT
2019-20 467,000
November 2017
Distribution reach
November 2017
Environmental Initiatives
November 2017
People Initiatives
November 2017
Our CSR Activities
November 2017
Strength of the Nerolac brand
November 2017
Few Important Awards
-2016
-2005
-2017
-2006 -2016
-2015
-2008 -2017
Corporate Customer
-2008
-2006
- (2008 - 2012)
-2015
Brand Marketing
November 2017
Few Important Awards
-2010 -2006
-2009
-2012, 2014, 2017
-2010
Manufacturing Environment
-2010, 2011
-2010
-2016
Product
November 2017
Few Important Awards
-2012, 2014, 2016
-2014
-2014
-2008
-2017
-2008
-2005
-2005
-2007
-2009
Reports
November 2017
FINANCIALS
November 2017
Financial Ratios
Sales (in Rs Mn)
60000
49361
50000 46044
42120
40000 37390
33760
30000
20000
10000
0
13 14 15 16 17
November 2017
Financial Ratios
8000
PBDIT (in Rs Mn) 7300
7000
5800
6000
5000 4448
4000 3621
3361
3000
2000
1000
0
13 14 15 16 17
20.0
PBDIT (%) 16.1
15.0 13.7
11.8 12.5
11.4
10.0
5.0
0.0
13 14 15 16 17
November 2017
Financial Ratios
Shareholder Funds (in Rs Mn) RETURN ON CAPITAL EMPLOYED
30000 28053 (%)
25029
25000 30 26.9 26.8
23.9 24.2
20000 25 20.8
15970
12860
14230 20
15000
15
10000
10
5000 5
0 0
13 14 15 16 17 13 14 15 16 17
November 2017
Snap Shot
Year 2001 Year 2017 CAGR
Sales Rs. mn. 6830 49360 13.2
PBDIT Rs. mn. 480 7310 18.5
PBT Rs. mn. 330 7590 21.6
EPS Rs 0.44 9.39 21 times
Market Capitalization 1380 203680 147 times
Rs Mn
Dealers Nos. 8000 18300
CCD Penetration Nos. 1200 14000
No. of Distribution 60 102
Centers Nos.
November 2017
Thank You
November 2017