Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
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. 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 of the Company, 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.
This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities of the Company by any person in any jurisdiction, including India and the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes. This presentation may not be copied or disseminated in any manner.
Safe Harbour
Industry Overview
Company Overview
360o Business Strategy
Financials
AGENDA
Indian Alcohol Industry
Potable
Country Liquor
IMFL Beer
Industrial
Esters Acetic Acid Fuel
Mixing
Globus Spirits’ Operating Areas
Which segment we operate
How is this industry divided
Segment Volume
(mn cases) % of IMFL
Whisky 116 59
Brandy 34 17
Rum 35 18
Gin 4 2
Vodka 5 3
Others 3 1
IMFL Break-up (in million cases)
Research suggests that ~ 50% of liquor consumption in India is unrecorded
Country Liquor, the largest segment, is perhaps the most affected
This share of unrecorded consumption is expected to decrease as the state as well as the
central governments have cracked down on illicit liquor
Sharp fall in raw material prices to enable margin expansion
Grain & Molasses prices lower on a Y-o-Y basis
Multi-feedstock capabilities to offset cyclicality in molasses prices
Strong volume growth to be driven by:
How is India’s Alcobev market poised
Rising Per-Capita
Consumption
Opening up of Trade Channels
Favorable Regulatory
Regime
Population Growth
Increasing Purchasing Power
Change In Societal Perception
Key growth drivers
15+ age Population growth – increased at CAGR of
over 2% (2004-09)
Average age of initiation into drinking coming down
Favorable change in societal perception
Increase in purchasing power – Annual average per
capita expenditure on spirits increase to Rs. 635 in
2009 from Rs. 312 in 2004
Among the lowest per capita consumption – 1.2 litres
Double digit growth in certain category spirits having
major market share
Favorable Regulatory Regime
Opening up of trade channels
Drivers of Indian Spirits Industry Growth Per Capita consumption
Country Per Capita (liters)
Austria 12.5
Canada 8.2
Denmark 10.9
France 2 12.6
Germany 9.9
Ireland 12.4
Japan 7.5
Korea 8.1
New Zealand 9.5
Poland 10.8
United Kingdom 10.8
United States 2 8.7
India 1 1.2
Source : OECD, Health Data (2008)
1 Datamonitor 2 2007 data
0
5
10
15
20
25
30
35
40
45
50
2004 2005 2006 2007 2008 2009
Glo
bal
Sp
irit
s M
ark
et
(Valu
e i
n U
S$ b
illi
on
)
United States : CAGR - 2.7% (2004-2009)
Germany: CAGR - 0.3% (2004-2009)
United Kingdom: CAGR - 0.8% (2004-2009)
France: CAGR - 3.9% (2004-2009)
India: CAGR - 17.0% (2004-2009)
Source : Datamonitor
Top 5 Countries Growth In 2009, India ranks fourth in the global
spirits market with a 6.1% market share
Spirits market in India was worth US$
16.9 billion in 2009
India Spirit market registered CAGR of
17% between 2004 and 2009
Sales for the overall spirits market in
India increased by US$ 2.5 billion
between 2008 and 2009
Increase in sales for the 5 year period
(2004-2009) was around US$ 9.2 billion
India is one of the fastest growing markets
Amongst the leading players in Northern India
Promoted by Business Family having over 60
years of industry experience
360o product offerings – only Company to offer
all four products across the alcohol value chain
State-of-the-art plants at Rajasthan (Behror) &
Haryana (Samalkha & Hisar)
Capacities – 84.4 million BL p.a.
Multi-feed capability
Captive water and power plant
Experienced management team
Who we are
* FY11 & H1FY12 gross sales includes financial performance of ADL
52%
76%
72%
80%
103% 100%
100%
-
1,000
2,000
3,000
4,000
5,000
6,000
0%
20%
40%
60%
80%
100%
120%
FY
06
FY
07
FY
08
FY
09
FY
10
FY
11*
H1
FY
12*
Gro
ss S
ale
s R
s. M
illion
GSL Capacity Utilization & Sale Trend
Gross Sales Capacity Utilization
Key
Mil
esto
nes
..
Set up first Distillery; commenced production of Ethyl Alcohol in April 1994 at Samalkha Unit, Haryana. Unit was set up with an installed capacity of 14.4 ms BL per annum
Acquired 18 acres of land in village Shyampur in Behror, Rajasthan
Sets up second Distillery unit at Behror, Rajasthan ; Unit commissioned
Enters into agreement with International Distilleries (India) Ltd.(1) to bottle IMFL products under the brand name of ‘IDI’
During the year Behror Unit also started production Crossed Rs. 500 mn sales
Started production of IMFL at its Behror unit
Commenced bottling of IMFL at Behror Unit in August, 1999 and Country Liquor at Samalkha Unit
Sets up Effluent Treatment and Environment friendly Bio-Composite Plant
Grain based Distillation Plant commences operation at Samalkha Unit in April, 2005
Crossed Rs. 1000 mn sales Authorized Share Capital increased from Rs. 100 mn to Rs. 25 0mn Name of the Company changed from Globus Agronics Limited to Globus Spirits Limited
Launched its own IMFL brands across India which has met with huge success Crossed Rs. 1500 mn sales
1994-95
1995-96
1996-97
1998-99
1999-00
2004-05
2005-06
2006-07
2007-08
1. A subsidiary of International Distillers and Ventures, UK.
2010-11 Expanded capacities at both plants at Samalkha & Behror from 28.8 million bulk litre to 70.0 million bulk litres p.a.
What we achieved… Merged 100% subsidiary, Associated Distellers Limited (ADL) with Globus Spirits Limited (GSL) –
increasing total capacities to 84.4 million bulk litres p.a. 2011-12
Board of Directors Mr. Gautam Premnath Khandelwal Non-Executive Chairman
Mr. Khandelwal has over 23 years of experience in senior managerial positions and he is on the Board of many companies such as Nagpur Power & Industries Ltd., Motwane Mfg. Co. Pvt. Ltd., Krohm Solutions Pvt. Ltd., Punjab National Bank etc.
Mr. Ajay Kumar Swarup Promoter & Managing Director 50 years
Product of The prestigious Doon School, Dehrandun; BA Economics (Hons.), St. Stephens College, Delhi University, PGDBM from IIM Kolkatta. He has over 24 years of experience in the alcohol industry. Co-promoted Associated Distilleries in 1983 and promoted GSL in 1993. He was also the President of All India Distillers’ Association during the years 1992 – ‘95
Mr. Manik Lal Dutta Executive Director 63 years
36+ years in alcohol industry. He was earlier with UB Group as production head for North India & Nepal operation
Dr. Bhaskar Roy Director Finance & CFO 46 years
21 years experience in finance and general management with companies such as Dhampur Sugar Mills Ltd and Saraya Industries Ltd.
Mr. Joginder Singh Damija Independent Director 75 years
46+ years experience in various industries including liquor. Served with major spirit companies including UB Group in multiple positions and as Director and Vice chairman of SAB India.
Mr. Santosh Kumar Bishwal Independent Director 62 years
Extensive experience with forms such Union Carbide, UB. Group in senior positions. Faculty at XLRI
Mr. Rajesh Kumar Malik Whole-time director 53 years
29+ years experience in liquor industries with firms such as Tilaknagar industries, Associated Distilleries, etc.
Mr. Rameshwar Dayal Aggarwal Whole-time director 54 years
25+ years experience in alcohol industry with firms such as Royal Distilleries, Som Distilleries, Oasis Distilleries, etc.
Key Managerial Personnel
Name Designation Qualification Exp Prev Assignments
Sudhir Chopra COO – Sales and Marketing (IMFL)
PG – Advance Marketing, PGDBA, Univ. of Bath, UK
25 John Distilleries, ABD India, USL
Shekhar Swarup VP –IMFL BSc Business and Management, Univ. of Bradford, UK
3 Smart Analyst India
Keyur Patel AVP Marketing PGDBM, Sri Sringeri Sharada Institute Of Management
9 Cobra Beer India, Radico Khiatan
Deepak Saroha Works Manger BSc, DIFAT, VSI, Pune 10 Radico Khaitan
Kapil Verma Sr GM BA, PGDIR & PM 11 -
Santosh Pattanayak
Company Secretary Bcom, LLB, ACS 4 Magnum Strips & Tubes
STRATEGIC
PRESENCE
ACROSS
PRODUCTS
Raw
Materials*
IMFL Franchisee
Country Liquor
Branded IMFL
Rectified Spirits
Extra Neutral Alcohol
What we offer
* - Raw Material – Molasses, Broken Rice/Bajra
SEAMLESS
INTEGRATED
PRODUCTION
PROCESS
360o PRODUCT OFFERINGS
In Focus
GSL’s believes Potable Liquor has a huge potential and the Company is well poised to gain
advantage given its focus
Focus to grow in all 4 business lines of the spirits industry, offering our investors to have a
true stake in the progress of the industry as a whole
What is our focus area
Where we stand – Bulk Alcohol & IMFL-Franchisee
Dominance in Bulk Alcohol & IMFL-Franchise through Quality & Cost
Contributes around 40% to GSL top line
Serves as basis for GSL’s other segments like CL & IMFL to ensure quality and cost
Bulk Alcohol
Sale of bulk alcohol as a commodity
Clients are elite Indian Alcobev Companies such as United Spirits, Jagatjit Industries Ltd and ABD Ltd etc.
IMFL - Franchise
1.5 mn cases per annum existing tie-up with ABD Ltd for the state of Rajasthan & Haryana
Source : Company
295 265
1,300
1,502
1,752
1,964
970
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
FY
06
FY
07
FY
08
FY
09
FY
10
FY
11
H1
FY
12
Rs.
Millio
n
Bulk Alcohol & IMFL Franchisee Sale Trend
Our Focus in Bulk Alcohol & IMFL-Franchise
Strengthen existing relationship with customers
Capitalize on increasing demand for Indian Bulk Alcohol in African & Middle-East
markets through exports
Develop this segment as Cash Cow for supporting Branded IMFL growth
GSL supplemented its growth plans with in-house capacity expansion
Existing plants (Samalkha & Behror) expanded from current total capacity of 28.8
million BLPA to 70.0 million BLPA
Bulk Alcohol & IMFL-Franchise contributes to higher capacity utilization
Where we stand – Country Liquor
Currently market leader in Country Liquor
Contributes ~ 45% to GSL Revenues
Market Leader in North India
Rajasthan with 25% market share selling
around 4.2 mn cases per annum
New Delhi with 25% market share selling
around 1.2 mn cases per annum
Haryana with 30% market share selling
around 8.4 mn cases per annum
Expected to ride the rural consumption
wave
Country Liquor Brands
Rana Samalkha Ki Saunfi
Rajasthan no.-1 Kinnu
Ghoomar Commander
Samalkha no.-1 Nimbu
Source : Company
571
850 967 1,025
1,629 1,711
1,631
-
400
800
1,200
1,600
2,000
FY
06
FY
07
FY
08
FY
09
FY
10
FY
11
H1
FY
12
Rs.
Millio
n
Country Liquor Sale Trend
Note: volumes and market shares are based on the current monthly run rate
Our Focus – Consolidating Position in Country Liquor segment
CL Industry in North India has recorded double digit growth
in CL unlike the rest of the country where the overall growth
has been fairly stagnant
GSL has grown at higher rate than the industry average in all
the existing markets in North India
GSL aims to consolidate its position in this market by
Branding CL and marketing it like IMFL with variants and
flavours
Continued focus on quality & costs to remain competitive
Further extending depth of distribution coverage for reaching
untapped markets
Where we stand – Branded IMFL
Recent foray into this segment in 2007-08
3 core brands and over 10 filler brands with their
variants launched
Current presence in 9 states i.e. Andhra Pradesh,
Chandigarh, Delhi, Haryana, Himachal Pradesh,
Kerala, Punjab, Rajasthan & Uttar Pradesh
‘County Club’ to spearhead the branded IMFL
business and to be a core brand around which GSL
will build its pan India strategy – initial response
encouraging
To launch one new brand in the “semi premium”
category
33
183
271
410
252
0
50
100
150
200
250
300
350
400
450
FY
08
FY
09
FY
10
FY
11
H1
FY
12
Rs.
Millio
n
Branded IMFL Sale Trend
Our Focus – Branded IMFL
Aggressive expansion plans in the highly profitable branded IMFL segment
Increase advertising & marketing spend to build a healthy portfolio of brands with a pan
India appeal
Increase distribution in existing markets
Utilize strong existing CL segment distribution network to leverage branded IMFL
portfolio
Addition of Eastern and Western Regions
Strengthening sales and marketing teams
Execute reciprocal franchisee bottling arrangement to establish a pan India
Entry in CSD with existing Brands which will supplement in driving branded IMFL
volumes
Recent Brand Campaign
Improving operational efficiencies for competitive advantage
Implementing ERP to achieve business transparency and better cost control
Initiated efforts for fuel and energy conservation
Using Biogas and Biomass as fuel for power generation
Earning Carbon Credits which can be traded in International market
Launching Green House Gas abatement initiative
Increasing cogeneration capacity
87126 129
289
399
213
FY
'07
FY
'08
FY
'09
FY
'10
FY
'11
H1
FY
'12
Financial Review A
ll f
igu
res
in R
s. M
illi
on
1,125 1,597
1,998
2,671
3,866
2,482
FY
'07
FY
'08
FY
'09
FY
'10
FY
'11
H1
FY
'12
Revenues (Net of Excise)
122195 199
459
554
285
FY
'07
FY
'08
FY
'09
FY
'10
FY
'11
H1
FY
'12
Profit Before Tax
152219
262
388
645
366
FY
'07
FY
'08
FY
'09
FY
'10
FY
'11
H1
FY
'12
EBIDTA
How we have performed – Consolidated
Profit After Tax
Consolidated performance includes financial results of GSL & ADL
Thank You
For more information about us please visit www.globusspirits.com OR contact:
Dr. Bhaskar Roy
Globus Spirits Limited
Phone: +91 11 6642 4600
Fax: +91 11 6642 4629
Email: [email protected]
Ishan Selarka / Mayur Maniyar
Citigate Dewe Rogerson
Phone : +91 22 66451232 / 1220
Email: [email protected]
Related Documents
