Welspun India Limited has informed the Exchange about Investor Presentation
WIL/SEC/2022
October 01, 2022
Bombay Stock Exchange Limited Department of Corporate Services, SP. J. Towers, Dalal Street, Mumbai – 400 001 (Scrip Code-514162)
National Stock Exchange of India Limited ListingCompliance Department Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Mumbai – 400 051 (Symbol: WELSPUNIND)
Dear Sirs/ Madam,
Ref: Our letter no. WIL/SEC/2022 dated September 30, 2022 regarding intimation of schedule of Analyst / Institutional Investor Meetings under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Subject: Investor Presentation.
In continuation to our letter no. WIL/SEC/2022 dated September 30, 2022 intimating about schedule of Analyst / Institutional Investor Meetings at our manufacturing facility in Welspun City, Anjar, please find attached herewith the investor presentation which the Company at www.welspunindia.com.
is being simultaneously hosted on
the website of
Please take the same on record.
Thank you,
For Welspun India Limited
Shashikant Thorat Company Secretary ICSI Membership No. : FCS-6505
Enclosed: Investor Presentation as mentioned above
कल आज कल
Investor Presentation W e l s p u n I n d i a L i m i t e d
H o m e T e x t i l e | A d v a n c e T e x t i l e | F l o o r i n g
1st October 2022, Anjar
NSE: WELSPUNIND Bloomberg: WLSI:IN Reuters: WLSP.NS
welspunind ia. com
Management Team
Rajesh Mandawewala MD; MEMBER OF BOARD
Qualified Chartered Accountant; Played an instrumental role in establishing Welspun’s Textile & Pipe business
Leading new strategic initiatives
of the Group
Keyur Parekh Global Head (HOME TEXTILE)
18+ years of experience in Sales, Marketing and New Business Development in International markets
Instrumental in forging Strategic partnership with Top Retailers & Hotel chains across the globe
Rajesh Srivastava President & CHRO
26+ years of experience in diverse
sectors and roles.
Worked with Aditya Birla Group. He
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has worked with Group HR of, UltraTech Cement, Birla Sun Life Insurance, Birla Sun Life Mutual Fund, and AB Money & Capital Foods
Dipali Goenka CEO & JT. MD; MEMBER OF BOARD Driving force behind Welspun’s
global leadership in home textile with focus on Innovation, Brands & ESG
Graduate in Psychology &
completed Management Program from Harvard
Manjari Upadhye CEO (Domestic Business) 20+ of rich experience & expertise in Strategic Portfolio management, Consumer Insights, Advertising and Innovation domains.
Experience in FMCG sector with leading international marquee brands like Colgate, PepsiCo, Mondelez etc.
Ravi Panicker HEAD (CHRISTY)
26+ yrs. experience in Retail Sales,
Ecommerce & Category
Previously worked with Raymond, Bombay Dyeing among others
Sanjay Gupta President (Finance ) and CFO
29+ years of experience in corporate finance, accounts, strategy and M&A Worked with organizations like Tata Tesco JV, Bata, Glenmark Pharma, Roche, etc.
Mukesh Savlani CEO (FLOORING -EXPORTS) Home-grown CEO with 17+
years experience in various roles at Welspun; Engineering graduate
Leadership Program from
Harvard
Cherian Thomas CEO (ADVANCED TEXTILES) 24+ years of experience across diverse functions & global functional expertise
Worked with Essel Propack, ITW
Signode, Packaging India Private India Limited, Amcor Flexibl
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Welspun “ ”कल
1993
2000
2010
2022
•
•
Terry towel facility set up at Vapi
Partnership with Global Retailers
•
•
Setting up of Welspun city Anjar
Integrated Home textile manufacturer
•
•
Thought leader in home with consumer as bedrock
Farm to Shelf traceability with Weltrak
•
•
End-to-end solution provider Home solutions provider
ESG leader in Home Textiles
• Acquisition of Christy
• Domestic foray – Spaces &
• Digital & Ecommerce
Welspun
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Welspun “ ”आज
Delighting customers through Innovation & technology; achieving inclusive & sustainable growth to remain eminent in all our businesses
FARM TO SHELF
THOUGHT LEADER
ESG CHAMPIONSHIP
Capabilities, Vertically integrated facilities, DC’s in US, UK, EU
Capabilities, Vertically integrated facilities, Distribution Centers
GIGAGURU, ESG roadmap, DJSI listed, Woman owned business
CATEGORY CAPTAINCY 1 in 5 Towels & 1 in 9 Sheets sold in US Complete Flooring solution
OMNI CHANNEL & CONSUMER FIRST
Content to Commerce, Diversified brand portfolio
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Welspun 360 solution for customers “ ”
आज
Welspun 2.0 - capturing new market opportunities and catering to ever-changing customer demand in an agile and responsible manner
CARBON NEUTRALITY
BRAINTRUST
CIRCULARIT Y
WELSPOTTED
FRESH WATER POSITIVE
ESG (Environmental, Social, Governance)
Design & Product Innovation
WHITE SPACE ASSESSMENT
PIM-PUSH
Omnichannel Marketing support
CHANNEL ADVISOR
WELTRAK BLOCKCHAIN
Integrated Manufacturing
AI / IOT
DIGITAL MARKETING
DEMAND FORECASTING
SCM & Analytics
GC3 CONTROL TOWER
AUTOMATION
DISTRIBUTION CENTRES
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Buoyant Domestic Market Opportunity
World’s 5th largest economy is backed by strong fundamentals and improving broad base factors like – Tax collections, Infrastructure growth,
shift towards digital (UPI payments), sectoral growth presents a huge domestic market opportunity
GDP Growth Rates
Inflation
8.7
6.8
6.1
5.2
7.4
3.6
3.2
2.5
6.1
3.9
2.9
1.4
10
8
6
4
2
0
2021
2022
2023
Global
Advanced
Emerging
India
'
1 2 t c O
'
1 2 v o N
'
1 2 c e D
'
2 2 n a J
'
2 2 b e F
'
2 2 r a M
'
2 2 r p A
'
2 2 y a M
'
2 2 n u J
US
India
8
6
4
2
0
'
2 2 g u A
UPI transactions
Avg / Month (Volume in bn)
Avg / Month (Value in Rs trn )
4
7.01
2
3.4
1
1.8
0
0.7
15
6
10.3
10
5
0
FY19
FY20
FY21
FY22
FY23
2 2
' l
u J
• GST led formalization of India Economy, $19
• 3X Increase in air passengers, 2X growth in
• Jan Dhan, Aadhar and Mobile leading to last
Bn collections in Aug’22
airports (from 2014)
mile financial inclusion
• GDP/capita at $2277, CAGR: 6% (from 2014)
• National Logistics Policy to bring logistics
cost from 14% to 8%-10%
• Changes in ITR to bring more people under
tax bracket
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• 40X rise in broadband connection over a
decade
• Strong Growth in home loan market; strong Home portfolio growth in Tier3/4 cities (13% cagr.)
• Strong growth in 2-wheeler sales
• 3x Bank accounts in last decade
• 10 Cr+ Demat Accounts in Aug’22
• Rapid scaleup of Physical infrastructure
improving access
6
Domestic Market Opportunity: multiple drivers for growth
HOME TEXTILE INDIA MARKET (Rs Cr)
12% CAGR
48,000 Total
NON-BRANDED
30,000 Total
NON-BRANDED
20-24K
BRANDED
5-6K
35-39K
BRANDED
8-9K
FY22 FY26
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FY26 FY24
18K – 20K Crs Addressable market size 1%
1% 5% 6% 9%
14%
Rugs
Kitchen
Upholstery
Comforters and Quilts
64%
Curtains
Towels
Bed
Welspun poised to grow at 3X of the market growth rate
Category expansion
Channel expansion
“Har Ghar Welspun” has a well-defined category expansion strategy
Expanding presence through TT/MT channels and Ecommerce
Industry Growth Drivers
Changing landscape
Evolving sector
Increase in Urban Population aided by higher disposable income
Shift towards organized retail; higher market in mass- premium, premium category
Consumers
Target age group: 25-45 yrs More discerning consumers with aspirations for brands
Category preference
High awareness and increased involvement toward home décor
Data Source: Research reports & Welspun internal analysis
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Welspun “ ” : Har Ghar Welspun
आज
FY22: Domestic business ~INR 423Cr. *
Distribution network • Towns: 500+ • Stores (MBO, EBO):
10,000+
• Channel Partners:
~180+
•
12+ large formats, across 500+ stores
Delhi
Jaipur
Ahmedabad
Surat
Mumbai
Pune
Hyderabad
Kolkata
* Includes Home textiles and Domestic Flooring
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Bangalore
Chennai
Retail footprint is representative
Highlights
#1 shop-in-shops brand
Top Brand
on Myntra (HT)
#1 distributed Brand of HT
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Welspun “ India opportunity
कल
” : Har Ghar Welspun – Unfolding the domestic
FY26: Domestic business ~INR 1700 Cr, 40% CAGR
Distribution network • Towns: 600+ • Stores (MBO, EBO):
50,000+
• Channel Partners:
~400+
•
15+ large formats, across 900+ stores
* Includes Home textiles and Domestic flooring
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Jammu
Ludiana
Delhi
Metro/ Tier 1: 8
Tier 2: ~100+
Tier 3: ~300
Metro/Tier 1: 1mn + Tier 2 1L-10L Tier 3: 50K-1L As per RBI classification
Ganganagar
Lucknow
Jhansi
Guwahati
Gaya
Jabalpur
Sambhalpur
Silchar
Kolkata
Brahamour
Particulars
FY22
FY24
FY26
Ahmedabad
Mumbai
Bhopal
Surat
Dhule
Pune
Hubii
Nellore
Vizag
Sales (INR Cr.)
EBITDA %
EBITDA (INR Cr.) ASP (INR/unit)#
Volume (mn)
Stores presence
Bangalore
Chennai
423
-14%
-60.8
361
13
5400
64
910
10%
92.8
441
21
1720
15%
259.7
529
30
25000
50000
51
39
CAGR (22- 26)
42%
>100%
10%
23%
74%
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Kochi
Cash Conversion Cycle (days)
Retail footprint is representative
# ASP for Home textiles business
Domestic - Diversified Product Portfolio
PRODUCT PORTFOLIO
BED LINEN
BATH LINEN
RUGS
B e d s h e e t s C o m f o r t e r s D o h a r s P i l l o w c o v e r s
T o w e l s B a t h m a t s B a t h r o b e s
D o o r m a t s Y o g a m a t s B e d s i d e r u n n e r G r a s s m a t s
CURTAINS & UPHOLSTERY
MATTRESSES
FLOORING SOLUTIONS
C u s h i o n c o v e r C u r t a i n s B l i n d s W a l l p a p e r
C l i c k & L o c k t i l e s C a r p e t T i l e s W 2 W c a r p e t s G r e e n s
Segmented product offering across all “sweet consumer price points”
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Brands powering profitable growth globally
FY26: Branded business ~INR 3200Cr. and 35% CAGR
आज
कल
Branded business presence in 3 continents
30 Owned, Licensed and Ingredient brands
4 Power Brands (>INR 100Crs)
Amongst Top selling program on Amazon (US)
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Multifold increase in retailer shelf space
11
Tapping the flooring opportunity
Building Capabilities to tap the global and domestic market
Highlights
Greenfield Fully Integrated facility spread over 600 acres
Annual Capacity 27 Mn Sq.Mt.
Warranty (5-15 YEAR) Only company to offer warranty in flooring industry
• Top-line : Business to grow by
~40% CAGR to reach INR 2500Crs by FY26
•
Innovation, key enabler for market differentiation
• Capacity utilisation: Expect full utilisation of annual installed capacity by FY26
• Operational breakeven achieved
India’s First company to create anti-viral flooring
India’s largest LEED certified production facility
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Emerging Business: Advanced Textiles Opportunity
Trademarks
Welspun is well positioned to leverage the underpenetrated consumption of technical textiles in India, still at 5-10% against 30-70% in advanced countries
FY26 expected to be upwards of Rs. 1000 Cr. at a CAGR of 35%
Spunlace
Needlepunch
Wet Wipes
Annual Capacity 27,729 MT.
Annual Capacity 3026 MT.
Annual Capacity 100 Mn packs
Certifications
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WAMIL commercialized; expected to break even within the year
Innovation – Staying ahead of the curve
25% Innovation contribution
To total sales
Market leader Highest patented technology in Home Textiles segment
DUPONT SORONA
INNOVATION
35 INDUSTRY
HIGHEST PATENTED TECHNOLOGIES
SEQUENTIAL SLEEP SYSTEM
Complete range of products for a superior sleep experience
DREAMTEC TM
Sustainable Blend of Cotton and Bio-based Polyester
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Patented traceability solution now on Blockchain
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Digitalization
Welspun aims to digitize all the existing processes and create a Digital Twin for better scenario analysis, keeping customer centricity at its core
Digital Enablers
SCM Control Tower
Real-time WH Utilization Monitoring
• Statistical Forecasting • Production and Dispatch Planning • WMS Integration • Automated P2P Process • AI/ML Based Forecasting / Demand Sensing
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Manufacturing Plant
Warehouse
Suppliers
Customers
Forecast Accuracy Tracking
15
Welspun – Changing landscape
13%
25%
3%
11%
FY22
FY26
FY22
FY26
FY26 expected to be upwards of Rs. 15000+ Cr at a CAGR of 26% (over FY23 expected)
Branded Business
Private Labels
Domestic Business
ROW
Branded business growth CAGR:35%
Domestic business growth CAGR:40%
3%
6%
22%
45%
FY22
FY26
FY22
FY26
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E-Com Share
Others
E-Com growth CAGR:33%
Emerging
Core
Emerging business growth CAGR:35%
Financials
Proven track record of consistent growth with strong Balance sheet
Revenues (INR Cr.)
9,377
6,132
6,608
6,836
7,408
EPS (INR)
3.83
2.09
5.05
5.37
6.06
FY 18
FY 19
FY 20
FY 21
FY 22
FY 18
FY 19
FY 20
FY 21
FY 22
ROCE %
11.3%
10.9%
12.3%
13.8%
13.4%
Net Debt (INR Cr.)
3,027
3,028
2,962
2,333
2,229
FY 18
FY 19
FY 20
FY 21
FY 22
FY 18
FY 19
FY 20
FY 21
FY 22
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कल आज
और
कल
Har Ghar Welspun
Disclaimer
The information contained in this presentation is provided by Welspun India Limited (the “Company”), although care has been taken to ensure that the information in this presentation is accurate, and that the opinions expressed are fair and reasonable, the information is subject to change without notice, its accuracy, fairness or completeness is not guaranteed and has not been independently verified and no express or implied warranty is made thereto. You must make your own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigation as you may consider necessary or appropriate for such purpose. Neither the Company nor any of its directors assume any responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information or opinions contained herein. Neither the Company nor any of its directors, officers, employees or affiliates nor any other person accepts any liability (in negligence, or otherwise) whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith.
The statements contained in this document speak only as at the date as of which they are made, and the Company expressly disclaims any obligation or undertaking to supplement, amend or disseminate any updates or revisions to any statements contained herein to reflect any change in events, conditions or circumstances on which any such statements are based. By preparing this presentation, none of the Company, its management, and their respective advisers undertakes any obligation to provide the recipient with access to any additional information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent. This document is for informational purposes and does not constitute or form part of a prospectus, a statement in lieu of a prospectus, an offering circular, offering memorandum, an advertisement, and should not be construed as an offer to sell or issue or the solicitation of an offer or an offer document to buy or acquire or sell securities of the Company or any of its subsidiaries or affiliates under the Companies Act, 2013, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, both as amended, or any applicable law in India or as an inducement to enter into investment activity. No part of this document should be considered as a recommendation that any investor should subscribe to or purchase securities of the Company or any of its subsidiaries or affiliates and should not form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This document is not financial, legal, tax, investment or other product advice.
This presentation contains statements of future expectations and other forward-looking statements which involve risks and uncertainties. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition, and future events and plans of the Company. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” or words of similar meaning. Such forward-looking statements are not guarantees of future performance and actual results, performances or events may differ from those in the forward-looking statements as a result of various factors and assumptions. You are cautioned not to place undue reliance on these forward looking statements, which are based on the current view of the management of the Company on future events. No assurance can be given that future events will occur, or that assumptions are correct. The Company does not assume any responsibility to amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise.
Any reference herein to "the Company" shall mean Welspun India Limited, together with its consolidated subsidiaries.
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