Goodlass Nerolac Paints Ltd

1
Welcome
2
Goodlass Nerolac Paints Ltd

• Analyst Meet
• 3rd May 2005

3
Company Snapshot
4
Group Companies
5
Presentation Sequence

• Performance
• Financials
• Road Ahead

6
Performance
7
Paint Industry

• Growth expected to be 14 with Industry size of
  Rs7750Cr.
• Organized sector doing better with 15 growth and
  market size of Rs5400Cr.
• Architectural business benefited by high growth
  in housing sector
• Industrial business riding high on growth in
  Automobile business

8
Revenue Growth-GNP
CAGR 11.8
9
Industrial Business Initiatives

• Acrylic CED lines
• Export of Acrylic CED
• New Business
• Value Engineering
• Color Centre
• Marketing Cell
• Focus on Job Coating Business for PC

10
Decorative Business Initiatives

• Project Disha- Strategy building exercise
• Focus on Key Segments
• House Hold
• Auto Refinishes
• Wood Finishes
• Large Commercial
• Brand building
• New Advertising films
• Consumer scheme-HDD
• Contractors CRM program
• Making channel responsive
• Profitable Mix/ New products

11
Manufacturing Excellence

• Started in August 2003 at Lote extended to
  Jainpur Chennai in 2004 to set in process of
  continual improvement in
• Manufacturing standards
• Employee involvement
• Skill sets of employees
• Using Tools like Six Sigma TPM
• Resulting into reduction in Factory level losses
• 6000 New ideas implemented
• OEE (Overall Equipment Efficiency) introduced to
  measure asset utilization led to
• Reduction in breakdowns by 25
• Improvement in OEE by 33

12
Manufacturing Capacity
13
Awards Recognitions
14
Financials
15
Highlights

• Turnover of over Rs1069Cr., up by 16
• PBT at Rs. 137Cr., up by 55
• Net Profit at Rs. 92Cr, through improved
  performance in all businesses (59)
• EBIDT of 14.9, up by 42
• EPS high at Rs36.05, up by 59 (Effective
  increase after Bonus)
• Market Cap of Rs.1350, almost doubled
• Dividend rate 115

16
Profit Loss Account- GNP
(Figures in Rs. Crores)
17
PBDIT/ PBT/PAT ()
18
ROCE/ RONW ()
19
Working Capital Turnover
No of times
20
Improving Operational Efficiencies ( Stock/
Debtors)
(No. of Days)
21
Market Cap
(Fig. In Rs. Crores)
22
Demonstrated Impressive Position(Creating Value
for Stakeholders)
Technologically superior coatings Service Value
Engineering
Customers
Employees
Individual Development- DC/ Trg. Creating a
positive climate
Shareholders
Following standards of CG Consistent returns
Society
CSR activities in select areas CSR Environment
Reports
Suppliers
Joint development/ Research Reliability Program
23
Road Ahead
24
Road Ahead

• En cash on housing growth
• Retain leadership in Industrial PC
• Enhance Brand visibility
• Reach to Media
• Reach to Analysts
• Reach to customers

25
Growth Drivers

• New Products in Architectural coatings
• Wood finishes business
• Alternate channel for rural marketing
• Brand building
• Influencers management Demand generation
  activities
• Increase Service Efforts in Industrial business
• Technology leadership
• Ride on ancillary export business
• New lines
• Powder coating business in white goods industry

26
Concerns

• Volatile Growth pattern of Automobile business
• Rising pressures on pricing from Industrial
  customers
• Rising Raw Material prices
• Inflation affecting interest rates

27
Outlook

• Industry growth of 10-11
• Inflationary trends in raw material prices (R/M)

28
Thank You
29
Raw Material Trends