Sirca Paints India Limited: Investor Presentation
Sirca Paints India Limited: Investor Presentation
Sirca Paints India Limited: Investor Presentation
Investor Presentation
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Company Overview 04-0
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Industry and Market Overview 2
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Business Overview 8
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Financial Snapshot 0
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Initial Public Offer 8
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Final Thoughts
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Disclaimer
This investor Presentation has been prepared by Sirca Paints India Limited (“Sirca”) for investors, solely for informational
purpose.
The Information contained herein has been prepared to assist prospective investors in making their own evaluation of the
Company and does not purport to be all-inclusive or to contain all of the information a prospective or existing investor may
desire. In all cases, interested parties should conduct their own investigation and analysis of the Company and the data set forth
in this information. Sirca makes no representation or warranty as to the accuracy or completeness of this information and shall
not have any liability for any representations (expressed or implied) regarding information contained in, or for any omissions
from, this information or any other written or oral communications transmitted to the recipient in the course of its evaluation of
the Company.
This Information includes certain statements and estimates provided by the Company with respect to the projected future
performance of the Company. Such statements, estimates and projections reflect various assumptions by management concerning
possible anticipated results, which assumptions may or may not be correct. No representations are made as to the accuracy of
such statements, estimates or projections. Prospective investors will be expected to have conducted their own due diligence
investigation regarding these and all other matters pertinent to investment in the Company.
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Sirca India- At a Glance
Sirca Spa ( Italy) - Exclusive selling rights for India, Srilanka, Bangladesh, Nepal
- Is a shareholder of 3.83% in Sirca India
International Tie- Ups - Provides technical knowhow for proposed manufacturing facility
BPS Srl ( Italy )
Trusted business partners - long and trusted business relations with Indoline
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Key Customers Industries, JSL Lifestyle, Alsorg Interiors India Pvt. Ltd., Spacewood, Magpie etc.
Provides high quality Coatings to be used in domestic and industrial use. Companies
unique selling proposition - offering quality of water and solvent based products for
wood and metal care and protection. Also provides technical assistance to its
Unique Value Proposition customers which leads to healthy customer relationship
Proceeds of raised funds through IPO to be utilized primarily for Installing new
manufacturing capacity, Brand Building of Sirca and for meeting day to day working capital
Object of issue requirements. Anticipating global growth rate in paint industry and to reap economies of
scale, Company has decide to enter manufacturing 5
Sirca Paints India - Overview
Started by Mr. Sanjay Agarwal and 1. Wood Coatings Head Office in Delhi
Mr. Gurjit Singh Bains. in 2006 Wood Stains
Company started import and trading Polyurethane Polish ( PU ) Present in various geographical
of PU products from Italy and Korea Polyester ( Lamination ) regions of India with branches in
Over next few years Sircolor became Acrylic Finishes Mumbai, Chennai , Surat and
leading PU Polish trading company in Wood fillers Ahmadabad etc.
North India and expanded its Wood Care Products
Distributors in more than 16
network in south and west India Hand Made Effects
In May 2017 Sircolor Wood Coatings
states across India
Pvt. Ltd. Became Sirca Paints India 2. Metal Coatings
Pvt. Ltd. Clear Coating
Pigmented Coatings
Experience of more than 8 years in Italian Furniture and Italian wood coatings
Holds degree of masters in Finance and marketing from IIPM and Degree of
Mr. Apoorv Agarwal Commerce from university of Delhi
Started career with Sirca wood coatings Italy , Managing sales and marketing and
(Promoter) later took training with many renowned Furniture brands from Italy
Joint Managing Formed La Tendenza , a unique destination to experience high quality European
Director furniture with Brands like BEB Italia , Reflex , Laura meroni , Simone Cenedese
etc.
Participated in all seminars and activities conducted by IICCI
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Key Management Team
Mrs. Archana She is Architect by profession and having more than 23 years
Agarwal experience in designing the buildings.
(Non Executive and She has been on the Board of Company since January, 2018.
Independent
Director)
Our Company has entered into a Distributorship Contract dated 1st January, 2018 with SIRCA SPA ITALY wherein Our
Company got the Exclusive Right to promote the sale of PU & Metal Coating under trademark SIRCA in the territory of
India, Sri Lanka, Bangladesh and Nepal.
The Company Have wide range of branches, distributors and customers, which is spreading across the India and beyond its
borders.
Wide product range that our company offers are depicted further in this presentation in detail.
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Industrial Universe
The India paints & coatings market is estimated to register a growth rate of 7.10% during the forecast period (2018- 2023);
Architectural segment is estimated to lead the market, due to rapid rise in investments by the government in the country.
Water-based coatings are expected to be the fastest-growing type, by technology;
Indian paint industry, which is comprised of organized and a huge unorganized sector [accounts for 35 percent of the total
volume] is expecting to reduce the proportion of unorganized sector with the implementation of Goods & Service Tax (GST).
In the unorganized segment, there are about 2,000 units having small and medium sized paint manufacturing plants;
Currently, Asia accounts for 52 percent of the volume and 45 percent of the value of the global coatings market. Asia is
also the fastest growing market;
In 2017, the Asian coatings industry was estimated to have grown by 5.7 percent in volume and 6.3 percent in value. Not
surprisingly, the largest coatings market in Asia is China, with 56 percent of the market and a value of US$53.3 billion.
The next largest Asian markets are India and Japan;
Indian Paint Association has highlighted that Indian paint market which was around INR 40,300 crores in 2014-15 is
expected to reach INR 70, 875 crores by 2019-2020;
With 66 percent of its population under the age of 35, India is home to the largest population of young people in the world
– 825 million. The median age of the country is just 27 years, much below 37 in the U.S. and 46 in Japan;
India's demographic profile is changing in a way that is quite favorable to the growth of the paint and coatings industry.
References:
Consolidation of the paints and coatings: Article by KPMG;
Indian Paint Industry - Gaining Steam: By Coating World;
Paint India 2018: By Coating World.
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Comparison with peer groups
Peer Group**
For Calculating PE Ratio, current opening ** Source: Annual Report for the year ended
market price of our company as on as on 31st March, 2018. For calculating PE
02/01/2019 i.e., Rs. 244 is divided by Ratio, opening market price of the respective
EPS. Further, all the figures has been company as on 02/01/2019 are been taken.
taken from the financial statement of the
FY ended 31/03/2018.
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Need high quality images
Business
Overview
Products
Offers wide range of wood care products like Polyurethane , Polyester , Acrylics and other Wood Care
Products for Wood , Metal and Glass
Portfolio of Products
1. Wood Coatings
1. Wood Coatings
Wood Stains
Polyurethane Polish ( PU ) PU Clear Sealer
Polyester ( Lamination )
PU Clear Matt
Acrylic Finishes
Wood fillers PU White Sealer
Wood Care Products
Melamine Sealer
Hand Made Effects
Water Based Melamine Matt and Gloss
UV Coating
NC range of product
2. Metal Coatings
Clear Coating All Type of Thinner
Pigmented Coatings
Economical PU Polish
3. Glass Coatings
Pigmented Finish
Special Effects 15
Unique Selling Proposition
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Infrastructure – Across India
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Company Recognitions
SIRCA has showcased its products quality and capabilities in various events across the nation which has given a lot recognition in India. Some of these
events where our Company has participated is as follow:
Wood Expo,
ACETECH - Build Expo – Dhaka,
1 2 3
2018, Delhi Bairely Bangladesh
India Woods – Int - Ext Expo,
4 5 6 ABID – Guwahati
Bangalore Ludhiana
ACETECH,
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Mumbai
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Prominent Customer Base
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Future Prospects
Finalized deal for land 1.75 Acers at Sonipat where proposed manufacturing plant will be build in
technical collaboration with Sirca under the manufacturing agreement with Sirca S.P.A. Italy. The
site is under construction and probably the manufacturing will be starting in the May, 2019. This
expansion will lead to the following:
• Horizontal and vertical expansion of companies product range and networks
•Developing Economical Range of PU, Melamine and NC Products to compete with Asian and
other brand economical PU range will give competitive edge in boosting sales of Company
•Company has plans to come up with complete new range of the products like Wall Paints and
decorative paints
•With this manufacturing unit will start Export to sub continental countries which includes Sri
Lanka, Nepal , Bangladesh for which we already have an exclusive Agreement with SIRCA Italy
•We will also look forward to increase existing distribution network and maximize reach to
potential customers
Proposed Production Capacity: Presuming 300 operating days in a year and single Shift (12
Hours)-working basis, the production capacity of the unit is mfg. of 3000000 Ltr of PU Thinner and
7000000 Ltr of NC Lacquers, melamine and Polyurethane products per annum initially as per the
Requirement, which is likely to be increased in the subsequent years. Actual utilization is expected
to be 30% in Ist year, 60 % in IInd year, approx 100% in IIIrd year and above in further years.
Journey past few years
Financial year 2012 – 13 was ended with the profit of Rs. 5,039,855.79/-;
while Financial year 2017-18 ended with the profit of Rs. 193,898,320.92/-.
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Earning Before Interest, Tax, Depreciation and Amortization
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Consistent Growth and Profitability
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Consistent Growth and Profitability (Half Year)
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Balance Sheet Metrics
Working Capital
4554.35 2420.1 1578.13 931.03 378.82 257.65
(In Lacs) (Rs.)
Debt to Equity
0.4 0.8 1.21 1.54 3.21 3.34
Ratio
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In Brief..............
As mentioned in the previous slides, on 30th Day of May, 2018 our company listed its shares on NSE Emerge platform of
National Stock Exchange with an overwhelming response i.e., oversubscription of 10.99 times. Here we would like to discuss
the utilisation of the proceeds received through IPO from the following classification:
We intend to utilise the Net Proceeds from the Issue, in the manner set below:
Estimated Amount (Rs. In
S.No Particulars
Lacs)
To Finance the expenditure of Site Development and Purchase of
1. 3320.00
Plant and Machinery
2. To part finance working capital requirements of the Company 2500.00
3. General corporate purposes 1399.36
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Total 7219.36
Why Choose Us…!
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Why Choose Us…!
Manufacturing Quality
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unit Benchmarked
Manufacturing unit going to set up in
India in New year along with the technical Together with them we
assistance of Sirca SPA Italy, will help us 4 assure the best in
in providing bestin class Quality product quality products.
at comparatively Cheaper rate, setting us
apart from our competitors in matter of
Quality and Price
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Why Choose Us…!
We pay close attention to the growing demand for products certified for specific uses, such as quality, eco – friendly. Our
Research and Development team along with SIRCA SPA Italy, continuously focus to develop techniques that can minimize any
effect of chemicals mixed in the paints or coatings.
WE STRIVE FOR PROFITS BUT NOT ON THE COST OF QUALITY, EFFICIENCY AND HEALTH OF OUR
CUSTOMERS AND END USER.
Sirca therefore constantly monitors the change or creation of new standards and
certifications, both nationally and internationally, and formulates, amends and tests its products to meet these requirements. Some
of these Certificates are:
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Why Choose Us…!
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Benchmarks Set During Our Journey
https://sircapaints.com/
@sircapaintsindia
https://instagram.com/sircapaints?utm_source=ig_profile_share&igshid=1nwebka5ktk72
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