Zodiac Clothing Company Limited · NSE:ZODIACLOTH
Zodiac Clothing — Investor Presentation (November 2015)
32 slides from Zodiac Clothing's investor presentation, November 2015
Slide 1: Zodiac - Finest Quality Clothing
Bille” Light Weight Pure Wool Jodhpuris. YOU WILL NEVER LOOK AT SUITS THE SAME WAY AGAIN. ZODIAC FINEST QUALITY CLOTHING —
Slide 2: Background
Background Promoted by Mr. M Y Noorani, the House of Zodiac commenced operations in 1954 with neckties. It diversified into manufacturing of men’s shirts in the 1960’s. Was listed in 1994 as Zodiac Clothing Co. Ltd*. Today, ZCCL* is vertically integrated from design to retail, is highly de-riske
Slide 3: Snapshot of Drivers of Growth
Snapshot of Drivers of Growth Portfolio of strong brands Design driven value added products Marketing led strategy & a strong distribution network Brand extensions and Product extensions Own Retail Business Design Driven Branded Business 131 COCO International Business company owned & company Across
Slide 4: Sales Break up
Sales Break up Branded / International Sales Split Q1 15-16 (Standalone) Channelwise Branded Sales Split Independent Retailers 34% Branded International 55% 45% National Company Chains managed stores 7% 59% Geographical Sales Split (Consolidated) Middle East 11% 12 India North America 52% 19% UK 10%
Slide 5: Design Driven Philosophy
ZCCL: Design Driven Philosophy Our Mumbai office has an Italian inspired, state of the art Design Studio, with a team of over 15 trained designers constantly networking with our international offices and attending trade shows overseas We have our own offices in 3 fashion capitals of the world -
Slide 6: Manufacturing Excellence
ZCCL: Manufacturing Excellence Our state of the art and modern automated manufacturing plants are located in Karnataka & Gujarat (India) and Dubai (UAE). Capacity to produce over 7 mn shirts per annum. We successfully manufacture extremely high work content/ value added products. ZCCL currentl
Slide 7: Marketing Led Strategies: ZODIAC
ZCCL: Marketing Led Strategies: ZODIAC ZODIAC – a premium, classic, men’s wear brand, of the longest standing in India The brand is positioned for the classic yet contemporary male’s wardrobe ZODIAC’s product range has fine wool & pure linen suits & trousers, pure wool Jodhpuris, shirts crafte
Slide 8: The House of Zodiac has consistently focused on providing luxury, quality and value
The House of Zodiac has consistently focused on providing luxury, quality and value to discerning Indian customers. Driven by a passion for excellence,Zodiac is the undisputed leader in design innovation, delivering classic style and an up to date elegance in all its products. Each Zodiac product, n
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Slide 12: ZOD! Club Wear
ZCCL: Marketing Led Strategies… ZOD! Club Wear ZOD! – a trendy, fashionable casual wear brand launched in 2002. Positioned as Club Wear and enjoys the first – mover advantage. We actually created this category in India. ZOD! is targeted at socially active, young males who want to dress trendil
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Slide 14: Z3 – Relaxed Luxury
ZCCL: Marketing Led Strategies… Z3 – Relaxed Luxury Z3 our recently launched casual wear brand Launched in April 2008 just before the world wide down turn & really got a fillip in 2010 post the economic revival in India We are now enjoying a wide base of users especially those that do not wear
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Slide 16: Retail Focus
ZCCL: Retail Focus ZCCL opened it’s first store at the Taj Mahal Hotel in 1973 and this was the beginning of a retail store strategy to open stores at premium locations across India Aggressive scaling up of stores at the right locations ensure a large footfall of premium customers despite volati
Slide 17: Retail Focus
ZCCL: Retail Focus Growing Contribution of Own Retail to Branded Business H1 2016 41% 59% 17
Slide 18: Retail Focus
ZCCL: Retail Focus S. No North Store Count 1 Delhi NCR 26 2 Chandigarh 3 3 Dehradun 1 4 Jalandhar 1 5 Ludhiana 3 6 Amritsar 2 7 Patiala 1 8 Bhatinda 1 9 Varanasi 1 10 Lucknow 2 11 Kanpur 1 12 Bareilly 1 13 Jammu 1 14 Srinagar 1 East 1 Kolkata 6 2 Siliguri 1 3 Ranchi 1 4 Bhubaneshwar 1 5 Patna 1 6 Gu
Slide 19: Linking Road: Mumbai
Linking Road: Mumbai 19
Slide 20: World Trade Park: Jaipur
World Trade Park: Jaipur 20
Slide 21: De-Risking
ZCCL: De- Risking The drive to de-risk the business has been consistent. Over 75% of ZCCL’s production is pre-sold International Orders backed by LC or insured Branded business orders for MBO & LFS backed with advance cheques Multi-segment: Branded, Own Retail and Design Driven Internation
Slide 22: Financial Snapshot (Consolidated)
Financial Snapshot (Consolidated) Income Statement (Rs in lacs) Year ended March 31 6 months ended Sept 30, 2015 2013 2014 2015 2015 2016 H1-O-H1 growth Revenue 359,98 41,065 39,395 19460 17284 -11% % growth -4.65% 14.00% -4.07% EBITDA 3,130 4,014 1,983 1154 -644 % margin 9.14 10.32 5.30 6.21 % -3.9
Slide 23: Performance over the last years
Performance over the last 4 years (Consolidated) Overall Revenue (H1) 25,000 19,433 19,460 17,284 20,000 15,950 15,000 (Rs lakhs) 10,000 5,000 0 H 1 2013 H 1 2014 H 1 2015 H 1 2016 23
Slide 24: Consolidated Performance
Consolidated Performance H1 EBITDA margin (%) 10% 9.3% 8% 7.2% 6.2% 6% 4% 2% 0% H 1 ' 13 H 1 ' 14 H 1 ' 15 H 1 ' 16 - 2% - 4% H1 Net Profit (in Rs. lacs) - 3.9% - 6% 1,200 1,013 1,000 800 600 508 516 400 200 0 -200 Sep' 13 Sep' 14 Sep' 15 Sep' 16 -400 -600 -800 -651 24
Slide 25: Performance over the last 10 years
Performance over the last 10 years Growing Contribution of Branded Business (Consolidated) 2004 H1 - 2016 34% 48% 52% 67% Growing Contribution of Branded Business in ZCCL (Standalone) 2004 H1 2016 35% 45% 55% 65% 25
Slide 26: Enhancing Shareholder Value
ZCCL: Enhancing Shareholder Value Corporate Governance A distinguished Board of Directors that brings rich and varied experience. Approx 65% of the Board are independent directors since ZCCL was listed Audit committee headed by & includes finance veterans ensuring strict financial discipline
Slide 27: Design Driven International Business
ZCCL: Design Driven International Business Order books are healthy The unit value realizations are improving Raw material prices are currently impacting cost more favorably then earlier 27
Slide 28: Branded Business
ZCCL: Branded Business Consumer demand is under stress causing distress to Independent Retailers We have 3 channels of sale Independent Retailers (IR), our own ZODIAC Stores (ZRS) run on COCO basis and business with National Chains (LFS) The MBO business has been hit very hard with consumer sentimen
Slide 29: Own Retail (COCO)
ZCCL: Own Retail (COCO) Opened 21 stores between April 2014 & Sept 2015 Committed to growing own retail and are at 131 COCO stores today Continuously looking for new locations and signing stores when rentals are viable Results include these 21 stores which are under gestation and will contribute onc
Slide 30: Experienced Promoters Distinguished Board of Directors
Experienced Promoters Distinguished Board of Directors Mr. M. L. Apte Mr. M. Y. Noorani - Chairman & Founder Former Sheriff of Bombay, former Chairman of the Textiles Committee, currently Director Founder of ZODIAC, Clothing Manufacturers Association of India (and its President of Lintas India,
Slide 31: The Advisory Board
ZCCL: The Advisory Board Mr. Deepak Parekh Padma Bhushan 2006 Fellow Institute of Chartered Accountants ( England & Wales) 1st international recipient of their award for Outstanding Achievements in 2010 Chairman & Director of various public limited companies Youngest recipient of the Eco
Slide 32: Thank you
Thank you 32
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