Zodiac Clothing Company Limited · NSE:ZODIACLOTH
Zodiac Clothing — Investor Presentation (November 2014)
31 slides from Zodiac Clothing's investor presentation, November 2014
Slide 1: Light Weight Pure Wool Suits
a Light Weight Pure Wool Suits. YOU WILL NEVER LOOK AT SUITS THE SAME WAY AGAIN By Zh) D uF AC FINEST Q TMAKERS
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 Own Retail Business Design Driven Branded Business 120 COCO International Business company owned & company Across
Slide 4: Sales Break up
Sales Break up Branded / International Sales Split H1 14-15 Channelwise Branded Sales Split Independent International Retailers 42% 43% Company Branded managed stores 58% 51% National Chains 7% Geographical Sales Split Middle East 7% India 48% North America 29% UK 8% Europe 8% 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: Slide 9
Slide 10: it # a + Oe ty v <. Ss | anal of wn —
it # a + Oe ty v <. Ss | anal of 5 wn — cE be et wie oo 6] ae ee att Zz ont
Slide 11: Slide 11
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: trey
trey feet 9 F-F§4. 146
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: ZCCL: Retail Focus
ZCCL: Retail Focus 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 11 Kanpur 1 East 1 Kolkata 6 2 Siliguri 1 3 Ranchi 1 4 Bhubaneshwar 1 5 Patna 1 West 1 Mumbai 24 2 Surat 2 3 Baroda 3 4 Ahmedabad 1 5 Jai
Slide 19: International Airport - Mumbai
International Airport - Mumbai
Slide 20: World Trade Park - Jaipur
World Trade Park - Jaipur
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 6 months ended Sept 30 2012 2013 2014 2013 2014 H1-O-H1 growth Revenue 377,53 35,998 410,65 19433 19460 Flat % growth 5.7% -4.65% 14.0% EBITDA 3,123 3,130 4,014 17,12 11,54 % margin 12.05 9.14 10.32 9.33 % 6.21% Net
Slide 23: Performance over the last years
Performance over the last 4 years (Consolidated) Overall Revenue (FY) 25,000 19,460 18,698 19,433 20,000 15,950 15,000 (Rs lakhs) 10,000 5,000 0 H1 2012 H1 2013 H1 2014 H1 2015
Slide 24: Consolidated Performance
Consolidated Performance H1 EBITDA margin (%) 10% 9.3% 8.8% 9% 7.8% 8% 7% 6.2% 6% 5% 4% 3% 2% 1% 0% Sept ' 11 Sept ' 12 Sept ' 13 Sept ' 14 Net Profit (in Rs. lacs) 1,200 1,058 1,013 1,000 800 600 508 516 400 200 0 Sept' 11 Sept' 12 Sept' 13 Sept' 14
Slide 25: Performance over the last years
Performance over the last 10 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 65% of the Board are independent directors since ZCCL was listed • Audit committee headed by & includes finance veterans ensuring strict financial discipline
Slide 27: Experienced Promoters Distinguished Board of Directors
Experienced Promoters Distinguished Board of Directors Mr. M. Y. Noorani - Chairman & Founder Mr. M. L. Apte Founder of ZODIAC, Clothing Manufacturers Association of India Former Sheriff of Bombay, former Chairman of the Textiles Committee, (and its President for 3 terms) currently Director of L
Slide 28: Business Scenario FY 2015
Business Scenario FY 2015 • As per the “Global Powers Of Luxury Goods” study by Deloitte Touche Tohmatsu Limited • India was once the fastest growing luxury markets in the Asia pacific region • "India grew much faster than China but lost steam due to a lack of sustenance of the growth which once mad
Slide 29: ZCCL Business H1 2015
ZCCL Business H1 2015 – ZCCL’s design-driven International Business • The EU market is weak, the US market is not showing exciting growth. The UK & ME are somewhat compensating for the deficiency in the EU – Our “No Discounting” policy is firmly entrenched • We do not show growth at the cost of the
Slide 30: ZCCL Business H1 2015
ZCCL Business H1 2015 – H1 2015: Lacklustre consumer sentiment • Consumer off take was subdued across S/S 2014 • The hope was the result of the general elections would push up sentiments however it has remained lacklustre • Own store sales up 8% • The MBO biz is up 5% • The LFS business was hit (-)
Slide 31: Thank you
Thank you 21
Zodiac Clothing Company — Investor Presentation (November 2014) on 6ix