Asian Granito India Ltd

Investor Presentation October 2016

Safe Harbor
This presentation and the accompanying slides (the Presentation), which have been prepared by Asian Granito India Limited
(the Company), have been prepared solely for information purposes and do not constitute any offer, recommendation or
invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract
or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory
offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but
the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth,
accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all
inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or
any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Companys market opportunity and business
prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees
of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict.
These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of
various international markets, the performance of the industry in India and world-wide, competition, the companys ability to
successfully implement its strategy, the Companys future levels of growth and expansion, technological implementation, changes
and advancements, changes in revenue, income or cash flows, the Companys market preferences and its exposure to market
risks, as well as other risks. The Companys actual results, levels of activity, performance or achievements could differ materially
and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any
forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties
included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements
and projections.
2

Sr.no.

Particulars

Page no.

Company Overview

Management Details

12

Capacity

15

Products

20

Clientele/Promotions

26

Innovation

30

Distribution Network

32

Manufacturing Efficiencies

35

Growth Drivers

37

10

Financials

44
3

Financial Highlights Q2 FY17

Revenues

EBITDA

+6%

44%

265

250

31
22

Q2FY16

Q2FY17

Q2FY16

EBIT

Profit After Tax

+44%

56%
22

15

Q2FY16

Q2FY17

10
6

Q2FY17

Q2FY16

Q2FY17

Consolidated figures (Rs. In Crs)

Financial Highlights H1 FY17

Revenues

EBITDA

+7%

56%

478

449

56
36

H1 FY16

H1 FY17

H1 FY16

EBIT

Profit After Tax

+54%

75%
39

25

H1 FY16

H1 FY17

16
9

H1 FY17

H1 FY16

H1 FY17

Consolidated figures (Rs. In Crs)

Margin Profile
EBITDA (%)

PAT (%)

310 bps

110 bps
11.8%

8.7%

3.6%
2.5%

Q2FY16

Q2FY17

Q2FY16

370 bps

130 bps
11.7%

8.0%

H1 FY16

Q2FY17

3.3%
2.0%

H1 FY17

H1 FY16

H1 FY17

On Consolidated basis

Tiles Division - Business Performance

Volume Break-up

Revenue Break-up

43%

45%

43%

49%

44%

49%

9%

11%

8%

Q2FY16

Q2FY17

Q2FY16

Own Manuafacturing

Outsourcing

44%

41%

16%
Q2FY17

JV / Associate

Tiles Division - Business Performance

Volume Break-up

Revenue Break-up

43%

46%

44%

52%

44%

52%

4%
H1FY16

10%

4%

H1FY17
Own Manuafacturing

H1FY16
Outsourcing

45%

42%

13%
H1FY17

JV / Associate

 Launched double-charged
polished vitrified tiles
Introduced 8-colour digital
printing
Increased manufacturing
units to 8 and capacity to
1,00,00 0 sq. mtrs per day
including outsource

Introduced 6colour digital tile

printing
Expanded range
in the valueadded category
Increased
number of AGL
tiles World
outlets to 50

2015

Expanded capacity
of Wall tiles to
20,000 sq. mtr per
day
Commenced
producyion of
marble slabs
Establised new
digital printing
technology for
Cearmic Wall Tiles

2014

Commenced Quartz
slab production
Launched digital
glazed vitrified tiles
Introduced fourcolour digital
printing technology

2012-2013

Establised vitrified
tiles facility at
Himmatnagar with
4,000 sq. mtr per
day capacity and
expanded to
18,000 sq. mtr per
day

2011

Floated IPO &

Established AGL
Tiles World in 14
cities
Introduced Indias
largest wall tile with
10,000 sq. mtr per
day capacity

2009-2010

2007-2008

Commenced
Production of
Ceramic Floor with
2,500 Sq. mtr per
day capacity and
expanded to 6,000
sq. mtr per day

2004-2006

2002-2003

History

Amalgamation of
Artisique Ceramic
Pvt Ltd with Asian
Granito Ltd (AGL)

Overview

Ranked amongst

Top
Ceramic Companies of
the Nation

Rank amongst
Top 4

Exporting Products
across

State of Art
Manufacturing
Facilities
spread across Gujarat

90 +
Showrooms

90 Showrooms
with over 80

Over

Exclusive Showrooms
across India

8 Plants

50 Countries

4000+
Dealers / SubDealers
00

4000

Over
Dealers
&
Sub-Dealers

50 Countries

Over 40X
Capacity
Growth

40X

Over
growth in just 16 years

10

Pioneer in the Industry

To introduce
LARGE FORMAT
Wall & Vitrified Tiles
To introduce
GRESTEK XXL
Large Format Tiles

Introduced 16mm Thick

Heavy Duty Vitrified tiles
GRESTEK HARDSTONE

st

To introduce
WORLDS WHITEST
(CARARRA WHITE) Double
Charge Vitrified Tiles

To introduce
FULL BODY
Tiles in India

To introduce
SLIMGRES TILES
Jumbo 1000x1000mm & Imperio 800x800mm Double Charge Technology World
Pioneer Technology first in India
11

Management

Professionals with over 22 years of experience in Ceramic Industry

Uncompromising attitude towards Quality

12

Key Management Team

Mr. Kamlesh Patel Chairman & Managing Director
With 22 years of experience in the Tile industry - he is a visionary who has
created global benchmarks
Holds BBA Degree from Sardar Patel University & Member of ICCTAS
A decisive decision maker who believes in taking right decision at the right
time and an astute marketing mind, passionate about expansion & brand
building

Mr. Mukesh Patel Managing Director

Having more than 22 years of experience in the Tile industry , he is
responsible for giving company the Innovative Technology edge

Constantly seeking to create new product development with an

uncompromising attitude towards Quality
He is a Director of ICCTAS

13

Professional Team
Sr. V. P - Marble &
Quartz
Chief Financial
Officer

Kalidas Patel

Associate V. P GVT
G. M Finance &
Commercial

B. M. Singhal

Rahul Sharma

CA Himanshu Shah
Sr. G. M International
Marketing

DGM (Legal) &

Company Secretary

Rajesh Iyer

CS Renuka Upadhyav
V. P Operation (Tiles
Division)

B. G. Pattanshetty
14

Capacity

Production Capacity of more than 1,00,000 sq. mtrs. per day

(including outsource)

15

8 Ultra Modern Manufacturing Units

16

Manufacturing Facilities

1st in the World to introduce 5 layer tiles kiln from SACMI-ITALY

17

Manufacturing Facilities

IDAR Porcelain Ceramic

Dalpur Glazed Vitrified

Dalpur Wall Ceramic

Dholka Wall Ceramic

Dalpur - Amazoon
Porcelain Ceramic

Morbi Double Charge

Vitrified

Mehsana Vitrified Plant

Dalpur Marble & Quartz

18

Ultra Modern & Latest Technology

First to establish Online Vitrified Technology

First in India to have Digital 8 Colour Printing Technology

A Pioneer with Best Water Jet Technology

13 Digital
8 Colour Printing
Machines

Highest number of Digital Machines in India

Only Ceramic Company to have in-house 3rd Fire Technology

India's BIGGEST KILN with 5 Line Tiles in Single Process world first in
India by SACMI
19

Products

Wide Product Range - Ceramic Floor, Digital Wall,

Vitrified, Parking, Porcelain, Glazed Vitrified, Outdoor,
Composite Marble & Quartz

20

Product Portfolio
Asian
Granito

* Revenue Contribution

Ceramic
Tiles
*(34%)

Vitrified
Tiles
*(35%)

Grestek
*(13%)

Marble &
Quartz *(18%)

Soluble Salt
Marvel Colour Body Tiles

Wall
Tiles

Floor
Tiles

Homogenous Body
Slimgress
Nano Tech - Double Charge
Grandura Exteriors

Digital Wall
Porcellanto

Grandura Digital

Hard Stone
Hi-Tech Tuff Guard Digital

Imperio Double Charge

Grestek - Digital Glazed Vitrified

Jumbo - Double Charge

XXL

Multi Colour
Marble
Nano Crystal
Marble
Imported Natural
Marble
Onix Marble

21

Ceramic Tiles Wall & Floor Tiles

22

Vitrified Tiles

Soluble Salt

Nano Tech - Double Charge

Homogenous Body

Grandura Exteriors

Grandura Digital

23

GRESTEK Premium Glazed Vitrified Tiles

24

Marble & Quartz

Marble

Quartz

Premium Segment - Higher Realisation

Company enjoys 43% market share in this segment

25

Clientele /
Promotion

Diversified Clientele Profile Real Estate;

Govt.; Hotels; Malls; Banks; Hospitals;
Corporates; Airports; Showrooms etc.

26

Marquee Institutional Clientele

27

Advertising in FIFA WORLD CUP

28

Major Marketing Activities

Active online presence in Social Media : Facebook, Tweeter,
Pinterest
Regional Radio Activation in Navratri
Extensive Regional Road shows in Gujarat, Maharashtra,
Punjab, HP, Delhi, Haryana, UP, Kerala
Product Registered under GRIHA and ADARSH society

Mega Brand Recognition 2016

Showcase Ad Commercials in 1,400
Screens across India in Major Cinemas
during 3 Mega Blockbusters
BIG5 Exhibition DUBAI

ACE TECH

Advertisement in Top In flight & Architect Magazines

Advertisement in THE HINDU PROPERTY PLUS
newspaper in Southern region
Powered By Sponsor in Realty Plus Conclave 5 Major
Cities
Back To Back Product Launch of Hi-Tech Tuffguard
29

Innovation

1st to introduce 5 tiles manufacturing kiln from

SACMI-Italy
1st to launch large format digital charge vitrified tiles
in 1000x1000mm Jumbo & 800x800mm Imperio

30

Recent New Innovative Products launched

Product Name
Gretesk Marvel Colour Body Tiles

Size in mm
300 x 600, 600 x 1200,
600 x 600, 196 x 1,200

Imperio Double Charge Introduced 17 SKUs

800 x 800

Jumbo - Double charge Introduced 16 SKUs

1000 x 1000

CARARRA White (Worlds Whitest Tile in unglazed large format

Double Charge)

800 x 800

XXL Polished Glazed Vitrified Tile

800 x 1200

Polished Vitrified Tile (Double Charge) & Big Crack Stone (new
design introduced first time in India)
Hardstone (Outdoor Tiles in 16 mm & 10 mm thickness)
Grandura (Parking Tiles)

800 X 1200 & 1000 X 1000

600 x 600
300 x 300 & 400 x 400

Hexacon Tiles (first to introduce)

304 x 350

Gresek SLIMGRES

600 x 1200
31

Distribution
Network

All India Market Reach; Distribution Reach Direct Dealers / Subdealers: +4000
Unique 80+ AGL Tile World Exclusive across India

32

Strengthening Distribution Network Tile Segment

Addition in Dealers & Sub-Dealers

Geographical Revenue Breakup

4,500

11%

500
35%
21%

1,200
2,800

33%

FY14

FY15

FY16

Total

West

South

North

East

33

Global Footprint

Presence in 50+ countries

NORTH AMERICA | EUROPE | AFRICA | UAE | AUSTRALIA | EAST ASIA | MIDDLE EAST ASIA
34

Manufacturing
Efficiencies

13 digital colour machines to ensure innovation and efficient manufacturing

Cost Savings - Easy gas availability for nearby plant including natural gas
35

Capacity Built up
Post Amalgamation : Owned Capacity of 88,000 Sq. mts per day
43,000

8,000

Total

Morbi Total

45,000
37,000

Joint Venture

8,000
27,000

6,000

Dalpur

Idar

Total

Asian Granito India Limited

Dalpur

10,000

Dholka Mehsana

Amazoon

Artistique

Crystal

AFFIL

Combined Capacity of 100,000 Sq. Mtrs per day ( Incl. Outsource )

36

Growth Drivers

04

03

02

01

Industry
Growth

B2C
Segment

Value
Added
Product

Amalgamation

Synergies

37

Scheme of Amalgamation
Scheme of Amalgamation of Artistique Ceramics Private Limited into Asian Granito India Ltd

Asian Granito
Limited

Artistique
Ceramic Pvt

Kediya
Ceramics
99.99%

94.20%

70%

Amazon
Ceramics

Crystal
Ceramics

Consideration : 157 equity shares of face value of Rs.10/- at par each fully paid-up of Asian Granito Ltd
for every 100 equity shares of face value of Rs.10/- each fully paid-up held in Artistique Ceramics
38

Amalgamation - Synergies
Artistique Ceramic

Manufacturing Plant at Dalpur, Dholka &

Mehsana with a Annual Capacity of ~10mn
sq. mtrs

Artistique Ceramic

Additional Land & Common Infrastructure

to expand further

Asian Granito
Ltd

Artisique Ceramics has Contract with RAS

GAS for a supply of Natural Gas Quality at a
rate 30% below current market rate

39

Focus on High Value Product Mix

05
Marble & Quartz

04
Glazed Vitrified Tiles

03
Double Charge Tiles

02
Polished Vitrified Tiles

01
Ceramic Tiles (Wall & Floor)

01

02

03

04

05

40

Focus on High Value Product Mix

FY2016

FY2015

H1 FY2017

100%
13%

19%

17%

87%

81%

83%

Tiles

Marble &
Quartz

Total

Tiles

Marble &
Quartz

Total

100%

GVT

Double
Charge

PVT Ceramics Total

Marble &
Quartz

Total

100%
39%

41%
23%

22%

30%
13%

Tiles

100%

43%

14%

100%

100%

18%

18%

GVT

Double
Charge

PVT Ceramics Total

18%

20%

GVT

Double
Charge

PVT Ceramics Total

41

Future Strategies- Focus on B2C Segment

Current
Mapping market for towns with population > 20,000
Retail

Institutional

Initiatives to increase Direct Interaction with Customers

35%

Dealer Network
65%

AGL exclusive showrooms

AGL Digital Express

Trade schemes on high value products

Future
Retail

Institutional

Participated in key trade exhibition

50%

50%

Increased more A+/A/B+ counters

Change in Market Segmentation of Project v/s Retail from 70:30 to 50:50
42

Industry Growth
Smart Cities - New city creation could create office and housing
demand

Housing for all by 2022 an estimated 60 million houses will

need to be built

Push for providing sanitation could create new demand avenues

entry level or lower priced tiles (ceramic tiles)

Swatch Bharat Abhiyan - aims to build 60million toilets by

2019

43

Standalone Profit & Loss

Particulars (Rs. Crs)
Net Sales
Other Operating Income
Revenue from Operations
Cost of Material Consumed
Purchase of Stock-in-Trade
Change in Inventories
Employee Expenses
Power & Fuel
Other Expenses
EBITDA
EBITDA Margin (%)
Other Income
Depreciation
EBIT
EBIT Margin (%)
Finance Cost
Profit before Tax
Tax
Profit After Tax
PAT Margin (%)
EPS

Q2FY17
242.29
1.52
243.80
47.35
99.10
11.32
13.99
23.57
30.15
18.31
7.51%
0.09
5.41
12.99
5.33%
5.18
7.81
1.62
6.19
2.54%
2.06

Q2FY16
235.80
0.37
236.18
58.15
103.32
-8.42
13.10
29.71
22.97
17.34
7.34%
0.43
5.60
12.17
5.15%
6.16
6.01
1.38
4.63
1.96%
2.05

Y-o-Y

3.23%

5.60%

6.71%

29.95%
33.74%

H1 FY17
434.92
1.99
436.91
86.49
183.55
4.48
25.68
47.48
53.79
35.43
8.11%
0.12
10.70
24.85
5.69%
10.45
14.40
3.35
11.05
2.53%
3.67

H1 FY16
428.51
0.94
429.44
105.11
181.53
-11.32
24.62
54.16
43.52
31.83
7.41%
0.58
10.46
21.94
5.11%
11.22
10.72
2.78
7.95
1.85%
3.53

Y-o-Y

1.74%

11.31%

13.24%

34.29%
39.02%

FY16
870.73
2.25
872.97
211.70
353.61
0.78
50.60
102.13
84.12
70.04
8.02%
1.02
21.22
49.84
5.71%
23.75
26.09
7.15
18.93
2.17%
6.71

44

Consolidated Profit & Loss

Particulars (Rs. Crs)
Net Sales
Other Operating Income
Revenue from Operations
Cost of Material Consumed
Purchase of Stock-in-Trade
Change in Inventories
Employee Expenses
Power & Fuel
Other Expenses
EBITDA
EBITDA Margin (%)
Other Income
Depreciation
EBIT
EBIT Margin (%)
Finance Cost
Exceptional Items
Profit before Tax
Tax
Profit After Tax
Share of profit of associates
Minority Interest
Profit After Minority Interest & Share of associates
PAT Margin (%)
EPS

Q2FY17
264.15
1.30
265.45
72.27
74.48
1.99
16.02
29.90
39.52
31.27
11.78%
0.09
9.06
22.31
8.41%
10.28
0.00
12.03
2.23
9.80
0.85
-1.03
9.63
3.63%
3.2

Q2FY16
249.10
1.05
250.15
68.29
86.01
-11.64
15.62
40.04
30.06
21.79
8.71%
0.63
6.94
15.48
6.19%
7.59
0
7.88
1.55
6.33
0.39
-0.57
6.16
2.46%
2.72

Y-o-Y

6.12%

43.56%

44.18%

52.63%
54.77%

56.25%

H1 FY17
475.65
2.61
478.26
125.89
145.19
-11.48
31.35
64.69
66.51
56.10
11.73%
0.30
17.86
38.54
8.06%
18.23
0.00
20.31
4.61
15.70
1.58
-1.37
15.91
3.33%
5.29

H1 FY16
446.97
1.61
448.59
115.25
168.64
-14.57
27.60
64.48
51.20
35.99
8.02%
0.79
11.83
24.95
5.56%
12.77
0.00
12.18
2.94
9.24
0.43
-0.57
9.11
2.03%
4.03

Y-o-Y

6.61%

55.89%

54.49%

66.71%
69.88%

74.65%

FY16
990.96
2.92
993.88
237.11
386.73
-8.61
58.86
127.91
101.07
90.81
9.14%
1.38
27.55
64.64
6.50%
29.11
-0.52
35.01
11.27
23.74
2.18
-1.66
24.26
2.44%
8.47
45

Standalone Balance Sheet

Particulars (Rs.crs)

Sep-16

Mar-16

Share Capital

30

23

Total Reserves

312

301

Share Suspense

Shareholder's Funds

342

331

Long-Term Borrowings

18

Deferred Tax liabilities

Particulars (Rs.crs)

Sep-16

Mar-16

Fixed Assets

218

225

Non Current Investments

35

35

Long term loans and advances

33

36

20

Other non-current assets

22

22

Total Non-Current Assets

289

300

Other Long term liabilities

10

10

Inventories

186

190

Total Non-Current Liabilities

50

52

Trade receivables

204

177

Short Term Borrowings

171

148

Cash and cash equivalents

16

13

Trade Payables

125

150

Other Current Liabilities

18

18

Short-term loans and

advances

17

22

Short Term Provisions

Other current assets

Total Current Liabilities

321

321

Total Current Assets

425

404

Total Liabilities

714

704

Total Assets

714

704

46

Consolidated Balance Sheet

Particulars (Rs.crs)

Sep-16

Mar-16

Share Capital

30

23

Total Reserves

350

333

Share Suspense

Shareholder's Funds

380

363

Minority Interest

20

19

Long-Term Borrowings

133

118

Deferred Tax liabilities

31

Other Long term liabilities

Long-Term Provisions

Particulars (Rs.crs)

Sep-16

Mar-16

Fixed Assets

398

398

Non Current Investments

18

13

Long term loans and advances

12

24

Other non-current assets

22

26

30

Total Non-Current Assets

451

461

28

27

Inventories

259

245

Total Non-Current Liabilities

192

176

Trade receivables

232

197

Short Term Borrowings

226

199

Cash and cash equivalents

21

17

Trade Payables

129

156

25

28

Other Current Liabilities

32

31

Short-term loans and

advances

Short Term Provisions

11

Other current assets

Total Current Liabilities

398

392

Total Current Assets

539

489

Total Liabilities

989

950

Total Assets

989

950

47

Efficient Working Capital Management

In Days

230
206

190

187
143

276
111

221
193

191

89

163
104

80

58

65

FY10

FY11
Inventory

76 78

FY12
Debtors

88 92

FY13
Creditors

89

109

FY14

135
70

95

FY15

113
65

89

FY16

Net Working Capital

Standalone Figures
FY16 Standalone Results of Asian Granito Ltd include results of Artistique Ceramics Private Ltd

48

Asian Granito Limited

Strategic Growth Advisors Pvt. Ltd.

CIN : L17110GJ1995PLC027025
Mr. Himanshu Shah

CIN: U74140MH2010PTC204285
Ms. Neha Shroff / Deven Dhruva

ca@aglasiangranito.com

neha.shroff@sgapl.net /
deven.dhruva@sgapl.net

www.aglasiangranito.com

www.sgapl.net

49