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    Camlin

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    Jugal Shah
    Camlin Limited is an Indian company founded in 1931 that produces school, art, and office stationery. It has five manufacturing facilities across India. In FY09 and FY10, Camlin strengthened manufacturing capacity, improved raw material consumption ratios, restructured distribution, and implemented an ERP system. Financially, Camlin saw rapid revenue growth in recent years, with year-over-year earnings growth of 40-73%. The company increased dividends to shareholders from 25% to 50% over this period as profits rose.

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    Camlin

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    Jugal Shah
    2K views48 pages
    Camlin Limited is an Indian company founded in 1931 that produces school, art, and office stationery. It has five manufacturing facilities across India. In FY09 and FY10, Camlin strengthened manufacturing capacity, improved raw material consumption ratios, restructured distribution, and implemented an ERP system. Financially, Camlin saw rapid revenue growth in recent years, with year-over-year earnings growth of 40-73%. The company increased dividends to shareholders from 25% to 50% over this period as profits rose.

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    Camlin Limited is an Indian company founded in 1931 that produces school, art, and office stationery. It has five manufacturing facilities across India. In FY09 and FY10, Camlin strengthened manufacturing capacity, improved raw material consumption ratios, restructured distribution, and implemented an ERP system. Financially, Camlin saw rapid revenue growth in recent years, with year-over-year earnings growth of 40-73%. The company increased dividends to shareholders from 25% to 50% over this period as profits rose.

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    2K views48 pages

    Camlin

    Uploaded by

    Jugal Shah
    Camlin Limited is an Indian company founded in 1931 that produces school, art, and office stationery. It has five manufacturing facilities across India. In FY09 and FY10, Camlin strengthened manufacturing capacity, improved raw material consumption ratios, restructured distribution, and implemented an ERP system. Financially, Camlin saw rapid revenue growth in recent years, with year-over-year earnings growth of 40-73%. The company increased dividends to shareholders from 25% to 50% over this period as profits rose.

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    Camlin Limited

    Analyst Meet – 18th May, 2010


    Disclaimer
    • This presentation might contain forward looking
    statements which involve a number of risks,
    uncertainties and other factors that could cause
    the actual results to differ materially from those in
    the forward looking statements.
    • Camlin undertakes no obligation to update these
    to reflect the events or circumstances thereof.
    • This presentation also contains reference to the
    findings of various reports available in the public
    domain. Camlin takes no responsibility as to their
    accuracy or that the company subscribes to those
    findings.
    Flow of Presentation
    • Introduction to Camlin & Brief History
    • Product Offerings of Camlin
    • Overview of Camlin Operations
    • Operational Highlights – FY 09, FY10
    • Financial Highlights – FY 09, FY 10
    • Way Forward
    • New Initiative – Pre Schools
    Camlin - Background
    • Camlin was founded by G.P. Dandekar & D.P.
    Dandekar in 1931.
    • Incorporated as a Private Company in the year 1946.
    • Converted into Public Limited in the Year 1988
    • Listed on Bombay Stock Exchange & NSE
    • Products: School & Education Stationery, Office
    Stationery, Fine Art & Hobby Colours
    • First company in India to obtain Art & Creative
    Material institute’s (ACMI,USA) world standards of
    non-toxicity
    Camlin – Key Events
    • 1931 - Camlin set up its first manufacturing unit in Girgaum,
    Mumbai. It manufactured Ink Tablets, Ink powder, Fountain Pen
    Ink, Gum, Sealing Wax etc
    • 1946 - Dandekar & Co. was re-christened as Camlin Private
    Limited. “Camel” was chosen as the mascot.
    • 1962 - Camlin entered the Art Material market by launching
    Water Colours, poster Colours, Wax Crayons, Oil Pastels,
    Drawing inks etc.
    • 1974 - Introduction of wooden pencils, factory for manufacturing
    wooden pencils was started in Tarapur.
    • 1984 - Fine Chemicals division was formed.
    • 1988 - Camlin became a public limited company and got listed
    on BSE.
    • 1989 - Technical collaboration for manufacture of Hi-Polymer
    Leads with Pilot Corporation, Japan.
    Camlin – Key Events
    • 1995 – Camlin set up a Plant in Taloja to manufacture Inks &
    Adhesives
    • 1998 - Camel Art Foundation was launched.
    • 2001 – Launched Euro Art Tour
    • 2004- State of the Art plant was set up at Vasai for
    manufacturing wide range of Markers.
    • 2006 – De-merger of Fine Chemical Division into a new
    company -Camlin Fine Chemicals Limited
    • 2007 – Exclusive Distribution Arrangement with Colart
    International for global brands such as Winsor & Newton, Reeves,
    Lefranc & Bourgeois, Liquitex and Conte
    • 2008- Company got listed on National Stock Exchange of
    India
    • 2008- Set up a Plant in Jammu to manufacture Colours
    Product Offerings
    Product Offerings

    • School & Education Products

    • Fine Art & Hobby Products

    • Office Products
    School & Education Products
    Product Range includes ..
    …Water Colour Cakes/Tubes, Poster Colours,
    Wax Crayons, Oil Pastels, Plastic Crayons,
    Sketch Pens, Wooden Pencils, Scales, Erasers,
    Sharpeners, Colour Pencils, Math Sets,
    Dissection Boxes, Engineering Boxes, Mini-
    Drafters, Other Technical Instruments, Note
    Books, Mechanical Pencils, Hi Polymer Leads,
    Fountain Pen & its Ink …
    Fine Art & Hobby Products

    Product Range includes ..


    …Artist Oil Colours, Artist Acrylic Colours,
    Canvas Rolls, Canvas Boards, Easels, Artist
    Water Colours, Oil Sketching Papers, Drawing
    Inks, Brushes, Painting Mediums, Glass Colours,
    Fabric Colours, Powder Colours, Fabric Glue,
    Artist Poster Colours …
    Office Products

    Product Range includes ..


    …White Board Markers, Permanent Markers,
    Highlighters, Ball Pen, Gel Pen, Stamp pads,
    Refills, Paint Markers, CD Markers, Carbon
    Papers, Glue Sticks, Gum /Paste & Inks …
    Composition of Revenue FY 10
    Revenue %

    25%
    School & Education
    Products
    13% Fine Art & Hobby
    62%
    Products
    Office Products
    Camlin - Operations
    Camlin – Uniquely Positioned
    • Pioneers in School & Office Stationery with a Strong
    Brand Equity
    • Leaders in Colours – Scholastic, Fine Art & Hobby
    • An unmatched & extensive Product Range with more
    than 2000 SKUs.
    • Innovations, R&D capabilities & proprietary knowledge
    leading to breakthrough products, processes &
    packaging
    • Extensive distribution network of Branches, Depots,
    Distributors, Retail outlets and B2B
    • Track record of building profitable mass market brands
    • Strong Retail network
    Camlin – A Recognized FMCG Brand.

    Camlin India
    • 875+ Employees • Population > 1 Billion
    • 5 Manufacturing Facilities • Towns > 6000, 6,38,000
    • 6 Branch offices, 27 C&Fs Villages
    • Direct Coverage > 1200+ • Urban population > 350 Mn
    Distributors •Average GDP Growth > 8%
    • Total coverage >1.50 Lacs in Last 5 years
    Retail outlets
    • Market reach > 50 Mn
    households
    • Income FY10 – Rs. 330 Cr.

    15
    Camlin Operations - Locations

    16
    Distribution Channel

    Camlin

    Manufacturing
    Centers

    Mother Depot

    State Depots

    B2B Direct Distributors Corporate /


    Dealers Institutions

    Office Retailers 17
    suppliers
    Camlin - Key Promotional initiatives

    • All India Camel Colour Contest


    • Camel Art Foundation’s Regional Art
    Exhibitions
    • Euro Art Tour
    • Art Teachers Workshops
    • Hobby Workshops
    • Craft Competitions
    Board – Eminent Directors
    BOARD OF DIRECTORS

    Dilip Dandekar
    Chairman & Managing Director

    Rajiv Dandekar
    Joint Managing Director

    Shriram Dandekar Deepak Dandekar


    Executive Director Executive Director

    Deepak Ghaisas Anil Singhvi

    Dhananjay Mungale R. Sriram

    Shishir Shirgaokar Vijay Paranjape

    Ashish Dandekar Shishir Desai


    Shareholding Pattern

    As on 31/3/2010

    Promoters

    38.3% 38.7% Foreign Institutional


    Investors
    Non Resident

    18.2% Bodies Corporate

    4.5% Public
    0.3%
    Operational Highlights
    FY09 & FY10
    Key Highlights FY 09, FY10
    • Strengthening of Manufacturing Activity with
    significant increase in capacities
    • Increased Focus on High Margin Products
    • Improvement in RMC Consumption %
    generates higher margins
    • Restructuring of Distribution System & Sales
    teams
    • Operations integrated ‘End to End’ on ERP
    Software – SAP
    • Savings in Interest on account of issuance of
    Commercial Paper
    Manufacturing Strengthened
    • Fixed Asset expansion of about Rs.45 Cr funded
    without raising significant long term debts.
    • A new State of the Art Manufacturing Plant was set
    up in Jammu.
    • Tarapur & Jammu Plants got ISO 9001:2008
    certification
    • Vasai & Taloja Plants to complete the ISO process
    by June 2010
    • Implementation of 5S at all the plants by July 2010
    • Products previously imported now manufactured in-
    house at lower cost
    • R&D efforts in Material Substitution & Process
    Improvements also helped in gaining higher yields
    Manufacturing / Outsourcing Mix
    60% 57%
    51%
    49%
    50%
    43%
    40%

    30% Manufacturing
    Outsourcing
    20%

    10%

    0%
    FY 09 FY 10
    RMC Improvement
    66.5
    66.0
    65.5
    65.0
    64.5
    64.0 66.3
    Input Consumption
    63.5 to Sales
    63.0
    62.5
    63.3
    62.0
    61.5

    FY 09
    FY 10
    Awards / Recognition
    • The Permanent Marker TV Ad (Rudali Bindi) was
    selected to be shown as one of the Worlds
    Greatest TV Commercials, by NTV Channel , the
    biggest TV network of Japan
    • Camlin was awarded the title of ‘Edge Winner’ for
    its successful implementation of SAP by Network
    Computing – one of the leading IT magazines of
    India
    • The brand ‘Camlin’ was adjudged as Power Brand
    of the Year 2009-10 in the Stationery category by
    Planman
    Financial Highlights FY 09
    & FY10
    Key Financial Highlights

    • Rapid Growth in Revenue in the past 3


    years – CAGR of 24 %
    • YoY, EBIDTA Growth of 43% in FY 09 and
    40% in FY 10
    • YoY PBT Growth of 47% in FY 09 and 73%
    in FY 10
    • YoY PAT Growth of 61% in FY 09 and 97%
    in FY 10
    Profit & Loss Account
    Rs Crs.

    P&L Items FY08 FY 09 FY 10


    Revenues 214.4 283.7 330.9
    EBIDTA 14.6 20.9 29.2
    Interest 2.6 5.3 5.8
    Depreciation 3.8 4.4 5.2
    VRS Amortization 1.7 1.7 1.7
    PBT 6.5 9.6 16.6
    PAT 3.8 6.1 12.0
    Earning Per Share
    2.50

    2.00

    1.50

    EPS
    1.00 2.00

    0.50 1.02
    0.71

    0.00
    FY 08 FY 09 FY 10
    Dividends Declared

    50%
    45%
    40%
    35%
    30%
    50%
    25% Dividends
    20%
    30%
    15% 25%
    10%
    5%
    0%
    FY 08 FY 09 FY 10 * * Proposed
    Balance Sheet
    Rs Crs

    Balance Sheet FY08 FY09 FY 10


    Share Capital 6.0 6.0 6.0
    Reserves & Surplus 42.7 47.5 56.4
    Net Worth 48.7 53.5 62.4
    Borrowings 20.4 39.4 42.6
    Net Fixed Assets 26.3 48.2 57.5
    Net Current Assets 38.9 43.3 47.9
    Return on Capital Employed
    25.0%

    20.0% 21.2%
    15.9%
    15.0% 13.1%

    10.0% ROCE

    5.0%

    0.0%
    FY 08
    FY 09
    FY 10
    Way Forward
    • Align the Company’s resources to gain advantage of
    various government initiatives on education such as
    Sarva Shiksha Abhiyaan.
    • Dedicated Task Force to connect with top 25000
    schools of India
    • Target to double the Retail Universe by March 2011
    • Increase Production at Jammu to gain maximum tax
    advantage
    • Invest & align the Production Capacities to the
    overall objective of achieving Rs.1000 Cr Revenue
    in the next 5 years.
    Alphakids !

    Pre Schools – A New Inititative


    Why Pre Schools ?
    • To leverage & capitalize on the brand
    strength and equity in the field of education
    • Benefit of emotional disposition of
    consumers towards the brand due to long
    association
    • Associate with your consumer – the school
    kid – at an early age
    Business Potential
    • Population of below 4yrs – Total 11 Crs of
    which Urban is 2.5 Crs.
    • Current market size at around Rs.5000 Crs.
    • Brokerage firm CLSA Asia Pacific Markets
    estimates market to exceed Rs.13500 Crs
    by 2013 growing at 28% every year.
    • 40% of urban children attend pre-school
    • 7% is by volume private pre-school market
    1.75 million children
    Pre School Segments
    Children who attend Categories of Pre Schools
    Categories of children: • High-end: Catering to
    • Mother-Toddler 11-18 crème-d-la crème with fees
    months ranging from Rs 3000 to
    • Play school 18-24 Rs.7000 p.m.
    months • Middle level: For middle
    • Pre Nursery 24-30 class with fees ranging
    months from Rs. 2000 to Rs. 3000
    p.m.
    • Nursery 30 months+
    • Low end: For masses with
    fees below Rs 1000 p.m.
    Alphakids - Key Features
    • Operates as a 100 % subsidiary of Camlin Ltd
    • Cater to the Top end Market segment offering high
    end services
    • High quality education
    • High quality learning aids
    • Excellent environment (AC rooms, play area etc)
    • Internet CC TV access-parents can see children
    on internet
    • Tie up with ‘HeadStart’ – a private pre-school for
    initial learning.
    Pre Schools in Mumbai
    • First Pre-school opened in July 2009 at Andheri
    Lokhandwala
    • Expected to run to full capacity by 2nd year
    • Two new centers opened for this academic
    year at Thane and Khargar
    • To concentrate on Owned Schools for the time-
    being before moving on to franchisee model.
    • Plan to ramp up & have 50 Schools by FY 13
    with more than 10,000 enrolments
    Alphakids - Lokhandwala
    Alphakids – Lokhandwala
    Alphakids - Lokhandwala
    Alphakids - Thane
    Alphakids - Khargar
    Alphakids – Sports day
    Alpha Kids – Annual Day
    Thank You

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