aditya birla nuvo[nuvo corporate presentation may09] 2
TRANSCRIPT
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
1/68
ADITYA BIRLA NUVO LIMITEDADITYA BIRLA NUVO LIMITEDCORPORATE PRESENTATIONCORPORATE PRESENTATION
strong foundationstrong foundation energisedenergised growthgrowth
Stock Code BSE : 500303 NSE : ABIRLANUVO Reuters : ABRL.BO / ABRL.NS / IRYN.LU Bloomberg : ABNL IN / NABNL IN / IRIG LX
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
2/68
2
The Aditya Birla Group
Among the largest and the most reputed business houses in India
Flagship Companies: Idea Cellular, Grasim, Hindalco, Aditya Birla Nuvo and UltraTech
A USD 28 billion Corporation operating in 25 countries across 5 continents
About 50% of revenues generated from overseas operations
Anchored by ~ 1,25,000 employees belonging to 25 nationalities
Trusted by over 1.5 million shareholders
In India
Leadership Aluminium, Cement, Carbon Black,Position Branded Apparels, Copper, VSF,(in terms of VFY, Chlor-alkali, Insulatorsproduction/sales)
Top 5 Telecom (in terms of subscribers base)Life Insurance (in terms of Weighted New
Received Premium - WNRP)
Asset Management (in terms of average AUM)BPO (in terms of revenue size)
Global positioning
VSF Worlds largest producer
Aluminium Worlds largest aluminium rolling unit
Carbon Black 4th largest producer in the world
Insulators 4th largest producer in the world
Cement 11th largest producer in the world
Our Values Integrity, Commitment, Passion, Seamlessness, Speed
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
3/68
3
Aditya Birla Nuvo : Vision and Strategy
Vision
Strategy
To increase the share of Growth businesses in the
consolidated revenues by deploying surplus cash from
Value businesses to nurture the Growth businesses
To become a premium conglomerate with market
leadership across businesses delivering superior
value to shareholders on sustained basis
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
4/68
4
Rs. 136 billion in FY08-09
Rs. 18 billion in FY02-03
Financial Services
Telecom IT-ITES Garments
Value Businesses : Strong Foundation
Grow
thBu
sines
ses
Energisedgrowth
Consolidated Revenue Mix
Value businesses
28%
(Rs. 38 billion)
Growth businesses
72%
(Rs. 98 billion)
Valuebusinesses
67%(Rs. 12 billion)
Growth
businesses
33%
(Rs. 6 billion)
Transformation from a manufacturing company to a premium conglomerate
Aditya Birla Nuvo : A Growth Story
CarbonBlack
Fertilisers
Insulators
Rayon
Textiles
CAGR 41%
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
5/68
5
Life Insurance JV withSun Life, Canada
Acquisition ofMadura Garments
Entry into new age businesses with high growth-potential
2000 2001 2003 2004 2005 2006 1999 2007
1999
Raised Rs. 7.8billion through
rights issue
Carbon BlackBrownfield
expansion by
60K MT to230K MT
De merger ofCement unit /Surplus cash
returned to
shareholdersthrough buybackof equity shares
Successful history of transformation & rejuvenation of businesses
2008/09
Acquired PSI DataSystems, an IT
services company
Acquired 76%stake in Apollo
Sindhoori, a retailbroking companyForay into the
BPO sectorthrough the
acquisition ofTransworks
Carbon BlackBrownfield
expansion by 40KMT to 160K MT
Merger of IndoGulf Fertilisers
and Birla Globalwith Company
Indian Rayon
rechristened asAditya Birla
Nuvo
Increased stakefrom 4.3% to
20.74% in 2005;further to 35.74%
in 2006
Acquired Minacs,a leading
Canadian BPO
Insulatorssubsidiary merged
with Nuvo w.e.f.April 1, 2007
Promoters infused
Rs. 341.3 Cr. onconversion of 17
lacs warrants and
Rs. 377.4 Cr. as10% applicationmoney on 1.88Cr. warrants in
Mar08
Acquired balancestake in Birla Sun
Life Distribution
Entered PrivateEquity biz.
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
6/68
6
Value BusinessesGrowth Businesses
TextilesRayon FertilisersCarbon
Black
BPO(88.28%)
GarmentsFinancialServices
Telecom(27.02%)
Asset Management
(50%) *
Life Insurance
(74%)*
Distribution (100%)Retail broking (76%)
NBFCInsurance Advisory
Private Equity
Represent Joint Ventures
ContractExports (100%)
IT Services(76.89%)
Minacs(100%) Represent SubsidiariesApparel
Retail (100%)
De-risking with optimum blend of value & growth businesses
Insulators
Aditya Birla Nuvo : Premium Conglomerate by design
* JV with Sunlife Financial, Canada
Note : Percentage figures indicated above represent
Nuvos shareholding in its subsidiaries /JVs
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
7/68
7
Carbon Black
8%
Fertilisers 9%
Textiles 4%
Insulators 3%
Garments 8%
IT & ITeS 13%
Life Insurance
28%
Telecom 21%
Rayon 4%Financial
Services 2%
Growth Wheel
ConsolidatedRevenues-Mix
FY 2008-09
Rs. 136 billion
(~ USD 3 billion)
Note : 1 USD = Rs. 45
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
8/68
8
Aditya Birla Nuvo : House of power brands
A leading player in the financial services space
A leading player in the premium branded apparel sector
Value businesses generating stable cash flows
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
9/68
9
Financial snapshot
Average rate : 1 USD = Rs. 40 (FY07-08) & Rs. 45 (FY08-09) 1 billion = 100 Crores
FY'07-08 FY'08-09 FY'07-08 FY'08-09
3,953 4,786 Rs. Cr. 11,861 13,643
988 1,064 USD Mn 2,965 3,032
243 137 Rs. Cr. 151 (431)
61 31 USD Mn 38 (96)
7.8% 5.5% ROACE (%) (Annualised) % 5.9% 0.6%
0.7:1 1.1:1 Total Debt / Equity ratio (x) x 1.6:1 1.5:1
155,028 155,497 Nuvo's Shareholders Nos.
13,253 4,220 Rs. Cr.
3,313 938 USD Mn
Standalone ConsolidatedUnit ofmeasurement
Particulars
Market Capitalisation (Nuvo)
Revenues
Net Profit
Proposed infusion of Rs. 1,000 Cr. through preferential allotment of 1.85 Cr. warrants
to the Promoters will strengthen financial position
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
10/68
10
Telecom : Indian industry overview
Tele-density in India at ~ 37% as on 31st Mar09 (Source : TRAI)
2nd largest population after China; tele-density far lower than about 45% in China & over 80% in US
Indian cellular industry : Fastest growing cellular market in the world
Wireless subscribers at 391.76 million in Mar09 grew at a CAGR of 66% in past 3 years
2nd largest wireless subscribers base in the world after China
Expected to reach 737 million subscribers by 2012 (Source : Gartner)
Indian Cellular Industry : Pan India Market Share(in terms of subscribers)
As on 31st Mar09
Source : TRAI
Aditya Birla Nuvo holds 27.02% share
Aditya Birla Group holds 49.13% share
Reliance
18.5%
Vodafone17.6%
Tata
9.0%
IDEA
(incl. Spice)
11.0%
BSNL
13.3%
Airtel
24.0%Others
6.7%
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
11/68
11
8.4% 8.9%9.2%
11.0%
19.5%17.5% 18.0%
18.6%
Mar'07 Sep'07 Mar'08 Mar'09
Pan India 8 established operating circles
Idea Cellular : Moving towards Pan India presence
Idea is 5th largest in India with 11% (incl. spice) all India share
43.02 million subscribers as on March 31, 2009Ranks 2nd with 19.5% share in combined subscribers base of 8
established operating circles (Airtel ranks 1st with 19.8% share)
Holding licenses and spectrum for all 22 circles with operations
in 16 circles covering over 150K towns and villages
Spice is rebranded as Idea in Punjab and Karnataka circles
Rolled out in Mumbai and Bihar & Jharkhand in FY09, Orissa in Apr09
Key Enabler : Achieving pan India presence by Dec09
Targeting pan India operations with planned launch of services in
remaining 6 circles by the end of calendar year 2009
Source : TRAI
Idea - Market Share trend (%)
Idea derived net cash inflow of over Rs. 45 billion out of spice deal to fund its growth plans
Acquired 40.8% stake in Spice at Rs. 77.30 per share for Rs. 27.2 billion incl. non-compete fee of Rs. 5.4 billion
Idea made preferential allotment of 464.73 million equity shares to Telecom Malaysia (TMI) in Aug08 at
Rs. 156.96 per share collecting about Rs. 73 billion; post allotment Nuvos stake in Idea reduced to 27.02%
Open offer for additional 20% stake in Spice communication at Rs. 77.30 per share completed in Oct08
Spice will be merged with Idea. Swap ratio will be 49 shares of Idea for every 100 shares of Spice
Providence infused Rs 21 billion in Aditya Birla Telecom Ltd. (ABTL) in Dec08
ABTL, a subsidiary of Idea, has license for Bihar & Jharkhand & holds 16% stake in Indus Towers
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
12/68
12
76
212
502
1042
901
FY05 FY06 FY07 FY08 FY09
2,2622,965
4,366
6,720 10,125
FY05 FY06 FY07 FY08 FY09
Idea Cellular : Growing at a pace higher than industry
Revenues (Rs. Cr.)TMI and Providence deal strengthened financial position of Idea
Net debt to equity (net of cash surplus of Rs. 5,131.6 Cr.) is 0.27 as at 31st Mar09
Cash inflows will be used for financing capex plans and 3G spectrum auction
Spices ILD license & TMIs presence in 10 Asian countries will be leveraged
IRU for Indus Towers, a JV with Bharti & Vodafone for tower sharing signed
Effective from 1st Jan09, JV will pillar speedy roll out in Ideas new circles
PAT (Rs. Cr.)
391.76
129.54
165.1198.78209.07
261.09
43.02
24.00
7.3710.36
14.01
18.67
Mar'06 Sep'06 Mar'07 Sep'07 Mar'08 Mar'09
Industry Idea
Subscribers base (Million)
Source : TRAI
Financials at Page 49
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
13/68
13
Aditya Birla Nuvo Financial Services : Structure & Vision
VISION
To be a leader and role model in
financial services sector with a broad based and integrated business
LifeInsurance
A
ssetManageme
nt
Non-Banking
FinancialCompany
In
suranceadviso
ry
Distribution&
WealthManageme
nt
Leveraging synergies to be more competitive and cost effective
RetailBroking
PrivateEquity
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
14/68
1414
Faster growing economy
Indian economy grew by 9% in terms of GDP in past
three years (Source : CMIE)
Despite global slowdown, managed to grow by 6.5% in
FY2008-09 (Source : CMIE)
Large population & young demographics
Fast growing aspirations
High rate of savings
Financial simpleton
Safety over returns
Seeking reassurance from a Trusted face
Lower penetration
55% of savings lying in bank deposits
Household penetration in
Mutual Funds ~ 5%,
Life Insurance ~ 15%
Huge opportunity in tier 2 & 3 cities
Financial Services Sector in India
The Indian Financial Services sector has yet to tap Indias true potential
Geographical Dispersion of Financial Services Products (2006)
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
15/68
15
Built momentum in Life Insurance and Asset Management businesses
Put together a winning team & set scalable processes
Setting goals for Distribution & Wealth management and NBFC & Insurance advisory
Acquired 76% stake in Apollo Sindhoori, a retail broking company
Entered Private Equity business
EXPANSION
Growing fasterthan the market
Scaling updistributionreach acrossmarkets and
channelsImprovingproductivityacross thechannels
People bound bya Vision
Productinnovation
Speed to market
Consistent andsuperiorinvestmentperformance
Customerengagementmodel
Capital efficient
DIFFERENTIATION
Leveraging onsynergies
within AdityaBirla FinancialServicesGroup
within AdityaBirla Group
Sun LifeFinancial
Outsourcing &Decentralisation
Technology
Best employer
Trusted Brand
Risk &Compliance
TalentRetention
STRATEGY TRANSFORMATION
ACTION PLAN
EXCELLENCE
Aditya Birla Nuvo Financial Services : Road Map
STATUS
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
16/68
16
Life Insurance : Indian industry overview
Lower life insurance penetration in India (4.1% of GDP against World average of 7.5%)
Penetration in India expected to rise to ~ 6.6% of growing GDP in 2012
Indian Life Insurance Industry : New business premium size expected to grow to Rs. 2,000 billion
by 2012 from current Rs. 900 billion
Number of lives covered expected to rise to ~ 300 million by 2012 from current 150 million
Marketing efforts from private players is increasing market size through mass education
Market share of private players in weighted new received premium rose to 48% in FY09 from 33% in FY07
Indian Life Insurance Industry : Market Share amongstprivate players (in terms of WNRP)
(FY2008-09)
Source: IRDA
74:26 JV with Sunlife, Canada
SBI Life
15.0%
Bajaj Allianz
13.1%
HDFC Standard7.6%
Birla Sunlife
9.0%
Others
19.5%
Reliance Life
9.8%
ICICI Prudential
20.7%
Max New York
5.2%
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
17/68
17
85137
339
600
Mar'06 Mar'07 Mar'08 Mar'09
18
57100
166
Mar'06 Mar'07 Mar'08 Mar'09
Birla Sun Life Insurance : Focus To Achieve Leadership
Distribution Centres(Nos.)
Key Enablers :
Pioneered Unit Linked Insurance Plan (ULIP) & bancassurance
Tie-ups: 6 banks & over 400 corporate agents
Continued thrust on strengthening distribution reach across channels
Branch network and Direct Sales Force grew multifold during last three years
to reach 600 branches and 166K agents respectively
Further branch expansion to be aligned with industry growth outlook
Product portfolio strengthened in last year through launch of 10
products in individual life segment and 2 products in group business
In the current year, further launched pension plan-Freedom 58, Platinum
Plus-II, Traditional Life plan & Health Plan
Strengthening management team and putting in place robust ITplatform to support growth
Focus on superior and consistent fund performance
More than 85% of equity as well as debt AUM is invested in fundamentally
strong large caps & highest rated instruments respectively as on 31st Mar09
To be amongst top 3 private players
Direct Selling Agents (000)
Key Aspiration
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
18/68
18
FY05 FY06 FY07 FY08 FY09
New business Renewals & other income
Birla Sun Life Insurance : Regaining Market Share
In FY09, BSLI ranked 5th with 9% share (in terms of WNRP) amongst privateplayers up from 6.6% in FY07-08
Weighted New Received Premium (WNRP) of BSLI grew YoY by 44% while
private life insurers grew by 6% and industry de-grew by 3%
Achieved 2nd best growth rate amongst top 7 private players
For the month of Mar09 per se, BSLI garnered 11.2% market share amongst
private players
Revenues at Rs. 3743.6 Cr. in FY09 grew at a CAGR of 41% in last 4 years
AUM at Rs. 9,168.4 Cr. as on 31st Mar09 more than doubled in last 2 years
Strong support from promoters : Aditya Birla Nuvo & Sun Life Financial
Infused Rs. 603 Cr. in FY07-08 to fund growth of the business
Further capital infused Rs. 725 Cr. during FY08-09
Revenues (Rs. Cr.)
938
1,5591,930
3,710
BSLI Market Share trend (%)13.7%
6.6%
8.1% 8.2% 8.5%9.0%
3.0% 2.5%1.6%
2.9%4.2% 4.2% 4.3% 4.3%
5.3%
8.2%
2004- 05 2005- 06 2006-0 7 2007- 08 YTD J un'08 YTD Sep'08 YTD D ec '08 YTD Mar '09
Amongst Private Players Overall
#2
Source : IRDA
#5
3,744
P 50
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
19/68
19
Indian Mutual Fund Industry : Today
Assets Under Management Average AUM : Rs. 4,933 billion as on 31st March 2009
Present customer penetration : 1.9% and AUM / House hold financial savings: 3.8%
Every 1% increase in AUM penetration will lead to an increase of Rs. 400 billion in AUM size
Expected face of Indian Mutual Fund Industry in 2011
AUM : Institutional ~ Rs. 4,500+ billion (CAGR 27%); Retail ~ Rs. 5,900+ billion (CAGR 41%)
Revenues : Institutional ~ Rs. 9+ billion (CAGR 28%); Retail ~ Rs. 36+ billion (CAGR 39%)
Geographical penetration to increase substantially
Contribution of top 15 cities to reduce from current 80-85% to around 50%
Mutual Fund : Indian industry overview
Indian Mutual Fund Industry : Market Share(in terms of average AUM)
As on 31st Mar09
Source: Internal Research and few sectoral reports
Source : AMFI50:50 JV with Sunlife, Canada
Others
36.6%
Reliance
16.4%
UTI
9.9%
Birla Sunlife
9.5%
SBI
5.3%
ICICI
10.4%
HDFC
11.7%
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
20/68
20
Branches (Nos.)
To be amongst top 3 players
8
18
29
Mar'07 Mar'08 Mar'09
32
78
115
Mar'07 Mar'08 Mar'09
Created history by winning Mutual Fund House of the Year award by
CNBC TV18-Crisil, for the second year in a row
Awarded India Onshore Fund house by Asia Investor in 2009
Runner up in Best Mutual Fund House Category by Outlook Money NDTV
Profit Awards 2008
Ranks 5th in India with 9.5% share in Mar09 up from 6.8% in Mar08
Average domestic AUM as on 31st
March 2009 at Rs. 47,096 Cr.Achieved 31% growth in average AUM during the financial year while industry
de-grew by 7%; highest growth rate amongst top 5 players
Avg. PMS AUM grew from Rs. 16 Cr. in Mar08 to Rs. 287 Cr. in Mar09
Avg. offshore AUM (all equity) stood at Rs. 1,265 Cr. as on 31 st Mar09
Scaled up multi-channel non-polarised network to support growth
Distribution network trebled since Mar07 to reach 115 branches & over 29K
financial advisors in Mar09
Offering over 90 Mutual Fund schemes including 2 offshore funds
Key Enablers : Consistent investment performance, building offshore
proposition, CRM, PMS and alternate channels
Average AUM (Incl. offshore & PMS)(Rs. Cr.)
10,072
5,85966
16,709
7,04723
28,381
10,01416
42,489
5,872287
Mar'06 Mar'07 Mar'08 Mar'09
Debt & Liquid Equity PMS
15,997
23,779
38,411
48,649
FinancialAdvisors (000)
Birla Sun Life Asset Management : Mutual Fund House of the Year
Key Aspiration
CAGR
45%
Domestic avg. AUM crossed Rs. 50,000 Crores mark in April 2009 P 51
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
21/68
21
Birla Sun Life Distribution
Nuvo acquired remaining 50.01% stake in BSDL for Rs. 7.6 Cr. in March 2009
BSDL became wholly owned subsidiary of Nuvo w.e.f. 31 st March 2009
Lines of business
Private Client Group Wealth management advisory services to HNIs
Channel Partners - Sub-broker model to distribute mutual funds
Institutional Investment advisory services to Corporates
Insurance Direct Sales force based life insurance selling
Over 2,50,000 customers country-wide
Nationwide presence with 44 branches and over 4,500 channel partners
Key Enablers
Expanding presence across spectrum of financial products
Market and customer segmentation
To be amongst top 5 players in the wealth management spaceKey
Aspiration
P 52
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
22/68
22
Apollo Sindhoori
Nuvo acquired 76% stake in Apollo Sindhoori Capital Investments Ltd. (ASCIL), a retail broking
company, in Feb-Mar09 for Rs. 251.6 Cr.
ASCIL became subsidiary of Nuvo w.e.f. 6th March 2009
A leading player with over 14 years of experience in the retail broking business in India
Lines of business
Trading facility in Equity segment and Derivative segment on NSE & BSE.
Trading facility in commodity segment, including bullion, oils, gaur seed etc. through a subsidiary
Depository Participant [DP] services of NSDL and CDSL at major locations
Online bidding for IPOs
Distribution of Mutual Funds
Strong distribution network of over 240 own and 840 franchisee branches across over 150 cities
A large 175,000 customers base
Key Enablers
Deriving synergies through cross selling
Capitalising on distribution reach P 52
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
23/68
23
Birla Global Finance
Lines of business
NBFC (BGFCL)
Loan against Securities
IPO financing
Corporate Finance
General Insurance advisory (BIASL)
Highest rating of A1+ assigned by ICRA for short term debt
NBFC business performed well during FY09 despite depressed
stock markets
Key Enablers
Expanding presence across a range of asset products
Market and customer segmentation
Key
Aspiration
To be among top 5 NBFCs in India by profitability
Birla Global Finance Company Limited
Birla Insurance Advisory and
Broking Services Limited
P 52
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
24/68
24
Business Process Outsourcing : Industry overview
Outsourcing of support services offers significant opportunities in the sector
Global offshore BPO market to reach USD 61 billion by FY12-13 from USD 26 billion in FY07-08E
Share in global BPO spend (incl. captive) currently at 6% is expected to grow to 9% by FY12-13
Indian BPO industry expected to grow at a CAGR of 22% to USD 29.7 billion by FY12-13
KPO segment is estimated grow at a CAGR of 32% to reach USD 5.3 billion by FY12-13
Aditya Birla Nuvo holds 88.3% share
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
25/68
25
Auto
54%
Telecom
7%Others
3%Hi-Tech
18%
BFSI
18%
Aditya Birla Minacs : Global delivery solution provider
FY05 FY06 FY07 FY08 FY09
Asia pacific N or th Amer ica
Revenues (Rs. Cr.)Transworks, a small BPO acquired in 2003
Nurtured the business to grow multifold in 2 years
Acquired Minacs in August 2006, a leading Canadian BPO with annual
turnover of USD 250 million & re-branded as Aditya Birla Minacs
Ranked among Top-5 outsourcers in India in FY07-08 (Source : NASSCOM)
Amongst the top-100 global outsourcing service providers in 2008
(Source : International Association of Outsourcing Professionals, 2008)
Delivering solutions to 54 clients across 50 countries in 41 languagesthrough 27 centres in US, Canada, Europe, India & Philippines
Operating through 8,326 seats and 11,621 employees
Clientele includes 27 Fortune 500 clients
Business impacted by global slowdown, under utilisation of capacity
and forex loss
Special efforts initiated to improve profitability
Key Enablers
Controlling overheads besides optimising seats and sites utilisation
Migration towards new low cost geographies
Continue to grow high value KPO segment
108 163
1,016
1,578 1,687
Revenues Mix (FY09)
P 53
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
26/68
26
Garments : Indian industry overview
Indian ready made garments (RMG) industry expected to reach ~ Rs. 2.4 trillion in 2012
from ~ Rs. 1.3 trillion in 2007 growing at a CAGR of 12.7%
Domestic RMG market is expected to grow at a CAGR of 13% to reach ~ Rs. 1.6 trillion in 2012
Organised apparel retailing is expected to grow faster at a CAGR of 24-28% over next 5 years
Share of organised apparel retailing is expected to reach ~ 30-40% in 2012 from current ~ 20%
Entry of international players will intensify the competition
The ultimate status symbol Premium formal wear Friday Dressing
The Honest Shirt
Life Style Brands
Popular Brands
Madura Garments Brands
Fun, Fashion and Family
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
27/68
27
Madura Garments : Leadership built by strong brands
FY05 FY06 FY07 FY08 FY09
Branded Garments Contract Exports
Revenues (Rs. Cr.)
Branded Garments
Revenues almost doubled in last 3 years to Rs. 906 Cr. in FY09
Successful migration from shirt to lifestyle proposition
Brand leadership : Louis Philippe, Van Heusen, Allen Solly & Peter
England; Strategic distributorship tie-up with leading brand Esprit
Launched sub-brands to serve various customer segments
Key Enabler : Enlarged presence in apparel retailing space
Nuvo grew controlled retail space rapidly from almost nil in 2001 to 7.02
Lacs sq. ft. across 340 Exclusive Brand Outlets (EBOs) as on 31st Mar09
Scaled up retail channel led to 33% YoY growth during FY09 amidst
lower footfalls and higher discounting
Higher lease rentals due to retail space expansion and high
discounting lowered profitability during FY09
473
621
8301,026
Retail Penetration
Individual Focus through four Strategic Business Units (SBUs)
Life Style Brands Louis Philippe, Van Heusen, Allen Solly
Mens Exclusive Life Style Retail Stores The Collective
Peter England and Peter England People Retail Stores
Contract Exports Madura Garments Export Limited
168
340
Mar'07 Mar'09
309
702
Mar'07 Mar'09
Square Feet(000)
EBOs(Nos.)
1115
P 55
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
28/68
28
Madura Garments : Launched two new formats
Contract Exports
One of the largest branded garments exporters in India
Manufacturing Capacity expanded in Aug07 to 15.4 million pieces
Scaling full service provider segment in US, UK and India
Key Enablers
Improving capacity utilisation
Reducing dependence on USD business Expanding European and domestic business
Large format apparel retailing : Pursuing high end apparel retailing through two new formats
Launched Peter England people- A mass family brand
5 stores of an average size of 12-15K sq. ft. launched in 2008
Launched THE COLLECTIVE - An international shopping experience
One store spanned across 17.5K sq ft opened in Bangalore offering mens lifestyle wardrobe collection
Offers Madura garments fashion brands as well as international brands under one roof
P 55
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
29/68
29
Carbon Black : Industry overview
A key ingredient in Tyre processing
Tyre sector accounts for about 65% of Carbon Black demand
Global Carbon Black industry has a production capacity of 10.7 million MT
Global demand for Carbon Black to reach ~ 11 million MT in 2010 growing at a CAGR of 3.6%
Indian Carbon Black industry has a production capacity of 0.62 million MT
Domestic Carbon black demand estimated to grow at ~ 6.6% p.a. from 2007-08 to 2012-13
Usage of Carbon Black
25%
Tyre
65%
Belts & hoses
10%
Rubber
15%
Printing Ink and
other specialty
10%
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
30/68
30
Hi-Tech Carbon
77
92
132
153
50
FY05 FY06 FY07 FY08 FY09
467564
739
864
1096
FY05 FY06 FY07 FY08 FY09
Revenues (Rs. Cr.)
PBDIT (Rs. Cr.)
Aditya Birla Group is 4th largest producer globally (Capacity : 750K MTPA)
Operating in 4 countries : Thailand, Egypt, India & China
Achieving synergies through marketing under brand Birla Carbon & central
procurement of feed stock (CBFS)
Nuvo is 2nd largest domestic player with about 36% market share
Lowest cost producer in India and has coastal location at one plant
Value contribution from energy sales
Capacity doubled from 110K MTPA in 2002 to 230K MTPA in 2007
Out of this, 60K MTPA capacity was added in July07
Environmental clearance received & project activities initiated in
Western India for Greenfield expansion by 75K MT
Growth achieved in revenues in FY09 while sharp volatility in crude oil
prices impacted profitability across the industry
P 56
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
31/68
31
Indo Gulf Fertilisers has 4.8% (approx.) domestic market share
Strong brand Birla Shaktiman is preferred choice of farmers
Also offering value adding variety Neem coated Krishi Dev
Repositioning itself as a Total agri-solution provider
Scaling agri-inputs & outputs trading business
Performance in FY08 impacted due to shutdown for
about 2 months for annual maintenance & subsequent breakdown
Posted significant growth in FY09 supported by higher volumes and
receipt of higher subsidies for higher capacity utilisation
Indo Gulf Fertilisers : Total agri-solution provider
Acute deficit of urea in India Approximately 25% of the demand is imported
Demand expected to grow by ~ 6-7% p.a. to reach 35.4 million MT in FY2012
Industry moving towards non-regulated agri-products
Demand for non-regulated agri-inputs like seeds, pesticides, nutrients etc
expected to grow at 5-7% p.a.
136 130 130
102
229
FY05 FY06 FY07 FY08 FY09
676647
785 787
1250
FY05 FY06 FY07 FY08 FY09
Revenues (Rs. Cr.)
PBDIT (Rs. Cr.)
P 57
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
32/68
32
Aditya Birla Insulators is largest domestic producer & 4th largest globally
Capacity 38,800 TPA at two plants
Further capacity expansion by 10,000 TPA in Apr09
is under trial run
Forayed in composite insulators through installation of pilot plan in Mar09
Power Grid corporation of India and State Electricity Boards (SEBs),
ABB, Areva, Siemens etc. are amongst major customers
In FY09, revenues at Rs. 424.8 Cr. and PBDIT at Rs. 122.8 Cr.
Operating margin at 28.9% and ROACE at 43%
Aditya Birla Insulators
Revenues (Rs. Cr.)
PBDIT (Rs. Cr.)
6
44
54
136
123
FY05 FY06 FY07 FY08 FY09
186
247 241
399 425
FY05 FY06 FY07 FY08 FY09
Insulators are used in power generation, Transmission and distribution
(T&D) and by Original Equipment Manufactures (OEMs)
Global T&D market expected to grow at a CAGR of 6% by 2010;
expected growth in India higher at ~ 20%+ p.a. (Source : Enam research)
Areva, ABB, Siemens control 45% of global market
P 58
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
33/68
33
2nd largest producer and largest exporter of VFY in India with 38%
market share
Integrated facilities
Capacity : VFY - 16,400 TPA; Caustic soda - 250TPD
Cost effective 34.5 MW captive power plant
Domestic VFY market has limited growth prospects
Growth is driven by quality exports to extract premium
Became largest Indian VFY exporter for consecutive fourth year withabout 50% share in VFY exports from India in FY09
Rs. Cr.
352
88
386
90
441
120
476
124
537
123
FY05 FY06 FY07 FY08 FY09
Revenues PBDIT
Domestic market leader in Linen segment
Branding & promoting linen fabric under Linen Club
Spinning & weaving capacities 15,084 spindles & 106 looms
One of the largest player in Wool segment in India
Worsted yarn capacity at 25,548 spindles
Wool combing capacity at 7 card machines
Jayashree Textiles : Niche play459
33
528
57
625
67
600
68
573
54
FY05 FY06 FY07 FY08 FY09
R even ues PBD IT
Rs. Cr.
Indian Rayon : VFY and Chlor-alkali
P 60
P 59
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
34/68
34
Business Outlook and Strategy
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
35/68
35
Strategy Going Forward : Growth Businesses
Telecom : Achieving Pan India presence
Speedy roll out in remaining six circles and increasing presence in existing circles
Accelerating profitability on rollout capex incurred in new circles & expansion capex in existing ones
Improving quality of services in Punjab & Karnataka circles as per Idea standards
Deriving full benefits from Tower Joint Venture, international long distance (ILD) license held by
Spice and TMIs presence in ten Asian countries
Financial Services : Striking balance between growth and profitability
Life Insurance / Asset Management
Improving productivity and augmenting relationships across distribution channels
Building newer channels to achieve sustainable growth in future
Launching contemporary products to optimise product suite
Delivering consistent & superior returns to customers
Increasing share of high margin equity & PMS AUM along with expanding foot print in overseasmarket and real estate arena in the Asset Management business
Deriving synergy across business verticals to achieve vision
Utilising the client base and distribution network of Apollo Sindhoori for cross selling
Delivering differentiated and superior but uniform customer experience
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
36/68
36
Strategy Going Forward : Growth Businesses
BPO : Achieving profitable growth
Improving seats utilisation and sites rationalisation to reduce overheadsImproving SLA and client retention
Off-shoring support functions and supporting new business from low cost locations
Thrust on growing high margin KPO segment
Leveraging Aditya Birla Group Ecosystem particularly in the Telecom and Insurance verticals
Garments : Improving profitability
Improving retail productivity with emphasis on product and merchandise grid for higher sell through
Controlling overheads and enhancing supply chain efficiency
New initiatives being re-modeled to curtail losses
Regaining profitability in the garments exports business by right sizing the business and cost
reduction.
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
37/68
37
Carbon Black
Regaining profitability by managing CBFS procurement costsAligning completion of Greenfield expansion by 75,000 MTPA with revival of demand
Fertilisers
Improving profitability by higher capacity utilisation and by scaling up agri-product trading segment
Insulators
Full utilisation of capacity expansion by 10,000 MTPA
Augmenting capacity further by 4,000 MTPA
Yield enhancement to improve margins
Rayon
Improving yarn quality to derive premium in exports markets
Textiles
Expanding presence in high margin retail segment under Linen Club brand
Finance
Reducing Debt burden
Strategy Going Forward : Value Businesses
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
38/68
38
Financial PerformanceFinancial Performance FY08FY08--0909
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
39/68
39
Rs. Cr.
Revenues : FY 2008-09
3,953
4,786
FY08 FY09
21%
ConsolidatedStandalone
11,861
13,643
FY08 FY09
15%
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
40/68
40
Consolidated Revenues - Segmental
Revenues
2008-09 2007-08
Telecom (Nuvo's share) @ 2, 890. 2 2, 135. 6
Premium income 4, 414. 3 3, 223. 1
(670.7) 487.3
BPO 1,687.2 1,577.7
Garments (Incl. apparel retail) 1,115.8 1,025.8
Other Financial Services 249.6 197.5
IT Services 95.4 101.1
Carbon Black 1,095.6 863.8
Fertilisers 1,249.8 787.5
Insulators 424.8 398.9
Rayon 537.1 476.0
Textiles 573.2 600.3
Inter-unit Elimination (19.1) (13.4)
Consolidated Revenues 13,643.2 11,861.1
Standalone Revenues 4,786.2 3,953.1
Full Year
Life InsuranceInvestment income / (loss)
on policyholders' funds
Rs. Cr.
35%
37%
15%
7%
9%
59%
21%
51%
27%
7%
@Idea is consolidated at 31.78% till 12th Aug08 and at 27.02% afterwards. Full financial numbers are as under:
13%
26%
Idea Cellular (Telecom) 10,125.2 6,720.0
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
41/68
41
Consolidated revenues grew by 15%
Consolidated net income from operations grew by 15% from Rs. 11,861.1 Cr. to Rs. 13,643.2 Cr.
Idea Cellular revenues grew by 51% driven by subscribers growth and launch of new circles
Nuvos share could grow only by 35% due to dilution of Nuvo stake in Idea from 31.78% to 27.02%
While Life Insurance business witnessed 37% growth in net premium income, loss on policyholders
investments arrested revenues growth
Other financial services grew considerably in revenues despite depressed market conditions
World-wide slowdown impacted revenues growth in BPO and IT services businesses in the second half
In the Garments business, sales from expanded retail channel grew by 33% year on year while lowerwalk-ins & prolonged discounting reduced overall growth to 9%
Revenues in the contract garments exports business were impacted due to reduced order flow
In the fertilisers business, sharp rise in natural gas and naphtha prices resulted in higher subsidies while
volumes grew by 23%
Rise in feedstock prices pushed realisation up in Carbon black business, while sales volumes de-grew
by 5%
Improved product mix in the Rayon and the Insulators businesses resulted in higher realisation
Revenues in the textiles business were impacted by slowdown
continued
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
42/68
42
Standalone FinancialRs. Cr.
Particulars
2008-09 2007-08
Net Sales 4,687. 6 3, 842. 3
Other Operating Income 98.6 110.8
Net income from operations 4,786. 2 3, 953. 1
Operating Profit (PBDIT) 585.7 633.9
Interest (Net) 257.4 179.0
Gross Profit (PBDT) 328.3 454.9
Depreciation/ Amortisation 166.0 141.1
Exceptional Gain / (Loss) - 0.7
Provision for Taxation (Net) 24.9 71.5
Net Profit 137.4 243.1
Full Year
Interest costs grew from Rs. 179 Cr. to Rs. 257.4 Cr. due to higher debt level to fund :
Capex requirements in Garments, Rayon, Carbon Black and insulators businesses per se
Investments in Life Insurance and other financial services
Increased working capital requirement in Carbon black and Garments businesses per se
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
43/68
43
Standalone Operating ProfitRs. Cr.
Branded Garments 1.7 67.1
Carbon Black 49.7 152.6
Fertilisers 228.5 102.4
Insulators 122.8 136.3
Rayon 123.0 124.4
Textiles 54.2 67.9
Corporate / Others 5.9 (16.8)
PBDIT 585.7 633.9
PBDIT2008-09
Full Year
2007-08
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
44/68
44
Standalone operating profit
Standalone operating profit de-grew from Rs. 633.9 Cr. to Rs. 585.7 Cr.
In the Garments business profitability was impacted due to high lease rentals and prolongeddiscounting.
The Carbon Black business was impacted due to unprecedented volatility in the feed stock prices
The Fertilizers business posted its highest ever profitability driven by higher capacity utilisation,
surplus ammonia sales and scaling of agri-products trading segment
The Rayon business maintained its profitability amidst higher sulphur and wood-pulp prices
prevailing for a large part of the year
The Insulators business was affected by higher input and fuel prices
The Textiles business was impacted due to lower volumes consequent to slowdown
Usage of high prices stock impacted wool industry due to sudden fall in commodity prices
continued
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
45/68
45
Consolidated Net Profit
2008-09 2007-08
Telecom (Nuvo's share) @ 259.1 331.2
BPO & IT (127.9) (86.3)
Life Insurance (702.1) (445.3)
Asset Management (Nuvo's share 50%) @ 3.9 1.4
Other financial services 26.9 30.7
Contract Garments Manufacturing (83.8) (22.0)
Apparel R etail (128.7) (25.5)
Others (0.5) 0.4
Total JVs / Subs (753.1) (215.3)
Less: Contra / Minority Interest (185.1) (123.1)
Nuvo's Share in JVs/Subs (568.0) (92.3)
Nuvo Standalone 137.4 243.1
Nuvo Consolidated (430.5) 150.8
Net Profit
Full Year
Rs. Cr.
@Idea is consolidated at 31.78% till 12th Aug08 and at 27.02% afterwards. Full financial numbers are as under:
Idea Cellular (Telecom ) 900.9 1042.3
Birla Sun Life AMC (Asset Management) 7.9 2.8
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
46/68
46
Consolidated Net Profit
Consolidated net loss at Rs. 430.5 Cr. against net profit of Rs. 150.8 Cr. last year.
In the telecom business, despite strong growth in revenues, bottom line was constrained due tostart up costs of new roll outs and share of losses in Spice and Indus tower
The BPO business was impacted by site closure costs and forex losses
In the Life Insurance business, the infrastructure created for growth led to new business strain
affecting the bottom-line
Other financial services posted satisfactory performance amidst sector challenges
The contract exports business suffered forex loss & lower capacity utilisation due to reduced order
flow
Apparel retail subsidiaries incurred start up losses due to investment in infrastructure and brand
building
continued
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
47/68
47
Consolidated FinancialRs. Cr.
Particulars
2008-09 2007-08
Net Sales 14,200.4 11,249.6
Investment income / (loss) on policyholders' funds (670.7) 487.3
Other Operating Income 113.4 124.2
Net income from operations 13,643.2 11,861.1
PBDIT 772.5 1,101.3
Depreciation 695.9 524.9
PBIT 76.5 576.3
Net Interest 624.1 425.0
Profit Before Tax (547.6) 151.3
Exceptional Gain / (Loss) (2.2) 0.7
Provision for Taxation (Net) 75.3 125.9
Minority Interest (194.6) (124.6)
Net Profit after minority interest (430.5) 150.8
Full Year
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
48/68
48
Business Financials
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
49/68
49
Telecom Idea Cellular Ltd.
Particulars
2008-09 2007-08
13 Service areas 38.89 24.00
Punjab & Karnataka 4.13
Revenues 10,125.2 6,720.0
PBDIT 3,049.6 2,375.7
PBIT 1,645.7 1,498.8
PAT 900.9 1,042.3
Net Worth 13,828.6 3,544.6
Total Debt 8,916.5 6,515.4
Capital Employed 22,745.1 10,060.0
ROACE (Annualised) (%) 10.0 18.2
Full Year
Subscribers
(Nos. Million)
Rs. Cr.
Revenues jumped YoY by 51% to Rs. 10,125.2 Cr.
supported by growth in subscribers
Spice results since 16th Oct08 have been consolidated at
41.09% as a Joint Venture
Net Profit lower at Rs. 900.9 Cr. vis--vis Rs. 1,042.3
Cr. last year
Cash profit grew from Rs. 1,991.6 Cr. to Rs. 2,341 Cr.
despite start up losses in Mumbai & Bihar
Share in losses of Spice and Indus towers lowered net
profit by Rs. 74.5 Cr.
Depreciation rose from Rs. 876.8 Cr to Rs. 1,403.9 Cr.
due to new roll outs, Spice & Indus Consolidation and
capacity & quality enhancement efforts in existing circles,
benefit of which will accrue going forward
Financial position and leveraging capacity of Idea
strengthened through two strategically timed deals
Pan India presence will drive economies of scale and
operational synergies
P 12
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
50/68
50
Birla Sun Life Insurance Company Ltd.Rs. Cr.
2008-09 2007-08
First Year Premium
Individual Business 2,480.8 1,741.0
Group Business 343.2 224.0
Total First Year Premium (Gross) 2,823.9 1,965.0
Renewal Premium (Gross) 1,753.7 1,307.2
Net Premium Income(Net of reinsurance and service tax) 4,414.3 3,223.1
Investment income / (loss) on
policyholders' funds (670.7) 487.3
Revenues 3,743.6 3,710.4
Net Profit/(Loss) (702.1) (445.3)
Share Capital 1,879.5 1,274.5
Assets under management 9,168.4 6,892.7
Full Year
Particulars Achieved 44% YoY growth in new business premium
income at Rs. 2,823.9 Cr in FY09
Garnered market share amidst slowdown woes
supported by expanded customer reach and launch of
contemporary products to suit market conditions
Traditional Life, Pension plan, Health Plan and Platinum
Plus-II launched during the year
Net loss higher at Rs. 702.1 Cr. vis--vis Rs. 445.3 Cr.incurred last year
Initial strain of growing size of new business premium
coupled with expansion of distribution reach
P 18
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
51/68
51
Birla Sun Life Asset Management Co. Ltd.Rs. Cr.
2008- 09 200 7-08
Equity 4,607 7,525
Debt & Liquid 42,489 28,381
Domestic AUM 47,096 35,906
Off shore (All Equity) 1,265 2,489
PMS 287 16
Total AUM 48,649 38,411
177.9 119.3
7.9 2.8
Particulars
Average AUM
Revenues
PAT
During the year, revenues grew by
49% from Rs. 119.3 Cr. to Rs. 177.9 Cr.
Net profit increased from Rs. 2.8 Cr. to
Rs. 7.9 Cr.
P 20
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
52/68
52
Other Financial ServicesRs. Cr.
2008-09 2007-08
Revenues 120.3 97.0
PAT 29.6 22.7
Capital Employed 210.9 200.3
Revenues 21.1 37.5
PAT (9.1) 2.7
Capital Employed 13.9 13.9
Revenue 16.5 10.6
PAT 4.8 3.2
Revenue 83.3 122.2
PAT 1.2 22.0
Apollo Sindhoori Capital Investments Limited
Birla Insurance Advisory & Broking Services Limited
Full Year
Particulars
Birla Global Finance Company Limited
Birla Sun Life Distribution Company Limited
Birla Global Finance (NBFC) posted excellent
performance despite depressed stock markets
Revenues grew by 24% to Rs. 120.3 Cr. and net profit
rose by 31% to Rs. 29.6 Cr.
Revenues of Birla Insurance Advisory grew from
Rs. 10.6 Cr. to Rs. 16.5 Cr. and net profit rose from
Rs. 3.2 Cr. to Rs. 4.8 Cr.
Impacted by volatility and downturn in stock
market, revenues of Birla Sun Life Distribution
Company de-grew from Rs. 37.5 Cr. Rs. 21.1 Cr.
Investment in people, process and technology related
infrastructure strained bottom-line
Reported net loss of Rs. 9.1 Cr. vis--vis net profit of
Rs. 2.7 Cr. attained last year
Apollo Sindhoori reported revenues of Rs. 83.3 Cr.
and net profit of Rs. 1.2 Cr.
Volumes in the retail broking business impacted by
sharp volatility in the capital markets P 21-23
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
53/68
53
BPO Aditya Birla MinacsRs. Cr.
2008-09 2007-08
Operating Seats (Nos.) 8,326 9,089
Employees (Nos.) 11,621 12,908
Revenues 1687.2 1577.7
CAD Mn 348.9 357.1
Asia Pacific USD Mn 53.6 45.5
PBIT (61.0) (26.5)
- North America (48.7) (20.4)
- Asia Pacific (12.3) (6.1)
Net Profit/(Loss) (121.1) (88.9)
Full Year
Particulars
North America
Focusing on efforts critical to improve profitability
and mitigate impact of global slowdown
Three loss making sites in Canada closed by shifting
their operations to cost effective sites
Incurred cost of Rs. 27 Cr. for closure of sites
which will reduce overheads going forward
Two new sites will be launched in India adding over
1,000 seats
Revenues up by 7% to Rs. 1687.2 Cr. supported by
18% growth in Asia Pacific
Revenues in North America impacted due to lower
business from existing clients suffering slowdown
Business reported PBDIT (before one-time site
closure costs) at Rs. 31.9 Cr.
Savings in overheads made up for higher manpower
costs and forex loss
Net loss increased from Rs 88.9 Cr. to Rs 121.1 Cr.
due to unabsorbed interest and depreciation costs
P 25
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
54/68
54
IT Services PSI Data SystemsRs. Cr.
2008-09 2007-08
Revenues 95.4 101.1
PBIT (2.6) 6.5
PAT (6.8) 2.5
Capital Employed 19.4 31.6
ParticularsFull Year
IT services business reported revenues at Rs. 95.4 Cr.
and net loss of Rs. 6.8 Cr.
Weak order flow and resulting forex loss impacted
revenues and profitability
PSI de-listed from the BSE w.e.f. April 6, 2009
PSI will become back end IT solution provider for
BPO subsidiary Aditya Birla Minacs
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
55/68
55
Garments Madura Garments
2008-09 2007-08
Shirts (A) 511.7 449.5
Trousers (B) 197.8 193.0
Suits (C ) 90.7 80.3
Others (D) 106.3 102.8
Revenues (A+B+C+D) 906.4 825.7
Op erating Pro fit b ef ore ad sp end 5 0.6 1 15 .5
Advt. Expenses 48.9 48.4PBDIT 1.7 67.1
PBIT (48.5) 35.1
Capital Employed 411.6 471.2
Full Year
Branded Garments
Rs. Cr.
Branded Garments
Revenues up by 10% at Rs. 906.4 Cr. vis--visRs. 825.7 Cr. attained last year
Growth was impeded by lower walk-ins and prolonged
discounting to meet competition
Revenues from retail channel rose by 33% supported
by expanded retail space
Higher rentals on expanded retail space and
discounting pressure impacted bottom-line
Apparel Retail (PEOPLE and COLLECTIVE)
Revenues at Rs. 20.8 Cr. & net loss at Rs. 128.7 Cr.
including business building & brand promotion costs
Contract Manufacturing
Revenues at Rs. 198.8 Cr. and net loss at
Rs. 83.8 Cr.
Weak order flow / order cancellation led to
forex loss and lower capacity utilisation
2008-09 2007-08
Sales Volume (Lacs Pcs) 65.9 66.7
Revenues 198.8 209.1
PBIT (68.6) (14.0)
PAT (83.8) (22.0)
Capital Employed 164.3 187.8
Full Year
Contract Exports
P 28
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
56/68
56
Carbon Black Hi tech CarbonRs. Cr.
2008-09 2007-08
Production (MT) 202,076 215,103
Capacity Utilization % 87.9 102.4
Sales Volumes (MT) 203,827 214,617
Realisation (Rs./MT) 51,521 38,485
Revenues 1,095.6 863.8
PBDIT 49.7 152.6
OPM (%) 4.5 17.7
PBIT 24.7 130.3
Capital Employed 753.1 667.5
ROACE (Annualised) (%) 3.5 22.6
Particulars
Full YearRevenues at Rs. 1095.6 Cr. grew by 27% from
Rs. 863.8 Cr. attained last year
High feedstock (CBFS) prices (linked to crude oil
prices) are reflected in higher realisation
Sales volumes de-grew by 5% due to lower off
take from tyre customers, particularly in exports
market
Operating profit reduced from Rs. 152.6 Cr. to
Rs. 49.7 Cr.Consumption of high priced CBFS & subsequent
steep fall in crude oil prices impacted
Lower sales volumes and consequent lower
capacity utilisation also strained bottom-line
Demand from tyre industry has improved in
Q4FY09 compared to previous quarter
Capacity utilisation at Hi tech carbon has improved
from 67% in Q3FY09 to 79% in Q4FY09
P 30
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
57/68
57
Fertilisers Indo Gulf FertilisersRs. Cr.
2008-09 2007-08
Urea Production ('000 MT) 1,070 881
Urea Sales ('000 MT) 1,073 870
Revenues 1,249.8 787.5
Urea 1,135.2 722.3
Agri-Inputs trading 114.5 65.1
PBDIT 228.5 102.4
OPM (%) 18.3 13.0
PBIT 209.7 84.5
Capital Employed 586.6 531.3
ROACE (Annualised) (%) 37.5 18.1
Full Year
Particulars
Revenues grew by 59% from Rs. 787.5 Cr. to
Rs. 1249.8 Cr. supported by 23% volume growth
Sharp rise in spot natural gas and naphtha prices
reflected in higher subsidies
Revenues from agri-products marketing grew to
Rs. 114.5 Cr. vis--vis Rs. 65.1 Cr. last year
Operating profit more than doubled to Rs. 228.5 Cr.
Higher volumes of urea and agri-products contributed
coupled with subsidy arrears
Fetched incentives for achieving higher than targeted
production as fixed under new policy
Sale of carbon credits fetched Rs. 4.6 Cr. (vis--vis
Rs. 2.5 Cr. last year)
Provided mark to market loss of Rs. 5.1 Cr. on
fertilisers bonds (vis--vis Rs. 3.2 Cr. last year)
P 31
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
58/68
58
Insulators Aditya Birla InsulatorsRs. Cr.
2008-09 2007-08
Production (MT) 32,904 32,921
Sales Volumes (MT) 32,561 32,304
Revenues 424.8 398.9
PBDIT 122.8 136.3
OPM (%) 28.9 34.2
PBIT 108.4 122.5
Capital Employed 264.3 240.0
ROACE (Annualised) (%) 43.0 57.5
Full Year
Particulars
Revenues grew from Rs. 398.9 Cr. to Rs. 424.8 Cr.
supported by higher realisation
Improved product mix pushed realisation up
Operating profit decreased to Rs. 122.8 Cr. from
Rs. 136.3 Cr. attained last year
Operating margins reduced to 28.9% due to rise in
fuel & input costs
P 32
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
59/68
59
Rayon India Rayon
2008-09 2007-08
VFY
Production (MT) 16,625 17,000
Capacity Utilization (%) 101.4 103.7
Sales Volumes (MT) 16,792 17,923
Realisation (Rs./Kg.) 203.7 173.3
Revenues (Rs. Cr.) 342.1 310.6Chemical
ECU Realisation (Rs./MT.) 22,671 19,999
Revenues (Rs. Cr.) 195.0 165.4
Total Revenues 537.1 476.0
PBDIT 123.0 124.4
OPM (%) 22.9 26.1
PBIT 89.8 91.5
Capital Employed 436.9 453.7
ROACE (Annualised) (%) 20.2 20.2
Full Year
ParticularsIndian Rayon sustained its performance amidst
challenges of higher input / fuel costsBusiness revenues grew by 13% from Rs. 476 Cr.
to Rs. 537.1 Cr.
VFY revenues up by 10% at Rs. 342.1 Cr.
Sales volumes at 16,792 MT lower by 6% due to
focus on finer denier yarn
VFY realisation rose by 18% due to improvedproduct mix and pass on of rise in input costs
Chlor-alkali revenues rose by 18% to Rs. 195 Cr.
primarily due to higher ECU realisation
Operating profit marginally decreased from
Rs. 124.4 Cr. to Rs. 123 Cr.
Higher VFY realisation compensated lower VFY
volumes and high sulphur & wood-pulp prices
Rise in coal and salt prices offset by higher ECU
realisation in the Chlor-alkali segment P 33
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
60/68
60
Textiles Jaya Shree TextilesRs. Cr.
2008-09 2007-08
Linen Segment 183.0 169.7
Wool Segment 390.2 411.6
Continued operations
(Linen and Wool)573.2 581.3
Discontinued (Synthetic Yarn) - 19.1
Revenues 573.2 600.3
PBDIT 54.2 67.9
PBIT 32.7 48.7
Capital Employed 345.1 359.3
ROACE (Annualised) (%) 9.3 14.5
Particulars
Full Year Domestic and exports demand hit by global
slowdown and liquidity crunchTextiles industry witnessed substantial production cut
across the value chain
Business revenues decreased from Rs. 600.3 Cr. to
Rs. 573.2 Cr. due to lower fabric volumes
Operating profit lower at Rs. 54.2 Cr. vis--vis
Rs. 67.9 Cr. achieved in the previous yearLower volumes coupled with high flax fiber prices
impacted
Usage of high prices stock impacted wool industry due
to sudden fall in commodity prices
Last year profit includes gain on sale of fixed assets
and gain from sale of carbon credit
Recent imposition of anti dumping duty on Linen
Fabric will benefit domestic industry.
P 33
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
61/68
61
AnnexureAnnexure
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
62/68
62
Shareholding Pattern Aditya Birla Nuvo
Mutual funds
4.6%
Banks, FI's &
Insurance
Co's
11.9%
FII's
20.5%
NRI's/ OCB's
1.2%
GDRs
3.4%
Other
Corporates
2.6%Individuals
14.2%Promoters
41.5%
Note:
95.58% of shares are in dematerialised formFace value of Rs. 10 per share
Well diversified shareholding pattern
Category As on 31st March 2009
No. of Shares % of No. of
held Shareholding Shareholders
Promoters 39,444,787 41.5 21
Mutual funds 4,414,293 4.6 88
Banks, FI's & Insurance Co's 11,303,869 11.9 114
FII's 19,487,623 20.5 147
NRI's/ OCB's 1,168,909 1.2 5,789
GDRs 3,277,725 3.4 3Corporates & others 2,447,152 2.6 1,794
Individuals 13,464,932 14.2 147,541
Total 95,009,290 100 155,497
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
63/68
63
Consolidated Profit and Loss and Balance Sheet SnapshotRs. Cr.
Particulars Ma rch Ma rch
2009 2008
Equity 95.0 95.0Pre fe re nce Sha re Capital 25.5 50.0
Ne t W orth 5,894.4 4,032.9
Minority Inte rest 179.2 174.4
Tota l De bts 8,894.0 6,647.9
De fe rre d Tax Liabilities 214.0 226.2
Ca pital Employe d 15,181.6 11,081.3
Policyholders' funds 8,596.9 6,484.7
Tota l Liabilities 23,778.5 17,566.0
Goodw ill on consolida tion 3,422.6 2,571.0
Ne t Block 6,812.8 5,447.8
Ne t W orking Ca pital 926.4 1,433.0
Long Term Inve stme nts 218.9 93.0
Life Insura nce I nve stm ents 9, 168. 4 6,892.7
Ca sh & Ca sh Equivalents 3,229.5 1,128.4
ROCE (%) (Annua lise d) 0.5 5.3
RONW (%) (Annualised) (7.3) 3.7
Book Va lue (Rs.) 620.4 424.5
Tota l De bt Equity (x ) 1.5:1 1.6:1
Particulars
2008-09 2007-08
Net Turnove r 13,643.2 11,861.1
PBDIT 772.5 1,101.3
PBDIT Margin (%) 5.7 9.3
Net Interest 624.1 425.0
PBDT 148.3 676.2
Net Profit(after Minority Interest) (430.5) 150.8
Annua lise d EPS (Rs.) (45.7) 16.0
Annua lise d CEPS (Rs.) 26.8 76.3
Full Year
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
64/68
64
Standalone Profit and Loss and Balance Sheet Snapshot
Ma rch Ma rch
2009 2008
Equity 95.0 95.0
Net W orth 4,121.7 4,023.7
Long Te rm De bt 2,651.2 1,841.2
Short Te rm De bt 1,848.0 902.2
Tota l De bts 4,499.2 2,743.4
Defe rre d Ta x Lia bilitie s 180.2 200.3Capita l Employe d 8,801.1 6,967.5
Net Block 1,605.0 1,501.6
Net W orking Capita l 1,393.9 1,361.4
Long Te rm Inve stme nts 4,982.4 3,909.3
Ca sh a nd Ca sh Equiva le nts 819.8 195.2
ROACE (%) (Annua lise d) 5.5 7.8
ROANW (%) (Annua lise d) 3.4 6.8
Book Va lue (Rs.) 433.8 423.5
Tota l De bt Equity (x ) 1.1:1 0.7:1
Long Te rm De bt Equity (x ) 0.6:1 0.5:1
Ma rke t Ca pita lisa tion (Rs. Cr.) 4,220 13,253
Particulars
Rs. Cr.
Particulars
2008-09 2007-08
Net Turnover 4,786.2 3,953.1
PBDIT 585.7 633.9
PBDIT Margin (%) 12.2 16.0
Net Interest 257.4 179.0
PBDT 328.3 454.9
PAT 137.4 243.1
PAT Margin (%) 2.9 6.1
Annua lise d EPS (Rs.) 14.5 26. 1
Annualised CEPS (Rs.) 29.7 43.9
Full Year
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
65/68
65
Aditya Birla Nuvo: Management Team
Mr. Pranab Barua
Mr. Arun Maira
Dr. Rakesh Jain, Joint Managing Director
Mr. K. K. Maheshwari, Whole Time Director
Dr. Bharat K Singh, Managing Director
Mr. S. C. Bhargava
Mr. G. P. Gupta
Ms. Tarjani Vakil
Mr. P. Murari
Mr. B. L. Shah
Mr. H. J. Vaidya
Mrs. Rajashree BirlaMr. Kumar Mangalam Birla, Chairman
Mr. B. R. Gupta
Board of Directors
Chief Financial
Officer
Mr. Sushil Agarwal
Financial ServicesMr. Ajay Srinivasan
InsulatorsDr. Bharat K Singh
IT Services
BPO
Fertilisers
Textiles
GarmentsMr. Pranab Barua
Mr. Sanjeev Aga
Dr. Rakesh Jain
Mr. K. K. Maheshwari
Business
Head/Director
Telecom
Carbon Black
Rayon
Business
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
66/68
66
Websites
www.birlacarbon.com , www.hitechcarbon.comCarbon Black
www.minacs.adityabirla.comBPO
www.maduragarments.com , www.louisphilippe.com ,www.vanheusenindia.com , www.allensolly.com ,www.peterengland.com
Garments
www.birlaglobal.com, www.apollosindhoori.com,
www.adityabirla-pe.com
Other financial services
www.psidata.comIT Services
www.birlasunlife.comLife Insurance, Asset Management
and Distribution
www.ideacellular.comTelecom
www.adityabirlainsulators.comInsulators
www.jayashree-iril.comTextiles
www.adityabirla.comAditya Birla Group
www.adityabirlanuvo.comAditya Birla Nuvo
Rayon
Business
www.rayone.co.in
Websites
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
67/68
67
Aditya Birla Nuvos operations across India
NUVO Corporate officeMumbai o
Rayon Division
o Renukoot
Birla Sun Life Insurance
Hi-Tech Carbon
NUVO-Registered Office
Aditya Birla Minacs
oBangaloreMadura Garments
PSI Data Systems
Aditya Birla Insulators
Jaya Shree Textiles
Aditya Birla Insulators
Aditya Birla Minacs
oHalol
Veraval
o
oRishra
o Gummidipoondi
o Jagdishpur
Indo Gulf Fertilisers
Birla Sun Life Asset Management
o Pune
Idea CellularRegistered office
Garments Contract Exports
Apparel Retail Subsidiaries
Other Financial Services
Idea Cellular Corporate Office Ideas 16 operating circles
Life Insurance : 600 branches
AMC : 115 branches
Distribution : 44 branches
Birla Global Finance : 13 branches
Retail broking : 1080 branches
Madura garments : 340 EBOs
Aditya Birla Minacs
Barodao
o Chennai
Retail Broking
Registered office
-
8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2
68/68
Disclaimer
Certain statements made in this presentation may not be based on historical information or facts and may be forward looking statements
including those relating to general business plans and strategy of Aditya Birla Nuvo Limited ("ABNL"), its future outlook and growth
prospects, and future developments in its businesses and its competitive and regulatory environment. Actual results may differ materially
from these forward-looking statements due to a number of factors, including future changes or developments in ABNL's business, itscompetitive environment, its ability to implement its strategies and initiatives and respond to technological changes and political, economic,
regulatory and social conditions in the countries in which ABNL conducts business. This presentation does not constitute a prospectus,
offering circular or offering memorandum or an offer to acquire any shares and should not be considered as a recommendation that any
investor should subscribe for or purchase any of ABNL's shares. Neither this presentation nor any other documentation or information (or
any part thereof) delivered or supplied under or in relation to the shares shall be deemed to constitute an offer of or an invitation by or on
behalf of ABNL.
ABNL, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with
respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained
in this presentation, unless otherwise specified is only current as of the date of this presentation. ABNL assumes no responsibility to
publicly amend, modify or revise any forward looking statements on the basis of any subsequent developments, information or events or
otherwise. Unless otherwise stated in this document, the information contained herein is based on management information and estimates.
The information contained herein is subject to change without notice and past performance is not indicative of future results. ABNL may
alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or
changes. This presentation may not be copied and disseminated in any manner.
THE INFORMATION PRESENTED HERE IS NOT AN OFFER FOR SALE OF ANY EQUITY SHARES OR ANY OTHER SECURITY OF
ABNL.
This presentation is not for publication or distribution, directly or indirectly, in or into the United States, Canada or Japan. These
materials are not an offer of securities for sale in or into the United States, Canada or Japan.
Aditya Birla Nuvo Limited
Regd. Office: Indian Rayon Compound, Veraval 362 266 (Gujarat)
Corporate Office: 4th Floor A Wing, Aditya Birla Center, S.K. Ahire Marg, Worli, Mumbai 400 030