Greenlam Industries Limited

Saurabh Mittal

MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER, GREENLAM INDUSTRIES

Ashok Sharma

CHIEF FINANCIAL OFFICER – GREENLAM INDUSTRIES LIMITED

Saurabh Mittal

Managing Director and Chief Executive Officer, Mr. Ashok Sharma – Chief Financial

rs,

w do you define your core competitive advantage because you talk of tripling turnover in three years, what gives you the right to get there and the advantage to scale up over three years? Saurabh Mi

1,200 crore

ttal: We have talked about more than tripling the turnover on the basis of FY21 revenues which is 1,200 crores till FY27. So, like year we already added 550 crores into the turnover. So, if you ask me what g

550 crore

ver on the basis of FY21 revenues which is 1,200 crores till FY27. So, like year we already added 550 crores into the turnover. So, if you ask me what gives us the confidence I think the network which you

110%

came there were some delays. So, in laminates as we talk right now even like last quarter we were 110% utilization. So, on the laminate side for both domestic and export market I think we seated in th

5,000 crore

et who is focused and who is reliable in terms of quality production. Particle board is already a 5,000 crore markets so we do not need to go and create a market unlike several parts of our laminates busines

100 basis point

d is I looked at your 16 quarter numbers and so that EBITDA is structurally come out by couple of 100 basis points over this period. So, the profit pool is not expanded internally for you commensurate to revenue

3,700 crore

ou commensurate to revenue growth. What gives you the confidence to triple the revenues or 3,500, 3,700 crore revenues. You see a defined profit pool where you think you will be secure with and you will be c

40 crore

eenlam Industries Limited July 28,2022 Saurabh Mittal: It went from 12 to 10 or ballpark 38 to 40 crore EBITDA per quarter gone to 48 to 50 crore EBITDA up to 16 quarter that is the broad take. Manag

50 crore

Saurabh Mittal: It went from 12 to 10 or ballpark 38 to 40 crore EBITDA per quarter gone to 48 to 50 crore EBITDA up to 16 quarter that is the broad take. Management: So clearly if you see capacity of

28%

are not so significant player and the people who report numbers their EBITDA are in the range of 28%, 30% with the smaller production base with the lower capacity with the lower efficiency of machin

30%

not so significant player and the people who report numbers their EBITDA are in the range of 28%, 30% with the smaller production base with the lower capacity with the lower efficiency of machines. S

100%

e budgeted third year in all the three category will reach the fair amount of utilization near to 100% of utilization. So, for the laminate and plywood we have budgeted in the 26 because the productio

“Saurabh Mittal: We have talked about more than tripling the turnover on the basis of FY21 revenues which is 1,200 crores till FY27.”

“You see a defined profit pool where you think you will be secure with and you will be comfortable getting there.”

“So, in terms of ramp up we have budgeted third year in all the three category will reach the fair amount of utilization near to 100% of utilization.”

“So, for the laminate and plywood we have budgeted in the 26 because the production will start in Q4 and for the particle board we have budgeted in 27 and ROC laminates will have the same ROC what it is as present currently what we have and for particle board we will have in the range of around as of now we are budgeting based upon as sir said the 25% to 28% within that it will be in the range of 20% to 24% and for the plywood also it will be in this range only around 20%, 22%.”

“So, really I am not so sure when we enter the market where is the raw material cost, what is up with the sales prices, but as we see thing now with the Maths we have it probably will be in the banks 1% or 2% here or there depends on RM cost, ability to do value add which might take some time to reach a certain stage of value addition that is on the margin front.”

“I do not have that right away, but clearly Europe if you take Western, Eastern Europe it will be the largest market worldwide for actually all wood panel industry products.”

“Even for us if I were to combine UK, Eastern Europe, Western Europe will be a largest market now.”

“Because action I guess would be hitting the markets they are also I guess coming to the capital markets next year so I do not know whether raising money for the particle board I am not so aware of it?”

“But I do know they have a particle board plant, but the capacities are smaller like I said earlier and the machines they have are slightly their operating cost will be higher than the new wage continuous lines.”

“Because you just mentioned about we have good tailwinds with the exports, but how do you see that going ahead, is this bump in the quarter or do you expect Q2 exports to be better than the Q1?”

Saurabh Mittal

32

Abhishek Vora

8

Sneha

6

Jeetu Panjab

5

Arvind

4

Moderator

3

Keshav

3

Adhesh

3

Tanuj

2

Management

1

Jeetu Panjab

Sir three questions one how do you define your core competitive advantage because you talk of tripling turnover in three years, what gives you the right to get there and the advantage to scale up over three years? Saurabh Mittal: We have talked about more than tripling the turnover on the basis of FY21 revenues which is 1,200 crores till FY27. So, like year we already added 550 crores into the turnover. So, if you ask me what gives us the confidence I think the network which you created both in domestic and international market, gives us the confidence that we can get the materials to the market, with the credibility of high quality products, clean approach, solid relationship with channel partners, architects ID we think we can do that. In the laminate space clearly we are running short of capacity, we are actually running nearly one year behind in capacity creation, we had gone to some other state there were some challenges when COVID came there were some delays. So, in laminates as

Saurabh Mittal

It went from 12 to 10 or ballpark 38 to 40 crore EBITDA per quarter gone to 48 to 50 crore EBITDA up to 16 quarter that is the broad take.

Management

So clearly if you see capacity of laminates unfortunately has not grown over the last two odd years and we have been faced with significant raw material cost increases and market have already been seated in and we do not have enough capacity at the moment to go and sell. So, clearly as we move ahead I think more capacity will help us sell more and our fixed cost will not increase, cost will go up at the contribution level and RM cost have already started softening at least on the chemical side. So, I think as we scale revenues. We feel margins will also improve in value and percent where we see thing at the moment.

Jeetu Panjab

You feel comfortable about the new segments you are getting and you feel comfortable over the profit pool there as well?

Saurabh Mittal

So, let us put this way in particle board every other companies are not so significant player and the people who report numbers their EBITDA are in the range of 28%, 30% with the smaller production base with the lower capacity with the lower efficiency of machines. So, I think with the right efficiencies, with the right operating cost we believe that can be achieved.

Jeetu Panjab

And then last question we wish you well, but therefore whatever reason those targets do not get achieved where do you see the source of per potential risk to get to those numbers?