Vardhman Textiles Limited · NSE:VTL
Vardhman Textiles — Investor Presentation (June 2014)
21 slides from Vardhman Textiles's investor presentation, June 2014
Slide 1: Vardhman Textiles Ltd Corporate Presentation
Vardhman Textiles Ltd Corporate Presentation June 2014 Private & Confidential
Slide 2: Vardhman Textiles Ltd. (VTL) – an overview
Vardhman Textiles Ltd. (VTL)– an overview ● VTL is the largest listed, integrated textile manufacturing company in the Country VTL has a strong position in the Indian textile sector in the manufacturing of fiber, yarn, sewing thread and fabrics Now also into garment manufacturing through a colla
Slide 3: VTL – Group Structure
VTL – Group Structure Vardhman Textiles Limited (VTL) 1973 Yarn, Fabric Revenue: Rs. 52,253.7 mn (US$870.89 Mn) Listed on BSE, NSE Vardhman Yarns & Vardhman Acrylics VMT Spinning Co. VSS Ltd VNG Co. Ltd. Threads Ltd (VYTL) Limited (VAL) Limited (VMT) 51% 70% 89% 31% 51% VTL Stake RMG / Industrial /
Slide 4: Vardhman Textiles Ltd. – Core Competencies
Vardhman Textiles Ltd. – Core Competencies ● Cotton Procurement Policy ● Employee Engagement & Culture of innovation ● Economies of scale and Operational Efficiencies ● Customer Oriented approach ● Focus on diversified and Value added products ● Technology up gradation and continuous process improve
Slide 5: Manufacturing Facilities & Capacities
Manufacturing Facilities & Capacities Yarn • 1 Million Spindles Ludhiana, Pb. Baddi, H.P. Fabric • 1320 Looms Hoshiarpur, Malerkotla, Processing • 110 MMPA Acrylic • 20,000 TPA Fiber Dyeing • 71 TPD Sewing Jhagadia, GJ • 39 TPD Threads Budhni, M.P. • 120,000 TPA (Rolling Visakhapatnam, Steel Satlapu
Slide 6: Textiles Value Additions Through Supply Chain
Textiles Value Additions Through Supply Chain • Yarn: 30 combed yarn • Fabric: Twirl bottom weight fabric Exchange Rate: Rs 60/$ 6
Slide 7: Yarn Business – 57% Revenue Share
Yarn Business – 57% Revenue Share ● The largest spinning capacities in the country with > 1.00 MN spindles ● 12 production plants located in the states of Punjab, Himachal Pradesh and Madhya Pradesh ● Technical tie-ups with the well recognized global corporate’s from Japan and Korea. ● De-risked bus
Slide 8: Fabrics Business – 25% Share
Fabrics Business – 25% Share Weaving and Processing capacities have expanded in tandem ● Continuing its onward march up the value chain, the group entered Fabric business in 1992 with Greige Fabric and Processed Fabric in 1999. ● Current capacity is 1320 looms & 110 million meters of processed fabri
Slide 9: Sewing Thread Business – 9% Share
Sewing Thread Business – 9% Share ● The Group entered the Thread business in 1982 as a Segmental Sales – Industry & Channel sales > ~ 90% forward integration to its Yarn business ● Current capacity is 41 tpd across 5 plants at Punjab, Tamil Nadu & Himachal Pradesh ● In 2002, entered into a strategic
Slide 10: Acrylics Fibre Business – 6% Share
Acrylics Fibre Business – 6% Share ● Ventured into manufacture of Acrylic Staple Fibre in 1999 - Vardhman Acrylics Limited (VAL) ● The plant was set up in Gujarat, in collaboration with Marubeni & Japan Exlan of Japan. Fibre business ● Current capacity is 20,000 mtpa ● World class wet spun technolog
Slide 11: Steel Business Garments Business
Steel Business Garments Business ● Started Steel business in 1972 as a diversification ● Started Garments business in 2010 as a forward strategy, with capacity of 35,000 tpa. integration strategy in a JV with Nisshinbo Textiles Inc. for production of shirts in ● Current Production Capacity: 120,000
Slide 12: Financials
Financials 12
Slide 13: Financial highlights
Financial highlights 28% 26% 24% 22% N g aS 18% EBITDA Margin % 16% 14% 12% 10% €D Vardhman 3 Yr. Moving Average of EBITDA Margin T T T T T T T T T T T T T T 1 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Financial Years 13
Slide 14: Financial highlights (continued)
Financial highlights (continued) Bottom line growth over the years Comfortable debt/equity considering most debt under TUFS Return ratios Earnings Growth over the years 14
Slide 15: Key financials
Key financials INR Million USD Million Particulars FY12A FY13A FY14A Q4 FY14 Q4 FY13 FY12A FY13A FY14A Q4 FY14 Q4 FY13 Revenues 46,986 50,211 62,404 12,922 11,463 783 837 1040 215 191 EBITDA 6,737 10,236 15,372 3,356 2,683 112 171 256 56 45 Margin % 14% 20% 25% 26% 23% 14% 20% 25% 26% 23% PBT 2,266
Slide 16: Capital Expenditure & Capacities
Capital Expenditure & Capacities FY 2012-13 FY 2013-14 Capital Expenditure in Rs. 734 Crores FY14 Spinning 0.97 MN Spindles 1,25,664 Spindles 1.10 MN Spindles Weaving 1090 Looms 230 Looms 1320 Looms Processing 110 MMPA 110 MMPA Dyeing 71 TPD 71 TPD 16
Slide 17: Annexure
Annexure Varahman
Slide 18: VTL Management
VTL Management Name Designation Details Experience Is an M.Com. Gold Medalist from Panjab University Chandigarh and also holds directorships Chairman & in 22 other companies S .P. Oswal Managing Holds Directorships in Confederation of Indian Textile Industry and New Delhi Institute of 44 Directo
Slide 19: Major global strategic alliances
Major global strategic alliances Product Alliance Partner Year Fibre and Yarn Dyeing Nihon Sanmo, Japan 1992 Gassed Mercerized Yarns Kyung Bang, South Korea 1994 Cotton Yarns Toho Rayon, Japan 1995 Acrylic Fibre (JV ended in 2009) Exlan and Marubeni Corp, Japan 1996 Fabric Dyeing & Finishing Tokai S
Slide 20: Government Policies and Regulations
Government Policies and Regulations ● TUFS - Initiated in 1999 by the Govt. of India to catalyze investments in textiles and jute industry, the scheme has been revised from time to time and will be available for loan sanctions till 31.03.2017 in its present form and provides for a 2% interest subsid
Slide 21: Thank You
Thank You This presentation has been prepared by Vardhman Textiles Limited (the “Company”) solely for your information and for your use and may not be taken away, reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organization or firm)
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