Zodiac Clothing Company Limited · NSE:ZODIACLOTH
Zodiac Clothing — Investor Presentation (May 2014)
37 slides from Zodiac Clothing's investor presentation, May 2014
Slide 1: Positano Linen Zodiac
Slide 2: Background
Background Promoted by Mr. M Y Noorani, the House of Zodiac commenced operations in 1954 with neckties. It diversified into manufacturing of men’s shirts in the 1960’s. Was listed in 1994 as Zodiac Clothing Co. Ltd*. Today, ZCCL* is vertically integrated from design to retail, is highly de-riske
Slide 3: Snapshot of Drivers of Growth
Snapshot of Drivers of Growth Portfolio of strong brands Design driven value added products Marketing led strategy & a strong distribution network Brand extensions and Product extensions Design Driven Branded Business Own Retail Business International Business 114 company managed Across India and St
Slide 4: Sales Break up
Sales Break up Branded / International Sales Split FY 13-14 Channelwise Branded Sales Split Independent Retailers Branded 37% 49% International Company 51% managed stores 55% National Chains 7% Geographical Sales Split Middle East 6% India 45% North America 35% UK Europe 4% 9% Emphasis on aggressive
Slide 5: ZCCL: Design Driven Philosophy
ZCCL: Design Driven Philosophy Our Mumbai office has an Italian inspired, state of the art Design Studio, with a team of over 15 trained designers constantly networking with our international offices and attending trade shows overseas We have our own offices in 3 fashion capitals of the world -
Slide 6: ZCCL: Manufacturing Excellence
ZCCL: Manufacturing Excellence Our state of the art and modern automated manufacturing plants are located in Karnataka & Gujarat (India) and Dubai (UAE). Capacity to produce over 7 mn shirts per annum. We successfully manufacture extremely high work content/ value added products. ZCCL currentl
Slide 7: ZCCL: Marketing Led Strategies: ZODIAC
ZCCL: Marketing Led Strategies: ZODIAC ZODIAC – a premium, classic, men’s wear brand, of the longest standing in India • The brand is positioned for the classic yet contemporary male’s wardrobe • ZODIAC’s product range has fine wool & pure linen suits & trousers, pure wool Jodhpuris, shirts crafte
Slide 8: The House of Zodiac has consistently focused on providing luxury, quality and value
The House of Zodiac has consistently focused on providing luxury, quality and value to discerning Indian customers. Driven by a passion for excellence,Zodiac is the undisputed leader in design innovation, delivering classic style and an up to date elegance in all its products. Each Zodiac product, n
Slide 9: Pure wool suits
vile” a Bie CG Lure woot suits crafted from — SUPERFINE 140‘s PURE WOOL SUITS 4 eigtit Super 1205, 1408, 160! & . ZODIAC FINEST QUALITY CLOTHING
Slide 10: Vicenza Ties
Slide 11: way
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Slide 12: ZOD! Club Wear
ZCCL: Marketing Led Strategies… ZOD! Club Wear ZOD! – a trendy, fashionable casual wear brand launched in 2002. • Positioned as Club Wear and enjoys the first – mover advantage. We actually created this category in India. • ZOD! is targeted at socially active, young males who want to dress trendil
Slide 13: Slide 13
Slide 14: Z3 – Relaxed Luxury
ZCCL: Marketing Led Strategies… Z3 – Relaxed Luxury Z3 our recently launched casual wear brand • Launched in April 2008 just before the world wide down turn & really got a fillip in 2010 post the economic revival in India • We are now enjoying a wide base of users especially those that do not wear
Slide 15: Slide 15
Slide 16: ZCCL: Retail Focus
ZCCL: Retail Focus ZCCL opened it’s first store at the Taj Mahal Hotel in 1973 and this was the beginning of a retail store strategy to open stores at premium locations across India Aggressive scaling up of stores at the right locations ensure a large footfall of premium customers despite volati
Slide 17: ZCCL: Retail Focus
ZCCL: Retail Focus Growing Contribution of Own Retail to Branded Business
Slide 18: The Branded Biz
The Branded Biz S. No North Store Count 1 Delhi NCR 23 2 Chandigarh 3 3 Dehradun 1 4 Jalandhar 1 5 Ludhiana 2 6 Amritsar 1 7 Patiala 1 8 Varanasi 1 9 Lucknow 2 S. No East Store Count 1 Kolkata 6 2 Siliguri 1 3 Ranchi 1 4 Bhubaneshwar 1 5 Patna 1 S. No W est Store Count 1 Mumbai 23 2 Surat 2 3 Baroda
Slide 19: Amanora - Pune
Amonara - Pune 10
Slide 20: Express Mall - Chennai
Express Mall - Chennai
Slide 21: ZCCL: De-Risking
ZCCL: De- Risking The drive to de-risk the business has been consistent. Over 75% of ZCCL’s production is pre-sold International Orders backed by LC or insured Branded business orders for MBO & LFS backed with advance cheques Multi-segment: Branded, Own Retail and Design Driven Internation
Slide 22: Financial Snapshot (Consolidated)
Financial Snapshot (Consolidated) Income Statement (Rs in lacs) Year ended March 31 2011 2012 2013 2014 Revenue 35,711 377,53 35,998 41,056 % growth 9.16% 5.7% -4.65% 14.00% EBITDA 4,120 3,123 3,130 3,926 % margin 12.05 12.05 9.14 9.56 Net Income 3,318 1,774 1,401 2,200 % margin 9.71 4.70 4.01 5.36
Slide 23: Performance over the last years
Performance over the last 3 years (Consolidated) Overall Revenue (FY) 42,000 40,992 41,000 40,000 39,000 37,753 (Rs lakhs) 38,000 37,000 35,998 35,711 36,000 35,000 34,000 33,000 2011 2012 2013 2014
Slide 24: Standalone Performance
Standalone Performance Standalone sales (in Rs. lacs) 9,000 8,524 8,158 8,620 8,662 7,800 7,470 8,000 7,130 7,000 6,480 6,330 6,000 5,000 4,000 3,000 2,000 1,000 0 4Q'FY12 1Q'FY13 2Q'FY13 3Q'FY13 4Q'FY13 1Q'FY14 2Q'FY14 3Q'FY14 4Q'FY14 EBITDA margin (%) Net Profit (in Rs. lacs) 14% 800 722 11.8% 700
Slide 25: Performance over the last 9 years
Performance over the last 9 years Growing Contribution of Branded Business (Consolidated) Growing Contribution of Branded Business in ZCCL (Standalone)
Slide 26: ZCCL: Enhancing Shareholder Value
ZCCL: Enhancing Shareholder Value Corporate Governance • A distinguished Board of Directors that brings rich and varied experience. • Approx 75% of the Board are independent directors since ZCCL was listed • Audit committee headed by & includes finance veterans ensuring strict financial discipline
Slide 27: Barolo Zodiac
Slide 28: 100% Pure Silk and cufflinks
Slide 29: Experienced Promoters Distinguished Board of Directors
Experienced Promoters Distinguished Board of Directors Mr. M. Y. Noorani - Chairman & Founder Founder of ZODIAC, Clothing Manufacturers Association of India Mr. M. L. Apte - Former Sheriff of Bombay, former Chairman of the (and its President for 3 terms) Textiles Committee, currently Director of
Slide 30: ZCCL Business FY 2014
ZCCL Business FY 2014 – ZCCL’s design-driven International Business • Order books were erratic but show a healthy position overall – Our “No Discounting” policy is firmly entrenched • We do not show growth at the cost of eroding bottom line – Focus On The Bottom Line • Rs. 2200 lac in FY ’14 v/s Rs.
Slide 31: ZCCL: Branded Business FY 2014
ZCCL: Branded Business FY 2014 – FY 2014: Started with a bang and ended with a whimper: • Own store sales up by 10% , which, looking at the overall economic and results of other industries, is notable – In H1 FY15 we are scheduled to open 15 new stores, however as seen in the past this depends on th
Slide 32: The Branded Business: FY 2015
The Branded Business: FY 2015 – SS 2014: Linen theme across all three ZCCL’s brands: By virtue of running a focused Linen program for over a decade, Linen has become generic to Zodiac • ZODIAC: Over the past decade ZODIAC has become synonymous with pure Linen. In SS 2014 we brought a colorful range
Slide 33: Positano Linen Suits & Jackets
Slide 34: ZODIAC Linen Shirts
ZODIAC Linen Shirts
Slide 35: Z3 Vintage Linens
Z3 Vintage Linens
Slide 36: ZOD! Clubwear
Slide 37: Thank you
Thank you 2°77
Zodiac Clothing Company — Investor Presentation (May 2014) on 6ix