Sheela Foam Limited has informed the Exchange about Investor Presentation
To
10th August, 2023
The BSE Limited The National Stock Exchange India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Bandra Kurla Complex Dalal Street, Mumbai-400001 Bandra(E), Mumbai-400051 Scrip Code: 540203 NSE Symbol: SFL
Subject: Corporate Presentation for the Investor Meet to be held from 16th August to 18th August, 2023
Dear Sir/Madam,
Furtherance to our intimation for investor meet dated 10th August, 2023. Please find enclosed the Corporate Presentation.
Thanking you,
Yours truly, For Sheela Foam Limited
Company Secretary & Compliance Officer
SHEELA FOAM LTD.
#14, Sleepwell Tower , Sector 135, Noida- 201301 Ph: Int-91(0)-120-4162200 • Fax: Int-91-(0)-120-4162282, 4162283 • Email: contactus@sheelafoam.com
Regd. Office: 604 Ashadeep, 9 Hailey Road, New Delhi-110001, India • Ph: Int-91(0)-11-22026875-76 Toll Free: 1800 103 6664 • www.sleepwellproducts.com • www.sheelafoam.com CIN-L74899DL1971PLC005679
Corporate Presentation
August 2023
STRICTLY PRIVATE AND CONFIDENTIAL
Disclaimer
No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Neither the Company nor any of its directors, affiliates, advisers or representatives accepts any liability whatsoever for any actual or consequential loss or damages howsoever arising from the provision or use of any information contained in this Presentation. By attending this presentation, you agree to be bound by these restrictions. Any failure to comply with these restrictions may constitute a violation of applicable laws. No money, securities or other consideration is being solicited, and, if sent in response to this presentation or the information contained herein, will not be accepted.
Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management Sheela Foam Limited (“Company” or “Sheela Foam Ltd.”), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment.
Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments.
The information set out herein is provided only as at the date of this Presentation (unless stated otherwise), its accuracy is not guaranteed, and it may be subject to updating, completion, revision, verification and amendment without notice and such information may change materially. This Presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. This presentation does not comply with the disclosure requirements prescribed by the SEBI or any other applicable authority in relation to a public issue of securities on the Indian stock exchanges. It should be understood that subsequent developments may affect the information contained in this Presentation, which neither the Company nor its advisors or representatives are under an obligation to update, revise or affirm. This document is a summary only and it is not the intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the financial or trading position or prospects of the Company. This Presentation has not been and will not be reviewed or approved by any statutory or regulatory authority in India or any stock exchange in India or any other jurisdiction. You should conduct such independent investigations and analysis of the Company as you deem necessary or appropriate in order to make an independent determination of the suitability, merits and consequences of investments in the Company.
This Presentation does not constitute or form part of any offer to purchase, a solicitation of an offer to purchase, an offer to sell or an invitation or solicitation of an offer to sell, issue or subscribe for, securities in or into the United States or in any other jurisdiction. None of the Company’s securities may be offered or sold in or into the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements under the United States Securities Act of 1933, as amended, and any applicable state or local securities laws of the United States.
The information contained in this Presentation is not to be taken as any recommendation made by the Company or any other person to enter into any agreement with regard to any investment. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, the accuracy, completeness or correctness of any information, including any forward-looking statements, estimates, targets and opinions contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein. You will be solely responsible for your own assessment of the market and the market position of the Company and you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company. It should be understood that subsequent developments may affect information contained in this Presentation, which neither the Company, nor its affiliates, advisors or representatives are under an obligation to confirm.
Neither the delivery of this Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date.
This Presentation is based on information regarding the Company and the economic, regulatory, market and other conditions as in effect on the date hereof. Subsequent developments may affect the information contained in this Presentation, which neither the Company nor any of their Representatives are under an obligation to update, revise or affirm. This Presentation and its contents are confidential and may not be taken away, copied, published, disseminated, or reproduced or redistributed or passed on directly or indirectly to any other person, whether within or outside your organization or firm, or published in whole or in part, for any purpose by recipients directly or indirectly to any other person. This document is a Presentation and is not and should not be construed as an offer letter, offering circular, offering document, draft red herring prospectus, red herring prospectus, invitation, advertisement or prospectus as defined under the Indian Companies Act, 2013 as amended and the SEBI ICDR Regulations, as amended or any other applicable law in India.
Further, it is clarified that this Presentation and any oral information provided in connection with it is not intended to be an advertisement and does not constitute or form part of, and should not be construed as, directly or indirectly, an offer or invitation or recommendation or solicitation of an offer to subscribe for or purchase any securities of the Company and nothing contained herein shall form the basis of any contract or commitment whatsoever.
This Presentation includes certain external industry data and projections that have been obtained from industry publications, surveys and forecasts. Accordingly, the Company and its respective affiliates, advisers and representatives make no representation as to the accuracy or completeness of that data, and none of them shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. This data involves risks and uncertainties and is subject to change based on various factors. No representation or claim is made that the results contained in this Presentation will actually be achieved. All industry data contained in this Presentation is based on data obtained from the sources cited and involve significant elements of subjective judgment and analysis, which may or may not be correct.
1
Company Overview
Legacy of Delivering Comfort
Leading Mattress Brand3
2 # of Countries with International Operations
~19% Market Share in Branded Modern Mattress Market
~INR112 Bn1 Market Cap
INR28,733 Mn / INR6,451 Mn FY23 / Q1FY24 Revenue
42 # of Key Acquisitions
INR2,031 Mn / INR433 Mn (~7%) / (~7%) FY23 / Q1FY24 PAT
INR2,973 Mn / INR777 Mn (~10%) / (~12%) FY23 / Q1FY24 EBITDA
Note: 1. As of 10th August, 2023; 2. Proposed acquisition of Kurlon and Furlenco expected to be completed by November 30, 2023 and August 31, 2023 respectively; 3. As per the Industry Report.
2
Evolution Driven by Strong Organic and Inorganic Growth, Coupled with Driving Penetration
Founded by Chairperson Emeritus Mrs. Sheela Gautam
Acquired Joyce, Australia1
IPO Listing
Increased focus on high growth future businesses - Economy
mattresses - E-commerce
‘A Mattress for Every Indian’ - Upcoming plant in Jabalpur
1971
1994
2005
2016
2019
2021
2023
Upcoming
Flagship brand ‘Sleepwell’ launched
Acquired Interplasp S.L. in Spain
Acquisition2 of Kurlon Enterprises to solidify position
Acquisition2 of stake in Furlenco to enter furniture business
New Business / Capital Expenditure
M&A
Ownership
Transformational transaction Making Sheela Foam #1 player
Sources: Company Information Note: 1. Polyurethane and polystyrene business; 2. Proposed acquisition of Kurlon and Furlenco expected to be completed by November 30, 2023 and August 31, 2023 respectively.
3
Integrated Approach Bringing in Economies of Scale
Technical experts bringing in economies of scale through multi-industry applications for products
Home Comfort (~74% of Revenue)
Technical Foam (~26% of Revenue)
Mattresses
Comfort Foam and Home Care Products
Furniture Foam
41%
21%
12%
26%
Note: Data has been mentioned for Sheela Foam (Consolidated) for FY23. Kurlon brands are proposed to be acquired, upon closing of the Kurlon acquisition expected by November 30, 2023.
4
Our Combined & Enduring Strengths
Our Combined and Enduring Strengths
Market leader with strong brands
Leader in domestic branded modern mattress market1
Optimal manufacturing footprint in India 11 facilities of Sheela Foam3 & 10 facilities of Kurlon4 across India
Extensive pan-India sales and distribution 6,100+ EBOs and 12,000+ MBOs2,4
Replicating India success internationally
Robust global B2B business
Inorganic track record
Potential to unlock synergies from ongoing acquisitions
Talent and culture
Visionary leadership supported by an experienced management
Note: 1. As per the Industry Report; 2. Includes 5,600+ EBOs and 7,500+ MBOs for Sheela Foam and 500+ EBOs and 4,500+ MBOs for Kurlon. Data as of Mar 31, 2023; 3. Excludes the Jabalpur facility, which is yet to be commissioned; 4. Kurlon distribution network and manufacturing facilities are proposed to be acquired upon closing of the Kurlon acquisition expected by November 30, 2023.
5
Well-positioned to Capture Growth in Mattress Segment By Being Across the Pyramid
Indian mattress market is expected to demonstrate strong growth owing to consumer driven factors such as increasing population, rising urbanization and increase in disposable income
Sizable Branded Play with Significant Growth Potential Through Transition from Unbranded to Branded
Sizable Branded Play in Modern Mattress Market
Trend of Transition to Branded
Driven by Growth Drivers
INRbn
CAGR: 14%
96
INR74bn1 Unbranded Modern Mattress Market
Branded
Unbranded
CAGR: 12%
49
28
FY18
FY23
FY28P
65%
35%
FY18
60%
40%
55%
45%
FY23
FY28P
Increasing Population, Urbanization & Nuclearization
Increasing Purchasing Power of People
Increasing Health Consciousness among Consumers
Growth in Housing Infrastructure
Key to have Presence Across Price Points, Mattress Types and Channels to Address the Entire Market
Modern Mattress Market by Price Segment (FY23)
Modern Mattress Market by Type (FY23)
Modern Mattress Market by Channel (FY23)
Mid to Premium (INR8-20K) 54%
Economy (<INR8K) 25%
Premium (INR20-50K) 18%
Luxury (>INR50K) 3%
Spring 22%
Rubberized Coir 28%
General Trade 71%
PU Foam 50%
E-commerce 1%
Modern Trade 8%
Institutional 20%
Source: Industry report. Note: 1. For FY23.
6
Leading Brands with Market Leadership
Market Leader in the Branded Modern Mattress Market in India
38-44%
#1 Player with ~29% share in the domestic branded modern mattress market
12-14%
9-11%
5-7%
29%
11%
19%
Sleepwell + Kurlon
Competitor A
Competitor B
Competitor C
Others
With A Strong Position Across All Regions – Significant Brand Recall
<5%
5-15%
15-30%
>30%
North
West
South
East
Source: Industry report. Market share numbers are pertaining to FY23. Note: Proposed acquisition of Kurlon expected to be completed by November 30, 2023.
7
Backed by Continuous Innovation
Focus leading to a track record of quality & consistent innovation
Track record of innovative manufacturing backed by technology Track record of innovative manufacturing backed by technology
Track Record of Innovation
RFID Chips
Helping check counterfeits
“Zero Turn” Technology
Ensures mattresses don’t require periodic turning to avoid sagging
Comfort Cell
New technology to raise the comfort quotient for the consumer
SANtech Technology
Maintains improved air-flow, enhancing firmness and durability of the material
Memory Foam
Reduces stress and ensures correct posture
VPF Technology
Improves efficiency of foam production – Mattress for every Indian
Neem Fresche
Technology providing protection against various allergies
Ability to innovate on the back of leadership position – natural boost post proposed acquisition of Kurlon
8
Extensive Pan-India Sales and Distribution
Complimentary distribution network of EBOs and MBOs to further expand presence for both brands
Exclusive Brand Outlets1
Multi-Brand Outlets1
Bolsters Customer Connect
Larger Universe of Outlets
Ease in Premiumization
Faster Feedback Loop
Drives Access
Expansion in Tier II / III Towns
5,600+
500+
2
7,500+
4,500+
2
Large Sized Stores
Medium Sized Stores
Small Sized Stores
■ Focused expansion in MBO channel to go deeper
■ Long term associations with distributors
Sleepwell World
Sleepwell Gallery
Sleepwell Shoppes
■ IT-enabled distribution network to reduce TAT
427
1,067
1,114
■ Continuous engagement with 150+ sales personnel
Multi-format approach to ensure maximum coverage
No. of Outlets
Note: Data as of Mar 31, 2023; 1. As per the Industry Report; 2. Kurlon distribution network proposed to be acquired upon closing of the Kurlon acquisition expected by November 30, 2023.
9
Optimal Manufacturing Footprint in India
Pan-India coverage through 21 facilities to be closer to the end markets
SFL: 113 Kurlon: 104 Manufacturing Plants
SFL: ~129k MTPA Kurlon: ~17k MTPA Total Capacity1
Complementary Network No City Overlap in Manufacturing Facilities
Rajpura Greater Noida
Sahibabad
Kala Amb
Roorkee
Surajpur
Sikkim
Jhagadia
Gwalior
Jabalpur
Kolkata
Erode
White space realization
Sheela Foam
Kurlon
‘A Mattress for Every Indian’
◼ Setting up an integrated manufacturing plant at Jabalpur to cater the traditional market
◼ Access to latest technology such as Variable Pressure Foaming (“VPF”) that reduces cost
◼ Targeting cotton / EPE foam mattress
users (traditional market)
– ~64% of the Indian mattress market is attributable to cotton mattresses2
– Durability and affordability for rural /
semi urban markets
– Increasing penetration by shifting from
◼ Manufacturing plant at Jabalpur – centrally
located and well connected to the distribution network
– Plant spread across ~11.7 hectares
of land
– Capex incurred – c.INR1bn5
– Plant proposed to be commissioned in a
few months
Silvassa
Talwada
Opportunity for capacity optimization
Bangalore
Hyderabad
Bhubaneshwar
traditional to modern market
Note: 1. Capacity refers to Foam Production Capacity; 2. As per the Industry Report; 3. Excludes the Jabalpur facility, which is yet to be commissioned; 4. Kurlon manufacturing facilities are proposed to be acquired upon closing of the Kurlon acquisition expected by November 30, 2023; 5. As of Mar 31, 2023.
10
Transformational Transaction #1 Player in Domestic Market
Acquisition of Kurlon, once completed, is expected to strengthen Sheela Foam’s leadership position
Combined Business
Market Share (FY23)
~19% (#1 player in India)
~11% (#3 player in India)
~29%
(>2x of #2 player)
Geographic Presence
Distribution Network
Brand Strength
Manufacturing Footprint
Strong in North and West
Strong in East and South
Strong positioning across regions
EBO focused
MBO focused
Presence across channels
Mass and premium positioning focused on PU Foam mattresses
Mass and premium positioning focused on rubberised coir mattresses
Full suite of products and brands
11 facilities1
10 facilities
Enhanced manufacturing footprint
Source: Industry Report. Note: 1. Excludes the Jabalpur facility, which is yet to be commissioned.
11
Sheela Foam Can Unlock Significant Synergies Kurlon: 3rd Largest Organized Player in the Modern Mattress Segment
Company Overview
Continue to Strengthen Customer Connect – Brand Heritage
◼ Founded in 1962, Kurlon manufactures various foam-based
home comfort products
– “Sit and Sleep” solutions such as Mattresses, Furniture
Cushions, Pillows and Coverings
◼ 3rd largest mattress player (~11% market share in branded modern mattress segment) in India with 10 manufacturing
plants across the country
◼ Has a presence across mass and premium segments,
focused on rubberized coir mattresses
◼ Flagship brands include Kurl-on, Home Komforts, Komfort
Universe and premium brands such as Spring Air
Strengthening presence in South & East1
◼ Combined entity is expected to have a strong position across all regions
38%
North
18%
West
32%
South
29%
East
Sheela Foam + Kurlon
Others
Driving Access – Higher MBO Salience3
◼ Leveraging Kurlon’s dominance in MBOs will provide better
access to Sheela Foam’s products
MBO: 7,500+ EBO: 5,600+
MBO: 4,500+ EBO: 500+
Transaction Overview
Democratization – Complementary Product Strengths
◼ Acquiring 94.66% stake in Kurlon Enterprises Limited
◼ Boost to Sheela Foam’s presence in the rubberized coir product segment, acting as starting
◼ Equity valuation of INR2,150cr2
point of migration from unorganized to organized market
◼ Acquisition would be through a cash consideration funded by
a mix of internal accruals, debt and equity
◼ Expected to be completed by 30th November 2023
Operational Synergies – Complimentary Manufacturing Footprint
◼ Economies of scale will create potential opportunities to reduce raw material spends
◼ Optimized manufacturing footprint could potentially lead to improvement in capacity utilization
and reduction in logistics costs
Source: Company Information, Industry Report. Note: 1. Chart pertains to region wise market share for the branded modern mattress market in India; 2. Subject to closing adjustments; 3. Data as of Mar 31, 2023.
12
Sheela Foam Can Unlock Significant Synergies Furlenco: Expansion into the Large Furniture Market in India
Company Overview
Significantly Larger Addressable Market
◼ Incorporated in 2012, House of Kieraya (“Furlenco”) is a
furniture rental company offering wide range of furniture
products and services
◼ Unique tech-driven business model with end-to-end
implementation of digital capabilities
◼ Serves customers through warehouse cum refurbishment
facilities across Tier I and Tier II cities
◼ FY23 Revenue: INR1,547mn
◼ FY23 Revenue Split: Rental (95%), Selling (5%)
Mattress Industry
~INR341bn
~4.4x
Furniture Industry
INR1,500bn+
Further Forward Integration – Full Portfolio Company with Addition of Furniture
e g a s U
U P
f o
m a o F
Market Leader in Mattresses
Strong Presence in Technical Foam
Expanding Presence in Furniture through Furlenco
E-commerce Capabilities
◼ Currently 8% of total sales volume of Sheela Foam is attributable to online channels
◼ Furlenco adds significant capability to Sheela Foam’s e-commerce presence
Transaction Overview
Cross-sell Opportunities
◼ Sheela Foam is acquiring a 35% stake in Furlenco
offerings or providing exclusive discounts
◼ Ability to cross sell mattresses and bedding products on Furlenco’s platform by bundling their
◼ Furlenco valued at INR857cr1 with the effective cost of
acquisition being INR300cr1
◼ Both the companies can expand on the existing referral programs and create a partnership that
can be mutually beneficial in expanding their customer base
◼ Funding would be done through cash consideration through
Operational Synergies
subscription of shares in Furlenco
◼ Transaction is expected to be completed by 31st August 2023
robust pan-India logistics network
◼ Furlenco intends to reduce their logistical and warehousing costs leveraging Sheela Foam’s
Source: Company Information, Industry Report. Note: 1. Subject to closing adjustments.
13
Replicating India Success Internationally
Robust global B2B business developed on the back of strong technical capabilities
Australia (15% of FY23 Revenue)
Spain (14% of FY23 Revenue)
Perth
Australia
Adelaide
Melbourne
Sydney
Canberra
Spain
Yecla
~40% Market Share2
10k MTPA Capacity1
16k MTPA Capacity1
Bed in a Box To Target USA
Significant Benefit to Group from the International Operations
VPF Technology Global technology being brought to India
Market Access Access to large markets in the West
Note: 1. Capacity refers to Foam Production Capacity; 2. As per the Industry Report.
Insights into global trends in mattress market
14
Talent and Culture
Experienced management team resulting in high corporate governance standards
Visionary leadership team…
Rahul Gautam, Chairman and Managing Director ◼ Associated with Sheela Foam since 1971 ◼ 40+ years of experience in home comfort products & PU foam
industry
◼ Serves as the Chairman of the Indian Polyurethane Association
Tushaar Gautam, Whole-Time Director ◼ Heads the R&D division for Sheela Foam ◼ 20+ years of experience in heading production & R&D ◼ Education from Purdue University, USA
…with a highly experienced management…
Nilesh Mazumdar, Chief Executive Officer – India Business ◼ 25+ years of experience in sales, marketing & brand management ◼ Previously served as Chief Business Officer at Pidilite ◼ MBA from University of Pune
Amit Kumar Gupta, Group CFO ◼ 25+ years of experience in corporate finance domain ◼ Previously served as Vice President – Treasury & FPA at
Samvardhana Motherson
◼ PGDBA Finance from SGRR Institute of Technology & Science
Kevin Graham, Chief Operating Officer – Joyce ◼ Has significant industry experience ◼ Has been associated with Sheela Foam Group since 2011
Alejandro Palao Serrano, Chief Executive Officer – Interplasp ◼ Has significant industry experience ◼ Has been associated with Interplasp since 2011
…backed by a strong culture
Received the 'Great Place To Work' certification for the 4th time in a row
Commitment to build a workplace culture that focuses on high standards of employee engagement, happiness & trust
Source: Company Information
15
Strategic Priorities to Drive Future Growth
Strategic Priorities to Drive Future Growth
Being Closer to Customers
Capturing the Entire Market
Driving Penetration
Expanding in Complementary Categories
16
Strategic Priorities to Drive Future Growth Being Closer to Customers
Focus on customer experience through a conscious investment on brand building and expanding network
Continuous Investments in Brand Building…
…Backed by an Expanding Brand Presence
Innovative campaigns to increase brand recall amongst customers
Expanding the EBO and MBO network to be accessible to customers
694
3.2%
FY20
522
2.1%
FY21
704
745
2.5%
2.6%
FY22
FY23
Ad Exp (INRmn)
Ad Exp / Revenue (%)
1 s O B E
1 s O B M
5,600+
500+
7,500+
4,500+
Large Sized Stores
Medium Sized Stores
Small Sized Stores
Note: 1. Data as of Mar 31, 2023. Kurlon distribution network is proposed to be acquired upon closing of the Kurlon acquisition expected by November 30, 2023.
No. of Outlets
17
Sleepwell World
Sleepwell Gallery
Sleepwell Shoppes
427
1,067
1,114
Multi-format approach to ensure maximum coverage
Strategic Priorities to Drive Future Growth Capturing the Entire Market
Capturing the addressable market by presence across products, price points and distribution channels
Products
Price
Distribution1
5,600+ for SFL & 500+ for Kurlon
7,500+ for SFL & 4,500+ for Kurlon
Note: 1. Data as of Mar 31, 2023. Kurlon distribution network is proposed to be acquired upon closing of the Kurlon acquisition expected by November 30, 2023.
18
Strategic Priorities to Drive Future Growth Driving Penetration by Democratization
Increasing penetration through acquired brands and channel expansion, supplemented by organic expansion
Technology Initiatives
■ New plant in Jabalpur to allow cheaper
production of foam mattresses using Variable Pressure Foaming technology
■ Targeting to strengthen position in Tier III and
beyond using this technology
Capex: c.INR1bn1 Plant proposed to be commissioned in a few months
Penetration
Distribution Expansion
■ Expanding the MBO network and further
penetrating Tier II and Tier III cities
■ Maintaining continuous engagement through
150+ sales personnel
Access to Kurlon’s 4,500+ MBOs
Own & Acquired Brands
■ Sheela Foam forayed in mass segment
through the launch of Starlite
■ In the process of acquiring a strong rubberised
coir focused product portfolio through KEL
Note: 1. Capex incurred as of Mar 31, 2023.
19
Strategic Priorities to Drive Future Growth Continuing to Expand in Complimentary Categories
Driving growth by continuing to expand in newer complimentary categories on the back of core technical strengths
Continuously Expanding in Complimentary Categories
New leg of growth
Furlenco Investment1
Benefits from Scale
New B2C Categories – Home Care & Comfort Foam
Expanded to Europe
Expanded to International Markets Inorganically
Entered B2C Mattress Business
Leadership in B2C Mattresses
Leadership in B2C Mattresses
Technical Expertise in PU Foam
Strong Position in B2B Business
Strong Position in B2B Business
Strong Position in B2B Business
Expansion in Home Care & Comfort Foam
Enhanced Capacity of International Business
Consolidation through Kurlon Acquisition1
Manufacturing Products as per Indian Railways requirements
Increasing TAM
Going Deeper Across India
Multiple Touch Points with Customers
1980s
1990s
2000s
2010s
2023
Note: 1. Proposed acquisition of Kurlon and Furlenco expected to be completed by November 30, 2023 and August 31, 2023 respectively.
20
Financial Track Record
Consistent Financial Track Record
Proven growth and profitability metrics
Revenue
INRmn
Gross Margin
40%
41%
46%
41%
32%
35%
36%
19,653
21,414
21,736
28,656
28,733
24,372
7,904
8,789
9,984
9,987
9,263
10,188
6,451
2,306
FY18
FY19
FY20
FY21
FY22
FY23
Q1FY24
FY18
FY19
FY20
FY21
FY22
FY23
Q1FY24
Gross Profit (INRmn)
Margin (%)
EBITDA Margin
PAT Margin
11%
10%
14%
15%
11%
10%
12%
7%
6%
9%
10%
8%
7%
7%
3,642
3,004
3,149
2,973
2,163
2,110
2,402
1,943
2,187
2,031
1,337
1,337
777
433
FY18
FY19
FY20
FY21
FY22
FY23
Q1FY24
FY18
FY19
FY20
FY21
FY22
FY23
Q1FY24
Source: Company Information. Note: 1. FY20 onwards financials include the impact of Ind AS 116 adoption; 2. FY22 financials have been reclassified for impact of Ind AS 115.
21
EBITDA (INRmn)
Margin (%)
PAT (INRmn)
Margin (%)
Consistent Financial Track Record
Superior cash flow generation backed by lower capex and working capital requirements
Cash Flow from Operations
INRmn
Capex
INRmn
1,337
1,379
1,573
2,539
1,971
2,120
1,555
1,429
2,099
819
521
633
FY18
FY19
FY20
FY21
FY22
FY23
FY18
FY19
FY20
FY21
FY22
FY23
Working Capital Days
Net Working Capital
47
49
37
40
36
30
42
33
31
24
24
41
35
34
40
2,447
2,324
2,630
3,161
1,263
1,374
38
29
26
32
27
19
32
24
16
FY18
FY19
FY20
FY21
FY22
FY23
FY18
FY19
FY20
FY21
FY22
FY23
Inventory Days
Receivable Days
Payable Days
Net Working Capital (INRmn)
Days (#)
Source: Company Information. Note: Inventory, Receivable and Payable days have been calculated on Revenue from Operations. Receivable days are net of Customer advances.
22
Appendix
27
Group Structure
Sheela Foam
100%
~94%
100%
~95%
35%
Joyce Foam (Australia)
Interplasp (Spain)
Staqo
Kurlon
Furlenco
Acquisition in Progress
23
Raw Material Prices
Key raw material prices have declined during FY23
TDI Price Trend (INR/KG)
251
300
200
100
0
177
205
134
267
248
243
231
FY23 Trends
2019
2020
2021
2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Polyol Price Trend (INR/KG)
128
115
131
119
130
171
197
174
FY23 Trends
300
200
100
0
2019
2020
2021
2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Source: Industry Report.
24
25