camlin ppt
TRANSCRIPT
Camlin Limited
Analyst Meet – 18th May, 2010
Disclaimer• This presentation might contain forward looking
statements which involve a number of risks, uncertainties and other factors that could cause the actual results to differ materially from those in the forward looking statements.
• Camlin undertakes no obligation to update these to reflect the events or circumstances thereof.
• This presentation also contains reference to the findings of various reports available in the public domain. Camlin takes no responsibility as to their accuracy or that the company subscribes to those findings.
Flow of Presentation
• Introduction to Camlin & Brief History• Product Offerings of Camlin• Overview of Camlin Operations• Operational Highlights – FY 09, FY10• Financial Highlights – FY 09, FY 10• Way Forward• New Initiative – Pre Schools
Camlin - Background• Camlin was founded by G.P. Dandekar & D.P.
Dandekar in 1931. • Incorporated as a Private Company in the year 1946.• Converted into Public Limited in the Year 1988• Listed on Bombay Stock Exchange & NSE• Products: School & Education Stationery, Office
Stationery, Fine Art & Hobby Colours• First company in India to obtain Art & Creative
Material institute’s (ACMI,USA) world standards of non-toxicity
Camlin – Key Events• 1931 - Camlin set up its first manufacturing unit in Girgaum, Mumbai. It manufactured Ink Tablets, Ink powder, Fountain Pen Ink, Gum, Sealing Wax etc
• 1946 - Dandekar & Co. was re-christened as Camlin Private Limited. “Camel” was chosen as the mascot.
• 1962 - Camlin entered the Art Material market by launching Water Colours, poster Colours, Wax Crayons, Oil Pastels, Drawing inks etc.
• 1974 - Introduction of wooden pencils, factory for manufacturing wooden pencils was started in Tarapur.•• 1984 1984 -- Fine ChemicalsFine Chemicals division was formed.division was formed.• 1988 - Camlin became a public limited company and got listed on BSE.• 1989 - Technical collaboration for manufacture of Hi-Polymer Leads with Pilot Corporation, Japan.
Camlin – Key Events• 1995 – Camlin set up a Plant in Taloja to manufacture Inks & Adhesives • 1998 - Camel Art Foundation was launched.• 2001 – Launched Euro Art Tour• 2004- State of the Art plant was set up at Vasai for manufacturing wide range of Markers.• 2006 – De-merger of Fine Chemical Division into a new company -Camlin Fine Chemicals Limited• 2007 – Exclusive Distribution Arrangement with Colart International for global brands such as Winsor & Newton, Reeves, Lefranc & Bourgeois, Liquitex and Conte• 2008- Company got listed on National Stock Exchange of India
• 2008- Set up a Plant in Jammu to manufacture Colours
Product Offerings
Product Offerings
• School & Education Products
• Fine Art & Hobby Products
• Office Products
School & Education Products
Product Range includes ..…Water Colour Cakes/Tubes, Poster Colours, Wax Crayons, Oil Pastels, Plastic Crayons, Sketch Pens, Wooden Pencils, Scales, Erasers, Sharpeners, Colour Pencils, Math Sets, Dissection Boxes, Engineering Boxes, Mini-Drafters, Other Technical Instruments, Note Books, Mechanical Pencils, Hi Polymer Leads, Fountain Pen & its Ink …
Fine Art & Hobby Products
Product Range includes ..…Artist Oil Colours, Artist Acrylic Colours, Canvas Rolls, Canvas Boards, Easels, Artist Water Colours, Oil Sketching Papers, Drawing Inks, Brushes, Painting Mediums, Glass Colours, Fabric Colours, Powder Colours, Fabric Glue, Artist Poster Colours …
Office Products
Product Range includes ..…White Board Markers, Permanent Markers, Highlighters, Ball Pen, Gel Pen, Stamp pads, Refills, Paint Markers, CD Markers, Carbon Papers, Glue Sticks, Gum /Paste & Inks …
Composition of Revenue FY 10
62%13%
25%
Revenue %
School & Education ProductsFine Art & Hobby ProductsOffice Products
Camlin - Operations
Camlin – Uniquely Positioned• Pioneers in School & Office Stationery with a Strong
Brand Equity• Leaders in Colours – Scholastic, Fine Art & Hobby • An unmatched & extensive Product Range with more
than 2000 SKUs.• Innovations, R&D capabilities & proprietary knowledge
leading to breakthrough products, processes & packaging
• Extensive distribution network of Branches, Depots, Distributors, Retail outlets and B2B
• Track record of building profitable mass market brands• Strong Retail network
15
Camlin – A Recognized FMCG Brand.
Camlin
• 875+ Employees
• 5 Manufacturing Facilities
• 6 Branch offices, 27 C&Fs
• Direct Coverage > 1200+
Distributors
• Total coverage >1.50 Lacs
Retail outlets
• Market reach > 50 Mn
households
• Income FY10 – Rs. 330 Cr.
India
• Population > 1 Billion
• Towns > 6000, 6,38,000
Villages
• Urban population > 350 Mn
•Average GDP Growth > 8%
in Last 5 years
16
Camlin Operations - Locations
17
Distribution Channel
Camlin
Manufacturing Centers
Mother Depot
State Depots
B2B Direct Dealers
Distributors Corporate / Institutions
Office suppliers
Retailers
Camlin - Key Promotional initiatives
• All India Camel Colour Contest• Camel Art Foundation’s Regional Art
Exhibitions• Euro Art Tour• Art Teachers Workshops• Hobby Workshops• Craft Competitions
Board – Eminent Directors
Dilip Dandekar Chairman & Managing Director
Rajiv DandekarJoint Managing Director
Shriram DandekarExecutive Director
Deepak DandekarExecutive Director
Ashish Dandekar
Deepak Ghaisas
BOARD OF DIRECTORS
R. Sriram
Shishir Desai
Vijay Paranjape
Dhananjay Mungale
Shishir Shirgaokar
Anil Singhvi
Shareholding Pattern
38.7%
4.5%0.3%
18.2%
38.3%
As on 31/3/2010
Promoters
Foreign Institutional InvestorsNon Resident
Bodies Corporate
Public
Operational Highlights FY09 & FY10
• Strengthening of Manufacturing Activity with significant increase in capacities
• Increased Focus on High Margin Products• Improvement in RMC Consumption %
generates higher margins• Restructuring of Distribution System & Sales
teams• Operations integrated ‘End to End’ on ERP
Software – SAP• Savings in Interest on account of issuance of
Commercial Paper
Key Highlights FY 09, FY10
• Fixed Asset expansion of about Rs.45 Cr funded without raising significant long term debts.
• A new State of the Art Manufacturing Plant was set up in Jammu.
• Tarapur & Jammu Plants got ISO 9001:2008 certification
• Vasai & Taloja Plants to complete the ISO process by June 2010
• Implementation of 5S at all the plants by July 2010• Products previously imported now manufactured in-
house at lower cost• R&D efforts in Material Substitution & Process
Improvements also helped in gaining higher yields
Manufacturing Strengthened
49%
57%51%
43%
0%
10%
20%
30%
40%
50%
60%
FY 09 FY 10
ManufacturingOutsourcing
Manufacturing / Outsourcing Mix
61.562.062.563.063.564.064.565.065.566.066.5
FY 09FY 10
66.3
63.3
Input Consumption to Sales
RMC Improvement
Awards / Recognition• The Permanent Marker TV Ad (Rudali Bindi) was
selected to be shown as one of the Worlds Greatest TV Commercials, by NTV Channel , the biggest TV network of Japan
• Camlin was awarded the title of ‘Edge Winner’ for its successful implementation of SAP by Network Computing – one of the leading IT magazines of India
• The brand ‘Camlin’ was adjudged as Power Brand of the Year 2009-10 in the Stationery category by Planman
Financial Highlights FY 09 & FY10
Key Financial Highlights
• Rapid Growth in Revenue in the past 3 years – CAGR of 24 %
• YoY, EBIDTA Growth of 43% in FY 09 and 40% in FY 10
• YoY PBT Growth of 47% in FY 09 and 73% in FY 10
• YoY PAT Growth of 61% in FY 09 and 97% in FY 10
Profit & Loss Account
Rs Crs.
P&L Items FY08 FY 09 FY 10Revenues 214.4 283.7 330.9EBIDTA 14.6 20.9 29.2Interest 2.6 5.3 5.8Depreciation 3.8 4.4 5.2VRS Amortization 1.7 1.7 1.7PBT 6.5 9.6 16.6PAT 3.8 6.1 12.0
Earning Per Share
0.711.02
2.00
0.00
0.50
1.00
1.50
2.00
2.50
FY 08 FY 09 FY 10
EPS
Dividends Declared
0%5%
10%15%20%25%30%35%40%45%50%
FY 08 FY 09 FY 10 *
25%30%
50% Dividends
* Proposed
Balance Sheet
Rs Crs
Balance Sheet FY08 FY09 FY 10
Share Capital 6.0 6.0 6.0Reserves & Surplus 42.7 47.5 56.4Net Worth 48.7 53.5 62.4Borrowings 20.4 39.4 42.6Net Fixed Assets 26.3 48.2 57.5Net Current Assets 38.9 43.3 47.9
Return on Capital Employed
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
FY 08FY 09
FY 10
13.1%15.9%
21.2%
ROCE
Way Forward• Align the Company’s resources to gain advantage of
various government initiatives on education such as Sarva Shiksha Abhiyaan.
• Dedicated Task Force to connect with top 25000 schools of India
• Target to double the Retail Universe by March 2011• Increase Production at Jammu to gain maximum tax
advantage• Invest & align the Production Capacities to the
overall objective of achieving Rs.1000 Cr Revenue in the next 5 years.
Alphakids !
Pre Schools – A New Inititative
Why Pre Schools ?• To leverage & capitalize on the brand
strength and equity in the field of education• Benefit of emotional disposition of
consumers towards the brand due to long association
• Associate with your consumer – the school kid – at an early age
Business Potential• Population of below 4yrs – Total 11 Crs of
which Urban is 2.5 Crs.• Current market size at around Rs.5000 Crs.• Brokerage firm CLSA Asia Pacific Markets
estimates market to exceed Rs.13500 Crs by 2013 growing at 28% every year.
• 40% of urban children attend pre-school • 7% is by volume private pre-school market
1.75 million children
Pre School Segments
Children who attendCategories of children:• Mother-Toddler 11-18
months• Play school 18-24
months• Pre Nursery 24-30
months• Nursery 30 months+
Categories of Pre Schools• High-end: Catering to
crème-d-la crème with fees ranging from Rs 3000 to Rs.7000 p.m.
• Middle level: For middle class with fees ranging from Rs. 2000 to Rs. 3000 p.m.
• Low end: For masses with fees below Rs 1000 p.m.
Alphakids - Key Features• Operates as a 100 % subsidiary of Camlin Ltd • Cater to the Top end Market segment offering high
end services• High quality education• High quality learning aids• Excellent environment (AC rooms, play area etc)• Internet CC TV access-parents can see children
on internet• Tie up with ‘HeadStart’ – a private pre-school for
initial learning.
Pre Schools in Mumbai• First Pre-school opened in July 2009 at Andheri
Lokhandwala• Expected to run to full capacity by 2nd year • Two new centers opened for this academic
year at Thane and Khargar• To concentrate on Owned Schools for the time-
being before moving on to franchisee model.• Plan to ramp up & have 50 Schools by FY 13
with more than 10,000 enrolments
Alphakids - Lokhandwala
Alphakids – Lokhandwala
Alphakids - Lokhandwala
Alphakids - Thane
Alphakids - Khargar
Alphakids – Sports day
Alpha Kids – Annual Day
Thank You