Pioneer Embroideries Limited · NSE:PIONEEREMB
Pioneer Embroideries — Investor Presentation (November 2021)
48 slides from Pioneer Embroideries's investor presentation, Nov 9, 2021
Slide 1: Intimation of Earnings Conference Call
Date : 9th November, 2021 Ref. : BSE/54/2021-2022. To, To, Dept. of Corporate Services, The Listing Department, Bombay Stock Exchange Limited, National Stock Exchange of India Limited, Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai – 400 001. Bandra (East), Mum
Slide 2: Earnings Conference Call Invite
EARNINGS CONFERENCE CALL INVITE Kirin Advisors is pleased to invite you for a Conference Call to discuss Q2 FY22 earnings of Pioneer Embroideries Limited on Friday, 12 th November, 2021 at 0 1 . 3 0 PM IST The Management team will be represented by: Mr. Harsh Vardhan Bassi – Managing Director Mr. Sa
Slide 3: Pioneer Embroideries Limited Business Presentation
…a stitch ahead of time PIONEER EMBROIDERIES LIMITED BUSINESS PRESENTATION
Slide 4: Company Overview
01 Company Overview
Slide 5: Company Overview
Company Overview ❖ Established in 1991 by Mr Raj Kumar Sekhani, Pioneer Embroideries Limited is one of India’s notable manufacturer and exporter of value- added Specialty Polyester Filament Yarn (SPFY) and Embroidery & Laces. It has a state-of-the-art manufacturing facility for SPFY at Himanchal Pra
Slide 6: Journey So Far
Journey So Far Setup Setup first embroidery Acquired Set up New embroidery dyeing and an State of the art manufacturing Setup braided processing Embroidery Embroidery plant at lace facility at Unit at Manufacturing Sarigam, Gujarat unit at Silvassa Sarigam Coimbatore facility 1991 1995 1997 1999 200
Slide 7: Journey So Far Cont..
Journey So Far Cont.. Started greenfield Turnaround project of Dope Set up New State of Expansion of Dope Developed performance in Dyed the Art BobbinLace Dyed Yarn business to specialized yarn. SPFY capacity profitability. Notable Yarn (Now SPFY) braiding unit at 12,000 MTPA. Also SPFY turnover on
Slide 8: Management Team
Management Team Mr. Raj Kumar Sekhani – 62 Mr. Mr. Harsh Vardhan Bassi – 47 Chairman Managing Director Promoter-Director & Chairman, Mr Sekhani is a first Having started his business career at a young age, generation entrepreneur with a wide experience in Harsh effectively combines his entrepreneuri
Slide 9: Robust Infrastructure
Robust Infrastructure 7
Slide 10: Manufacturing Facilities & Capacity
Manufacturing Facilities & Capacity Kala-Amb, Sarigam, Coimbatore, Naroli , Himachal Pradesh Gujarat Tamil Nadu Dadra & Nagar Haveli ❖ State of the art plant ❖ Embroidered Laces - ❖ Embroidered fabrics, ❖ Embroidered fabrics, makes SPFY, Draw Fabric & Guipure, Allover fabrics and Allover fabrics and
Slide 11: Global Sales Market
Global Sales Market Yarn Export Market USA, Brazil, Portugal, Belgium, Tunisia, Morocco, Algeria, Turkey, Dubai, Egypt Embroidery Export Market Brazil, Mexico, Dubai, Sri Lanka, Australia, USA, Iran, Spain, Portugal, Chile, Bangladesh, Venezuela 9
Slide 12: Assurance Of High Quality & Sustainable Future
Assurance Of High Quality & Sustainable Future ❖ The primary focus is on R&D on Inter Fibre replacements, mainly targeting Natural Fibres and replacing Solution Dyed Yarns. ❖ Every kilogram of yarn consumes 35 litres of precious water to produce solution-dyed yarns. Company’s Dope dyed process is to
Slide 13: Key Strengths
Key Strengths Owns brand “HAKOBA”, Owns brand “SILKOLITE” which is a synonym for One of the few companies to embroidered garments have a color library of more than across the world 1200 shades for Dope dyeing Smaller batch capacity with modern equipment, flexible One of India's large product capacit
Slide 14: Key Financial Highlights
Key Financial Highlights FY 2021 Highlights Revenue In ₹ Mn Improving Profitability In ₹ Mn Revenue PAT 2738 EBITDA PBT Reported Net Profit 2377 2260 ₹ 2,260 Mn ₹ 200 Mn 295 ₹ 2,377 Mn In FY 20 ₹ 81 Mn In FY 20 216 209 200 168 Book Value EPS 83 81 41 43 ₹ 43.02 ₹ 7.76 ₹ 36.23 In FY 20 ₹ 3.32 In FY 2
Slide 15: Stock Data
Stock Data Source - NSE Symbol BSE & NSE: PIONEEREMB | ISIN: INE156C01018 As on 01-11-2021 Share Holding Pattern As on 30-09-2021 Share Price (₹) 57.60 0.37 Promoter & Promoter Group Market Capitalization (₹ Mn) 1,531 32.86 Other DIIs No. of Shares Outstanding (Mn) 26.5 Insurance 57.36 Non Instituti
Slide 16: Business Overview
02 Business Overview
Slide 17: Business Verticals
Business Verticals Specialty Polyester Filament Yarn Retail ❖ Air Texturised Yarns ❖ Embroidery Fabrics ❖ Carpet Yarns ❖ Salwar Kameez Dupatta (SKDs) ❖ Twisted Yarns ❖ Sarees ❖ Fully Drawn Yarn ❖ Garments ❖ Draw Textured Yarns ❖ Partially Oriented Yarns Embroidery & Laces ❖ Guipure All Over & Laces
Slide 18: Specialty Polyester Filament Yarn
Specialty Polyester Filament Yarn ❖ PEL setup a Specialty Polyester Filament Yarn (SPFY) manufacturing facility in Kala-amb, Himachal Pradesh in 2007, sensing this niche industry which was in need of supplying a wide range of quality products at user-specific order size. ❖ PEL’s SPFY plant at Kala A
Slide 19: End Use Of SPFY
End Use Of SPFY SPFY is widely accepted for many applications such as Carpets, Bath Mats, Upholstery Fabrics, Apperals, Curtains, Medical Textile (Anti Microbial), Furnishings, Narrow Fabrics, Knitting, Labels. 17
Slide 20: Portfolio Of SPFY
Portfolio Of SPFY 1 Air Texturized Yarns ❖ Denier range 50 - 2500 denier ❖ Available in solid and mélange colours ❖ Offers flexibility of developing customer specific shades also ❖ Used for Weaving, Circular & Flat Knitting 2 Carpet Yarns ❖ Highly suitable for upholstery fabrics and carpet applicati
Slide 21: Portfolio Of SPFY
Portfolio Of SPFY 1 Air Texturized Yarns ❖ Selected range of colours specifically suitable for the hand tufted or machine woven carpets ❖ Shade bank of more than 220 options and denier range of 600 - 12,000 Deniers 2 Carpet Yarns Yarn End Use 3 Twisted Yarns 4 Fully Drawn Yarn 5 Draw Textured Yarns
Slide 22: Portfolio Of SPFY
Portfolio Of SPFY 1 Air Texturized Yarns ❖ Denier range 75 - 600 ❖ Twist range 80 - 650 TPM ❖ Autoclave temperature setting for fixation of shrinkage ❖ Applications : Label weaving, salvage applications, sewing threads, embroidery threads 2 Carpet Yarns and carpet yarns Yarn End Use 3 Twisted Yarns
Slide 23: Portfolio Of SPFY
Portfolio Of SPFY 1 Air Texturized Yarns ❖ Fully Drawn Yarn is mainly used as weft or weaves in making fabrics. ❖ Fully Drawn Yarn can be knitted or woven with any other filament yarn to get fabric of different varieties. ❖ Denier range – 50 to 800 2 Carpet Yarns Yarn End Use 3 Twisted Yarns 4 Fully
Slide 24: Portfolio Of SPFY
Portfolio Of SPFY 1 Air Texturized Yarns ❖ Denier range 150 Denier to 600 Denier. ❖ Filament 48 to 576. ❖ Intermingled : NIM, SIM, LIM, HIM. ❖ Available in Solid Colors and Melange Colors. 2 Carpet Yarns ❖ Wide range of shades to choose from our own range developed in house. Yarn End Use 3 Twisted Y
Slide 25: Portfolio Of SPFY
Portfolio Of SPFY 1 Air Texturized Yarns ❖ Denier Range: 120 denier to 480 denier. ❖ Filament Range: 36 to 576 both circular and Trilobal. ❖ Special cross sections for applications like superior moisture, brightness, management and fancy effects. 2 Carpet Yarns Yarn End Use 3 Twisted Yarns 4 Fully D
Slide 26: Embroidery & Laces
Embroidery & Laces ❖ Presently the company has multiple embroidery and lace manufacturing facilities across the country along with marketing presence at all the major markets including Delhi NCR, Tirupur, Chennai, Mumbai, Kolkata. ❖ PEL is one of the very few Inditex (Zara retail) approved embroider
Slide 27: Embroidery And Laces Product Description
Embroidery And Laces Product Description Embroidery Lace ❖ The range includes Embroidered Allover Fabrics, ❖ Bobbin /Torchon/Crochet laces are Geometric designs Guipure or Chemical allovers, Torchon or Chrochet braided predominantly with cotton yarn to give eye allovers catching patterns. ❖ Embroide
Slide 28: Selected Embroidery And Laces Designs
Selected Embroidery And Laces Designs All Over All Over Embroidered Trim Embroidered Trim Gupuire All Over Gupuire All Over Gupuire lace Gupuire lace Lurex lace Lurex lace Torchon All Over Torchon All Over 26
Slide 29: Hakoba Retail
Hakoba Retail ❖ “HAKOBA”, a heritage brand since 1961, which expresses the romanticism of the union of the needle and thread through its intricate creations of a wide range of luxury textile products. ❖ Hakoba, a word that conjures up imagination of apparel ecstasy, has become synonymous with high f
Slide 30: Products Depiction
PIONEER GROUP Products Depiction 28
Slide 31: Model Retail Store Format
Model Retail Store Format 29
Slide 32: Hakoba Retail Ecommerce Portal
Hakoba Retail Ecommerce Portal https://hakoba.in/ 30
Slide 33: Financial Overview
03 mlatelarelte) Overview
Slide 34: Last 5 Quarters Performance Standalone
Last 5 Quarters Performance Standalone In ₹ Mn Q2 YoY Total Income Growth In ₹ Mn Particular Q2 FY 2021 Q3 FY 2021 Q4 FY 2021 Q1 FY 2022 Q2 FY 2022 765 Revenues 527 692 794 659 763 530 Other Income 2 3 12 4 2 Total Income 530 695 806 663 765 Raw Material Costs 258 328 445 364 405 Employee Costs 75 8
Slide 35: Balance Sheet Standalone
Balance Sheet Standalone In ₹ Mn In ₹ Mn Equities & Liabilities FY 2019 FY 2020 FY 2021 Assets FY 2019 FY 2020 FY 2021 Equity 250 250 266 Non Current Assets Reserves 573 654 878 Fixed Assets 952 854 800 Net Worth 822 904 1,144 Non-current Investments 93 93 93 Non-current Liabilities Other Non Curren
Slide 36: Profit & Loss Statement Standalone
Profit & Loss Statement Standalone Profit & Loss Statement In ₹ Mn Cash Flow Highlights In ₹ Mn Particulars FY 2019 FY 2020 FY 2021 256 Net Sales 2,738 2,377 2,260 195 181 Other Income 20 18 18 Total Income 2,759 2,395 2,278 Raw Material Costs 1,618 1,331 1143 Employee Cost 340 320 294 31 Other Expe
Slide 37: Revenue & Profit Insights
Revenue & Profit Insights Business Wise Revenue Breakup In ₹ Mn Domestic Export Revenue Breakup In ₹ Mn Yarn Embroideries Domestic Sales Export Sales 2,297 2,124 2,018 1,816 1,992 2,015 605 444 354 FY 2019 FY 2020 FY 2021 Profit Margins In % EBITDA Reported Net Profit 12.95 8.74 8.78 441 7.84 384 24
Slide 38: Industry Overview
04 Industry Overview
Slide 39: Industry Growth Drivers – Textile
Industry Growth Drivers – Textile Most cost competitive Textile manufacture Growing Domestic & Global demand base Challenges of growth in neighboring Most efficient Spinning sector in the World competing countries driving the Indian textile Industry India has an edge over other major Second biggest
Slide 40: Indian Textile Industry Overview
Indian Textile Industry Overview ❖ India is the world’s second largest producer of textiles and garments. Textile and apparel industry in India (US$ billion) ❖ Rising per capita income, favourable demographics and a shift in 220 preference to branded products will boost demand. 100 106 90 ❖ The dome
Slide 41: FY22 Union Budget Textile Announcements
FY22 Union Budget Textile Announcements Improving Realization – Price Allocations towards the development of Discovery, Remunerative jute industries almost doubled to ₹ 1,530 Pricing, Crop Diversification 03 Mn, compared to the revised estimate of ₹ 715 Mn for 2020-21 04 02 A Scheme of 7 Mega Invest
Slide 42: Production Of Total Yarn In India From FY 2011 To 2020
Production Of Total Yarn In India From FY 2011 To 2020 7000 Production in Million Kg 5862 6000 5488 5665 5659 5680 5309 4867 4762 5000 4712 4372 4000 3000 2000 1000 0 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 10M FY 2020 ❖ Production of yarn is on continuously rise due
Slide 43: Global End-use Demand For Textile Fibres 2010-25
Global End-use Demand For Textile Fibres 2010-25 Total Non Cotton Cotton 140.00 119.20 120.00 103.20 In Million Tons 100.00 94.30 90.10 78.80 80.00 73.30 65.80 60.00 48.20 40.00 25.10 24.30 24.40 24.90 20.00 0.00 2010 2015 2020 2025 Source: International Cotton Advisory Committee (ICAC) 41
Slide 44: Government Initiatives
Government Initiatives ❖ Government has created PLI scheme for textile industry to create global champions in MMF apparel and Technical Textiles by providing incentive from 3 per cent to 15 per cent on stipulated incremental turnover for five years ❖ Defense Research and Development Organisation is
Slide 45: Embroidery Industry Overview
Embroidery Industry Overview ❖ It is difficult to find the origin of embroidery in ❖ The product's domestic demand comes from India, the origin of cross-stitch (a popular garment exporters like the Texport Group, embroidery practice) can be identified as long Morrajee Gokuldas, Sriranga & company, a
Slide 46: Demand Drivers & Entry Barriers In Embroidery Industry
Demand Drivers & Entry Barriers In Embroidery Industry Rising demand from export market Capital intensive business cheaper funds under the High working capital due to high Technology Upgradation Funds inventory and long collection Scheme (TUFS) scheme period Textile is the main user industry and cha
Slide 47: Safe Harbor Statement
Safe Harbor Statement This presentation and the accompanying slides (the “Presentation”), which have been prepared by Pioneer Embroideries Limited (‘PEL/Pioneer,’ the “Company”) solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 48: Thank You
Thank You For Further Details Please Contact Pioneer Embroideries Limited Kirin Advisors Pvt. Ltd. Unit No.101B, 1st Floor, Abishek Premises, Plot No. 103-A, Bal Ganesh Tower CHS, C5-6, Dalai Industrial Estate, Off. New Link Road, Dada Patil wadi, Andheri (West), Mumbai, Maharashtra, 400058 Thane We
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