La Opala RG Ltd - Company Analysis

LA OPALA
RG LTD.
RESEARCH REPORT
1
Analyst: Aayush Agrawal
Email id: xxxxxxxxxxxxxxxxxxxxxxxx
Phone no.: xxxxxxxxxxxx
LinkedIn: www.linkedin.com/in/cfa-aayush-agrawal
JUNE 2020
(“La” is Spanish for ”The”, and
“Opala” is Portuguese for “Opal”)
SOURCE: GOOGLE TRANSLATOR

AAYUSH AGRAWAL | JUNE 2020
2
SOURCE: ANNUAL REPORT, 2015-16, 2016-17

CONTENT
1. HISTORY
2. BUSINESS OVERVIEW
3. MANAGEMENT QUALITY ANALYSIS
4. OPERATIONS ANALYSIS
5. SHAREHOLDING PATTERNS
6. VALUATION
7. PRICE
3

4
1. HISTORY
A. INDIAN TABLEWARE MARKET’S
HISTORY
B. MANAGEMENT & COMPANY’S
HISTORY
2. BUSINESS OVERVIEW
A. BRANDS
a) OPALWARE
b) CRYSTALWARE
B. PRODUCTION PROCESS
C. RAW MATERIALS
a) OPALWARE
b) CRYSTALWARE
D. MARKET SIZE & SHARE
a) SEGMENTS
i. OPALWARE V/S OTHER
SEGMENTS
ii. ORGANIZED V/S
UNORGANIZED
b) OPALWARE SEGMENT
E. MANUFACTURING CAPACITY
a) OVERVIEW
b) LOCATION-WISE
c) BRAND-WISE
d) INDUSTRY (CAPACITY &
REVENUES)
F. VALUE DELIVERY NETWORK
G. REVENUE MIX %
a) BRAND-WISE
b) MARKET-WISE
c) DISTRIBUTION CHANNEL-WISE
d) CUSTOMER TYPE-WISE
e) SEASON-WISE
H. COST ANALYSIS
I. PROFIT ANALYSIS
J. BALANCE SHEET ANALYSIS
K. FCF ANALYSIS
L. RATIO ANALYSIS
a) ROCE, ROIC, & ROE
b) DUPONT ANALYSES (2-, 3-, &
5-WAY)
c) OTHER RATIOS
3. MANAGEMENT QUALITY
ANALYSIS
• REMUNERATION OF KMPs
4. OPERATIONS ANALYSIS
A. PORTER’S 5 FORCES
B. SWOT ANALYSIS
5. SHAREHOLDING PATTERNS
A. INSIDERS
B. OUTSIDERS
6. VALUATION
A. BALANCE SHEETS
B. P&L
C. CASH FLOWS
7. PRICE
8. DISCLAIMER

HISTORY
PART 1
5

PART 1 - HISTORY
A. INDIAN TABLEWARE
MARKET’S HISTORY
6

7
IN THE 19TH
CENTURY (i.e.
BEFORE 1900)
FROM KOLKATA:
vIMPORT
ØBONE CHINA
CROCKERY
vEXPORT IN-RETURN
ØOPIUM
HOWEVER, BONE
CHINA CROCKERY
NEVER REALLY
CAUGHT ON,
BECAUSE IT USED
COW BONE ASH.
BEFORE 1947
(INDIA'S
INDEPENDENCE)
THE PORCELAIN AND GLASS TABLEWARE MARKET
IN INDIA HAS ALWAYS BEEN STRONG.
AFTER 1947 –
BEFORE 1991
UNDER FOREIGN EXCHANGE RESTRICTIONS,
CROCKERY IMPORTS TAPERED OFF AND
THE MARKET WAS FILLED
WITH SMALL MANUFACTURERS
WITH MEDIOCRE QUALITY PRODUCTS.
SOURCE: BUSINESS INDIA MAGAZINE, MAY 27 TO JUNE 9, 2013 ISSUE

8
PRE-
1991
FOR THE MIDDLE-CLASS
FAMILIES, DINNERWARE
WAS STARTED
BEING SEEN AS
A LIFESTYLE PRODUCT
INSTEAD OF AS BEING
A UTILITARIAN PRODUCT
DIFFERENT MATERIALS:
• STAINLESS STEEL – MEH!
• BONE CHINA – COW BONE
ASH, SO DUH!
• OPALWARE – GLEAMING,
NEARLY-UNBREAKABLE WHITE
GLASS, IMPORTED-STUFF…
10 BROWNIE POINTS!
1991 INDIA’S L.P.G. CHANGE
POST-
1991
L.P.G. AND THE INDIAN
MIDDLE-CLASS
AFFLUENCE
BEGAN TO BLOOM
EVERY MIDDLE-CLASS
HOME WAS GIFTED ONE
OR TWO
CERAMIC DINNER SETS
AT A WEDDING
SOURCE: BUSINESS INDIA MAGAZINE, MAY 27 TO JUNE 9, 2013 ISSUE; OUTLOOK BUSINESS, 24/05/2014;
NIRMAL BANG RESEARCH REPORT, 17/9/2013; ANNUAL REPORT, 2018-19

9
2001-
2002
% OF INDIAN HOUSEHOLD:
•IN THE MIDDLE INCOME BRACKET = 58%
•IN THE HIGH INCOME BRACKET = 7%
2008-
2010
THE GREAT FINANCIAL
RECESSION
GOVT. INTRODUCED
EXPANSIONARY POLICIES
TO TACKLE THE RECESSION
•LEADING TO HIGHER DISPOSABLE
INCOME
% OF INDIAN
HOUSEHOLD:
•IN THE MIDDLE INCOME BRACKET
= 62%
•IN THE HIGH INCOME BRACKET
= 20%
SOURCE: HBJ CAPITAL, 9/2011

10
2010 HOPEWELL TABLEWARE PVT. LTD.
(A DOMESTIC ORGANIZED COMPETITOR)
ENTERED THE TABLEWARE MARKET
2011
THE GOVERNMENT IMPOSED
AN ANTI-DUMPING DUTY
ON IMPORT OF
OPAL GLASSWARE
• CHINA – 41.6-110.17% OF THE LANDED COST OF CONSIGNMENTS
• UAE – 36.73% OF THE COST
FOR A PERIOD OF
5 YEARS
EFFECTIVE 12/2011
i.e. 2012-2017 (5 YEARS)
2013
HOPEWELL TABLEWARE PVT. LTD. ENTERED THE
OPALWARE MARKET
SET-UP OPALWARE MANUFACTURING PLANT
8,000 TPA
IN JAIPUR, RAJASTHAN
HOPEWELL’s PRODUCTS WERE 25% CHEAPER
THAN LA OPALA’s PRODUCTS
HOPEWELL’s BRAND: ‘LARAH’
2016
HOPEWELL TABLEWARE PVT.
LTD. GOT ACQUIRED BY BOROSIL
GLASS WORKS LTD.
THIS WAY BOROSIL ENTERED THE
OPALWARE INDUSTRY
DEMONETIZATION HIT THE
TABLEWARE INDUSTRY HARD
ANTI-DUMPING DUTY GOT
EXTENDED
•TILL 08/2017
•i.e. 6 MONTHS’ EXTENSION
2017
ANTI-DUMPING DUTY GOT
EXTENDED
• TILL 2022
• i.e. 5 YEARS ENTENSION
• CHINA – 30.62% OF THE COST INSURANCE
FREIGHT (CIF)
• UAE – 4.38% OF CIF
GST WAS INTRODUCED
BROUGHT THE UNORGANIZED
SECTOR TO A LEVEL PLAYING
FIELD
CELLO GROUP ENTERED THE
OPALWARE INDUSTRY IN CY2016
SET-UP OPALWARE
MANUFACTURING PLANT IN CY2017,
FY2018
18,250 TPA
SOURCE: NIRMAL BANG RESEARCH REPORTS, 17/9/2013, 9/10/2014, 8/2/2017, 5/12/2018, 14/2/2019;
NO.37/9.8.2017-CUSTOMS(ADD); CELLOTABLEWARE.COM; MERGR.COM; PITCHBOOK.COM

PART 1 - HISTORY
B. MANAGEMENT &
COMPANY’S HISTORY
11

12
BEFORE
MID-1980s
A SMALL GLASS KILN, RADHA
GLASS (RG), AT MADHUPUR
IN BIHAR (NOW, IN
JHARKHAND)
MAKING 100%-RECYCLED
GLASS
FOR TEA SHOP GLASSES,
JARS, HURRICANE-LAMP
SHADES, GLASS CHIMNEYS,
ETC.
FOR DECADES
IN MID-
1980s
THE ELDEST SON OF THE
FAMILY, SUSHIL
JHUNJHUNWALA (2ND GEN.),
INHERITED HIS FATHER’S
BUSINESS (1ST GEN.)
HE REALISED THAT NOTHING
BIG COULD HAPPEN IF HE
STICKS TO THE TRADITIONAL
GLASS PRODUCTS
IN LATE-
1980S
AN IDEA STRIKES DURING A
TRIP TO SOUTH KOREA, HE
CAME ACROSS AN OPAQUE
WHITE GLASS CALLED ‘OPAL’
•ORIGINALLY, A FRENCH DISCOVERY,
OPAL GLASS WAS CONSIDERED
RARE AND DIFFICULT TO CREATE
IMPRESSED BY ITS LOOK,
DECIDED TO MANUFACTURE IT
WITH THE USE OF IMPORTED
MACHINERY
SOURCE: BUSINESS INDIA MAGAZINE, MAY 27 TO JUNE 9, 2013 ISSUE;
OUTLOOK BUSINESS, 24/05/2014; ANNUAL REPORT, 2017-18

13
1987 THE JOURNEY BEGAN FOR
LA OPALA GLASS PRIVATE LIMITED
1988
PIONEERING IN OPAL GLASS
TECHNOLOGY
IN INDIA
ON SECURING TECHNICAL
ASSISTANCE FROM
A SOUTH KOREAN
COMPANY, HOSAN GLASS
1ST OPAL GLASS PLANT:
688 TPA (TONNES PER
ANNUM)
SET UP AT MADHUPUR, BIHAR
RS.1.5-2 CRORE INVESTMENT
LATE-
1980s
EVENTHOUGH IT REMAINED LOSS-MAKING FOR 2 YEARS,
DUE TO OVERWHELMING MARKET RESPONSE
IN JUST A FEW QUARTERS THE COMPANY ANNOUNCED
CAPACITY EXPANSION
TO 1032 TPA
SOURCE: NIRMAL BANG RESEARCH REPORT, 5/12/2018; ANNUAL REPORT 2017-18; FORBES INDIA, 9/5/2017; COMPANY WEBSITE

14
1991
EARNED THE
HONOUR OF BEING
THE FIRST
EXPORTER OF OPAL
GLASS TABLEWARE
STARTING WITH
SINGAPORE,
AFGHANISTAN,
SAUDI ARABIA, UAE
AND BAHRAIN
COMPANY WEBSITE
SOURCE: BUSINESS INDIA MAGAZINE, MAY 27 TO JUNE 9, 2013 ISSUE

15
1995 LA OPALA BECAME THE 1ST PUBLIC LIMITED TABLEWARE COMPANY
1996
PIONEERED 24% LEAD CRYSTAL GLASSWARE
TECHNOLOGY IN INDIA:
•SET UP THE 1ST HANDMADE LEAD-CRYSTAL GLASS PLANT AT
MADHUPUR, BIHAR – 550 TPA (LATER DOUBLED TO 1,100 TPA)
•IN COLLABORATION WITH DOOSAN GLASS LIMITED, SOUTH
KOREAN EXPERTS IN GLASS MANUFACTURING
•LAUNCHED INDIA’s 1ST
24% LEAD CRYSTAL GLASSWARE, UNDER
THE BRAND NAME 'SOLITAIRE'
A WELL-PLACED
INVESTMENT BECAUSE:
•LABOUR RATES IN THE MAIN
CRYSTAL MANUFACTURING
COUNTRIES WERE HIGH , AND
•THE INDIAN MIDDLE CLASSES
WERE DEVELOPING A
PENCHANT FOR GOOD GLASSES
1997 THE FIRST INDIAN COMPANY TO EXPORT 24% LEAD CRYSTAL TABLEWARE
1999 THE MERGER OF LA OPALA GLASS LTD,
WITH RADHA GLASS & INDUSTRIES LTD,
FORMING LA OPALA RG LTD
SOURCE: BUSINESS INDIA MAGAZINE, MAY 27 TO JUNE 9, 2013 ISSUE; COMPANY WEBSITE

16
2007
1st INDIAN
COMPANY TO
SUPPLY 24% LEAD
CRYSTAL
GLASSWARE TO
WORLD
RENOWNED
‘ROSENTHAL’
2nd OPAL GLASS PLANT:
FULLY AUTOMATIC STATE-OF-
THE-ART
4,000 TPA
•A ₹55-CRORE COMPANY WITH ONLY
₹60-CRORE IN REVENUES TO INVEST
₹40 CRORE IN A PLANT
SET UP AT SITARGANJ,
UTTARAKHAND, IN FY2008,
ATTRACTED BY:
•TAX REGIME THERE
•EXCISE DUTY EXEMPTED TILL 9/2017
•ETC.
•ITS PROXIMITY TO DELHI’S FANCY
MARKET
2008 LAUNCH OF 'DIVA', THE HI-
TECH, WORLDCLASS OPAL
BRAND IN THE PREMIUM
SEGMENT.
THE LIGHTER, THINNER YET
STRONGER PRODUCT SAW
GOOD TRACTION IN THE
MARKET AND
DIVA’s PREMIUM PRICING
TRICKLED DOWN TO THE
COMPANY’S BOTTOMLINE
THE ‘DIVA’ RANGE STARTED
AT A 35% PREMIUM TO THE
‘LA OPALA’ BRAND
THIS HELPED IN
SUBSTANTIALLY HIKING ITS
MARKETING SPENDS
NIRMAL BANG RESEARCH REPORT, 17/9/2013, 31/8/2017; COMPANY WEBSITE; ANNUAL REPORT 2018-19
SOURCE: NIRMAL BANG RESEARCH REPORT, 17/9/2013
FY2009-12:
BIPASHA BASU – BECAME THE
BRAND AMBASSADOR OF
LA OPALA ‘DIVA’ FOR 2.5 YEARS
AROUND FY2012 & 2013:
‘MANISH MALHOTRA DIVA
COLLECTION’ (FASHION DESIGNER)
OF CROCKERY WAS LAUNCHED
SOURCE: NIRMAL BANG RESEARCH REPORT, 9/10/2014;
ANNUAL REPORT, 2011-12

17
2013
1ST MAJOR BROWNFIELD EXPANSION OF
THE SITARGANJ PLANT.
DOUBLED THE PRODUCTION CAPACITY
TO 8,000 TPA
IN FY2014
UPGRADED THE FURNACE AT MADHUPUR, JHARKHAND:
SWITCHED FROM FURNACE OIL TO ELECTRICITY
- GAINS – VISIBLY GOOD SINCE FY2014
2015
2ND MAJOR BROWNFIELD EXPANSION OF THE SITARGANJ
PLANT.
DOUBLED THE PRODUCTION CAPACITY
TO 16,000 TPA
IN FY2016
COMMERCIAL PRODUCTION STARTED FOR OPALWARE
“CUP-SAUCER RANGE”
AT SITARGANJ, UTTARAKHAND
IN 11/2015
2016
NEW PRODUCTS LAUNCHED:
•UNDER DIVA BRAND – “QUADRA”,
“SOVRANA”, & “CUP-SAUCER RANGE”
•UNDER LA OPALA BRAND – “COOK-N-
SERVE PRODUCT” (IMPORTED FROM
EUROPE)
DEMONETIZATION’s +VE EFFECTS:
•SHOWED MGT.’s STANCE
•i.e. NO INCREASE IN DISCOUNT, ONLY
CREDIT PERIOD EXTENSIONS GIVEN TO
DEALERS
•UNORGANIZED SECTOR WAS HIT HARDER
DEMONETIZATION’s -VE EFFECTS:
•CASH CRUNCH – HIT CO.’s WHOLESALE
BUYERS
•HENCE, CO. MISSED THE WEDDING
SEASON
•INSTITUTIONAL SALES WERE ALSO
NEGATIVELY IMPACTED
2017
3RD
BROWNFIELD EXPANSION
OF THE SITARGANJ PLANT.
DOUBLED THE PRODUCTION
CAPACITY
TO 20,000 TPA
IN FY2018
GST’s +VE EFFECTS:
• TAX RATE CUT – FROM 25% TO 18%
• MADHUPUR – POST-6/2017
• SITARGANJ – POST-9/2017
• OPALWARE PRICES:
• AT PAR WITH – STEELWARE
• BELOW – DECENT BONE-CHINEWARE
GST’s -VE EFFECTS:
•MAJOR
DESTOCKING AT
THE RETAILER
LEVEL (SHORT-
TERM IMPACT)
LABOUR UNION’s
UNREASONABLE
DEMANDS CAUSED:
MADHUPUR PLANT TO
SHUT DOWN FOR 45-
DAYS (6/2017)
2018
EARLIER:
•PRINTED DESIGNS, TO BE THERMALLY PASTED ON THE
OPALWARE, WERE IMPORTED
•FROM INDONESIA, & SOUTH KOREA
NOW:
•USES THE TECHNOLOGY OF PRINTING THE DESIGNS
ITSELF
SOURCE: NIRMAL BANG RESEARCH REPORT, 17/9/2013, 5/2/2016, 17/5/2016, 22/8/2016,
16/11/2016; 8/2/2017; 31/8/2017; 19/12/2018, 14/2/2019

BUSINESS OVERVIEW
PART 2
18

PART 2 - BUSINESS OVERVIEW
A. BRANDS
19

a) OPALWARE BRANDS
20
THE COMPANY CLAIMS THAT THE FOLLOWING
POSITIONING STRATEGIES HAVE BEEN USED:
1st – ENTRY-LEVEL BRAND -- “LA OPALA” BRANDS
SUB-CATEGORIES - 2
2nd – PREMIUM BRAND -- “DIVA FROM LA OPALA” BRANDS
SUB-CATEGORIES – 4 + 1 ADDED IN 2019-20
NEW: “COSMO COLLECTION”
SOURCE: 2018-19 ANNUAL REPORT
SOURCE: 2018-19 ANNUAL REPORT; COMPANY WEBSITE
Opal glassware: Plates | Bowls | Dinner Sets | Cup-Saucer
Sets | Coffee Mugs | Coffee Cups | Tea Sets | Soup Sets |
Pudding | Dessert Sets

21
GOING TO AS HIGH AS
RS.6,500 FOR A 65-PIECE
DINNER SET (i.e. RS.100 PER
PIECE)
STARTING FROM
RS.650 FOR A 6- PIECE DINNER
SET (i.e. RS.108 PER PIECE)
PRICE RANGE (FY2017)
SOURCE: ANNUAL REPORT, 2016-17

22
1st
2nd
2ND -- RS.1,700-
RS.4,500 FOR A 27
PIECE DINNER SET
1ST -- LESS THAN
RS.3,500 FOR A
12-15 PIECE
DINNER SET.
PRICES IN THE MARKET (FY2019)
SOURCE: 15 FEBRUARY 2019, NIRMAL BANG RESEARCH REPORT
THE COMPANY
DOES NOT SHARE
MARGINS IN ITS
PRODUCT
CATEGORIES,
BUT ITS RETAIL
PRICE GIVES AN
INDICATION OF THE
MARGIN
DIFFERENCE
ACROSS
CATEGORIES.

23
1.
2.
5. DIVA SOVRANA
•FORMAL RANGE FOR FORMAL DINING
4. DIVA QUADRA
•CATERING TO A YOUNG AND TRENDING
AUDIENCE
3. DIVA IVORY
•COMPLETE ROUND DINNERWARE; SLIGHTLY
UPMARKET
2. DIVA CLASSIQUE
•ENTRY LEVEL FOR THE PREMIUM COLLECTION
1. LA OPALA
•ENTRY LEVEL BRAND
PRICES AS SHOULD BE
3.
4.
5.

24
PRICES IN THE MARKET - HEH? (FY2019)
5. DIVA SOVRANA
1. LA OPALA
3. DIVA IVORY
UPMARKET
2. DIVA CLASSIQUE
4. DIVA QUADRA
AUDIENCE
1.
2.
3.
4.
5.
SOURCE: 5 DECEMBER 2018, 14 FEBRUARY 2019, NIRMAL BANG RESEARCH REPORT
THE COMPANY
DOES NOT SHARE
MARGINS IN ITS
PRODUCT
CATEGORIES,
BUT ITS RETAIL
PRICE GIVES AN
INDICATION OF THE
MARGIN
DIFFERENCE
ACROSS
CATEGORIES.

25
PRICES IN THE MARKET - HEH? (FY2020)
4. DIVA QUADRA
AUDIENCE
5. DIVA SOVRANA
3. DIVA IVORY
UPMARKET
2. DIVA CLASSIQUE
1. LA OPALA
1.
2.
3.
4.
5.
SOURCE: 1 JULY 2020, NIRMAL BANG RESEARCH REPORT
THE COMPANY
DOES NOT SHARE
MARGINS IN ITS
PRODUCT
CATEGORIES,
BUT ITS RETAIL
PRICE GIVES AN
INDICATION OF THE
MARGIN
DIFFERENCE
ACROSS
CATEGORIES.

26
PRODUCT COMPARISON OF VARIOUS PLAYERS (Q2 FY2013)
SOURCE: 17 SEPTEMBER 2013, NIRMAL BANG RESEARCH REPORT AAYUSH AGRAWAL | JUNE 2020

27
PRODUCT COMPARISON OF VARIOUS PLAYERS (CY2018)
SOURCE: 5 DECEMBER 2018, NIRMAL BANG RESEARCH REPORT

28

29

30
PRODUCT COMPARISON OF VARIOUS PLAYERS (FY2020)

31
Pigeon

b) CRYSTALWARE BRANDS
33
THE COMPANY CLAIMS THAT THE FOLLOWING
POSITIONING STRATEGY HAS BEEN USED:
PREMIUM BRAND -- “SOLITAIRE CRYSTAL”
24% LEAD CRYSTAL GLASSWARE
Crystalware: Barware | Vases | Bowls | Stemware

34
GOING TO AS HIGH
AS
Rs.1,950
STARTING FROM
Rs.300
PRICES RANGE

B. PRODUCTION
PROCESS
35

36
SOURCE: “GLASS CONTAINER PRODUCTION” WIKIPEDIA
THE BATCH
HOUSE
•HANDLES THE RAW
MATERIALS
•STORAGE,
•AUTOMATIC
PROPORTION
CHECKS,
•BATCH MIXING,
•ETC.
THE HOT
END
•HANDLES THE
PROCESSING PART
•THE FOREHEARTH,
•SPINNING
MACHINES,
•ANNEALING OVENS,
•ETC.
THE COLD
END
•HANDLES THE FINAL
PARTS
•AUTOMATIC
QUALITY-CHECKS,
•LABELING,
•PACKAGING,
•ETC.

37
SOURCE: ANCHOR.ARNIMADEV.COM/GLASSMAKING-PROCESS/

38
SOURCE: YOUTUBE, YOUTU.BE/VB-AXJGECD4

39
SOURCE: YOUTUBE, YOUTU.BE/ZTUXAZIXNI0

40
1. BATCH HOUSE – TRANSWEIGH (INDIA-MAKE)
2. ELECTRIC GLASS FURNACE – ELECTRO GLASS (UK-MAKE)
3. SPINNING MACHINE – OLIVOTTO (ITALY-MAKE)
4. ANNEALING MACHINE AND TEMPERING MACHINE – CARMET (ITALY-MAKE)
5. ITS UTILITY MACHINES LIKE, E.G. COMPRESSOR, AIR DRYER, PUMPS, AIR AND
WATER CHILLERS, COOLING TOWERS, DG SETS, BOREWELL, WATER SUPPLY,
GAS SUPPLY, HYDRANT, FIREFIGHTING SYSTEM, ETC.
SOURCE: LINKEDIN PROFILE OF ASSISTANT MAINTENANCE MANAGER (MECHANICAL) OF LA OPALA RG LTD. -- https://www.linkedin.com/in/anuraganurag/

41
1. BATCH HOUSE – HUAFU (CHINA-MAKE)
2. ELECTRIC GLASS FURNACE – HUAFU (CHINA-MAKE)
3. SPINNING MACHINE – SGMT (CHINA-MAKE)
4. ANNEALING MACHINE AND TEMPERING MACHINE – HUAFU (CHINA-MAKE)
5. ITS UTILITY MACHINES LIKE, E.G. COMPRESSOR, AIR DRYER, PUMPS, AIR AND
WATER CHILLERS, COOLING TOWERS, DG SETS, BOREWELL, WATER SUPPLY,
GAS SUPPLY, HYDRANT, AND FIREFIGHTING SYSTEM, ETC.
SOURCE: LINKEDIN PROFILE OF ASSISTANT MAINTENANCE MANAGER (MECHANICAL) OF LA OPALA RG LTD. -- https://www.linkedin.com/in/anuraganurag/

C. RAW MATERIALS
42

C. RAW MATERIALS
a) OPALWARE
43

44
SOURCE: “OPAL GLASS EXHIBITING A CREAMY-WHITE TINT” (US4687751) 18/8/1987 PATENT, CORNING INC., GOOGLE PATENTS;
BORMIOLI ROCCO WEBSITE; YOUTUBE, YOUTU.BE/ZTUXAZIXNI0

45
SOURCE: “OPAL GLASS EXHIBITING A CREAMY-WHITE TINT” (US4687751) 18/8/1987 PATENT, CORNING INC., GOOGLE PATENTS
GENERIC COMPOSITION FOR OPALWARE
GROUP 1 GROUP 2
GROUP 3
SODIUM OXIDE (DISODIUM
MONOXIDE)(NA2O) - 10.5-13%
FLUORINE (F) - 4-5.5%
ALUMINA (ALUMINIUM
TRIOXIDE)(AL2O3)
- 6-9%
SILICA (SILICON DIOXIDE)(SIO2) - 70-73%
QUICKLIME
(CALCIUM
OXIDE)
(CALCIUM
MONOXIDE)(
CAO)
- 0.2-1.7%
TITANIA
(TITANIUM
OXIDE)
(TITANIUM
DIOXIDE)
(TIO2) -
0.1-1%
TRISENOX
(ARSENIC
TRIOXIDE)
(AS2O3)
- 0-0.5%
RUST (IRON
OXIDE)(FERRIC
OXIDE)(FE2O3)
- 0.05-0.30%
CERIA
(CERIUM
DIOXIDE)
(CEO2)
- 0-0.5%
BORON TRIOXIDE
(DIBORON
TRIOXIDE)(B2O3)
- 0.5-3%
BARIA
(BARIUM
OXIDE)(BAO)
- 1-3%
ZINC OXIDE (ZNO)
- 1.5%

46
SOURCE: “OPAL GLASS EXHIBITING A CREAMY-WHITE TINT” (US4687751) 18/8/1987 PATENT, CORNING INC., GOOGLE PATENTS;
BORMIOLI ROCCO WEBSITE

D. MARKET SIZE
& SHARE
49

D. MARKET SIZE
AND SHARE
a) SEGMENTS
50

D. MARKET SIZE
AND SHARE
a) SEGMENTS
i. OPALWARE V/S OTHER SEGMENTS
51

STEELWARE,
₹6,000 , 59%
BONE CHINA
- CERAMIC,
₹2,400 , 23%
MELAMINE,
₹700 , 7%
PORCELAIN -
CERAMIC,
₹540 , 5%
OPALWARE -
CERAMIC,
₹500 , 5%
OTHERS -
PLASTIC,
COPPER,
STONEWARE,
ETC., ₹60 ,
1%
FY18 MARKET SHARE ESTIMATE
52
STEELWARE,
₹2,998 , 74%
GLASSWARE,
₹560 , 14%
OPALWARE,
₹175 , 4%
MELAMINE,
₹135 , 3%
BONE CHINA,
₹130 , 3%
STONEWARE,
₹45 , 1%
PORCELAIN,
₹35 , 1%
SOURCE: NIRMAL BANG RESEARCH REPORTS, 17/9/2013, 5/12/2018, 15/2/2019
RS.4,080 CR. RS.10,200 CR.

BONE
CHINA, 79%
PORCELAIN,
73%
MELAMINE,
39%
OPALWARE,
23%
STEELWARE,
15%
OTHERS -
GLASSWARE
, PLASTIC,
COPPER,
STONEWARE
, ETC., -37%
FY13-18 SEGMENT-WISE
ACTUAL PAST GROWTH RATES
53
STEELWARE,
10.9%
BONE CHINA,
2.5%
MELAMINE,
1.3%
OPALWARE,
1.0%
PORCELAIN,
0.6%
OTHERS -
GLASSWARE,
PLASTIC,
COPPER,
STONEWARE,
ETC., -5.5%
FY13-18 CONTRIBUTIONS TO
THE TOTAL ACTUAL GROWTH RATE
TOTAL ACTUAL PAST GROWTH RATE = 20.1% P.A.

OPALWARE
- CERAMIC,
15%
MELAMINE,
10%
STEELWARE,
5%
BONE CHINA -
CERAMIC, 5%
PORCELAIN -
CERAMIC,
5%
OTHERS -
PLASTIC,
COPPER,
STONEWARE
, ETC., 5%
FY18 SEGMENT-WISE
EXPECTED GROWTH RATES
54
STEELWARE,
2.9%
BONE CHINA
- CERAMIC,
1.2%
OPALWARE -
CERAMIC,
0.7%
MELAMINE,
0.7%
PORCELAIN
- CERAMIC,
0.3%
OTHERS -
PLASTIC,
COPPER,
STONEWAR
E, ETC.,
0.0%
FY18 CONTRIBUTIONS TO
THE TOTAL EXPECTED GROWTH RATE
SOURCE: NIRMAL BANG RESEARCH REPORTS, 5/12/2018, 15/2/2019
TOTAL EXPECTED FUTURE GROWTH RATE = 5.8% P.A.

BONE CHINA
- CERAMIC,
₹2,400 , 57%
MELAMINE,
₹700 , 17%
PORCELAIN -
CERAMIC,
₹540 , 13%
OPALWARE -
CERAMIC,
₹500 , 12%
OTHERS -
PLASTIC,
COPPER,
STONEWARE,
ETC., ₹60 ,
1%
55
GLASSWARE,
₹560 , 52%
OPALWARE,
₹175 , 16%
MELAMINE,
₹135 , 13%
BONE CHINA,
₹130 , 12%
STONEWARE,
₹45 , 4%
PORCELAIN,
₹35 , 3%
FY13 MARKET SHARE ESTIMATE (EXCLUDING STEELWARE)
RS.1,080 CR.
(OUT OF RS.4,080 CR.)
RS.4,200 CR.
(OUT OF RS.10,200 CR.)

56
SOURCE: NIRMAL BANG RESEARCH REPORTS, 17/9/2013
CROCKERY REQUIREMENTS OF DIFFERENT CULTURES ARE
AS VARIED AS THEIR CUISINE.
IT IS A VERY FRAGMENTED MARKET AND EACH COUNTRY
DEMANDS ITS OWN CONFIGURATION IN TERMS OF NUMBER
OF PIECES, DESIGN, SIZE AND SHAPE.
AS A RESULT:
1. A PRODUCT OF A COMPANY MAY WORK IN ONE
COUNTRY BUT MAY BE UNSUCCESSFUL IN ANOTHER,
2. THE SHARE OF ESTABLISHED GLOBAL BRANDS IS
LOWER IN THE INDIAN CROCKERY MARKET.
EXAMPLES OF DIFFERENCES:
1. IN INDIA, & THE USA,
§ A LUNCH/DINNER NEEDS
§ 20 PIECES OF CROCKERY
§ TO SERVE
§ A TYPICAL FOUR-MEMBER HOUSEHOLD.
2. IN SAUDI ARABIA,
§ FAMILIES ARE LARGE
§ PEOPLE EAT TOGETHER,
§ A TYPICAL LUNCH/DINNER INVOLVES
§ ABOUT 90 PIECES OF CROCKERY.
3. ITALY, LIKE THE REST OF THE MEDITERRANEAN REGION,
§ HAS FONDNESS FOR
§ SOUP BOWLS.
4. THE CHINESE
§ NEED
§ A PLETHORA OF SMALL BOWLS FOR THEIR
SAUCES.

D. MARKET SIZE
AND SHARE
a) SEGMENTS
ii. ORGANIZED V/S UNORGANIZED
57

58
ORGANIZED -
DOMESTIC,
₹2,240 , 21%
ORGANIZED -
IMPORT,
₹3,240 , 30%
UNORGANIZE
D - DOMESTIC,
₹2,870 , 26%
UNORGANIZED
- IMPORT,
₹2,510 , 23%
FY13 ESTIMATE OF
DOMESTIC V/S IMPORTS
SOURCE: NIRMAL BANG RESEARCH REPORTS, 17/9/2013

D. MARKET SIZE
AND SHARE
b) OPALWARE SEGMENT
59

60
SOURCE: NIRMAL BANG RESEARCH REPORTS, 5/12/2018; LIVINGLIFESTYLE.IN
1. OPALWARE V/S STEEL & OTHER
METALS
A. OPALWARE:
q MICROWAVE OVEN
COMPATIBILITY
ü WITH HIGHER PENETRATION OF
MICROWAVE OVENS,
OPALWARE’S DEMAND MAY ALSO
INCREASE
q DESIGNS AND COLORS
ü OFFERS BETTER THAN METALWARES
q ASTHETICS
q DURABILITY
✘ NOT BETTER THAN METALS.
2. OPALWARE V/S MELAMINE &
PLASTICS
A. OPALWARE:
q EFFECT ON HEALTH
ü SAFE FOR HEALTH.
B. MELAMINE & PLASTICWARE:
q DESIGNS AND COLORS
q PRICING
ü CHEAPER THAN MANY OTHER
TABLEWARE MATERIALS
q DURABILITY
ü LONGER LASTING THAN
OPALWARE.
ü REPLACEMENT RATE OF MELAMINE
- 10-20% P.A. (i.e. 5-10 YEARS TO
REPLACE WHOLE SET). ITS AN
IMPORTANT FACTOR FOR
RESTAURANTS, CATERING, ETC.
ü AS COMPARED TO
50-150% P.A. (i.e. 0.5-2
YEARS) FOR CERAMIC
TABLEWARE.
q ASTHETICS
✘ BUT FEELS “CHEAP” COMPARED TO
“ELEGANT” OPALWARE
q MICROWAVE OVEN
COMPATIBILITY
✘ NOPE.
q EFFECT ON HEALTH
✘ HARMFUL FOR HEALTH.
3. OPALWARE V/S BONE
CHINA/CERAMICS
A. OPALWARE - ALSO A KIND OF A
CERAMIC:
q STURDYNESS
ü BETTER THAN TRADITIONAL BONE
CHINA, CLAY, OR PROCELAIN
PRODUCTS
q PRICING
ü CHEAPER THAN OTHER CERAMICS
q EASE OF HANDLING &
MAINTAINING
ü EASIER THAN OTHER CERAMICS
q WEIGHT
ü LIGHTWEIGHT, IN MOST CASES.
q BONE-ASH RAW MATERIAL
ü NO BONE-ASH USED.
ü 100% VEGETARIAN.
ü VEGAN

61
₹340.2
₹418.5
₹447.0
₹-
₹50.0
₹100.0
₹150.0
₹200.0
₹250.0
₹300.0
₹350.0
₹400.0
₹450.0
FY2016 FY2017 (INDIAN GAAP) FY2018 (IND-AS)
REVENUES
(in
Rs.
Cr.)
REVENUES OF THE OPALWARE SEGMENT
GROWTH: (FY16-18)
TOTAL = BY 31%
i.e. 14.63% CAGR

62
₹212.2 ₹222.7 ₹212.6
₹48.0
₹98.3
₹102.1
₹-
₹-
₹47.3
₹80.0
₹97.5
₹85.0
₹-
₹50.0
₹100.0
₹150.0
₹200.0
₹250.0
₹300.0
₹350.0
₹400.0
₹450.0
REVENUES
(in
Rs.
Cr.)
LA OPALA BOROSIL - LARAH CELLO OTHERS (CORELLE, BORMIOLI ROCCO, LUMINARC, RAK CERAMICS, ETC.)
GROWTH: (FY16-18)
LA OPALA = BY 0.2%
i.e. 0.09% CAGR
BOROSIL = BY 113%
i.e. 45.8% CAGR
OTHERS = BY 6%
i.e. 3.08% CAGR
TOTAL = BY 31%
i.e. 14.63% CAGR

63
62%
53%
48%
14%
23%
23%
0% 0% 11%
24% 23%
19%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
REVENUES
(AS
A
%
OF
TOTAL)
LA OPALA BOROSIL - LARAH CELLO OTHERS (CORELLE, BORMIOLI ROCCO, LUMINARC, RAK CERAMICS, ETC.)

E. MANUFACTURING
CAPACITY
64

65

E. MANUFACTURING
CAPACITY
a) OVERVIEW
66

67
FIXED ASSET TYPE
LOCATIONS
COMPANY LA OPALA RG LTD.
DOMESTIC
3(+1)
FACTORIES
1 CORPORATE
OFFICE
1 WIND
MILL
INTERNATIONAL
0
SOURCE: ANNUAL REPORT, 2017-18, 2018-19

E. MANUFACTURING
CAPACITY
b) LOCATION-WISE
68

69
PRODUCT TYPE &
CAPACITY
LOCATIONS & CAPACITY
FIXED ASSET TYPE
LOCATIONS DOMESTIC
3(+1)
FACTORIES
(25,000 +
11,000 TPA)
2 IN MADHUPUR,
JHARKHAND
(5,000 TPA)
1 OPALWARE
(4,000 TPA)
1 CRYSTALWARE
(1,000 TPA)
1(+1) IN SITARGANJ,
UTTARAKHAND
(20,000 + 11,000
TPA)
1 OPALWARE
(20,000 TPA)
(+1) OPALWARE
(11,000 TPA)
1 CORPORATE
OFFICE
CHITRAKOOT,
KOLKATA,
WEST BENGAL
1 WIND MILL
(600 KWH)
GORERA VILLAGE,
JAISALMER,
RAJASTHAN
ELECTRICITY
SOURCE: ANNUAL REPORT, 2010-11, 2017-18, 2018-19

70
5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
- - - - -
4,000 4,000 4,000 4,000 4,000 4,000
8,000 8,000
16,000 16,000
20,000 20,000 20,000 20,000
- - - -
4,000
- - - - - -
- -
- -
- - -
11,000
- - - -
- - - - - -
4,000
-
8,000
-
4,000
- - -
-
2,500
5,000
10,000
20,000
40,000
F
Y
2
0
0
4
F
Y
2
0
0
5
F
Y
2
0
0
6
F
Y
2
0
0
7
F
Y
2
0
0
8
F
Y
2
0
0
9
F
Y
2
0
1
0
F
Y
2
0
1
1
F
Y
2
0
1
2
F
Y
2
0
1
3
F
Y
2
0
1
4
F
Y
2
0
1
5
F
Y
2
0
1
6
F
Y
2
0
1
7
F
Y
2
0
1
8
F
Y
2
0
1
9
F
Y
2
0
2
0
(
E
X
P
E
C
T
E
D
)
F
Y
2
0
2
1
(
E
X
P
E
C
T
E
D
)
F
Y
2
0
2
2
(
E
X
P
E
C
T
E
D
)
TONNES
PER
ANNUM
(TPA)
LOCATIONS’ IMPORTANCE OVER THE YEARS
MADHUPUR SITARGANJ SITARGANJ - GREENFIELD EXPANSION SITARGANJ - BROWNFIELD EXPANSION
SOURCE: ANNUAL REPORT, 2017-18, 2018-19; NIRMAL BANG RESEARCH REPORT, 14/2/2019, 1/7/2020

71
100% 100% 100% 100%
56% 56% 56% 56% 56% 56%
38% 38%
24% 24% 20% 20% 20% 20%
14%
0% 0% 0% 0%
0%
44% 44% 44% 44% 44%
31%
62%
38%
76%
64%
80% 80% 80%
56%
0% 0% 0% 0%
44%
0% 0% 0% 0% 0%
0%
0%
0%
0%
0%
0% 0% 0%
31%
0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
31%
0%
38%
0%
16%
0% 0% 0% 0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
F
Y
2
0
0
4
F
Y
2
0
0
5
F
Y
2
0
0
6
F
Y
2
0
0
7
F
Y
2
0
0
8
F
Y
2
0
0
9
F
Y
2
0
1
0
F
Y
2
0
1
1
F
Y
2
0
1
2
F
Y
2
0
1
3
F
Y
2
0
1
4
F
Y
2
0
1
5
F
Y
2
0
1
6
F
Y
2
0
1
7
F
Y
2
0
1
8
F
Y
2
0
1
9
F
Y
2
0
2
0
(
E
X
P
E
C
T
E
D
)
F
Y
2
0
2
1
(
E
X
P
E
C
T
E
D
)
F
Y
2
0
2
2
(
E
X
P
E
C
T
E
D
)
TONNES
PER
ANNUM
(TPA)
AS
A
%
OF
TOTAL
LOCATIONS’ IMPORTANCE OVER THE YEARS
MADHUPUR SITARGANJ SITARGANJ - GREENFIELD EXPANSION SITARGANJ - BROWNFIELD EXPANSION

E. MANUFACTURING
CAPACITY
c) BRAND-WISE
72

73
FURNACE
TYPE
PRODUCTION TYPE
BRANDS &
LOCATION
PRODUCT TYPE &
CAPACITY
FIXED ASSET TYPE
3(+1) FACTORIES
(25,000 +
11,000 TPA)
1 OPALWARE
(4,000 TPA)
“LA OPALA”
BRANDS
MADHUPUR,
JHARKHAND
SEMI-AUTO:
PRESSED
PROCESS
FUEL-FIRE
(PRE-7/2013)
ELECTRIC-ARC
(SINCE 7/2013)
1 CRYSTALWARE
(1,000 TPA)
“SOLITAIRE
CRYSTAL” BRAND
MADHUPUR,
JHARKHAND
HANDMADE
FUEL-FIRE
(PRE-7/2013)
ELECTRIC-ARC
(SINCE 7/2013)
1(+1)
OPALWARE
(20,000 +
11,000 TPA)
“DIVA” BRANDS
SITARGANJ,
UTTARAKHAND
FULLY-AUTO:
SPINNING
PROCESS
ELECTRIC-ARC
(SINCE
INCEPTION)
SOURCE: ANNUAL REPORT, 2014-15, 2017-18, 2018-19; BUSINESS INDIA MAGAZINE, MAY 27 TO JUNE 9, 2013 ISSUE;
OUTLOOK BUSINESS, 24/05/2014 : NIRMAL BANG RESEARCH REPORT, 9/10/2014, 31/8/2017, 14/2/2019
(FURNACE NEEDS
TO BE RE-ALIGNED
EVERY 2 YEARS)
(FACTORY SHUTS
FOR 1.5 MONTHS)

74
4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000
1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
- - - - -
4,000 4,000 4,000 4,000 4,000 4,000
8,000 8,000
16,000 16,000
20,000 20,000 20,000 20,000
- - - -
4,000
- - - - - -
- -
- -
- - -
11,000
- - - -
- - - - - -
4,000
-
8,000
-
4,000
- - -
-
2,500
5,000
10,000
20,000
40,000
F
Y
2
0
0
4
F
Y
2
0
0
5
F
Y
2
0
0
6
F
Y
2
0
0
7
F
Y
2
0
0
8
F
Y
2
0
0
9
F
Y
2
0
1
0
F
Y
2
0
1
1
F
Y
2
0
1
2
F
Y
2
0
1
3
F
Y
2
0
1
4
F
Y
2
0
1
5
F
Y
2
0
1
6
F
Y
2
0
1
7
F
Y
2
0
1
8
F
Y
2
0
1
9
F
Y
2
0
2
1
(
E
X
P
E
C
T
E
D
)
F
Y
2
0
2
2
(
E
X
P
E
C
T
E
D
)
F
Y
2
0
2
0
(
E
X
P
E
C
T
E
D
)
TONNES
PER
ANNUM
(TPA)
CAPACITIES OVER THE YEARS
LA OPALA SOLITAIRE CRYSTAL DIVA - TILL DATE DIVA - GREENFIELD EXPANSION DIVA - BROWNFIELD EXPANSION

75
80% 80% 80% 80%
44% 44% 44% 44% 44% 44%
31% 31%
19% 19% 16% 16% 16% 16%
11%
20% 20% 20% 20%
11% 11% 11% 11% 11% 11%
8% 8%
5% 5%
4% 4% 4% 4%
3%
0% 0% 0% 0%
0%
44% 44% 44% 44% 44%
31%
62%
38%
76%
64%
80% 80% 80%
56%
0% 0% 0% 0%
44%
0% 0% 0% 0% 0%
0%
0%
0%
0%
0%
0% 0% 0%
31%
0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
31%
0%
38%
0%
16%
0% 0% 0% 0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
F
Y
2
0
0
4
F
Y
2
0
0
5
F
Y
2
0
0
6
F
Y
2
0
0
7
F
Y
2
0
0
8
F
Y
2
0
0
9
F
Y
2
0
1
0
F
Y
2
0
1
1
F
Y
2
0
1
2
F
Y
2
0
1
3
F
Y
2
0
1
4
F
Y
2
0
1
5
F
Y
2
0
1
6
F
Y
2
0
1
7
F
Y
2
0
1
8
F
Y
2
0
1
9
F
Y
2
0
2
0
(
E
X
P
E
C
T
E
D
)
F
Y
2
0
2
0
(
E
X
P
E
C
T
E
D
)
F
Y
2
0
2
0
(
E
X
P
E
C
T
E
D
)
TONNES
PER
ANNUM
(TPA)
AS
A
%
OF
TOTAL
BRANDS’ IMPORTANCE OVER THE YEARS
LA OPALA SOLITAIRE CRYSTAL DIVA - TILL DATE DIVA - GREENFIELD EXPANSION DIVA - BROWNFIELD EXPANSION

E. MANUFACTURING
CAPACITY
d) INDUSTRY (CAPACITY & REVENUES)
76

77
21,000 21,000
25,000
9,750 9,750
14,600
- -
18,250
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
FY2016 FY2017 FY2018
TONNES
PER
ANNUM
(TPA)
TOTAL CAPACITIES IN THE INDUSTRY (EXCLUDING OTHERS)
LA OPALA BOROSIL CELLO
SOURCE: NIRMAL BANG RESEARCH REPORT, 14/2/2019, 1/7/2020
GROWTH:
LA OPALA = BY 19%
i.e. 9.11% CAGR
BOROSIL = BY 50%
i.e. 22.37% CAGR
TOTAL = BY 88%
i.e. 37.16% CAGR

78
₹212.2 ₹222.7 ₹212.6
₹48.0
₹98.3
₹102.1
₹-
₹-
₹47.3
₹-
₹50.0
₹100.0
₹150.0
₹200.0
₹250.0
₹300.0
₹350.0
₹400.0
REVENUES
(in
Rs.
Cr.)
REVENUES OF THE INDUSTRY (EXCLUDING OTHERS)
LA OPALA BOROSIL - LARAH CELLO
GROWTH: (FY16-18)
LA OPALA = BY 0.2%
i.e. 0.09% CAGR
BOROSIL = BY 113%
i.e. 45.84% CAGR
TOTAL (EXCL. OTHERS) = BY 39.12%
i.e. 17.95% CAGR

79
68% 68%
43%
32% 32%
25%
0% 0%
32%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY2016 FY2017 FY2018
TONNES
PER
ANNUM
(TPA)
AS
A
%
OF
TOTAL
TOTAL CAPACITIES IN THE INDUSTRY (EXCLUDING OTHERS)
LA OPALA BOROSIL CELLO

80
82%
69%
59%
18%
31%
28%
0% 0%
13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
REVENUES
(AS
A
%
OF
TOTAL)
REVENUES OF THE INDUSTRY (EXCLUDING OTHERS)
LA OPALA BOROSIL - LARAH CELLO

F. VALUE DELIVERY
NETWORK
81

82
CUSTOMERS
RETAILERS
DEALERS/
WHOLESALERS/
DISTRIBUTORS
PRODUCER
SUPPLIERS SUPPLIERS OF FIXED ASSETS, RAW MATERIALS, PACKING MATERIALS, POWER & FUEL, ETC.
LA OPALA RG. LTD.
DEALERS/
WHOLESALER/
DISTRIBUTORS
RETAILERS
RETAIL (&
INSTITUTIONAL)
CUSTOMERS
MODERN RETAIL
CHAINS
RETAIL (&
INSTITUTIONAL)
CUSTOMERS
E-COMMERCE
WEBSITES
RETAIL (&
INSTITUTIONAL)
CUSTOMERS
INSTITUTIONAL
CUSTOMERS
FOREIGN
CUSTOMERS
SOURCE: NIRMAL BANG RESEARCH REPORT, 9/10/2014, 5/12/2018; CARE RATINGS REPORT, 4/10/2019

G. REVENUE MIX %
83

G. REVENUE MIX %
a) BRAND-WISE
84

85
LA OPALA
40%
DIVA
48%
SOLITAIRE
10%
OTHERS
2%
FY13 REVENUE MIX
LA OPALA,
22%
DIVA, 75%
SOLITAIRE,
3%
OTHERS, 0%
FY18 REVENUE MIX

86
LA OPALA,
41%
DIVA, 49%
SOLITAIRE,
10%
FY13 REVENUE MIX
LA OPALA,
22%
DIVA, 75%
SOLITAIRE,
3%
FY18 REVENUE MIX
(EXCLUDING OTHERS)

G. REVENUE MIX %
b) MARKET-WISE
87

88
₹44.57
₹59.16
₹80.22
₹97.18
₹134.08
₹146.03
₹186.38
₹212.23 ₹222.70
₹194.91
₹212.60
₹234.87
₹19.56
₹17.65
₹18.29
₹20.39
₹25.59
₹34.31
₹37.95
₹40.53
₹42.78
₹42.78
₹43.96
₹39.38
₹35
₹70
₹140
₹280
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
(INDIAN
GAAP)
FY2017
(IND-AS)
FY2018 FY2019
REVENUE
(in
Rs.
Cr.)
REVENUE MIX – DOMESTIC V/S EXPORTS
DOMESTIC EXPORTS
SOURCE: ANNUAL REPORTS AAYUSH AGRAWAL | JUNE 2020
GROWTH: (FY09-17)
EXPORTS = BY 119%
i.e. 10.28% CAGR
DOMESTIC = BY 400%
i.e. 22.27% CAGR
TOTAL = BY 314%
i.e. 19.43% CAGR
GROWTH: (FY09-19)
(ADJ. FOR IND-AS)
EXPORTS = BY 101%
i.e. 7.25% CAGR
DOMESTIC = BY 502%
i.e. 19.67% CAGR
TOTAL = BY 378%
i.e. 16.93% CAGR
GROWTH: (FY17-19)
EXPORTS = BY (8)%
i.e. (4.06)% CAGR
DOMESTIC = BY 21%
i.e. 9.77% CAGR
TOTAL = BY 15%
i.e. 7.42% CAGR
*NOTE: ONLY “GLASS & GLASSWARE” & “ELECTRICITY” COMPONENTS
OF “REVENUE FROM OPERATIONS” HAVE BEEN CONSIDERED

89
70%
77%
81% 83% 84% 81% 83% 84% 84% 82% 83% 86%
30%
23%
19% 17% 16% 19% 17% 16% 16% 18% 17% 14%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
(INDIAN
GAAP)
FY2017
(IND-AS)
FY2018 FY2019
REVENUE
(in
%)
REVENUE MIX – DOMESTIC V/S EXPORTS
DOMESTIC EXPORTS
*NOTE: ONLY “GLASS & GLASSWARE” & “ELECTRICITY” COMPONENTS
OF “REVENUE FROM OPERATIONS” HAVE BEEN CONSIDERED

90
NORTH INDIA
30%
SOUTH INDIA
27%
WEST INDIA
23%
EAST INDIA
20%
REVENUE MIX (IN %) –
DOMESTIC MARKET (FY2018)
SOURCE: NIRMAL BANG RESEARCH REPORT, 19/10/2014, 5/12/2018; ANNUAL REPORTS, 2014-15; 2017-18, 2018-19
NORTH INDIA
29%
SOUTH INDIA
25%
WEST INDIA
24%
EAST INDIA
22%
REVENUE MIX (IN %) –
DOMESTIC MARKET (FY2014)
(DOMESTIC MARKET)

91
SOURCE: NIRMAL BANG RESEARCH REPORT, 5/12/2018; ANNUAL REPORTS, 2014-15; 2017-18, 2018-19; CARE RATINGS REPORT, 4/10/2019

92
SOURCE: FOR MADHUPUR PLANT, GOOGLE MAPS

93
SOURCE: FOR SITARGANJ PLANT, GOOGLE MAPS

94

95
SOURCE: CARE RATINGS REPORT, 4/10/2019

96
₹20.39
₹25.59
₹34.31
₹37.95
₹40.53
₹42.78 ₹42.78 ₹43.96
₹39.38
₹2.31
₹2.49
₹3.06
₹3.75
₹2.48
₹2.95 ₹2.39
₹2.39
₹1.81
₹0
₹5
₹10
₹15
₹20
₹25
₹30
₹35
₹40
₹45
₹50
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 (INDIAN
GAAP)
FY2017 (IND-AS) FY2018 FY2019
REVENUE
(in
Rs.
Cr.)
REVENUE MIX – EXPORT INCENTIVES
EXPORTS EXPORT INCENTIVES
GROWTH: (FY12-17)
EXPORTS = BY 110%
i.e. 15.98% CAGR
EXPORT INCENTIVES = BY 28%
i.e. 5.01% CAGR
TOTAL = BY 102%
i.e. 15.04% CAGR
GROWTH: (FY12-19)
(ADJ. FOR IND-AS)
EXPORTS = BY 93%
i.e. 9.86% CAGR
EXPORT INCENTIVES = BY -(4)%
i.e. -(0.51)% CAGR
TOTAL = BY 84%
i.e. 9.08% CAGR
GROWTH: (FY17-19)
EXPORTS = BY (8)%
i.e. (4.06)% CAGR
EXPORT INCENTIVES = BY -(24)%
i.e. -(13.09)% CAGR
TOTAL = BY -(9)%
i.e. -(4.51)% CAGR
*NOTE: ONLY “GLASS & GLASSWARE” – EXPORTS & “EXPORT
INCENTIVES” COMPONENTS OF “REVENUE FROM OPERATIONS” HAVE
BEEN CONSIDERED

97
90% 91% 92% 91% 94% 94% 95% 95% 96%
10% 9% 8% 9% 6% 6% 5% 5% 4%
0%
20%
40%
60%
80%
100%
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 (INDIAN
GAAP)
FY2017 (IND-AS) FY2018 FY2019
REVENUE
(in
%)
REVENUE MIX – EXPORT INCENTIVES
DOMESTIC EXPORTS
*NOTE: ONLY “GLASS & GLASSWARE” – EXPORTS & “EXPORT
INCENTIVES” COMPONENTS OF “REVENUE FROM OPERATIONS” HAVE
BEEN CONSIDERED

98

99
REFERENCES:

G. REVENUE MIX %
c) DISTRIBUTION CHANNEL-WISE
100

101
TRADITIONAL
RETAILERS
75%
MODERN
RETAIL
20%
E-COMMERCE
5%
REVENUES – DISTRIBUTION CHANNELS
(FY2018)
SOURCE: NIRMAL BANG RESEARCH REPORT, 5/12/2018; CARE RATINGS REPORT, 4/10/2019
TRADITIONAL
RETAILERS
72%
MODERN
RETAIL
20%
E-COMMERCE
8%
REVENUES – DISTRIBUTION CHANNELS
(FY2019)

102
SOURCE: NIRMAL BANG RESEARCH REPORT, 5/12/2018; ANNUAL REPORT, 2015-16,
2016-17, 2017-18, 2018-19; CARE RATINGS REPORT, 4/10/2019

103

104

105
v BOROSIL – ‘LARAH’
• 6000+ RETAIL OUTLETS (1/2 OF LA OPALA)
• 130+ DISTRIBUTORS (1/2 OF LA OPALA)
• “OUR VISIT TO SOME TRADITIONAL STORES
AND MODERN RETAIL OUTLETS IN A COUPLE
OF CITIES REVEALS THAT… BOROSIL’S
OPALWARE IS STILL NOT AVAILABLE IN MOST
SHOPS IN VARIOUS CITIES.” – NIRMAL BANG
vCELLO
• “OUR VISIT TO SOME TRADITIONAL STORES
AND MODERN RETAIL OUTLETS IN A COUPLE
OF CITIES REVEALS THAT… CELLO IS
PERCEIVED AS A CHEAPER BRAND THAN LA
OPALA” – NIRMAL BANG
• FURTHER RESEARCH IS REQUIRED
vCORNING INC. – ‘CORELLE’, ‘CORNINGWARE’,
‘PYREX’
• ENTERED INDIA AFTER 1991, BUT NOT STRONG
EVEN TODAY
• STRONG BRAND EQUITY IN INDIA, BUT COULD
NEVER CREATE A STRONG DISTRIBUTION
NETWORK
• TO SOLVE THIS PROBLEM:
o IN 2012 – PARTNERED WITH TTK PRESTIGE,
ENDED IN 2013
o AS OF TODAY – STILL PRESENT IN INDIA, BUT IS
LARGELY CONFINED TO
ü HIGH-STREET SHOPS IN SELECT CITIES,
ü MODERN RETAIL STORES IN SELECT CITIES, &
ü NOW ALSO HAS A CHANCE TO GROW USING
THE E-COMMERCE CHANNEL’s PENETRATION

G. REVENUE MIX %
d) CUSTOMER TYPE-WISE
106

107
RETAIL
CUSTOMERS
93%
INSTITUTIONAL
CUSTOMERS
7%
REVENUES – TYPES OF CUSTOMERS
(FY2019)
SOURCE: CARE RATINGS REPORT, 4/10/2019

G. REVENUE MIX %
e) SEASON-WISE
108

109
SOURCE: NIRMAL BANG RESEARCH REPORT, 9/10/2014, 22/8/2016; GOOGLE TRENDS

H. COST ANALYSIS
110

111
11.92 16.6 19.39
26.4 25.16 27.62
49.08
29.92 29.01
37.39
5.28
7.51
8.79
11.59 11.91
13.13
14.65
14.27 16.17
17.16
12.81
15.97
19.59
24.27 24.23
24.44
28.18
27.76
33.97
45
1.01
0.56
-3.1 -4.5
3.26 0.11
-9.2
6.93
2.81
-15.51
₹(20)
₹-
₹20
₹40
₹60
₹80
₹100
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
(INDIAN
GAAP)
FY2017 (IND-
AS)
FY2018 (IND-
AS)
FY2019 (IND-
AS)
COSTS
(in
Rs.
Cr.)
DIRECT COSTS
RAW MATERIAL COST + STOCK-IN-TRADE PACKING MATERIAL CONSUMED POWER & FUEL CHANGE IN INVENTORY (INC.)/DEC.
SOURCE: ANNUAL REPORTS; KOTAK SECURITIES; SCREENER.IN

112
38.4% 40.8% 43.4% 45.7%
39.0% 42.3%
59.3%
37.9% 35.4%
44.5%
17.0%
18.5%
19.7% 20.1%
18.4%
20.1%
17.7%
18.1% 19.7%
20.4%
41.3%
39.3%
43.9% 42.0%
37.5%
37.4%
34.1%
35.2% 41.4%
53.5%
3.3% 1.4%
-6.9% -7.8%
5.0% 0.2%
-11.1%
8.8% 3.4%
-18.5%
-20%
0%
20%
40%
60%
80%
100%
120%
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
(INDIAN GAAP)
FY2017 (IND-
AS)
FY2018 (IND-
AS)
FY2019 (IND-
AS)
COSTS
(in
%)
DIRECT COSTS
RAW MATERIAL COST + STOCK-IN-TRADE PACKING MATERIAL CONSUMED POWER & FUEL CHANGE IN INVENTORY (INC.)/DEC.

113
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
FY2016
(INDIAN
GAAP)
FY2017
(IND-AS)
FY2018
(IND-AS)
FY2019
RAW MATERIALS 16% 17% 17% 17% 14% 12% 20% 13% 11% 13%
PACKING MATERIALS 7% 8% 8% 8% 7% 6% 6% 6% 6% 6%
TOTAL RAW MATERIALS COST 24% 26% 22% 22% 23% 18% 22% 22% 19% 14%
POWER & FUEL 17% 17% 17% 16% 14% 11% 11% 12% 13% 16%
EMPLOYEE COSTS 15% 14% 15% 14% 14% 13% 15% 16% 16% 18%
SELLING & ADMIN + OTHER EXPENSES 19% 17% 17% 17% 19% 22% 20% 10% 7% 9%
DEPRECIATION & AMORTIZATION 6% 5% 4% 4% 4% 5% 4% 5% 5% 6%
TOTAL OPERATING EXPENDITURE 90% 83% 80% 75% 76% 75% 69% 67% 63% 66%
62%
67%
72%
77%
82%
87%
92%
3%
8%
13%
18%
23%
28%
‘TOTAL
OPERATING
EXPENDITURE’
AS
A
%
OF
SALES
AS
A
%
OF
SALES
OPERATING COSTS’ TREND

114
FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
FY2016
(INDIAN
GAAP)
FY2017
(IND-
AS)
FY2018
(IND-
AS)
FY2019
INTEREST 0% 0% 0% 0% 4% 7% 5% 4% 4% 3% 2% 0% 0% 1% 0% 0%
0%
1%
2%
3%
4%
5%
6%
7%
AS
A
%
OF
SALES
NON-OPERATING COSTS’ TREND
SOURCE: ANNUAL REPORTS; KOTAK SECURITIES; MONEYCONTROL.COM; SCREENER.IN

115

116
7.9% 8.0% 8.4%
9.7%
11.8%
15.8%
13.9% 13.8%
0.3%
2.2%
10.4% 10.8% 10.7%
12.4%
15.3%
19.3%
17.8% 17.7%
0.4%
2.5%
13.5% 13.9% 13.7%
15.6%
18.6%
22.4%
20.9% 20.8%
0.5%
3.1%
46.0%
30.2% 23.8%
54.8%
40.6%
68.5%
-1.3% -5.6%
-97.4% -100.0%
-50.0%
0.0%
50.0%
100.0%
150.0%
200.0%
250.0%
300.0%
350.0%
400.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
(INDIAN
GAAP)
FY2017
(INDIAN
GAAP)
FY2018
(IND-AS)
FY2019
(IND-AS)
%
GROWTH
IN
THE
AMOUNT
OF
COST
AS
A
%
OF…
ADVERTISEMENT AND SALES PROMOTION COSTS’ TREND
AS A % OF SALES AS A % OF GROSS PROFIT AS A % OF GROSS PROFIT (AFTER POWER & FUEL) % GROWTH
SOURCE: ANNUAL REPORTS; SCREENER.IN
NOTE: FY2018 & FY2019 FIGURES SEEM DUBIOUS TO ME, AS MGT. IN ANNUAL REPORTS AND THE
CREDIT RATING AGENCY IN ITS REPORTS CLAIM THAT HIGH AD. & SALES PROMO. COSTS WERE
INCURRED IN THESE YEARS. HENCE REQUIRES FURTHER RESEARCH.

117
TELEVISION
65%
NEWSPAPER
35%
FY13 MEDIA USED FOR
ADVERTISEMENTS
SOURCE: NIRMAL BANG RESEARCH REPORT, 17/9/2013, 9/10/2014; FORBES INDIA, 9,5,2017

118
ANS.
1. MANAGEMENT BELIEVES THAT GROWTH WILL DEPEND
ON
a) THE INTRODUCTION OF
ü NEW PRODUCTS,
ü NEW DESIGNS,
ü ENHANCED QUALITY,
b) DEEPER DISTRIBUTION, AND
c) CONTINUOUS COST REDUCTION. (BECAUSE OF HIGH
COMPETITION, PRICES CAN’T BE INCREASED MUCH)
2. THE COMPANY WILL SEEK TO SYNERGICALLY
DIVERSIFY AND SEIZE NEW OPPORTUNITIES.
3. THE COMPANY WILL STRENGTHEN ITS RESEARCH
SPENDING WITH THE OBJECTIVE:
q TO EMERGE AS A WORLD-CLASS AND INNOVATIVE
MANUFACTURER OF TABLEWARE.
4. THE COMPANY HAS DECIDED TO COMMISSION A
RESEARCH & DEVELOPMENT FACILITY
1. COMPRISING
ü QUALIFIED SCIENTISTS, AND
ü CHEMICAL ENGINEERS
2. COUPLED WITH
ü THE APPOINTMENT OF RECOGNISED PERSONALITIES
FROM THE GLASS AND CERAMIC INDUSTRIES

I. PROFIT ANALYSIS
119

120
SOURCE: ANNUAL REPORTS; MONEYCONTROL.COM; SCREENER.IN
1% 0% 0% -1% 1% 0% 1%
5% 4% 6%
76% 74%
78% 78% 77%
82%
78% 78%
81%
86%
59% 58%
61% 62% 63%
71%
67% 66% 68% 70%
16%
22% 24%
29% 28% 30%
35%
38%
42% 40%
10%
17% 20%
25% 24%
33%
37% 34%
6%
14% 16%
21% 23% 25%
31%
37%
41%
4%
10% 11%
15% 17% 19%
24%
26% 28% 27%
-2%
8%
18%
28%
38%
48%
58%
68%
78%
88%
₹70
₹140
₹280
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
(INDIAN
GAAP)
FY2017 (IND-
AS)
FY2018 FY2019
AS
A
%
OF
SALES
SALES
(in
Rs.
Cr.)
PROFITS’ TREND
SALES OTHER INCOME
GROSS PROFIT (EXCLUDING "OTHER INCOME") GROSS PROFIT (AFTER POWER & FUEL) (EXCL. "OTHER INCOME")
EBITDA (EXCLUDING "OTHER INCOME") OPERATING PROFIT (EBIT, EXCLUDING "OTHER INCOME")
PROFIT BEFORE TAX (INCLUDING "OTHER INCOME") PROFIT AFTER TAX (INCLUDING "OTHER INCOME")

121
CAPACITY EXPANSIONS

122

J. BALANCE SHEET
ANALYSIS
123

124
12.1%
18.4%
17.1% 17.5% 18.3%
22.0%
20.1%
38.5% 37.7%
33.1% 33.6%
37.3%
20.2%
18.2%
16.6%
15.6% 14.6%
11.4% 11.4%
10.1% 9.9%
12.4%
14.2%
16.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
₹0.7
₹1.4
₹2.8
₹5.6
₹11.2
₹22.4
₹44.8
₹89.6
₹179.2
₹358.4
(INDIAN
GAAP)
FY2017
(IND-AS)
FY2018 FY2019
AS
A
%
OF
SALES
(OR)
TOTAL
CAPITAL
AMOUNT
(in
Rs.
Cr.)
BORROWINGS, DEBTORS, & WORKING CAPITAL
TOTAL BORROWINGS DEBTORS
WORKING CAPITAL (INVESTMENTS AT "FAIR VALUE") WORKING CAPITAL (AS A % OF TOTAL CAPITAL)
AVG. DEBTORS (AS A % OF SALES) NOTES:
• (TOTAL CAPITAL = TOTAL SHAREHOLDER’S EQUITY + TOTAL
BORROWINGS + WORKING CAPITAL)
• “SHORT-TERM INVESTMENT’s” “FAIR VALUES” HAVE BEEN CONSIDERED

125
33
45
39
29 25 24
14
8 6
0 4 1
32
45
38
29 25
15
5
-87
-101
-157
-201
-237
-₹240
-₹190
-₹140
-₹90
-₹40
₹10
(INDIAN
GAAP)
FY2017
(IND-AS)
FY2018 FY2019
AMOUNT
(in
Rs.
Cr.)
GROSS & NET BORROWINGS
GROSS BORROWINGS NET BORROWINGS
NOTE:
(NET BORROWINGS = GROSS BORROWINGS
– SHORT-TERM INVESTMENTS (AT FAIR VALUE)
– CASH & CASH EQUIVALENTS)

126
1
0
1
1
0
8 9
95 107
157
205
237
₹0
₹1
₹1
₹2
₹4
₹8
₹16
₹32
₹64
₹128
₹256
(INDIAN
GAAP)
FY2017
(IND-AS)
FY2018 FY2019
AMOUNT
(in
Rs.
Cr.)
ROKDA IN HAND! :P
CASH & CASH EQUIVALENTS SHORT-TERM INVESTMENTS (AT FAIR VALUE)

K. FCF ANALYSIS
127

128

129
-₹12
-₹2
₹8
₹18
₹28
₹38
₹48
₹58
₹68
₹78
(INDIAN
GAAP)
FY2017
(IND-AS)
FY2018 FY2019
AMOUNT
(in
Rs.
Cr.)
FREE CASH FLOW GENERATIONS
OCF FCF FCFE 2 per. Mov. Avg. (OCF) 2 per. Mov. Avg. (FCF) 2 per. Mov. Avg. (FCFE)
SOURCE: ANNUAL REPORTS; SCREENER.IN

L. RATIO ANALYSIS
130

L. RATIO ANALYSIS
a) ROCE, ROIC, & ROE
131

132
HERE, THE RATIOS ARE NOT ADJUSTED
FOR THE CHANGES THAT ‘IND-AS’
BROUGHT ABOUT FROM PREVIOUSLY
USED ‘INDIAN GAAP’.
THE EFFECT OF WHICH CAN BE SEEN AS A
SHARP FALL FROM FY2016
TO FY2017.
ON THE NEXT PAGE, THE RATIOS –
1. HAVE BEEN ADJUSTED FOR:
INDIAN GAAP -- ‘INVESTMENTS’ WHICH
ARE SHOWN AT ‘COST’; &
IND-AS -- ‘INVESTMENTS’ WHICH ARE
SHOWN AT ‘FAIR VALUE’
2. HAVEN’T BEEN ADJUSTED FOR:
CHANGE IN REVENUE FIGURES & PROFIT
FIGURES SINCE FY2017 IND-AS
CAPACITY EXPANSIONS

133
18.67%
13.87%
15.33%
13.53%
2.82%
2.27%
7.48%
22.35%
24.95%
35.27%
34.85%
29.07%
27.16%
22.61%
21.76%
18.50%
15.0%
19.3%
15.6%
5.6% 7.8%
10.8%
22.3%
28.8%
41.0%
42.0%
36.6%
35.4%
31.4%
31.3%
28.1%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
(INDIAN
GAAP)
FY2017
(IND-AS)
FY2018 FY2019
%
ROCE & ROE (ADJUSTED)
ROE % ROCE %
NOTE:
ROCE % SHOULD ALSO HAVE BEEN ADJUSTED FOR THE OPERATING
LEASE, BUT I COULDN’T DUE TO LACK OF INFORMATION.
CAPACITY EXPANSIONS

L. RATIO ANALYSIS
b) DUPONT ANALYSES
134

a) DUPONT ANALYSES
i.2-WAY
ii.3-WAY
iii.5-WAY
HERE, THE RATIOS ARE ADJUSTED FOR THE CHANGES
THAT ‘IND-AS’ BROUGHT ABOUT
FROM THE PREVIOUSLY USED ‘INDIAN GAAP’.
BIG CHANGE THAT I’VE ADJUSTED FOR:
INDIAN GAAP -- ‘INVESTMENTS’ SHOWN AT ‘COST’
IND-AS -- ‘INVESTMENTS’ SHOWN AT ‘FAIR VALUE’
135
D. RATIO ANALYSIS

136
𝑃𝑅𝑂𝐹𝐼𝑇 𝐴𝐹𝑇𝐸𝑅 𝑇𝐴𝑋
𝐴𝑉𝐸𝑅𝐴𝐺𝐸 𝐸𝑄𝑈𝐼𝑇𝑌
RETURN ON EQUITY (ROE) %
𝑅𝐸𝑉𝐸𝑁𝑈𝐸𝑆
NET PROFIT MARGIN %
EQUITY TURNOVER (TIMES)

137
NET PROFIT MARGIN %
𝐴𝑉𝐸𝑅𝐴𝐺𝐸 𝑇𝑂𝑇𝐴𝐿 𝐴𝑆𝑆𝐸𝑇𝑆
TOTAL ASSET TURNOVER (TIMES)
FINANCIAL LEVERAGE (TIMES)

138
NET PROFIT MARGIN %
𝑃𝑅𝑂𝐹𝐼𝑇 𝐵𝐸𝐹𝑂𝑅𝐸 𝑇𝐴𝑋
TAX BURDEN %
𝑃𝑅𝑂𝐹𝐼𝑇 𝐵𝐸𝐹𝑂𝑅𝐸 𝑇𝐴𝑋
𝑃𝑅𝑂𝐹𝐼𝑇 𝐵𝐸𝐹𝑂𝑅𝐸 𝐼𝑁𝑇𝐸𝑅𝐸𝑆𝑇 & 𝑇𝐴𝑋
INTEREST BURDEN %
𝑃𝑅𝑂𝐹𝐼𝑇 𝐵𝐸𝐹𝑂𝑅𝐸 𝐼𝑁𝑇𝐸𝑅𝐸𝑆𝑇 𝑇𝐴𝑋
EBIT MARGIN %
TOTAL ASSET TURNOVER (TIMES)
FINANCIAL LEVERAGE (TIMES)

139
0.60
1.20
2.40
0%
5%
10%
15%
20%
25%
30%
35%
40%
(INDIAN
GAAP)
FY2017
(IND-AS)
FY2018 FY2019
NO.
OF
TIMES
%
i. DUPONT ANALYSIS (2-WAY)
ROE % NET PROFIT MARGIN % EQUITY TURNOVER (TIMES)

140
0.60
1.20
2.40
0%
5%
10%
15%
20%
25%
30%
35%
40%
(INDIAN
GAAP)
FY2017
(IND-AS)
FY2018 FY2019
NO.
OF
TIMES
%
ii. DUPONT ANALYSIS (3-WAY)
ROE % NET PROFIT MARGIN % TOTAL ASSET TURNOVER (TIMES) FINANCIAL LEVERAGE (OR EQUITY MULTIPLIER) (TIMES)

141
0%
10%
20%
30%
40%
50%
60%
70%
0%
5%
10%
15%
20%
25%
30%
35%
40%
(INDIAN
GAAP)
FY2017
(IND-AS)
FY2018 FY2019
TAX
BURDEN,
&
INTEREST
BURDEN
%
ROE,
&
EBIT
MARGIN
%
iii. DUPONT ANALYSIS (5-WAY)
ROE % EBIT MARGIN % TAX BURDEN % (HERE, TAX/PBT) INTEREST BURDEN % (HERE, INTEREST EXPENSE/EBIT)

L. RATIO ANALYSIS
c) OTHER RATIOS
142

143
134
97 91
109 101
272 284
206 199
179 167 161 154
172
146
173
66
49 52
63 72
64
61
57
53
42
42
37 36
45
52
58
200
146 142
172 173
336
345
263
253
221
209
198 190
217
197
232
2.7
3.8
4.0
3.4
3.6
1.3 1.3
1.8 1.8 2.0 2.2 2.3
2.4
2.1
2.5
2.1
5.5
7.4
7.1
5.8
5.0
5.7
6.0
6.4
6.8
8.7 8.8
9.9 10.1
8.1
7.1 6.2
-
2.0
4.0
6.0
8.0
10.0
-
50
100
150
200
250
300
350
400
(INDIAN
GAAP)
FY2017
(IND-AS)
FY2018 FY2019
NO.
OF
TIMES
DAYS
OPERATING CYCLE
DAYS INVENTORY OUTSTANDING DAYS RECEIVABLES OUTSTANDING OPERATING CYCLE
INVENTORY TURNOVER RATIO RECEIVABLES TURNOVER RATIO
NOTE: THESE FIGURES SEEM DUBIOUS TO ME, ESPECIALLY PRE-FY2011 FIGURES =
• AS ANNUAL REPORTS ARE NOT AVAILABLE PRE-FY2010,
• THE SOURCES USED HERE, ARE ALL SHOWING DIFFERENT AND CONFUSING NUMBERS FOR THE PRE-FY2011 PERIOD
• ‘NIRMAL BANG’ AND ‘CARE RATINGS’ REPORTS ARE SHOWING DIFFERENT ‘INVENTORY DAYS’ FIGURES FOR FY2018 ALSO…
HENCE REQUIRES FURTHER RESEARCH.

144

145
THE CO. GETS FAVOURABLE PRICES FOR RAW MATERIALS IF THE PAYMENT IS
MADE WITHIN A WEEK. AS A RESULT, CREDITOR DAYS ARE LOW.
REALIGNING FURNACE TAKES 1.5 MONTHS, AND PRODUCTION STANDS
SUSPENDED FOR THAT PERIOD. IN ORDER TO REDUCE SUPPLY CONSTRAINTS, CO.
CREATES ADDITIONAL INVENTORY FOR THIS PURPOSE.
HIGH INVENTORY DAYS, BECAUSE OF THE SEASONALITY OF THE PRODUCT.
BUT THE COMPANY IS TRYING TO REDUCE THE HOLDING PERIOD:
§ INTRODUCING NEW PRODUCTS (PRODUCT)
§ MORE DIVERSIFIED PRICE POSITIONINGS (PRICE)
§ INCREASED MARKET PENETRATION (DISTRIBUTION) (PLACE)

146
HERE, THE RATIOS ARE NOT ADJUSTED
FOR THE CHANGES THAT ‘IND-AS’
BROUGHT ABOUT FROM THE
PREVIOUSLY USED ‘INDIAN GAAP’.
CAPACITY EXPANSIONS

147
0%
5%
10%
15%
20%
25%
30%
35%
(INDIAN
GAAP)
FY2017
(IND-AS)
FY2018 FY2019
OPERATING, & EBIT -- RETURN ON ASSETS % (AFTER ADJUSTMENTS)
OPERATING RETURN ON (ADJUSTED) TOTAL ASSETS (%) (EXCLUDES 'OTHER INCOME')
EBIT RETURN ON (ADJUSTED) TOTAL ASSETS (%) (EBIT = OPERATING PROFIT + OTHER INCOME)

148
0%
5%
10%
15%
20%
25%
30%
35%
(INDIAN
GAAP)
FY2017
(IND-AS)
FY2018 FY2019
OPERATING, & EBIT -- RETURN ON ASSETS % (WITHOUT ADJUSTMENTS)
OPERATING RETURN ON TOTAL ASSETS (%) (EXCLUDES 'OTHER INCOME') (WITHOUT ADJUSTMENT)
EBIT RETURN ON TOTAL ASSETS (%) (EBIT = OPERATING PROFIT + OTHER INCOME) (WITHOUT ADJUSTMENT)

149
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
(INDIAN
GAAP)
FY2017
(IND-AS)
FY2018 FY2019
NO.
OF
TIMES
LIQUIDITY RATIOS (AFTER ADJUSTMENTS)
CURRENT RATIO QUICK RATIO CASH RATIO

MANAGEMENT QUALITY
ANALYSIS
PART 3
150

151
• FAMILY RUNNING BUSINESS OR THERE IS PROFESSIONAL MANAGEMENT: PROMOTER RUN BUSINESS
• HOW THE MANAGEMENT DEALS IN DOWNTURNS: COMPANY STOPPED BIG CAPEX, BUT MAINTAINED
SMALL CAPEX, IN THE DOWNTURN
• EXPERIENCE OF MANAGEMENT: WELL-EXPERIENCED
• QUALITY OF AUDITORS AND INDEPENDENT DIRECTORS:
• AUDITORS:
• SINCE FY2018 – “SINGHI & CO., CAs” (ICAI FIRM REGISTRATION NO.: 302049E)
• OTHER CLIENTS:
• SINCE FY2020 (29/6/2019) – “EVEREADY INDUSTRIES INDIA LTD.”
• “PwC CAs LLP.” (FY2018 – FY2019), RESIGNED ON 28/6/2019 AFTER GIVING A
“DISCLAIMER OF OPINION” FOR FY2019 RESULTS – HUGE PROMOTER
CORPORATE TRANSACTIONS
• SINCE FY2018 – “ASSOCIATED ALCOHOLS & BREWERIES LTD.”
• VERY HIGH PROMOTER REMUNERATIONS HAVE BEEN OBSERVED
• ATLEAST SINCE FY2010 – “SUTLEJ TEXTILES & INDUSTRIES LTD.”
• VERY HIGH PROMOTER REMUNERATIONS HAVE BEEN OBSERVED
• MANY OTHER LISTED COMPANIES
SOURCE: ANNUAL REPORTS; MCA.GOV.IN; BLOOMBERG QUINT, 29/6/2019; BSE; NSE; ONLINE SEARCH ENGINES; ANNUAL REPORTS OF THE MENTIONED CO.s;
DRVIJAYMALIK.COM

152
• FY2010 - FY2017 – “DOSHI, CHATTERJEE, BAGRI & CO. LLP” (ICAI FIRM REGISTRATION NO.:
325197E)
• OTHER CLIENTS:
• HINDUSTHAN NATIONAL GLASS & INDUSTRIES LTD.
• FEW OTHER LISTED COMPANIES
• PRE-FY2010 – N.A. (ANNUAL REPORTS NOT AVAILABLE ON BSE/NSE)
• INDEPENDENT DIRECTORS:
• ARUN CHURIWAL (SINCE 1994)
• CHAIRMAN OF “RSWM LTD”; MANAGING DIRECTOR OF “BSL LTD.”
• BOTH ARE “LNJ BHILWARA GROUP” CO.s
• RAJIV GUJRAL (ATLEAST SINCE 2007)
• MR. SUBIR BOSE
• PROF. SANTANU RAY
• MS. MAMTA BINANI
• REMUNERATION OF MANAGEMENT: FY2019 – VERY HIGH (REMUNERATION (EXCL. DIVIDENDS) RS.9.46
CR ON OPERATING PROFIT OF RS.95.90 CR, & NET PROFIT OF RS.74.04 CR)
• IF YOU GET A CHANCE TO VISIT THE FACTORY/SHOP/ETC., ASK EMPLOYEES ABOUT THE MANAGEMENT:
(HAVEN’T GOTTEN A CHANCE YET)
SOURCE: MCA.GOV.IN; ANNUAL REPORTS; BSE; NSE; ONLINE SEARCH ENGINES; ANNUAL REPORTS OF THE MENTIONED CO.s; MONEYCONTROL.COM; SCREENER.IN

153
• TV INTERVIEWS OF MANAGEMENT: MANAGEMENT HAS NOT CONDUCTED ANY POST-2016
• CONFIDENCE OF MANAGEMENT IN DIFFERENT MODES OF COMMUNICATIONS LIKE CONFERENCE CALLS,
ANALYSTS’ MEETS, ETC.: MANAGEMENT HAS NOT CONDUCTED ANY POST-2016
• CHECK THEIR TWITTER, LINKEDIN ACCOUNTS (TO SEE IF THERE ARE POSITIVE OR NEGATIVE STATEMENTS):
LOW SOCIAL MEDIA PRESENCE
• AGM (ANNUAL GENERAL MEETING) FEEDBACK: (COULDN'T ATTEND AGM)
• IS MANAGEMENT TRYING TO GIVE A ROSY PICTURE?: I BELIEVE THAT THIS ISN’T THE CASE
• FAMILY DISPUTES: NO
• CHANGING OFFICES TOO OFTEN: NO
• ISSUANCE OF:
• ESOPS: NO
• WARRANTS: NO
• CONVERTIBLE DEBENTURES/ PREFERENTIAL SHARES: NO
SOURCE: RESEARCHBYTES.COM; ANNUAL REPORTS; SOCIAL MEDIA;

REFRENCES:
154
• QUALITY OF CAPITAL ALLOCATION DECISIONS OF MANAGEMENT IN THE PAST: (BASED ON ROCE, ROE,
& OPERATING & EBIT ROA)
• FY2008 – EXTREMELY GOOD
• FY2014, FY2016, FY2018 – MODERATE
• (2 YEARS' NET CASH CAPEX/CHANGE IN SALES OVER 3 FYs) SHOULD NOT BE GREATER THAN 1, IF IT IS,
THEN MANAGEMENT IS NOT DOING A GREAT JOB:
• FY2008 – VERY HIGH (2.13)(APPROX.)
• FY2014, FY2016, FY2018 – MODERATE (0.35), HIGH (0.89), VERY HIGH (1.65)
• SALES NOT IMPROVED WITH CAPEX DUE TO ENTRY OF NEW PLAYERS, &/OR PESTEL FACTORS.
• CAPITAL ALLOCATION IN:
ü EXISTING BUSINESS
✗ NEW BUSINESS
ü HIGH MARGIN SEGMENT
✗ LOW MARGIN SEGMENT
SOURCE: OUTLOOK BUSINESS, 24/05/2014; NIRMAL BANG RESEARCH REPORT, 17/9/2013, 31/8/2017; ANNUAL REPORT 2018-19;
SCREENER.IN; MONEYCONTROL.COM
REFRENCES:

155
• OVERALL FINANCIALS OF THE COMPANY DIFFERENT FROM THE INDUSTRY: (NOT
YET ANALYSED)
• SUBSIDIARIES IN MAURITIUS, SINGAPORE, ETC. TAX HAVENS.: NO (BUT
PROMOTER’s ‘GENESIS EXPORTS LTD.’ REQUIRES FURTHER RESEARCH)
• EXPOSURE IN MIDDLE EAST COUNTRIES: HAVE SOME SALES THERE, BUT NO
SUBSIDIARY (BUT PROMOTER’s ‘GENESIS EXPORTS LTD.’ NEEDS FURTHER
RESEARCH)
SOURCE: RESEARCHBYTES.COM; ANNUAL REPORTS; SOCIAL MEDIA;

PART 3 - MGT. QUALITY ANALYSIS
REMUNERATION OF
KMPs
156

157
SOURCE: SCREENER.IN; MONEYCONTROL.COM; ANNUAL REPORTS
₹1
₹1
₹3
₹4
₹6
₹8
₹10
₹14
₹15
₹17
₹18
₹0
₹2
₹4
₹6
₹8
₹10
₹12
₹14
₹16
₹18
₹20
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019
AMOUNT
(in
Rs.
Cr.)
TOTAL CASH PROMOTERS HAVE TAKEN HOME
TOTAL INCOME (EXCL. DIVIDENDS) OF THE PROMOTER GROUP DIVIDENDS OF THE PROMOTER GROUP
TOTAL INCOME OF THE PROMOTER GROUP

158
SOURCE: SCREENER.IN; MONEYCONTROL.COM; ANNUAL REPORTS
1.0%
1.8%
2.6% 3.1%
3.9%
4.5% 4.6%
5.6%
6.2% 6.4% 6.5%
1.7%
3.0%
4.5%
5.1%
6.3%
7.1%
6.6%
8.4%
9.3% 9.4% 9.4%
13%
18%
15%
16% 16%
18% 18%
18%
19%
17%
19%
6%
9% 9%
10%
11%
12% 12% 12%
13%
12% 13%
79%
48%
27% 28% 26%
26%
25% 24% 23% 23%
25%
22%
32%
42%
52%
62%
72%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
(INDIAN
GAAP)
FY2017
(IND-AS)
FY2018 FY2019
AS
A
%
OF…
TOTAL INCOME OF THE PROMOTER GROUP
SALES
GROSS PROFIT
OPERATING PROFIT (EBIT, EXCLUDES 'OTHER INCOME')
PROFIT (INCLUDES 'EMPLOYEE COST'; EXCLUDES 'OTHER INCOME'; NET OF 'INTEREST EXPENSE')
NET PROFIT

OPERATIONS ANALYSIS
PART 4
159

PART 4 - OPERATIONS ANALYSIS
A. PORTER’s 5 FORCES
160

161
COMPETITION
WITH EXISTING
PLAYERS
SCORE - (2/5)
MODERATELY HIGH
EXISTING PLAYERS’ LONG-TERM
SURVIVAL RATE – FAIRLY LOW
FOR NEW PLAYERS – EASE OF
BUILDING NEW BRANDS –
MODERATE
ORGANIZED SECTOR GAINING
FROM GST IMPLEMENTATION
PRICE DIFFERENCE – IS FADING
AWAY
EASE OF BUILDING NEW
BRANDS – MODERATELY LOW
ANTI-DUMPING DUTY IS
MAKING IT HARDER FOR THE
FOREIGN BRANDS
LA OPALA RG LTD.’s
MARKET SHARE – VERY HIGH
ECONOMIES OF SCALE – VERY HIGH
PRICING POWER – MODERATE
EBITDA MARGINS – VERY HIGH
EXPERIENCE – VERY HIGH
FY13-18 OPALWARE MARKET
GREW BY = 20.1% P.A.
LA OPALA DOMESTIC SALES GREW
BY = 12.4% P.A.
BARGAINING
POWER OF
BUYERS
SCORE - (3/5)
MODERATE
LA OPALA IS REDUCING IT
• THORUGH POWERFUL BRANDING
EXERCISES
• ADVERTISEMENT & SALES
PROMOTION COSTS - HIGH
RETAILER’s SWITCHING COSTS
B/W OPALWARE BRANDS – MODERATE
B/W ALL TABLEWARE SEGMENTS –
MODERATE
CUSTOMER’s SWITCHING
COSTS
B/W OPALWARE BRANDS –
• REAL – MODERATELY LOW
• IMAGINARY - MODERATE
EASE OF PASSING FORWARD
THE INCREASING COSTS –
MODERATE
FY13-18 OPALWARE MARKET
GREW BY = 20.1% P.A.
LA OPALA DOMESTIC SALES GREW
BY = 12.4% P.A.
BARGAINING
POWER OF
SUPPLIERS
SCORE - (?/5)
(MORE INFO.
IS REQUIRED)
RAW MATERIALS, & FUEL PRICES
– VERY VOLATILE
SUPPLIER SWITCHING COSTS
- ?
• SPECIALIZATION OF RAW
MATERIALS - ?
• NO. OF SUPLPLIERS AVAILABLE - ?
CREDIT PERIOD AVAILABLE SEEMS
VERY HIGH
WHICH SUGGESTS THAT LA
OPALA HAS HIGH POWER OVER
ITS SUPPLIERS
(SEE OPERATING CYCLE AND CASH
CONVERSION CYCLE)
TOTAL RAW MATERIALS, &
POWER & FUEL AS A % OF
SALES = 30% (FY2019)
THREAT OF
NEW
ENTRANTS
SCORE - (4/5)
MODERATELY LOW
BARRIERS TO ENTRY –
MODERATE
• ANTI-DUMPING DUTY IS MAKING IT
HARDER FOR THE FOREIGN BRANDS
• ECONOMIES OF SCALE HELPING
INCUMBENTS DETER NEW ENTRANTS
MARKET SHARE – LA OPALA IS
A MARKET LEADER
SETTING UP NEW COMPANIES
• CAPEX REQUIRED –
MODERATELY HIGH
• TECHNICAL KNOW-HOW
(INCLUDING EXACT COMPOSITION
OF RAW MATERIALS) –
DIFFICULT TO ACQUIRE (&
IMITATE)
• RAW MATERIAL AVAILABILITY – ?
FOR NEW PLAYERS –
EASE OF BUILDING NEW
BRANDS – MODERATE
DISTRIBUTION CHANNEL
• IMMITABILITY – MODERATELY DIFFICULT
• THOUGH, ONLINE SELLING SEEMS TO BE
MAKING IT EASIER FOR NEW ENTRANTS
THREAT OF
SUBSTITUTES
SCORE - (3/5)
MODERATE
THERE ALREADY ARE MANY
OTHER SEGMENTS OF
TABLEWARE
COMPETITION FROM THE
UNORGANIZED CROCKERY
SECTOR REDUCES THE PRICING
POWER OF LA OPALA
PRODUCT INNOVATIONS
COULD TAKE AWAY
OPALWARE SEGMENT’s
MARKET SHARE
VERY LESS MICROWAVE-
FRIENDLY SUBSTITUTES, AS
OF NOW
RETAILER’s SWITCHING COSTS
• B/W ALL TABLEWARE SEGMENTS –
MODERATE
CUSTOMER’s SWITCHING
COSTS
• B/W ALL TABLEWARE SEGMENTS –
• REAL & IMAGINARY – MODERATE

PART 4 - OPERATIONS ANALYSIS
B. SWOT ANALYSIS
162

163
STRENGTHS
EXPERIENCED PROMOTERS WITH
LONG TRACK RECORD (30 YEARS)
WELL ESTABLISHED,
& TOUGH TO IMMITATE…
•BRAND
•DISTRIBUTION NETWORK
ECONOMIES OF SCALE
• COST OF PRODUCTION IS SIMILAR TO BUT
GREATER MARGINS THAN CHINESE
PRODUCERS (FY 2014)
VERY HIGH EFFICIENCY
HUGE GROSS, OPERATING, EBITDA,
EBIT, PBT, PAT, OCF MARGINS
STRONG CAPITAL STRUTURE,
HUGE CASH RESERVES
AND FREE CASH FLOWS.
•DEBT-FREE, STRONG BALANCE SHEET
WEEKNESSES
HIGH NEPOTISM
SHUSHIL, AJIT, NIDHI
JHUNJHUNWALA FAMILY
HENCE, LACKS A STRONG SECOND-TIER
MANAGEMENT TEAM
BRAND MIGHT HAVE HARD TIME SELLING IN
FOREIGN MARKETS,
AS LEADERS LIKE CORELLE, BORMIOLLI
ROCCO, ETC. ARE DOMINANT THERE
REQUIRES HUGE ADVERTISEMENT & SALES
PROMO. EXPENDITURES TO SUSTAIN THE
BRAND’s OCCUPIED CONSUMER MIND SPACE
THE PRODUCT IS STILL NOT AS DURABLE AS
STEELWARE, AND ALSO LA OPALA FACES
HUGE COMPETITION FROM UNORGANIZED
CROCKERY SECTOR
RAW MATERIALS, & FUEL PRICES – VERY
VOLATILE
HENCE THE CO. DOESN’T HAVE ANY LONG
TERM AGREEMENTS FOR THEIR
PROCUREMENT
CO.’S BUSINESS IS WORKING CAPITAL INTENSIVE
MARKED BY HIGH AVERAGE INVENTORY PERIOD.
AS THE COMPANY SELLS LARGE VARIETY OF
PRODUCTS WHICH COME IN DIFFERENT SHAPES,
SIZES, COLOURS AND DESIGNS, IT HAS TO
MAINTAIN SUFFICIENT AMOUNT OF INVENTORY
OF EACH OF ITS PRODUCT TYPE.
OPPORTUNITIES
NEW ENTRANTS GROWING THE SIZE OF THE
PIE BY MARKETING ABOUT THE SEGMENT
OUTSOURCING PRODUCTION,
FOCUS ON MARKETING
• TO MAKE THE COMPANY ASSET-LIGHT,
• TO GENERATE HIGH ROI USING THE BRAND
USING BIO-FUEL OF IN-HOUSE RENEWABLE
ENERGY SOURCES TO REDUCE THE POWER &
FUEL COSTS AND DEPENDENCE
IF THE DE-GLOBALIZATION AND
PROTECTIONISM TREND STRENGTHENS, THE
DOMESTIC PLAYERS MAY GAIN HIGHER
BARGAINING POWERS ALONG WITH HIGHER
ANTI-DUMPING DUTIES
RUPEE DEPRECIATION WOULD INCREASE THE
COMPETITIVENESS OF GLOBAL PLAYERS
IF LA OPALA’s NEW R&D FACILITY COULD
COME UP WITH A PRODUCT AS DURABLE AS
STEELWARE (IF NOT MORE), THE COMPANY
WOULD CAPTURE A HUGE CHUNK OF
STEELWARE’s MAKET SHARE
THREATS
NEW ENTRANTS, INCLUDING THE THREAT
FROM THE UNORGANIZED SECTOR TAKING
AWAY LA OPALA’s CONSUMER MIND SPACE,
PRICING POWER, BARGAINING POWER, &
MIGHT REDUCE SWITCHING COSTS TO THEIR
BRANDS
PRODUCT INNOVATIONS COULD LEAD TO
PRODUCTS BETTER THAN OPALWARE
MAJOR CAPACITY EXPANSION MIGHT
COINCIDE WITH THE COVID RECESSION,
MIGHT NOT YIELD GOOD ASSET TURNOVER
RETURNS
HIGH NEPOTISM IN THE TOP
MANAGEMENT MIGHT LEAD TO A
DOWNFALL
ONCE THE ANTI-DUMPING DUTY GETS
LIFTED OF REDUCED, LA OPALA MIGHT
LOSE MARKET SHARE
RUPEE APPRECIATION WOULD
INCREASE THE COMPETITIVENESS OF
GLOBAL PLAYERS
FURTHER TIE-UPS OF FOREIGN BRANDS
WITH DOMESTIC PLAYERS COULD
EFFECT THE LA OPALA’s GROWTH

SHAREHOLDING PATTERNS
PART 5
164

PART 5 - SHAREHOLDING PATTERNS
A. INSIDERS
165

166
SOURCE: INVESTOPEDIA.COM

167
SOURCE: TRENDLYNE.COM; MONEYCONTROL.COM; BSE; NSE
65% 65% 65% 65% 65% 66%
53% 53%
63% 64%
64% 64% 64% 64% 64%
66%
67% 67%
68% 68% 68% 68% 68% 68% 68% 69%
51%
53%
55%
57%
59%
61%
63%
65%
67%
69%
56
58
60
62
64
66
68
70
72
74
76
F
Y
2
0
0
1
F
Y
2
0
0
2
F
Y
2
0
0
3
F
Y
2
0
0
4
F
Y
2
0
0
5
F
Y
2
0
0
6
F
Y
2
0
0
7
F
Y
2
0
0
8
F
Y
2
0
0
9
F
Y
2
0
1
0
F
Y
2
0
1
1
F
Y
2
0
1
2
F
Y
2
0
1
3
F
Y
2
0
1
4
F
Y
2
0
1
5
F
Y
2
0
1
6
F
Y
2
0
1
7
F
Y
2
0
1
8
F
Y
2
0
1
9
F
Y
2
0
2
0
HOLDING
%
ADJUSTED
NO.
OF
SHARES
Millions
PROMOTER GROUP
ADJUSTED SHARES (ADJ. FOR BONUSES, SPLITS)
ADJUSTED SHARES (ADJ. FOR PRIVATE PLACEMENT, BONUSES, SPLITS)
HOLDING % (ACTUAL)
HOLDING % (ADJUSTED FOR PRIVATE PLACEMENT)
POST- PRIVATE PLACEMENT

PART 5 - SHAREHOLDING PATTERNS
B. OUTSIDERS
168

169
2.63%
2.17%
3.10%
4.37% 4.41% 4.41%
1.78%
2.42%
2.76%
2.28%
3.25%
4.58% 4.62% 4.62%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
2
2
3
3
4
4
5
5
SEP-2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020
HOLDING
%
ADJUSTED
NO.
OF
SHARES
Millions
SUMEET NAGAR’s ‘MALABAR INDIA FUND LTD.’
ADJUSTED SHARES (ADJ. FOR BONUSES, SPLITS)
ADJUSTED SHARES (ADJ. FOR PRIVATE PLACEMENT, BONUSES, SPLITS)
HOLDING % (ACTUAL)
POST- PRIVATE PLACEMENT

170
4.53% 4.53% 4.53% 4.53% 4.53% 4.53%
2.48%
0 0
2.56% 2.56% 2.56%
2.16%
0
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
0
1
2
3
4
5
6
7
8
9
SEP-2014 FY2015 FY2016/SEP-2016 FY2017 FY2018 FY2019 FY2020
HOLDING
%
ADJUSTED
NO.
OF
SHARES
(FOR
BONUSES
&
SPLITS)
Millions
PRIVATE PLACEMENT - SUMIR CHADHA, SANDEEP SINGHAL, & KP BALARAJ’s
‘WESTBRIDGE CROSSOVER FUND LLC’ (& ‘JWALAMUKHI INVESTMENT HOLDINGS’)
JWALAMUKHI INVESTMENT HOLDINGS' ADJUSTED SHARES (ADJ. FOR BONUSES & SPLITS)
WESTBRIDGE CROSSOVER FUND LLC's ADJUSTED SHARES (ADJ. FOR BONUSES & SPLITS)
HOLDING % (ACTUAL)

VALUATION
PART 6
171

PART 6 - VALUATION
A. BALANCE SHEETS
172

173
0.5 0.7
1.1 1.0 0.8
0.4
1.1 1.4
2.1
4.5
7.7
11.1
13.6
9.7
8.6
5.6 4.6
-22
6
19
-3 -1 -1 -3
-9
88
43
19
26
18
15
9 7
-40
-20
0
20
40
60
80
100
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
(INDIAN
GAAP)
FY2017
(IND-AS)
FY2018 FY2019 DEC
2019
TTM
P/NCAVPS
(NO.
OF
TIMES)
P/BV
(NO.
OF
TIMES)
PRICE –TO– BOOK VALUE, & NET CURRENT ASSET VALUE
PRICE TO BOOK PRICE TO (ADJUSTED) BOOK PRICE TO NET CURRENT ASSET VALUE PER SHARE (NCAVPS)
SOURCE: ANNUAL REPORTS; MONEYCONTROL.COM; SCREENER.IN; IN.INVESTING.COM
NOTE:
• NET CURRENT ASSET VALUE = CURRENT ASSETS – (TOTAL LIABILITIES)
• USEFUL FOR ANALYZING COMPANIES THAT’RE IN LIQUIDATION PROCESS

PART 6 - VALUATION
B. P&L
174

175
0.4 0.4
0.9
1.1 1.2
1.0
1.1
0.9
1.2
2.3
4.3
9.5
13.3 12.7 12.1
8.6
7.2
0.3 0.4
0.8
0.7
0.5
0.3
0.6
0.7
1.0
2.2
4.3
9.4
13.3 12.7 12.1
8.6
7.3
0.3
0.5
1.0
2.0
4.0
8.0
16.0
(INDIAN
GAAP)
FY2017
(IND-AS)
FY2018 FY2019 DEC
2019
TTM
NO.
OF
TIMES
EV, & PRICE –TO– SALES
EV/SALES PRICE/SALES

176
5
5
6
8
17
10
6
4 5
8
15
31
38
30
26
18
16
5
5
8 8
28
20
15
7
9
15
25
50
56
48
43
32
24
0
10
20
30
40
50
60
(INDIAN
GAAP)
FY2017
(IND-AS)
FY2018 FY2019 DEC
2019
TTM
NO.
OF
TIMES
EV/EBITDA, & P/E
ENTERPRISE VALUE/EBITDA PRICE TO EPS

177
21%
19%
12%
13%
4% 5%
7%
15%
11%
7%
4%
2% 2% 2% 2%
3%
4%
13.5%
10.7%
6.5%
4.2%
2.7%
0.0%
1.9%
2.5%
1.9%
1.1% 0.7% 0.3% 0.3% 0.4% 0.4% 0.6% 0.7%
0%
5%
10%
15%
20%
25%
(INDIAN
GAAP)
FY2017
(IND-AS)
FY2018 FY2019 DEC
2019
TTM
YIELD
%
EARNINGS & DIVIDEND YIELD %
EARNINGS YIELD % DIVIDEND YIELD %

PART 6 - VALUATION
C. CASH FLOWS
178

179
35%
31%
28%
35%
79%
29%
17% 17% 16% 18% 17% 17% 16% 15% 16%
22%
20% 20%
24%
18%
0%
11% 12% 12% 13% 14% 14% 15% 13% 13% 13%
65%
69%
72%
65%
21%
71%
83% 83% 84% 82% 83% 83% 84% 85% 84%
78%
80% 80%
76%
82%
100%
89% 89% 88% 87% 86% 86% 85% 87% 87% 87%
15%
25%
35%
45%
55%
65%
75%
85%
95%
0%
10%
20%
30%
40%
50%
60%
70%
80%
(INDIAN
GAAP)
FY2017
(IND-AS)
FY2018 FY2019
EARNINGS
PAYOUT
RATIO
%
DIVIDEND
PAYOUT
RATIO
%
DIVIDEND PAYOUT, & EARNINGS RETENTION (N.P., & C.P.)
DIVIDEND PAYOUT RATIO (NET PROFIT) (%) DIVIDEND PAYOUT RATIO (CASH PROFIT) (%)
EARNINGS RETENTION RATIO (%) CASH EARNINGS RETENTION RATIO (%)
SOURCE: MONEYCONTROL.COM

180
1 4 8 12
6
-4
3 4 8 11
19
45
54
41 39
47
63
24
125
38
53
13
99
43 43
61
38
55
219
54
71 70
136
-50
-35
-20
-5
10
25
40
55
70
85
100
115
130
145
160
175
190
205
220
(INDIAN
GAAP)
FY2017
(IND-AS)
FY2018 FY2019 SEPT.
2019
TTM
NO.
OF
TIMES
PRICE –TO– OCF, FCF, & FCFE
P/CF P/FCF P/FCFE

181
75%
26%
12%
8%
18%
33%
25%
12%
9%
5%
2%
2%
2% 3%
2%
2%
4%
1%
3%
2%
8%
1%
2% 2%
2%
3%
2%
0%
2%
1% 1%
1%
0%
1%
1%
3%
5%
11%
21%
43%
85%
(INDIAN
GAAP)
FY2017
(IND-AS)
FY2018 FY2019 SEPT.
2019
TTM
YIELD
%
OCF, FCF, & FCFE YIELDS %
CF Yield % FCF Yield % FCFE Yield %
GAP – SHIFT TO IND-AS
GAP – NEGATIVE YIELDS %

PRICE
PART 7
182

183
1.0
2.0
4.0
8.0
16.0
32.0
64.0
128.0
256.0
M
a
r
-
1
9
9
6
M
a
r
-
1
9
9
7
M
a
r
-
1
9
9
8
M
a
r
-
1
9
9
9
M
a
r
-
2
0
0
0
M
a
r
-
2
0
0
1
M
a
r
-
2
0
0
2
M
a
r
-
2
0
0
3
M
a
r
-
2
0
0
4
M
a
r
-
2
0
0
5
M
a
r
-
2
0
0
6
M
a
r
-
2
0
0
7
M
a
r
-
2
0
0
8
M
a
r
-
2
0
0
9
M
a
r
-
2
0
1
0
M
a
r
-
2
0
1
1
M
a
r
-
2
0
1
2
M
a
r
-
2
0
1
3
M
a
r
-
2
0
1
4
M
a
r
-
2
0
1
5
M
a
r
-
2
0
1
6
M
a
r
-
2
0
1
7
M
a
r
-
2
0
1
8
M
a
r
-
2
0
1
9
M
a
r
-
2
0
2
0
CLOSING
PRICE
PER
SHARE
(in
Rs.)
ADJUSTED HISTORICAL PRICE TRAJECTORY
ADJUSTED PRICE Expon. (ADJUSTED PRICE) 3 per. Mov. Avg. (ADJUSTED PRICE)
SOURCE: IN.INVESTING.COM

DISCLAIMER
184

185

186

GRACIAS
(SPANISH FOR: “THE END!” “THANK YOU”)
187
LA FIN!
SOURCE: GOOGLE TRANSLATOR

FOR MORE INFORMATION:
ANALYST: AAYUSH AGRAWAL
EMAIL ID: xxxxxxxxxxxxx xxxxxxxxxxxxxxxxxx
PHONE: xxxxxxxxxxxxx
LINKEDIN: www.linkedin.com/in/cfa-aayush-agrawal/
JUNE 2020
188

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