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 1984 -- Fine ChemicalsFine Chemicals division was formed.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

62%13%

25%

Revenue %

School & Education ProductsFine Art & Hobby ProductsOffice 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

15

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

16

Camlin Operations - Locations

17

Distribution Channel

Camlin

Manufacturing Centers

Mother Depot

State Depots

B2B Direct Dealers

Distributors Corporate / Institutions

Office suppliers

Retailers

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

Dilip Dandekar Chairman & Managing Director

Rajiv DandekarJoint Managing Director

Shriram DandekarExecutive Director

Deepak DandekarExecutive Director

Ashish Dandekar

Deepak Ghaisas

BOARD OF DIRECTORS

R. Sriram

Shishir Desai

Vijay Paranjape

Dhananjay Mungale

Shishir Shirgaokar

Anil Singhvi

Shareholding Pattern

38.7%

4.5%0.3%

18.2%

38.3%

As on 31/3/2010

Promoters

Foreign Institutional InvestorsNon Resident

Bodies Corporate

Public

Operational Highlights FY09 & 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

Key Highlights FY 09, FY10

• 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 Strengthened

49%

57%51%

43%

0%

10%

20%

30%

40%

50%

60%

FY 09 FY 10

ManufacturingOutsourcing

Manufacturing / Outsourcing Mix

61.562.062.563.063.564.064.565.065.566.066.5

FY 09FY 10

66.3

63.3

Input Consumption to Sales

RMC Improvement

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 10Revenues 214.4 283.7 330.9EBIDTA 14.6 20.9 29.2Interest 2.6 5.3 5.8Depreciation 3.8 4.4 5.2VRS Amortization 1.7 1.7 1.7PBT 6.5 9.6 16.6PAT 3.8 6.1 12.0

Earning Per Share

0.711.02

2.00

0.00

0.50

1.00

1.50

2.00

2.50

FY 08 FY 09 FY 10

EPS

Dividends Declared

0%5%

10%15%20%25%30%35%40%45%50%

FY 08 FY 09 FY 10 *

25%30%

50% Dividends

* Proposed

Balance Sheet

Rs Crs

Balance Sheet FY08 FY09 FY 10

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

Return on Capital Employed

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

FY 08FY 09

FY 10

13.1%15.9%

21.2%

ROCE

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 attendCategories of children:• Mother-Toddler 11-18

months• Play school 18-24

months• Pre Nursery 24-30

months• Nursery 30 months+

Categories of Pre Schools• High-end: Catering to

crème-d-la crème with fees ranging from Rs 3000 to Rs.7000 p.m.

• Middle level: For middle class with fees ranging from Rs. 2000 to Rs. 3000 p.m.

• 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