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