Sangam (india) Limited · NSE:SANGAMIND
Sangam (india) — Investor Presentation (March 2024)
39 slides from Sangam (india)'s investor presentation, Mar 20, 2024
Slide 1: Corporate Presentation
Corporate Presentation Sangam (India) Limited March 2024
Slide 2: Safe Harbor
Safe Harbor The presentation has been prepared by Sangam (India) Limited (the “Company”) solely for information purposes and does not constitute an offer to sell or recommendation or solicitation of an offer to subscribe for or purchase any securities and nothing contained herein shall form the basi
Slide 3: Table of Contents
Table of Contents 1 About the Company 04 2 Key USPs 05-09 3 Management Commentary 10 4 Strategic Priorities 11-26 5 Annexures 27-39 3
Slide 4: Sangam: Weaving The Future
Sangam: Weaving The Future India’s largest, fastest growing and most trusted brand in Textile Sector o One of the largest manufacturer of PV dyed Yarn and Denim Performance Metrics Fabric. o Strong Expertise: 4 decades of Industry experience. 10% 15% o Skilled Employee Base: Workforce of 12,000+ ski
Slide 5: Key USPs
Key USPs Presence Across Textiles Value Chain Diversified and De-Risk Business Model Leadership in India: PV Dyed Yarn Diverse Offerings 5
Slide 6: Presence Across Textile Value Chain
Presence Across Textile Value Chain Yarn PV Fabric Denim Fabric Garment FY 23 Revenue FY 23 Revenue FY 23 Revenue FY 23 Revenue Contribution: 50% Contribution: 22% Contribution: 25% Contribution:3% • Prominent • Manufacturer of finest • Latest finishing • Seamless garment- manufacturer and fabrics i
Slide 7: Diversified And De-Risk Business Model
Diversified And De-Risk Business Model Product Wise Sales Contribution FY23 Geographical Presence FY23 Segment Wise Sales Contribution FY23 3% 4% 2% 22% Rest of World 28% 34% 25% India 72% 16% 94% PV Yarn Cotton Yarn Sale of products Sale of services Denim Fabric Woven Fabic with processing India Re
Slide 8: Leadership In India: PV Dyed Yarn
Leadership In India: PV Dyed Yarn • Grasim Industries Limited has 80-85% market share globally. • Sangam (India) Limited is the largest buyer of Viscose from Grasim. • Using this Viscose and taking benefit of in-house dying polyester it manufactures PV dyed yarn. 8
Slide 9: Diverse Offerings
Diverse Offerings As an integrated Integration facilitates player company can seamless coordination manage, multi counts between different and multi blends like production stages, polyester, wool, hemi, resulting in enhanced linen, cotton, man efficiency and made blends, natural reduced lead times.
Slide 10: Management Commentary
Management Commentary “Since our establishment, we have embraced a forward-thinking approach, constantly seeking innovation in both our business strategies and product offerings. We are working towards making our business model resilient by moving up the value chain and enhancing our portfolio of va
Slide 11: Strategic Priorities
Strategic Priorities Value Added Product Portfolio Capacity Expansion Cost Competitiveness Significant Focus On Sustainability 11
Slide 12: Value Addition Driving Margin Expansion
Value Addition Driving Margin Expansion Proportion of Total Revenue from Fabric and Garments vs EBITDA (%) 13% 49% 45% 45% 45% 43% Last 6 Years (FY 18-FY 23) 11% 40% Our Achievements 9% 9% Fabric and Garment contribution increasing 8% 8% EBITDA more than doubled EBITDA Margin Expansion from 8% to 11
Slide 13: Improving The Mix Within Yarn
Improving The Mix Within Yarn • Leader in PV dyed Export yarn to 29+ Established Distribution In 1995 initiated backward integration Key Highlights yarn in India. countries. Network. into spinning • Price Maker. Yarn 2,97,744 Spindles 1,03,140 MTPA Yarn production capacity Capacity (as a% of Revenue
Slide 14: Garment – Revenue increased 4.4x in 6 years
Garment – Revenue increased 4.4x in 6 years • India’s largest • Innerwear and • 4.10 MMPA garments D2C model is becoming a significant demand Key Highlights manufacturers of Activewear for both manufactured in FY 23 driver for garments Seamless Garments. men and women. • 2000+ touchpoints. • Cutting
Slide 15: Denim Fabric – Revenue increased 2.2x in 6 years
Denim Fabric – Revenue increased 2.2x in 6 years • Producers of wide range of denim fabric ranging from 4Ozs to 15Ozs. • Sustainable and innovative product range with key focus on R&D. Denim Fabric Key Highlights • Working with value added yarns taking advantage of in-house yarn (as a % of Revenue)
Slide 16: Synthetic Fabric – Significant Market Share
Synthetic Fabric – Significant Market Share • Significant market share in processing PV, PV Lycra, PVW, Polyester Strong Distribution woolen & 100% wool. Network: 10,000+ Dealers Key Highlights • Working with value added yarns taking advantage of in-house yarn capabilities. Synthetic Fabric with Pro
Slide 17: Strategic Priorities
Strategic Priorities Value Added Product Portfolio Capacity Expansion Cost Competitiveness Significant Focus On Sustainability 17
Slide 18: Capacity Expansion To Drive Future Growth
Capacity Expansion To Drive Future Growth Current* Post Expected Capital Current* Post Expansion Machines Expansion Completion Outlay Capacity Spindles 2,97,744 3,06,864 Q1 FY26 Denim INR 180 48 MMPA 60 MMPA Crore Rotors 2,664 5,064 Q1 FY26 Knitting 26 32 Q1 FY26 Synthetic INR 268 Weaving-48MMPA Wea
Slide 19: Strategic Priorities
Strategic Priorities Value Added Product Portfolio Capacity Expansion Cost Competitiveness Significant Focus On Sustainability 19
Slide 20: Cost Competitiveness
Cost Competitiveness Fully integrated model- From Yarn to Fabric operations, Sangam can offer unlimited product combination in unlimited shades in cost effective manner. Upgradation of facilities and expansion to provide benefits of economies of scale. Existing diverse offerings to meet new demands
Slide 21: Strategic Priorities
Strategic Priorities Value Added Product Portfolio Capacity Expansion Cost Competitiveness Significant Focus On Sustainability 21
Slide 22: Significant Focus on Sustainability
Significant Focus on Sustainability • Currently 30,000MT per annum of recycled fiber comes through recycling of Recycle 38,400MT plastic waste. • Annually consuming 12,500MT cotton and other waste to minimize our environmental footprint. • Established Institutes and University. Empowering community
Slide 23: Vision 2026: Moving up the Value Chain – Fabric & Garments
Vision 2026: Moving up the Value Chain – Fabric & Garments Garment Garment 3% 6% Yarn Topline Segment wise Segment wise 33% Yarn Estimated for FY 26 Sales 42% Sales 4,000 Cr. Contribution Contribution FY24 FY26 Fabric 55% Fabric 61% EBITDA Margin Spinning Fabric Garment Approx 12.50% • High ROE • Fo
Slide 24: Creating Shareholder Value
Creating Shareholder Value Return Ratio Margin Expansion 13% 25% 11% 10% 9% 9% 20% 8% 8% 18% 8% 15% 9% 10% 4% 4% 3% 3% 5% 5% 6% 3% 3% 1% FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 ROCE ROE EBIT Margin EBITDA Margin Note: ROCE is calculated as Earning before Interest and Tax divided
Slide 25: Comfortable Debt Repayments: Funded from Internal Accruals
Comfortable Debt Repayments: Funded from Internal Accruals Debt Repayment Schedule (INR Cr.) Interest Coverage ratio 120 4.96 109 96 4.12 61 51 1.18 1.17 0.76 0.84 FY 24 FY 25 FY 26 FY 27 FY 28 FY18 FY19 FY20 FY21 FY22 FY23 • Debt repayment through internal accruals. • Capex plans to expand capacity
Slide 26: Strong Presence in a Growing Sector
Strong Presence in a Growing Sector Forecast Global Textile Market Size INR190bn INR44bn 5.67% CAGR 755.58 PLI scheme Outlay through PM MITRA 717.66 scheme 681.83 to Textile Industry 646.73 611.11 573.45 7,50,000 2.3% Employment Contribution of textiles opportunities in Textile industry to India’s G
Slide 27: Annexure
Annexure 27
Slide 28: Strong Presence in Rajasthan
Strong Presence in Rajasthan Location Facilities Atun, Bhilwara Weaving, Processing & Garment Plant Biliya Kalan, Bhilwara Biliya Kalan, Bhilwara Denim Weaving & Processing Plant Biliya Kalan, Bhilwara Spinning Plant Unit-I Sareri, Bhilwara Spinning Plant Unit-II Soniyana, Chittorgarh Spinning Plant
Slide 29: Leadership
Leadership Mr. Ram Pal Soni Dr. S.N. Modani Mr. Vinod Kumar Sodani Mr. Anurag Soni Mr. Pranal Modani FOUNDER & VICE CHAIRMAN ED & CEO (FABRIC & MANAGING DIRECTOR CEO (YARN & DENIM CHAIRMAN GARMENT BUSINESS) BUSINESS) • 30 years of rich • Holds a Ph.D. in strategic • Managing PV Suiting and • Leads S
Slide 30: Leadership
Leadership Mr. Sudhir Maheshwari Mr. Yaduvendra Mathur Dr. T.K. Mukhopadhyay Mr. A. Karati Mrs Aparna Sahay INDEPENDENT INDEPENDENT INDEPENDENT INDEPENDENT INDEPENDENT DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR • With a 34-year long • Former Officer of Indian • Served 30 years, Chief • Worked in d
Slide 31: Consolidated Balance Sheet Highlights
Consolidated Balance Sheet Highlights Net Debt to EBITDA (x) Net Debt to Equity (x) Total Asset to Equity (x) 4.74 2.55 2.55 2.45 1.05 2.64 0.82 0.9 1.90 FY 21 FY 22 FY 23 FY 21 FY 22 FY 23 FY 21 FY 22 FY 23 31
Slide 32: Historical Income Statement
Historical Income Statement Particulars (Rs in Cr) FY 19 FY 20 FY 21 FY 22 FY 23 9M FY 24 Revenue from Operations 1,873.53 1,790.11 1,358.97 2,437.76 2,712.30 1,926.94 Total Expenditure 1,714.3 1,628.58 1,236.83 2,130.38 2,410.73 1,778.15 EBITDA 159.23 161.53 122.14 307.38 301.57 148.79 EBITDA Margi
Slide 33: Historical Balance Sheet
Historical Balance Sheet Particulars (Rs in Cr) FY 19 FY 20 FY 21 FY 22 FY 23 H1 FY24 Particulars (Rs in Cr) FY 19 FY 20 FY 21 FY 22 FY 23 H1 FY24 (a) Equity Share Capital 39.42 39.42 43.42 43.42 45.05 50.25 Non-Current Assets (b) Share Warrant 0 0 0 25.65 23.40 0 Property, Plant and Equipment 647.5
Slide 34: Secured PLI
Secured PLI PLI Eligible Company One of the company amongst 65 companies to hold a PLI. The company is in the process to Approval Obtained complete the formalities. Sangam Ventures Limited (Subsidiary of Sangam (India) Limited) has been selected in Duration of Scheme 24 Dec 2021 to 31 March 2030 and
Slide 35: Recognised Four Star Export House
Recognised Four Star Export House Sangam (India) Limited has been recognized as a four-star export house. Revenue from Exports (INR Cr.) 921 757 470 423 Total 2019-20 2020-21 2021-22 2022-23 35
Slide 36: Production Quantity & Capacity Utilization %
Production Quantity & Capacity Utilization % Yarn PV Fabric Denim Fabric Garment (MT) (Lakh Meter) (Lakh Meter) ( lakh pcs) 79.70% 87.40% 91.00% 28.50% 3QFY24 3QFY24 3QFY24 3QFY24 20,867 95 109 10 72.60% 2QFY24 27.48% 87.70% 2QFY24 79.10% 2QFY24 2QFY24 9 21,205 78 95 22.20% 1QFY24 87.40% 93.30% 85.9
Slide 37: Product wise price realization
Product wise price realization Yarn (INR/kg) PV Fabric (INR/Meter) 141 289 128 130 129 264 273 245 116 111 230 229 110 110 220 208 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Denim Fabric (INR/Meter) Garment (INR/pc) 331 201 198 191
Slide 38: Our Customers
~ Our Customers _@
Slide 39: Thank You
Thank You Sangam (India) Ltd Name: Mr Arjun Agal Tel: +91 9252145210 Email: arjunagal@sangamgroup.com Investor Relations Go India Advisors Name: Ms. Vandini Tated Tel: +91-9024433893 Email: vandini@goindiaadvisors.com Name: Ms. Sheetal Kandhuja Tel: +91-9930577801 Email: saloni@goindiaadvisors.com 3