Dollar Industries Ltd. · NSE:DOLLAR
Dollar Industries — Q4 FY2021 Earnings Presentation
48 slides from Dollar Industries's earnings presentation, 2021
Slide 1: Investor Presentation
() DOLLAR WEAR THE CHANGE INVESTOR PRESENTATION
Slide 2: Our Vision
OUR VISION TO BE A PART OF EVERY INDIAN’S HOME
Slide 3: Background
BACKGROUND Established by Shri Dindayal Gupta in 1972 as Bhawani Textiles Evolved into one of Only company in India’s leading India with a fully knitwear integrated, state- manufacturing of-the-art company Installed 4 production unit windmills of 4.95MW generating approx. 70 lakhs units of Commissio
Slide 4: Company history timeline 1972-2009
1972-73 • Started as Bhawani 1994-95 Textiles under the • Dollar began exports leadership of Dindayal Gupta 2004-05 • Roped in Salman Khan as the brand ambassador of Dollar Club • Received the National Award in the ‘Best 2007-08 Brand’ and ‘Excellence in Men’s Innerwear’ • Rebranded as Dollar Indust
Slide 5: Company history timeline 2015-2021
2015-16 • Established >80,000 MBOs across India • Emerged as the highest-selling Indian innerwear brand in Middle East 2016-17 • Carved out a15% share of the branded • Entered the MRT and e-commerce segments innerwear market • Secured 2% of overall revenues from Force NXT • Brands Force NXT and Miss
Slide 6: The Big Picture of the Last Five Years
THE BIG PICTURE OF THE LAST FIVE We outperformed We strengthened YEARS our sectoral our brand growth We strengthened We were listed on our financials the NSE and BSE
Slide 7: Domestic Presence – in details
DOMESTIC PRESENCE – in details HEADQUARTERED IN KOLKATA Manufacturing facilities in KOLKATA, TIRUPUR, DELHI AND LUDHIANA BRANCH OFFICES Tirupur Bengaluru Ludhiana Delhi Agra Jaipur Delhi Ludhiana Patna Raipur Ranchi Mumbai Indore Bhiwandi Cuttack Kolkata Varanasi Ahmedabad Kanpur Tirupur Nagpur Bhag
Slide 8: International Presence – in details
INTERNATIONAL PRESENCE – in details UAE , OMAN, JORDAN, QATAR, KUWAIT, BAHRAIN, YEMEN, IRAQ, NEPAL, MYANMAR, NIGERIA, BASRA
Slide 9: Assets & Value Chain
ASSETS & VALUE CHAIN THE COMPANY’S SENSIBLE INVESTMENTS IN MANUFACTURING ASSETS DISTINGUISH ITS PRODUCTS FROM ITS PEERS DOLLAR’S YOUNG ASSET QUALITY HAS HELPED IT TO REAP MULTIPLE BENEFITS OPTIMUM LOW YARN QUICKER SUPERIOR LOW LABOUR ASSET THICKNESS OFF-TAKE* PRICES UTILIZATION REJECTS OUTPUT# WASTA
Slide 10: Manufacturing Operations
MANUFACTURING OPERATIONS
Slide 11: Spinning
MANUFACTURING OPERATIONS SPINNING • The Company manufactures 100% cotton combed quality yarn in different count ranges • Raw material is sourced from India and abroad • The raw material used is fine quality fibre with lowest possible contamination • Spinning machines: Blow and carding machine equipp
Slide 12: Knitting
MANUFACTURING OPERATIONS KNITTING • Dollar’s knitted fabric range includes a wide variety of fabrics such as single jersey, pique and fleece • Knitting machines: Machines from Mayer and CIE, Terrort, Smart and Unitex • In-built monthly capacity of 300 tonnes and sourcing of 300 tonnes
Slide 13: Dyeing and Bleaching
MANUFACTURING OPERATIONS DYEING AND BLEACHING • The Company’s processing division is complete with latest automation and lab equipment • Dyeing and Bleaching using eco-friendly dyes and chemicals is a part of processing • Processing machines: Machines from Sclavos, MCS, Bianco, Strahm, Corino and Fo
Slide 14: Production Capacity
MANUFACTURING OPERATIONS P R O D U C T I O N C A PA C I T Y • Dollar’s Elastic production capacity is 10 Lakh metres per month • It also has a cutting capacity of 3 Lakh pieces per day
Slide 15: Other Operations
MANUFACTURING OPERATIONS O T H E R O P E R AT I O N S I N C L U D E S • Cotton procurement • Research and development • Stitching • Packing
Slide 16: Green Mission
GREEN MISSION
Slide 17: Solar Plant
GREEN MISSION SOLAR PLANT • Dollar commissioned a 4 MW solar power plant at their manufacturing facility in Tirupur • The solar plant has a capacity of generating 75 lakhs power units annually • The objective for installing the solar plant is to not only reduce costs but also make the spinning unit
Slide 18: Windmill
GREEN MISSION WINDMILL • Dollar installed four windmills with a power generation capacity of 4.95 MW • It can generate approximately 70 lakh units of power annually.
Slide 19: Zero Liquid Discharge
GREEN MISSION ZERO LIQUID DISCHARGE • Dollar invested in an effluent treatment plant with zero liquid discharge • The unit has a production capacity of about 13.5 tons a day, having 6 HPHT (High Pressure High Temperature) machines installed • The factory has a capacity of 1000 KL Zero Liquid Dischar
Slide 20: Growth
G RO W T H
Slide 21: Growth Pillars
GROWTH PILLARS 1 2 3 OVERHAULING RESTRUCTURING INVESTING IN OUR BRAND OUR ARCHITECTURE DISTRIBUTION DIGITALIZATION
Slide 22: Growth Pillar 1: Overhauling Our Brand Architecture
1 st GROWTH PILLAR 1 OVERHAULING OUR BRAND ARCHITECTURE
Slide 23: Evolution of the Brand
EVOLUTION OF THE BRAND The mnemonic D Dollar hit the stands for Dollar, Mr. Dindayal airwaves with for Dynamism Gupta, the actor Salman and for the founding Khan and the Determination to Chairman, started identity be a part of Dollar in a busy became an every millennial corner of Kolkata instant hit
Slide 24: Our New Brand Architecture
OUR NEW BRAND ARCHITECTURE (D DOLLAR WEAR THE CHANGE (L) DOLLAR (DDOLLAR (DOLLAR (DOLLAR {DOLLAR (DOLLAR MAN WOMAN JUNIO ALWAYS THERMALS
Slide 25: Creating Categories
CREATING CATEGORIES ( DOLLAR WEAR THE CHANGE by category nomenclatures
Slide 26: Collections Under Categories
COLLECTIONS UNDER CATEGORRIES
Slide 27: Collections Under Categories
COLLECTIONS UNDER CATEGORRIES
Slide 28: Standalone Brands
(DOLLAR WEAR THE CHANGE STANDALONE BRANDS — pehno stijlc se NXT RKG INNER | ATHLEISURE Veta Besefi (Panties
Slide 29: Outcome of Change
THIS IS WHAT WE BELIEVE WILL BE THE OUTCOME OF OUR EXCITING AGENDA FOR CHANGE Reinforce Generate Generate Deepen our positioning superior a superior the respect ‘if it is as a brand that realizations per Dollar brand Dollar then it consumers sub-brand recall, must be excellent’ trust category streng
Slide 30: Add-on
ADD-ON
Slide 31: Dollar in News – Corporate Social Responsibility
DOLLAR IN NEWS – Corporate Social Responsibility Dollar Foundation joined hands with Kolkata Police and distributed food and medical equipment to the underprivileged across 60 wards during pandemic Distributed 2000 packets of Joined hands sanitary napkins amongst with Delhi Metro women dwelling in s
Slide 32: Growth Pillar 2: Restructuring Our Distribution
2 nd GROWTH PILLAR 2 RESTRUCTURING OUR DISTRIBUTION
Slide 33: Implementation
IMPLEMENTATION WHAT HOW OUTCOME Replacing push model sales by Mapping the potential retail universe in Increased market penetration. Replenishment model working the area allocated to the distributors through theory of constraints. Increase in secondary sales. Enrolling the retailer in the
Slide 34: Project Lakshya
DOLLAR Project Lakshya (> DOLLAR Pre Rollout —™ Post Rollout RETAIL REACH (BILLED) | | Se | | a | all i | KA RJ = KA RI MH Ts MH GJ Ts KA RI MH GJ) Ts 15 7 6 0 1500 700 750 0 Oo 701 965 525 288 233 16 16 7 2 3239 5712 834 961 361 937 1,035 565 446 255 —e- KA RJ MH icf] Ts —ePre Rollout 65,42,261 97,
Slide 35: Growth Pillar 3: Investing in Digitalization
3 rd GROWTHPILLAR 3 INVESTING IN DIGITALIZATION
Slide 36: Digitization
DIGITIZATION Auto Replenishment System (ARS) implemented at ARS is part of Lakshya programme and Lakshya distributors. being implemented at all its Distributors in Lakshya Distributor Management System (DMS) implemented DMS is also mandatory for all the at Lakshya distributors. Distributors enrollin
Slide 37: Financial Performance
FINANCIAL P E R F RO M A N C E
Slide 38: Profit and Loss Analysis
PROFIT AND LOSS ANALYSIS Particulars Q421 Q420 Growth FY21 FY20 Growth Revenue from Operation 30,831 23,730 30% 103,696 96,710 7% Other Income 213 323 348 471 Total Revenue 31,044 24,053 29% 104,044 97,181 7% Cost of material consumed 13,187 11,777 44,528 44,847 Subcontracting Charges 6,890 5,157 21
Slide 39: Working Capital Cycle
WORKING CAPITAL CYCLE DEBOTRS DAYS CREDITORS DAYS 133 120 * 50 110 46 46 * FY 19 FY 20 FY 21 FY 19 FY 20 FY 21 * Will be 106 days considering 320 days of operations * Will be 40 days considering 320 days of operations INVENTORY DAYS WORKING CAPITAL CYCLE 118 201 112 * 186 * 106 170 FY 19 FY 20 FY 21
Slide 40: Key Ratios
KEY RATIOS ROCE DEBT/ EQUITY 18% 0.53 16% 0.45 12% 0.23 FY 19 FY 20 FY 21 FY 19 FY 20 FY 21
Slide 41: Cash Flow Statement
CASH FLOW STATEMENT Particulars FY21 FY20 Growth A Net cash generated/(used in) from Operating Activities 13,211 5,287 150% B Net cash generated/(used in) Investing Activities (2,194) (2,512) 13% C Net cash generated/(used in) in Financing Activities (10,910) (4,259) -156% Net Increase/(Decrease) in
Slide 42: Channel Wise & Zone Wise Contribution
CHANNEL WISE & ZONE WSIE CONTRIBUTION 92% 90% 90% CHANNEL WISE 6% 7% 7% 3% 3% 2% DOMESTIC EXPORT MODERN TRADE FY 21 FY 20 FY 19 43% 41% 42% ZONE WISE 30% 29% 27% 24% 20% 22% 7% 8% 7% EAST WEST NORTH SOUTH FY 21 FY 20 FY 19
Slide 43: Brandwise Contribution
BRANDWSIE CONTRIBUTION FORCE GO BIG BOSS CHAMPION FORCE NXT MISSY REGULAR SOCKS THERMALS WEAR FY 21 43% 1% 2% 3% 8% 34% 1% 9% FY 20 42% 1% 4% 2% 9% 31% 2% 9% FY 19 42% 1% 4% 2% 8% 35% 1% 7%
Slide 44: Joint Venture
JOINT VENTURE
Slide 45: 50-50 Joint Venture Partnership
This partnership requires a capital influx 50-50 joint venture partnership of `200 crore with Dollar and PEPE to under the name PEPE Jeans Innerfashion Pvt. Ltd. with PEPE invest `36 crore each over a period of 4 Jeans Europe B.V years and the rest to be funded by banks as working capital loan The j
Slide 46: Meet the Management
MEET THE M A N AG E M E N T
Slide 47: Shri Dindayal Gupta (Chairman Emeritus and Founder)
Has more than five decades of experience in the body-wear business. Shri. Dindayal Gupta Under his dynamic and inspiring leadership, the company has grown (Chairman Emeritus and exponentially over the years and earned laurels across national and Founder) international markets with its present fame b
Slide 48: Thank You
THANK YOU SHASHI AGARWAL Senior Vice President (Corporate Strategy & IR) shashi.agarwal@dollarglobal.in