Kitex Garments Limited · NSE:KITEX
Kitex Garments — Shareholder Meeting (July 2018)
32 slides from Kitex Garments's shareholder meeting presentation, Jul 28, 2018
Slide 1: Kitex Garments Limited – AGM presentations cover letter
Kitex Garments Limited (L18101KL1992PLC006528) P. B. No. 5, Kizhakkam balam - 683562, Alwaye, Kochi, Kerala Phone: 91 484 4142000, Fa x: 91 484 268060 4 Email: k gl@kit exgarme nts. com website: ww w. kitexgarments. com th KGL/26 AGM/investo r_presen tations_2018 July 28, 2018 The Secre tary The Sec
Slide 2: 26th Annual General Meeting Investor Presentation
26th Annual General Meeting 28th July 2018 Kitex Garments Limited Investor Presentation
Slide 3: Table of contents
Table of contents Performance snapshot 03 Our strengths 09 Roadmap 2025 q Market overview 15 q Strategic roadmap q Project status Performance forecast 27 Disclaimer: Statements in this report that describes the company objective , projections, estimates, expectation or prediction of the future may b
Slide 4: Performance Snapshot
Performance Snapshot
Slide 5: Revenue & PBT – 10 year track record
Revenue & PBT – 10 year track record Revenue (in INR crores) 566 548 560 525 456 318 321 273 261 202 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 Profit Before Tax (%) 30.2% 26.9% 26.0% 19.4% 19.2% 12.6% 13.7% 12.0% 10.2% 7.9% 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-1
Slide 6: Returns to shareholders – 10 year track record
Returns to shareholders – 10 year track record 160% 150% 150% 150% 140% 125% 120% 100% 100% 80% 80% 60% 60% 40% 40% 30% 25% 20% 20% 0% 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 In FY 2017-18: Bonus shares issued @ 2:5 5
Slide 7: Major Events that Impacted FY 2016-17 & FY 2017-18
Major Events that Impacted FY 2016-17 & FY 2017-18 The Jockey Management decided to withdraw a product that was manufactured using technology of NASA USA due to lack of Marketing in 2016-17 Business with Jockey Automation project was not Toys R Us, a 61 year old company with successful as the U.S ov
Slide 8: Key events impacting revenue from operations FY 2016-17
Key events impacting revenue from operations FY 2016-17 Business with Jockey Automation of Manufacturing process v The Jockey Management decided to withdraw a product v The automation of manufacturing process was placed that was manufactured using Technology from NASA with the leading automation ven
Slide 9: Key events impacting revenue from operations FY 2017-18
Key events impacting revenue from operations FY 2017-18 Goods and Services Tax Bankruptcy of Toys R Us v Decrease in Duty Drawback from 7.60% to 1.90% v Toys R Us, a 61 year old company with over 1200 stores impact of 5.70% on Revenue and profit worldwide filed for liquidation in March 2018 v Refund
Slide 10: Our Strengths
Our Strengths
Slide 11: Our team
Our team Mr. Donnie Hodge - President & COO ,Kitex USA LLC Ø Mr. Donnie Hodge is an accomplished executive with 40 years experience in Apparel Industry. Mr. Hodge’s Previous executive positions include COO of Gerber Childrenswear LLC, President and COO of Knights Apparel Inc., Sr. VP- Strategic Plan
Slide 12: Our partners
Our partners KPMG has been engaged as the strategic consultants and knowledge partners designing our long term Growth Strategy and handholding during it’s implementation BDO shall be appointed as the Audit and Assurance service provider subject to shareholders’ approval 11
Slide 13: Kitex: the trusted brand
Kitex: the trusted brand Kitex has consistently taken part in audits/certifications to assure clients of the quality and safety of products and manufacturing process Manufacturing performance Chemical and Product safety: Certified benchmarking: Adoption of Supplier ‘Class I’ for compliance to ‘Oeko-
Slide 14: Kitex USA LLC
Kitex USA LLC The U.S. Management team 13
Slide 15: Infrastructure- Kitex USA LLC
Infrastructure- Kitex USA LLC Design Studio Office infrastructure Creative design team 14
Slide 16: Road map 2025
Road map 2025
Slide 17: Market overview
Market overview
Slide 18: Baby Clothing market
Baby Clothing market Global Baby clothing market Global baby clothing market (USD bn) • The baby clothing market accounts for 33% of total global children wear market 64 67 59 61 56 54 • With a market size of ~60 bn USD, market is expected to grow at a CAGR of 4.4% to reach USD 67 bn by 2019 • Paren
Slide 19: Impact of Global events on Garment Export
Impact of Global events on Garment Export Ø Chinese market had become unviable for garmenting due to increased cost of Cotton and other overheads Ø Increase in cotton cost by 25 % and imposition of Duty on Cotton imports by 10% made matters worse ØDue to trade war fears Global players are looking fo
Slide 20: Strategic roadmap
Strategic roadmap
Slide 21: Elements of Kitex Growth strategy
Elements of Kitex Growth strategy Enhanced revenue through: Addition of production capacity across the • Promotion of own brand - Little Star value chain: • Promotion of licensed brand - Lamaze • Expansion of Knitting capacity to 80 tons • Growth in private label business with existing clients • Exp
Slide 22: KGL Capacity Expansion 2018-2025
KGL Capacity Expansion 2018-2025* Centralized Cutting facility ( Feeder Unit) Dorms & Dining – A Capacity 3200 Dorms Dorms&&Dining – B–B Dining Capacity 3200 Capacity 3200 *All pictures are illustrative Processing unit Capacity Expansion to 80MT 21
Slide 23: Planned units for Kitex 2025
Planned units for Kitex 2025* KGL KGL Subsidiary1: Subsidiary 1: Knitting Knitting factory factory( (feeder feederUnit) Unit) KGL Subsidiary 2: Packaging accessories factory (Feeder Units) KGL Subsidiary 3: Sewing factory with hostel facility KGL Subsidiary 4: Sewing factory with hostel facility *Su
Slide 24: Employment Centres for Mothers
Employment Centres for Mothers* KGL Subsidiary 5 UNIT-A UNIT-B UNIT-C UNIT-D UNIT-E UNIT-E UNIT-F UNIT-F UNIT-G UNIT-G UNIT-H UNIT-H *Subsidiaries are to be wholly owned by KGL ; All pictures are illustrative 23
Slide 25: Future Plans (Under Evaluation)
Future Plans* (Under Evaluation) Spinning mill Socks manufacturing factory (Vertical integration plan) (Diversification plan) Wet tissue factory Disposable diaper manufacturing factory (Diversification plan) (Diversification plan) *Subsidiaries are to be wholly owned by KGL ; All pictures are illust
Slide 26: Project status
Project status
Slide 27: Key activities: Completed and on-going
Key activities: Completed and on-going Completed Preparation of strategy document Completed Land identification On-going Preparation of detailed project report On-going Machinery and supplier identification On-going Building and infrastructure planning 26
Slide 28: Performance forecast
Performance forecast
Slide 29: Estimated Turnover & Profit for KGL FY 2018-19
Estimated Turnover & Profit for KGL FY 2018-19 All figures are in INR crores KGL ESTIMATED TURNOVER & PROFIT -2018-19 Turnover PBT Turnover PBT DESCRIPTION (2017-18) (2017-18) (2018-19) (2018-19) 2018-2019 - KGL Q1 130.33 22.90% 130.30 21.00% 2018-2019 - KGL Q2 151.00 25.16% 162.58 - 2018-2019 - KGL
Slide 30: Estimated turnover for Kitex USA LLC- Lamaze/ Little star for 2018-2021
Estimated turnover for Kitex USA LLC- Lamaze/ Little star for 2018-2021 Sales forecast* Description 2017 2018 2019 2020 2021 Projected Turnover (USD) $1,053,000 $5,158,000 $8,500,000 $14,300,000 $19,381,000 Growth % - 390% 65% 68% 36% Sales (USD Millions) $19.38 $14.30 $8.50 $5.16 $1.05 2017 2018 20
Slide 31: Estimated turnover for KGL: FY 2018-19 to FY 2024-25
Estimated turnover for KGL: FY 2018-19 to FY 2024-25 KGL Growth plan: 2018-19 to 2024-25 Description 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Projected Turnover 559.93 672.39 810.73 989.61 1,210.43 1,479.98 1,823.54 2,165.07 (in INR crores) Growth % 20.09% 20.57% 22.06% 22.31%
Slide 32: Thank you.
Thank you.