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SO MANY IMPRE SA GROUP COMPANY
NEAPS/BSE ONLINE
2nd July, 2021
The Corporate Relationship Department BSE Limited Phiroze Jeejeebhoy Towers 1st Floor, New Trading Ring Rotunda Dalal Street, Mumbai - 400 001
The Secretary, National Stock Exchange oflndia Limited Exchange Plaza, 5th Floor, Plot No. C/1, G-Block Banclra - Kurla Complex, Banclra(E), Mumbai - 400 051
Dear Sir/Madam,
Sub: Investors' Presentation
• �Somany § Home
Innovation_. Limited
This is in continuation to our intimation dated 01.07.2021 and pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the copy oflnvestors' Presentation.
Investors' Presentation will also be available on the website of the Company, www.shilgroup.com.
You are requested to take the enclosed information on records.
For Somany Home Innovation Limited
Paya! M Puri (Company Secretary & V. P. Group General Counsel)
Name: Payal MPuri Address: Membership No.:
301-302, 3rd Floor, Park Centra, Sector-30, Gurugram-12200116068
Somany Home Innovation Limited
Corporate Office: 68. Echelon Inst. Area. Sector-32. Curugram, Haryana 122 001. India. T. +91 124 2889300 Registered Office: 2, Red Cross Place. l<olkata-700001, West Bengal, India. T. +91 33-22487407/5668
[email protected]. I www.shilgroup.com I CIN: L 74999WB20l 7PLC222970
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Driving Customer AspirationsEnriching Experiences | Innovative Offerings
July 2021
About SHIL
2
Online Retail Furniture PortalEvok.in
Hindware Home Retail
Private Limited
Consumer Water & Electrical
Heating Business50:50 Joint Venture with Groupe
Atlantic, France
Hintastica Private Limited
Building Products BusinessSanitaryware & Faucets
Plastic Pipes & Fittings
Brilloca Limited
Somany Home
Innovation Limited
Consumer
Appliance Business
Retail & Franchise
Furniture Business
Wholly Owned Subsidiary Companies JV
Revenue Mix
3
Revenue Mix (%)
21.4
3.3
71.1
4.2 18.1
5.6
72.0
4.314.6
5.6
76.1
3.7
FY20FY19 FY21
Consumer Appliance Business # Retail Furniture Business* Building Product Business Water Heating Business**
Revenue FY 19 FY 20 FY 21
Consumer Appliance Business # 244 292 379
Retail Furniture Business * 94 91 59
Building Product Business 1,272 1,161 1,262
Water Heating Business (100%) ** 62 69 75
Total 1,671 1,613 1,775
#Consumer Appliance business is excluding water heating business, *Includes HHRPL, **Unaudited figures
(₹ in crore)
Our Strategy for Growth
4
Leverage & monetize brand “Hindware” and its distribution channels to
diversify into newer segments & product categories
Allocate capital to maximize returns, into segments where brand “Hindware”
can emerge amongst the top 3 players
Creation of distinct business verticals led by professional CEOs and the
management teams to focus on building long-term growth
How we walked our strategy….
5
Over last 5-6 years, brand Hindware has consolidated its presence in
homes and kitchens
A decade ago,
Hindware was a leader
only in the
Sanitaryware segment
Today, in addition to being a leader in
Sanitaryware, brand Hindware has
established itself in other segments too:
• 2nd largest player in the Faucet segment
• Within 3 year of operations, we have
become the fastest growing Plastic pipes
and fittings brand in India
• Within 5 years of operations, we are now
the 2nd largest player in Kitchen
chimney, hoods & hobs
• Amongst top 5 players in the fragmented
Water heater and Air cooler categories
Leader in segments on e-
commerce platforms too
• Chimney : No.1 player
• Air Cooler : No. 2 player
• Water heater: No. 3 player
Our Journey: Expanding horizons to unlock value
6
Sanitaryware FaucetsConsumer Appliances
Business
Plastic Pipes and
Fittings
Fans and Kitchen
Fittings
Addressable market size grown by ~10x
~ ₹40,000 cr
~ ₹35,000 cr
~ ₹25,000 cr
~ ₹11,000 cr
~ ₹4,000 cr
2012
2014
2015
2018
2020
Brand Hindware
Brand Hindware is owned by SHIL and Brilloca
7
Leadership Team executing the strategy
8
RAKESH KAULWhole-time Director & CEO, SHILOver 25 years of experience in consumer business, media,
retail, etc.
NAVEEN MALIKChief Financial Officer, SHILOver 25 years of experience in banking, strategy, project
finance, investor relations, etc.
SANDEEP SIKKAGroup CFOOver 25 years of experience in project finance,
business strategy, structured finance etc.
SUDHANSHU POKHRIYALCEO - Bath Business, Brilloca LimitedOver 20 years of experience in FMCG, building products, sales
and marketing, etc.
RAJESH PAJNOOCEO– Pipes, Brilloca LimitedOver 28 years of experience, including
20+ years in the plastic and PVC industry
SHIL Board of Directors
9
SANDIP SOMANYChairman and Non-Executive DirectorOver three decades of experience in consumer and packaging
business. He is also the Past President of Federation of Indian
Chambers of Commerce and Industry (FICCI) and PHD
Chamber of Commerce and Industry (PHDCCI)
RAKESH KAULWhole-time Director and CEOOver 25 years of experience in consumer business, media,
retail, etc.
NAND GOPAL KHAITANIndependent DirectorHe is an Attorney-At-Law, Advocate and Notary, practising in the
Hon’ble High Court Calcutta and the Hon’ble Supreme Court of
India
ASHOK JAIPURIAIndependent DirectorHe is a businessman with a strong vision,
who made Cosmo Films Ltd. the largest Biaxially Oriented
Polypropylene (BOPP) film manufacturer and exporter.
SALIL KUMAR BHANDARI
Independent DirectorHe is the founder and Former Managing Partner of BGJC &
Associates LLP, which is a well-known audit and management
consulting firm based in New Delhi
ANISHA MOTWANIIndependent DirectorShe is a multi-faceted business leader with over 28 years of
experience in diverse industries like advertising, auto
manufacturing, financial and health services.
10
Portfolio across categories: kitchen appliances, kitchen sinks, water heaters, water
purifiers, air coolers, ceiling, table, wall & pedestal fans, food sanitizer, and furniture &
kitchen fittings
Recently launched kitchen & furniture fittings brand in tie-up with Italian company,
Formenti & Giovenzana under brand FGV Powered by Hindware
Joint Venture with French heating solutions giant, Groupe Atlantic, France to tap the
opportunities in fast growing water heater segment and electrical heating segment
Strong Distribution reach: 10,000+ Retail outlets, 1,000+ Distributor partners, 700+
Modern & large retail outlets and ~120 exclusive kitchen galleries across India
11
Consumer Appliances Business
Player in the Kitchen
Chimney Segment
Player in the Air
Cooler Segment
Player in the Water
Heater Segment
#2
#5
#5
Widest range of connected and smart appliances with an emphasis on innovation
Established strong Omni presence across channels with a focus on consumer
service
Diverse and Exciting Products & Brands
12
Kitchen Appliances Water Heaters Air Coolers
Fans Water Purifiers Kitchen & Furniture Fittings
Activio Food Sanitizer
Utilizes all-natural Ozone
Purification Technology
Generates potent micro-
bubbles to wash all foreign
residues on the surface
Comes with 3 preset
functions, providing users
with dedicated modes for
cleaning fresh produce,
meat and cutlery
13
Consumer Centric Innovation: New Launches
i-Fold 90L Desert Cooler
India’s first foldable air
cooler (patented)
Can be folded easily and
stored
Offers efficient cooling with
a powerful air throw of
3400 m³/hr
Offers convenient features
like ‘completely shut
louvers’ and ‘insect & dust
filters’ to stop mosquitoes
and insects from entering
the cooler and breeding
inside
Elara iPro
Second IoT enabled RO +
UF + Minerals + UV LED
water purifier from the
company
Equipped with Advanced
Copper+ Technology and
UV LED inside the tank for
ultimate purity in water
Easy mobile app access
from anywhere at any time
Wi-Fi direct technology,
which enables
communication even without
an active internet connection
at home
Hindware Purge
Surface disinfectant
generator for furniture,
household appliances,
bathtubs electronics, fruits
and vegetables, etc.
Disinfectant created using
pure water within three
minutes
Tested and certified by
TUV-SUD South Asia Pvt.
Ltd. to effectively remove
99% of the viruses
Spectra iPro & Acura iPro
IoT enabled smart desert
and personal air coolers,
respectively
Both products are
designed with smart
automation offering
features such as Geo-
fencing and Wi-Fi Direct,
and Alexa-controlled
features
Can be easily managed
from anywhere at any time
through the Hindware
Appliances app
Emphasis on R&D and Innovation
14
* Patent applied
• Hindware Konnect, Hindware’s IoT platform,
brings connected and intelligent products to
SHIL’s customers with a host of features with
Hindware appliances mobile app for remote
operations, and also works with Alexa and Google
Home.
• Hindware Appliances was recently mentioned
amongst the exclusive global brands in the Smart
Homes domain at Google’s IO, a global event
• SHIL’s in-house R&D is recognized and registered
with the Department of Scientific & Industrial
Research (DSIR)
Total patents: 31 patents over last 5 years
Spectra iPro
• Equipped with features such
as Geo-fencing and Wi-Fi
Direct, and Alexa-controlled
features
Optimus iPro Chimney
• India’s 1st ever IoT –
enabled chimney
• MaxX Silence
Technology*
Achelous Premium iPro
Water Purifier
• India's 1st IoT enabled
water purifier with RO
membrane life alert &
real-time filter alert
features.
Ondeo Evo iPro Water Heater
• Operate from anywhere,
track monthly power
consumption, geofencing
and one touch serviceIoT
Innovations
Consumer Appliance Business# : Continuously improving bottom line
15
305.6361.6
454.7
FY 19 FY 20 FY 21
-4 6
26
-1% 2%6%
FY 19 FY 20 FY 21
EBIT Margin (%)
(₹ in crore)
22% CAGR
# Including Water Heater Business. Quarterly figures for FY 19 have been extracted from published financials of Consumer business segment on pre demerger basis
Shaded graphical portion represents COVID impacted period
-6 1 -8 1 2
11
3 3
16
4-1
7
-12% 1% -18%
1% 2% 9% 3% 3% 10% 5% -1% 5%
FY19
FY20
FY21
FY19
FY20
FY21
FY19
FY20
FY21
FY19
FY20
FY21
EBIT Margin (%)
Revenue
Revenue
Annual
Quarterly
55
78
44
7597
11492
112
156
8474
141
FY19
FY20
FY21
FY19
FY20
FY21
FY19
FY20
FY21
FY19
FY20
FY21
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Company owned
stores
16
Retail Business
Home interior products through modern format stores
Strong e-commerce presence through online portal EVOK.in and other
sites like Amazon, Flipkart, Pepperfry, etc.
Emphasis on minimising overheads; improving profitability – move
from Cash burn to Cash earn
Q4FY21 Highlights:
● Witnessed 168% increase in website visitors
● PBT positive for two consecutive quarters for the first time
● First Indian brand in furniture domain to launch a hyperlocal
platform (to integrate franchises stores with its e-commerce portal
EVOK.in)
2
Franchise Stores
20
Retail business profitable : Post stores closure
17
94 91
59
FY 19 FY 20 FY 21
-14 -15 -8
FY 19 FY 20 FY 21
EBIT Margin (%)
(₹ in crore)
2224
8
2524
2023 25
1821
1713
FY19
FY20
FY21
FY19
FY20
FY21
FY19
FY20
FY21
FY19
FY20
FY21
-1 -4 -7 -3 -4 -3 -3 -3 1 -7 -4 1
-6% -16% -88% -10% -17% -14% -14% -13% 6%-34% -26% 8%
FY19
FY20
FY21
FY19
FY20
FY21
FY19
FY20
FY21
FY19
FY20
FY21
EBIT Margin (%)
Annual
Quarterly
Revenue
Revenue
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Note : Quarterly figures for FY 19 have been extracted from published financials of Retail business segment on pre demerger basis
18
Building Products Business
Wide array of products available across the price spectrum
Strong Network of distribution and service
Strong Network of distribution and service
● 228 Brand Stores for an immersive customer experience
● 137 Distributors for wide network
● 5400+ direct retail touchpoints: Indirect reach covering around 20,000 touchpoints
● Catering to 1100+ institutional clients
● A service network of 400+ technicians pan India covering more than 640 districts , with a TAT of
24 hours in metro markets and 48 hours in upcountry markets
Leading player in Sanitaryware & Faucets segments
LUXURY
PREMIUM
MASS
19
Diverse and Exciting Product Ranges
BathtubsTilesShowers
FaucetsWater Closets Wash Basins
20
Industry First Innovative : Design Led Products
21
Industry First Innovative : Design Led Products
22
Industry First Innovative : Design Led Products
23
24
Marquee Clients
Innovation and Brand Focus
Modernizing and premiumisation
of portfolio aligned to market
• Touchless series
• Innovations such as Tankless
Addressing consumer with
“Thoughtful is Beautiful” campaign
Focused Channel Based
Approach
Creation of institutional Channel
vertical contributing 30% of
business
Strengthening of teams to address
more than 1100 large customers
Creation of separate Faucet
Vertical
Expanding Reach
Adding 100+ Brand Stores in One
Lac Plus POP towns
Appointing distributors to reach
tier 3-4 towns (500 + towns)
Focus on channel partner ROI by
doing fulfillment through depot
infrastructure
Professional 3PL appointment to
focus on OTIFs
Drivers of Growth
25
Drivers of Growth
Delivering Margins
Mitigating higher input costs by
• Value Engineering
• Strategic procurement by supplier
consolidation
• Reducing dependence on imports
• Improving internal processes
AND
Passing the unmitigated increases
by price hike
Leveraging Digital
Driving Phygital through digital
lead generation
Customized ads for large brand
stores
Store virtual tours for customers
20% of Ad spend to be on Digital
Enhancing After Sales
Service
Expansion of Service
infrastructure by franchised HSPs
(Hindware Service providers)
Covering 640 districts, attending
40k calls monthly and resolving
86% complaints as per SLA of
TAT
26
27
Plastic Pipes & Fittings
With 1,100+ SKUs, it offers best-in-class, NSF-certified, CPVC pipes along
with lead-free UPVC pipes, SWR pipes and PVC pipes for potable water
TRUFLO by Hindware™ uses NSF-certified CPVC compound, Durastream,
supplied by ~US$10 billion Japanese conglomerate Sekisui Chemical Co. Ltd.
Recently forayed into overhead water storage tank and column pipes segment
with a robust range of products
Strong Distribution Network
● 20,000 retailers supported by 200+ distributors for Plastic pipes and
fittings
TRUFLO by Hindware™, is the fastest growing Plastic pipes and fittings brand in
India
TRUFLO aims to be amongst the top 5 players in 3 years
Building Products Business
28
(₹ in crore)Annual
Quarterly
Revenue
Revenue
Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
1,2721,161
1,262
FY 19 FY 20 FY 21
134
77
106
11% 7% 8%
FY 19 FY 20 FY 21
240
275
134
300
304
292 307308
377 377
274
459
FY19
FY20
FY21
FY19
FY20
FY21
FY19
FY20
FY21
FY19
FY20
FY21
32
20
-10
40
18
27
40
22
34
48
16
55
13% 7%-7%
13% 6% 9% 13% 7% 9% 13% 6% 12%
FY19
FY20
FY21
FY19
FY20
FY21
FY19
FY20
FY21
FY19
FY20
FY21
EBIT and Margin (%)
Note : Quarterly figures for FY 19 have been extracted from published financials of Building Products business segment on pre demerger basis
Shaded graphical portion represents COVID impacted period
EBIT and Margin (%)
29
The Way Forward
Market
Leadership
“Be among the
Top 3 in
categories we
operate in”
Improve Capital
Efficiency
Enhance
Shareholder
Returns
Attract & Retain Best Talent
Increase Consumer Connect & Expand Distribution
Leverage Digital