Supreme Industries Limited has informed the Exchange regarding Investor Presentation
Ref. No. SH/13/2019. 25th May, 2019
National Stock Exchange of India Ltd., Exchange Plaza, 5th floor, Plot No. C/1, G. Block, Bandra-Kurla Complex, Bandra (East), MUMBAI-
400051
~®
People
who know plastics best
Bombay Stock Exchange Ltd. Market-Operation Dept., 1st Floor, New Trading Ring, Rotunda Bldg., P.J. Towers, Dalal Street, Fort, MUMBAI 400023
Sub.
Corporate
Presentation-
May, 2019
Sirs,
Enclosed
please
find Corporate
Presentation
May-2019.
Please take the same on records.
Thanking you,
Your faithfully, For The Supreme Industries Ltd.
~
(R. J. Saboo) AVP (Corporate Affairs) & Company Secretary
Enc!. : ala.
The Supreme Industries Limited
Regd. Off.: 612, Raheja Chambers, Nariman Point, Mumbai-400 021.INDIA CIN : L35920MH1942PLC003554
PAN: AAACT1344F
+91 (022) 22820072, 22851656
+91 (022)22851657,30925825
sil_narimanpoint@supreme.co.in
.'5ff!t ~ I:BJ
Corp. Off. : 1161 & 1162, Solitaire Corporate Park, 167, Guru Hargovindji Marg, Andheri- Ghatkopar Link Road, Chakala, Andheri (East),Mumbai- 400093. INDIA '5ff!t +91 (022) 67710000,40430000
I:BJ sil_ho@supreme.co.in 0 www.suprerne.co.in
+91 (022) 67710099,40430099
~
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Flow of the Presentation
The Supreme Group
• • A Curtain Raiser - Supreme Industries Ltd. Supreme Industries Ltd.- At a Glance • • Shareholding Pattern • Business Verticals
o Comprehensive Portfolio of Value Added Product o Revenue Break Up Plastic Piping Division
•
• Consumer Products •
Packaging Products Division
• •
Industrial Products Plant Locations
o Virtual Tour of the Plants
Technical Collaborations Financial Highlights The Intangibles - Beyond Numbers
• • • • Addressing Risks The Way Forward • • Commitment • A Responsible Corporate Citizen Supreme Petrochem Limited • Safe Harbour Statement •
to Shareholders
~®
People
who know plastics best
2
The Supreme Group
Supreme Industries Ltd.:
~®
People
who know plastics best
• Engaged in processing of polymers and resins into finished
plastic
products
• 29.99 per cent stake in Supreme Petrochem Ltd.
• Supreme Industries Overseas (FZE) - A wholly owned subsidiary,
in the
United Arab Emirates.
• 20.67 percent stake in Joint Venture Company Kumi Supreme India Pvt.
Ltd.
Supreme Petrochem Ltd.:
• Manufactures
Polystyrene, Expanded Polystyrene
and food grade), Extruded Polystyrene Foam, Speciality Polymers Compounds & Masterbatches, Styrene Methyl Methacralate(SMMA}.
(normal
3
A Curtain Raiser - Supreme Industries
_ct..~®
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plastics best
VISION STATEMENT
{(TO GROW BUSINESSWITH DIGNITY & RESPECT"
CORE VALUES
•
INTEGRITY
• CUSTOMER'S DELIGHT
• CONTINUOUS IMPROVEMENTS & INNOVATIONS
• UNCOMPROMISING QUALITY
• EMPOWERMENT TO INDIVIDUALS
MISSIONSTATEMENT
• To conduct business with ethical practices and WALK OUR TALK
• To offer consistent
supported exceeding Customer Expectations
by continuous
products Services with uncompromising and Innovations,
improvements
quality thereby
• To ensure the
culture
individuals and be catalyst
respect of utmost in enhancing their competencies
and empowerment
to
4
Supreme Industries Ltd. at a Glance Plastics and related products
Industry
-~.~®
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plastics best
Business
Highlights
• One of
the largest plastic processor
in India, with a sale of
about 4 lakh MT annually
• Presence in the Indian plastic industry for over 53 years under
present management
• Diversified revenue model with a large product portfolio across 4
verticals.
• 25 plants situated across India with an asset base of over Rs. 2800 crores and more Plant envisaged along with several brown field expansion capex of about Rs. 300-350 Crores planned in 2019-20 .
.• Bank Loan Rating
Short Term Debt Programme Rating Capita Iisation
. : CRISILAA/Positive Outlook : CRISILA1 plus
Year
Rs. in Cr.
30-Jun-11
30-Jun-13
30- Jun-15
. 31- Mar-17
31- Mar-18
31- Mar-19
2299.19
4445.94
8577.49
13879.59
15116.20
14193.351
US$ in Million
469.22
808.35
1347.60
2138.28
2319.32
!
2052.401 ..-
Supreme Industries Ltd. at a Glance
®
- Manufacturing facilities spread acrossthe country.
=Dlverslfled product portfolio with established Brand Equity
-Significant Market Share in each of the verticals
-Strong Cash Flows to fund expansion plans and Reducing Debt Burden
- Pan India Distribution Network and Reach
- Consistent
increase in revenues from speciality and value added products
<Cost efficient
raw material procurement capability
- User of diverse plastics materials
-Jnvulnerable from import substitutes.
-Optimlsatlon
of value
- Buy Back of shares
- Higher ROCE
- Liberal dividend payout
6
Shareholding Pattern
_4L.~®
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plastics best
Shareholders
Nos.
Holding % as on 31st March, 2019
Promoters
Institutional
17
189
- Flls/ Foreign Portfolio Investors
126
- Fls / Mutual Funds
63
16.91%
12.22%
Bodies Corporate
614
Individual & Others
39448
49.70%
29.13%
2.86%
18.31%
Total
40268
100.00 %
7
Organisation & Management Team
..§..~®
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plastics best
Board of Directors B L Taparia, Chairman
M P Taparia, Managing Director
S J Taparia, Executive Director
VKTaparia, Executive Director B V Bhargava N N Khandwala Smt. Rashna Khan
Y P Trivedi
Management Team A K Tripathi, Exe. Vice President (Plastic Piping System) V L Malu, Exe. Vice President (Industrial Components) P C Somani, Chief Financial Officer A K Ghosh, Exe. Vice President (Protective Packaging) Pradeep Kamat, Vice President ( Composite Cylinders) Sanjeev Jain, Asso. Vice President (Furniture) Siddharth Roongta, Asso.Vice President (Cross Laminated R J Saboo, Asso.Vice President (Corporate Affairs) &
Films & Composites)
Company Secretary
R Kannan Rajeev M Pandia Sarthak Behuria (w.e.f.?" MaY,19) Ms.Ameeta Parpia (w.e,f,7th May, 19) Sanjay Mishra, Sr. GM (MHD)
Manish Poddar, Asso.Vice President (Commercial) Parag Prabhu, Asso. Vice President (Finance) Vivek Taparia, Sr. GM (Business Development)
8
•
•
•
•
Supreme was awarded the Top exporter award in "Fittings for Plastic Pipes and Hoses" and "Tarpaulin" categories consecutively for last eight years by Plexcouncil.
Supreme was awarded the Second Best exporter award in "Plastic Pipes and Hoses" category consecutively for last eight years by Plexcouncil.
Supreme was awarded the Top exporter award in "Multilayer Film" category consecutively for.last.two years by Plexcouncil.
PondicherryUnit won the TPM Excellence Award Category A - 2011 organized by Japan Institute of Plant Maintenance. First Plastic Injection Molding Organization in India to achieve this award.
• Gadegaon Unit has been selected for "Green Manufacturing Excellence Award"
2012 by Frost & Sullivan.
• Company has been awarded Top Spot under "Plastic & Plastic Products" Category by
Dun & BradStreet Corporate Awards consecutively for last five years.
• Gadegaon unit has bagged most coveted 8th. State level Energy Conservation Award
2011 - 2012
• Company has been selected Winner in Technology Innovation in Petrochemicals & Downstream Plastics Processing Industry (2015-16) by Govt. of India, Ministry of Chemicals & fertilizers.
•
Durgapur unit has been nominated for National Energy Conservation Award in Plastic Ca~gory.
9
~®
People
who know plastics best
BUSINESS VERTICALS I
~
...
~
~
Plastic Piping
Consumer
Division
Products
Packaging
Products
• Specialty Films
• Protective
Industrial
Products
• Industrial
Componen1
Packaging Products
• Material Handling
• Cross Laminated Film Products
Division
• Composite LPG
I'"'-"'-m-- Cyli nders
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i_ p
.~
10
A comprehensive portfolio of Value Added Products ~®
Business
Vertical
Plastic Piping System
Consumer Products
Industrial Products
Product Portfolio
T
: uPVC Pipes,
Injection Moulded fittings,
; Handmadefittings, : polymer Pipes & Fittings, HDPE Pipe Systems, : CPVC Pipes Systems,lnspection
Polypropylene Random, Co-
Chambers, Water
: Tanks, Septic Tanks, Toilets, DWC HDPE PIPE
: System,Bath ,
Fittings, Solvents
Furniture
Targeted Customer
Segment
- Potable Water Supply
- Irrigation =Sewage & Drainage . =Plumbing & Sanitation =Industrial Pipe System
=Hre Sprinkler System
- House Hold =Offtce Establishments
- Institutions
Industrial Components
Material Handling Products ( Crates, Pallets, Bins & Dustbins) Composite LPG Cylinders
:
1 , ,
. ,.
- Auto Sector - Electronic Household Appliances
- Water Purification
- filters
- Soft Drink Companies - Agriculture & Fisheries -Retail/Household
Packaging Products
Specialty Films , Protective Packaging products , Cross Laminated film products , Cross Line Bonded Film Products
• Consumer Appliances • Food Industry • Sports Goods
..• Insulation
• Construction ·Automobiles
• Agriculture • Floriculture • Horticulture • Grain Storage • Tarpaulin • Pond lining
11
Plastic Piping Division
People -who know plastics best
®
.• Leading Quality Player with 8085 products for 31 different application systems and only Company to supply pipes and fittings from major polymers like PVC, CPVC, PE & PPR.
Highlights
.• 15.00 % percent oftheorganised
domestic plastic piping market
• High Quality Raw Materials,
designing techniques resulting in Light Weight, Durable, Non-Corrosive and cost effective
structural
accuracy
perfect
and
...solution alternative to conventional products
.• Market
serviced by organized & unorganized
players. The organized players service around 65 % of the market. Their share is growing faster than players in unorganized market.
• Custom Designed products to suit Specific Applications • Meets the specifications of various National & International • Has 1071 channel partners. •
Introduced various Path Breaking Technologies in India
standards.
structured wall hi-tech pipes
o S.W.R. Drainage System o Aqua Gold High Pressure Plumbing System o Indo-Green PP-R hot and cold water system DEco-Drain o Nu-drain underground o Inspection Chambers I Man Hole o Silent Pipe System o Aqua Craft Bath Fittings o CPVC Fire Sprinkler System o DWC HOPE Pipe System for Sewerage & Drainage o Industrial Valves o Industrial Requirement
drainage system
~
Estimated Market Size in Rs. Crores
Supreme's Share in 2018- 19
32,000
._------
10.00 %
12
Consumer Products-- Furniture
Highlights
• Second-largest player
in the. plastic moulded Furniture with current
Processing Capacity-34,OOO MT
• One stop solution for varied furniture
needs, made from 100% virgin
polymers, using computer designed moulds at ISO certified Plants
• First in the Industry to use the Gas Injection technology
in moulding
process • Range of
ergonomic comforts,
Indoors and outdoors
high quality resilience and environmental
furniture resistance
tested for
• First in the industry to make Blow moulded furniture
for varied new
usage.
• Pioneers in introducing
o Lacquered furniture o Upholstered moulded plastic furniture o Fusion Furniture o Blow Moulded Furniture
• Clients - House Hold, Office Establishments & Institutions
Estimated Market Size in Rs. Crores
Supreme's Share in 2018-19
3200
12.50%
13
Packaging Products
Protective Packaging Products
A..... ~~{~
®
Highlights
• Key
Categories:
. Specialty
Films,
Protective
Packaging
Products
&
Cross Laminated Films products
• Product Range: Thermoplastic PE foam sheets and profiles, cross-linked and blended PE foams (block & extruded), air bubble films and composites and Customized products include anti-static, UV resistant and aluminum foil laminated foam & bubble films, besides EPDM blended and other specialty rubber foams. Composites - aluminium, MetalizedPET, Speciality film & Cross Laminated Film Products.
• A turnkey packaging solutions provider -oversees the actual packaging operations .sourcing and incorporation of other materials in the
at. the customer's site, process
• Accessto latest technologies and innovations - tie ups with global industry leaders
• Introducers of various Path Breaking Technological products in India:
o· .Reticulated foam products for air filtration o Sound absorbing open cell foam products o High temperature & Fire Resistant Melamine foam products o Water Proofing Membrane made from a composites of Foam products o o o
Bonded Foam for Acoustic Insulation Floor Protector made from Foam & XF Film Launched Consumer Product Vertical
including Kids and Home Decor
products
14
Packaging Products Contd .....
Highlights
-~.....
~~~'1!!!
®
Cross Laminated Film & Products • Only Indian company to have the technology to manufacture Patented Cross Laminated film Products under Brand name Silpaulin & Silpaulin STAR.It is . one-seventh the weight of conventional cotton tarpaulin, but has a high
strength-to-weight
ratio
• Acquired worldwide rights for Cross Laminated Film and Cross Line Bonded
Film
• Acquired worldwide rights for new generation and patented Cross Plastic Film
Multilayer Performance Packaging Film • Multilayer Co extruded Film upto seven layer from well known German Make Machines for varied applications ranging from oil Films to Thermoforming Films; Vacuum Pouches, Bulk BagsandB&W UHT Milk Films etc.
• Equipped with latest state of the Art eight colour printing capabilities
• To increase share of Value Added Products,lnstalled
latest Lamination Capabilities to Laminate Co Ex Film with other substrates like PE~ Mat Pet, BOPP,Alluminium Foil etc.
15
Industrial Products
Highlights
Major player in the industrial products segment manufacturing lndustrlalcomponents: • Ability to provide cockpit assemblies for the Auto Segment
'. Presence in waterpurificationsegment
• Presence in Electronic Voting Machine
Material-handling
products:
• MajorSupplierto
the Soft Drinks Industry
• First to launch the Injection Moulded Plastic Pallets
Estimated Market Size in Rs. Crores
I Supreme's Share in 2018-19
1900
12.70%
Composite LPG Cylinders:
• Safer, Lighter & Aesthetic products
16
Plant Locations
~®
People
who know plastics best
Industrial Consumer Packaging
, . Products Products
.; .; .; .;
SrNo
Location
1 Derabassi (Punjab)
2 Durgapur (West Bengal)
3 Gadegaon (Maharashtra)
4 Ghiloth (Rajasthan)
5 Guwahati (Assam)
, 7 Halol- Unit II (Gujarat)
6 Halol- Unit I (Gujarat)
era~a.
')Nohla "-
~
•..•.. .- Gmloth
~
r-: \ \..? \A-Halel
'-.
•
alanpur 3 Units
•. K3n.PUf I).ehllt "~L __~</_"
.-
DUJgapur
~~~.,J. I~
Silvassa ~r-J
• Jal:9un & Gad.gWl
r . ". ',.Kh~ragpur v ~ .
,
. ItbOfiori •• Ta',egaon-
~
,
• Un.
/"I
.,
§.
•••
t
o Q8 Q '..• .'
to
8 Halol- Unit III (Gujarat)
9 Halol- Unit IV (Gujarat)
10 Hosur Unit (Tamil Nadu)
11 Jadcherla (Telangana)
12 Jalgaon - Unit I (Maharashtra)
13 Jalgaon -' Unit II (Maharashtra)
14 Kanhe (Maharashtra)
15 Kanpur (Uttar Pradesh)
16 Kharagpur (West Bengal)
17 Khopoli (Maharashtra)
18 Malanpur-Unit
I (Madhya Pradesh)
19 Malanpur- Unit II (Madhya Pradesh)
20 Malanpur- Unit III (Madhya Pradesh)
21 Noida (Uttar Pradesh)
22 Puducherry (Union Territory)
23 Silvassa (Union Territory)
24 Sriperumbudur
(Tamil Nadu)
25 Urse (Maharashtra)
.;
.;
.; .;
.;
.; .; .;
.;
.;
.;
.;
Products
.;
.; .; .;
.; .;
.; .; .; .;
.;
.;
Plastic
Piping
Composites
.;
.;
.; .; .;
.; .;
.; .;
17
A VirtualTour of the Plant - Gadegaon
-- Mega Project at Gadegaon spread over 132 acres
-,.~®
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plastics best
18
Visuals of other Plants
-~.~®
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Durgapur
Halol
Hosur
Jalgaon
Gadegaon
Kanpur
Malanpur
Ghiloth
Kharagpur
Noida
Pondicherry
Silvassa
Talegaon
Chennai
plastics best
19
Technical Collaborations
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plastics best
COMPANY
PRODUCT LINE
• Rasmussen Polymer Development,
Cross-laminated
Films
Switzerland
•
Foam Partner, Switzerland
Reticulated PU Foam
• Sanwa Kako, Japan
•
•
PE Tech, Korea
Kautex GMBH
2 stage Foam
Cross Linked Foam
Composite LPG Cylinders
• Spears Mfg. Co. Los Angeles
Fire Sprinkler Pipe System from
• Calcamite Sanitary Services (PTY)
Septic Tanks
CPVC
20
Financial Highlights (Standalone)
Rs. In Crores
-
, ..............
'
.._.
I
IReserves & Surplus Net Worth Total~sets secured Loans .. . Unsecured Loans . Total Debt Net Block Investments Debt to Eauitv (xl
939.53
.964.94 2102.65 .......·.·...369.99 102.65 .. 472.64 . 1105.99 33.64 0.49
25.41
1206.93
25.41 25.41 25.41 1528.04 1707.64 1967.24 1196.73 1553.45 1733.05 1992.65 .. 1232.34 . 1222.14 2675.43 2774.34 3069.22 2331.80 46.45 .. 82.48 .. 53.45 384.74 . 27.35 . 18t90 . ·165.27 108.97 228.35 162.42 247.75 1309.19 1428.40 1611.02 63.80 33.66 0.08 0.14
2269.10 - 278.58 . . 97.15 . 375.73 . 412.09 1134.27 ' 1252.86 33.62 0.34
33.64 - 0.30···
33.66 0.15
Till 2014-15 - June Year ending, 2015-16 - March Year ending
21
Financial Highlights (Standalone)
..§..~®
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plastics best
Rs. In Crores
Totallncome Y-o-Y.Growth 010
....
EBIDTA EBIDTA 0/0 Depreciation EBIT EBIT 0/0 Financial Expenses Profit Before Tax PBT% Profit After Tax PAT 0/0 EPS (basic FV Rs. 2)
..
3912.14 15.37 559.62 14.30 101.54 458.08 11.71 76.14 381.94 9.76 255.36 6.53 20.10 26.66 . 31.65
4122.13 5.37 577.51 14.01 138.98 ...438.53. 10.64 57.95 380.58 9.23 252.79 6.13 19.90 . 22.48
27.44
2970~88 . 3.94 461.84 15.55 104.57 357.27. 12.03 28.88 328.39
11.05 211.50 7.12 16.78 22.32 27.65
11.01 789.13 15.90 167.15 621.98
12.84 766.37 17.15 154.29 612.08 13.69 30.26 581.82 13.02 377.17 8.44
4469.79 4961.93 5551.o~ 11.88 749.22 13.50 183.54 565.681 10.19 26.00 539.68 9.72 362.251 6.53 28.52 19.45
12.54 20.64 601.34 12.12 400.31 8.07 31.60 24.36 31.60
29.87 26.30 33.39
26.22
6.34
4.54
7.64
Excluding Property Business & Exceptional
items 22
Financial Highlights (Consolidated)
.-.4L.~®
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plastics best
Rs. In Crores
25.41
Share Capital Reserves & Surplus. Net Worth .Total Assets..... Secured· Loans Unsecured Loans Total Debt Net Block Investments Debt to Equity (x)
1294.88 1320.29
25.41 . 1013.75 1039.16
25.41 1290.31 1315.72 " ... 2059.93 .. 2357.00 2425.05 384.74 .. 97.15 . 27.35 375.73 . 412.09 1252.87 1134.27 126.16 120.70 0.31 0.28
. ·369.99 . '102.65 472.64 1105.99 107.35 0.45
278.58
.
25.41 1670.31 1695.72 2817.34 46.45 181.90 228.35 1309.20 174.63 0.13
25.41
25.41 1869.49 2128.56 2153.97 1894.90 2936.11 ... 3229.27 53.45 108.97 162.42 1611.02 222.33 0.08
82.48· 165.27 247.75 1428.40 193.68 0.13
Til/2014-15 - June Year ending, 2015-16 - March Year ending
23
Financial Highlights (Consolidated)
..§..~®
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plastics best
Rs. In Crores
Total
Income
Y-0"Y Growth % .EBIDTA
EBIDTA %
De pre ciation
EBIT
EBIT 0/0
3914.32 -14.81 564.28
4128.95 5.48
584.21
2979.04
4520.99
4983.82 -
3.94 470.09
13.82 817.34
10.24 811.33 -
5553.21 11.42
751.391
14.42
14.15
15.78
18.081
16.281
13.53
101.55
138.99
104.57
154.291
167.151
183.54
462.73
445.22
365.52
663.05
644.18
11.82
10.78
12.27
14.67
12.93
567.851 1
10.23
-·FinancialExpe nses --
76.141
- 57;961
- 28.881 - 30.261 --
20.641
26.00· -
Profit Before Tax --
- 386.59 I
_ 38726
336~64
632.79
623.54
541.85
PBT 0/0
9.88
9.38
11.30 -
14.00
12.51
ProfitAfter Tax
257.66
259.47 - 219.75
428.14
422.51
PAT 0/0
EPS (basic FV Rs. 2) ROE (0/0)
6.58
20.28 26.90 - 31.97
6.28
20.43
23.07 27.85
7.38 17.43 23:19 28.28
9.47
33.88 28.44
34.82
8.48
33.34 23.53 30.42
9.76
364.42\ 1
6.56
28.69 18.001 24.551
7.641
6.21
4.40
7.57
Excluding Property Business & Exceptional
items 24
Financial Highlights - Segment Wise
Net Sales (Rs Crores)
5612
3972
4261
6000
5000
4000
3000
2000
1000
o ,
2013-14
2014-15
"Plastic Piping
Packaging Products
-Industrial Products
u Consumer Products
" Construction
"Others
2060 811 600 259 60 182
2113 914 649 276 139 171
2015-16 -9 I Months 1585 728 419 217 - 11
2016-17
I
2017-18
I
2018-19
2467 981 624 315 - 75
2729 1022 801 352 24 38
3173 1042 885 399 81 32
25
Financial Highlights - Segment Wise
..§..~®
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plastics best
900
800
700
600
500
400
300
200
100
o I
I;?iffif 2013-14
309
I
EBIDTA (Rs Crores)
764
803
805
673
. ... hidM 2014-15
282 169
7
I
I
I 2015-16-9 Months 227
..' , L ...J 2016-17
~-~
,:,
2017-18
k··!fj4
2018-19
,
62
6
72 14 17
70 55 13
Excluding exceptional
items 26
Financial Highlights - Segment Wise
®
EBIDTA (0/0)
50
45
40
35
30
25
20
15
10
5
2014-15
13 19 12
Months 14 20 12
2016-17
2017-18
2018-19
16 22 14
14 20
13
13 16
Excluding exceptional
items 27
Financial Highlights (Consolidated)
~~f!!!l<!'.
Rs in crores
Cash Flow Summary
..Cash and Cash Equivalents at Beginning of year·
19.9
23.8
178.99
23.79
75.10
31.97
Net Cash from Operating Activities
325.2
600.80
296.39
463.88
507.58
555.74
Net Cash Used in Investing Activities
(133.7} (185.98) (218.05) (202·.20) (266~87) (239.61)
Net Cash Used in Financing Activities
(190.3)
(259.63) (233.54) (210.37) (233.84) (316.03)
Net Inc/(Dec)
in Cash and Cash Equivalent
3.91
155.21 (155.20)
52.41
(43.13)
0.10
Cash and Cash Equivalents at End of the year
23.8
178.99
23.79
76.20
31.97
32.07
.. Strong cash accruals and favourable capital structure, which provides financial flexibility to raise resources as and when required
•
•
Positive cash flows at its operating as well as net level
Even during tough times of FY09 company has made investment towards future
28
New Products introduced in last Three Years ~®
• Light Hazard Fire Sprinkler System
.aBath Room Fittings
• DWC HDPE Pipe System
.• HDPE Pipes above 315 MM Dia & upto 800 MM Dia
• CPVC Pipe System - 6" & above for
Industrial Use
• Water Tanks & Septic Tanks
• Sewrage & Drainage System
•
Industrial Valves
• XL Bonded Film -.35 GSM to 250 GSM .30 & 35 GSM CrossLaminatedFilm &
Cross Laminated Film - 400 GSM
29
New Products Introduced in last Three YearsContd ... ~®
•. Varieties of InsulationProducts
in Protective
Packaging Division
• Various Floor Protection & Sound Proofing Products in Protective Packaging Division
• Retail Product Range In Protective Packaging
Division
• Blow Moulded Furniture
• Several varieties of new Furniture Products • Several varieties of Crates, Pallets & Dust Bin
• Composite LPG Cylinder
• Public Urinals & Toilets
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The Intangibles - Beyond Numbers
~®
People
who know plastics best
• Large and diverse production network - Saves on freight costs and time to market its products
• Portfolio of several Patented Products & Brands with focus on value added products.
• Fiscal benefits due to plants located in backward areas - savings to invest for better infrastructure
• Technical collaborations with international players-to supplement
its production capabilities and cater
to new application coupled with low cost Indian manufacturing base
•
In-house design centre - enabling to launch innovative products
• High economies of scale and efficient centralised procurement of raw material
• Countrywide Distribution Network
• Play on INDIA's growth story - Agriculture,
Potable Water Supply & Sanitation, Auto, Electronics, Horticulture, Floriculture etc. Most discernible by the huge outlays earmarked are the thrust areas of
the Government
Infrastructure, Housing, Packaged Foods, Sports Goods, industries
development
for
their
31
-~.~®
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Addressing Risks Raw Material Costs
•
o Supreme Industries' operating profitability
key raw materials-poly commodities are linked to movements in crude oil prices
vinyl chloride resin, polyethylene, and polypropylene;
is moderately susceptible to volatility in prices of its the prices of these
o The company is taking initiatives to enhance the share of the high-margin speciality products in
its portfolio
o Maintain cost competitiveness through
• Continuously enhancing operational efficiencies • •
Leveraging on Economies of Scale Effective Working Capital Management
•
Unorganized Markets
o The plastics industry is considered to be highly fragmented, with a large unorganised segment. o Insignificant competition from unorganised sector to Company's product mix except in Furniture. o Brand Building Exercise, Technological Innovations to launch innovative products to enhance
reach, image and loyalty factor
o High Operational Efficiencies to maintain cost competitiveness
•
Macro Economic Parameters
o Government policies have a direct
impact on certain industry verticals such as infrastructure
spending and high cost of money affecting domestic appliances and 4 wheeler sector ..
o Announcement of New policy to build affordable housies, Amrut Yojna & increased spent on
Sewrage & Drainage and Irrigation Systems
o These segments have witnessed increased budgeted outlays over
the years and given their
relevance in the overall economic development,
they are expected to remain key focus areas.
32
The Way Forward
..§..~®
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Increase channel partners and widen as well as deepen the distribution
network
,Widen Distribution Network
Increase Share of Value Added Products
1
Focus on technological innovations and designs and enhance the overall contribution Added products.
of Value
Focus on technological innovation and enhance
. product portfolio of
existing offerings as well as new offerings
1
Diversify Product Portfolio
Capacity Expansion
The existing capacity to be enhanced to 7,OO,OOOMT by 2020-21 with capex of around Rs. 700 to 800 crores.
By 2020-21
• Value to grow between
12% to 15% CAGR
• Maintain 13.50-15.00 %
operating margins
• Maintain interest &
depreciation together below 4% of turnover
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Product Segment Wise Expansion Plan
.-Total plants to go up to2lfromexisting
25 by 2020-21
• Expected to add more new locations going forward
• Total capex envlsagedlnthe
range of Rs. 700 toRs 800 crores
In 19-20 & 20-21
Division
Proposed Locations for 2019-20
-
"
Plastic Piping System & Rota Moulded Products
Orissa
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.-4L.~®
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Diversify Product Portfolio
• Increase range-of Products-within
existing product
lines
• Patented Cross Plastic Film Product • Large Varieties of Pipe Fittings • Large Range of Bath Room Fittings
Electroplated Products
including
• Fusion Furniture • Protective Packaging Innovative Products • Larger Range of Solvents • Specialvarietlesof
Performance Packaging Film
35
Expansion Strategy in Detail
Increase Share of Value Added Products
.• VA products are thosewhereOPM
> 17%
2017-18
Share of Specialty Business
Specialty Business Turnover
2018-19
Total Net Turnover
Share of Specialty Business
I
I
Specialty
Business Turnover
35.93% 1734.34
----_ .. _---------------
---------------
5436.57
-
35.76%
1944.26
Total Net Turnover
4826.42
Total
.Widen Distribution Network
.
<Increase reach in existing locations and capture market share in untapped locations - Strengthen
channel partners and increase the distribution
network, which at present
is over
3,700 channel partners.
Export Thrust
.- Plan to increase current Export Turnover of around 3;00% of
total
turnover,
significantly
over
next five years.
36
Supreme Petrochem Limited - Introduction
-~
•••••
~~fn~
~ •••
~®
>-. One of the largest single sitePclys+rene (PS) producer accounting for 2CYo
of world capacity. Owns 60CYoof domestic installed capacity.
.. >- Current Effective Capacity:
Polystyrene (PS)
2,55,000 TPA
Speciality Polymers Compound & Masterbatches Expandable Polystyrene
Styrene Methyl Methacralate
(Within the overall capacity of Polystyrene)
30,000 TPA
72,000 TPA
42,000 TPA
Extruded Polystyrene Foam
1,00,000 M3 PA
>- Location
1. About 120 kms. From Mumbaion Goa highway in District Raigad. Plant site area - 333 acres.
2. At Manali near Chennai in South India.
>- Supreme Industries
own 29.99CYoequity of Supreme Petrochem Ltd.
37
Commitment
to Shareholders
last 5 years Dividend Payout History
~!'P.!.~1!!t
Regular Bonuses since Inception
2019
2018
2017
199.08
650
13.00
183.69
.......................................••
-
600
..................•••••.........•••..•••
12.00
...... _ .................••.
229.33
750
15.00*
2016
...... ..••.......
,'.-.....
2015
. .
.. . . ... . . ..
114.99
. ...............•.
" ............. ',...
375
....... ' ._, .............. '
.... ..... ........
7.50
.... .....
......................
137.18
450
.. ...................................................
2014
118.89
400
9.00
8.00
.......................................
................................................
2006 1992 1988 1986 1981 1978
. . ... ..................•.....
..........................
1:1 1:1 1:1 4:5 2:5
3:5
Stock split in the ratio of 5-for-1 on October 19, 2010 as a record date. I.
the years I Supreme has rewarded
shareholders with constant dividends year after year.
its
Over Payout ratio between 35 to 50% of PAT. There is timely bonus given to shareholders to create wealth for them
II. III. Efficient capital allocation - Buy back of shares in 2008~09at average price of Rs. 22 against price of Rs.
1117 on 31.03.2019. Appreciation in value by about Rs. 1214 crores
IV. Unlocking the wealth by developing Commercial Complex at Andheri ( Mumbai ) V.
The Total Shareholder Return (TSR)for last 10 years is CAGR36.25% i.e. an amount of Rs. 100 invested in The Supreme Industries Limited Shares on 30 Jun2009 have increased 22 times as on 31 Mar2019.
*including special dividend @250 % i.e. Rs.5/- per equity share to commemorate the completion of 75th year of the Company.
38
A Responsible Corporate Citizen
...§..~®
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•
•
Company's CSRarm "Supreme Foundation" has initiated a project to provide teachers for educating the students in Govt. Schools in Bikaner and Ajmer division & Govt. Sanskrit Colleges in entire state of Rajasthan. The Company's Gadegaon Unit, following social work activities
the above objectives undertakes
in furtherance
of
o Supply of clean drinking water to the neighbouring villages of Gadegaon plant. o Provided sanitation facility for ladies to Gadegaon village. o Provided public convenience at Jalgaon Town. o Provided decoratively constructed "Meditation Centre" of around 2,000 sq.ft. near the
shrine of Sant Totaram Maharaj o Company has shown it's commitment
mission "Positive towards Disabled People {POP)", and provided employment four POPat Gadegaon factory.
towards Physically Disabled persons by taking a initially to
in Gadegaon village for the benefit of villagers.
o Company provided Mobile Health Centre with all basic medical amenities in tribal and
remote area of Dhadgaon in Dist Nandurbar.
o Tree plantation drive being organised by the Company.
• Monetary Contribution towards
o Medical Facilities o ITI's o Aurvedic Hospitals o Education The Company is also actively engaged and working on Public I Private partnership mode for extensive work in the field of SANITATION & DRINKING WATER SUPPLY.
39
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Safe Harbour
This presentation and the accompanying slides (the "Presentation"), which have been prepared by Supreme Industries Limited (the "Company"), or invitation to purchase or subscribe binding commitment whatsoever. No offering the
have been prepared solely for information for any securities, and shall not form the basis or be relied on in connection with any contractor of securities of Company.
the Company will be made except by means of a statutory offering document containing detailed information
purposes and do not constitute any offer,
recommendation
about
-This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, inclusive and may not contain all of the this Presentation is expressly
makes no representation fairness and reasonableness of the contents of this Presentation. This Presentation may not be all information excluded.
that you may consider material. Any liability in respect of the contents of, or any omission from,
statements. Such forward-looking
. industry in India and world-wide,
to known and unknown risks, uncertainties and assumptions that are difficult
=Certain matters discussed in this Presentation may contain statements regarding the Company's market opportunity
limited to, the performance of the Indian economy and of the economies of various international markets,
that are individually and collectively forward-looking and are subject but are not
and business prospects statements are not guarantees of future performance include, the performance of the the Company's future levels of the Company's levels of activity, performance or implied by this Presentation. The Company assumes no information contained in this Presentation. Any forward looking statements and projections made by responsible for such third party
growth and expansion, market preferences and its exposure to market achievements obligation to update any forward-looking third parties included in this Presentation are not adopted by the Company and the Company is not statements and projections.
could differ materially and adversely from results expressed in or
changes and advancements, changes in revenue,
the company's ability to successfully implement
to predict. These risks and uncertainties
risks. The Company's actual results,
income or cash flows,
risks, as well as other
implementation,
technological
competition,
its strategy,
-The distribution
of this document
in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes
should inform themselves about and observe any such restrictions.
www.supreme.co.in
40
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THANK YOU
Contact Point
Mr. R J Saboo
EmailID:rj_saboo@supreme.co.in
Number: +91-22-22851656
www.supreme.co.in
41