Suryalakshmi Cotton Mills Ltd. · NSE:SURYALAXMI
Suryalakshmi Cotton Mills — Investor Presentation (2017)
35 slides from Suryalakshmi Cotton Mills's investor presentation, 2017
Slide 1: Winning Together
1 Yarn WINNING TOGETHER Fabric An Integrated Denim Manufacturer Partner to Garments Global & Indian Brands
Slide 2: Winning Together
2 WINNING TOGETHER An Integrated ODM Partner to Global & Indian Brands 521200 SLCM:IN SLCM:BO SURYALAXMI
Slide 3: Safe Harbour
3 SAFE HARBOUR Materials and information provided in this presentation may contain ‘forward-looking statements’. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties which could cause actual outcomes and results to differ materiall
Slide 4: In This Presentation
4 IN THIS PRESENTATION Company Overview 04 Industry Overview 12 Our Strategy 22 Corporate Information 27
Slide 5: Company Overview
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Slide 6: Vertically Integrated ODM
Company Overview Industry Overview Our Strategy Corporate Information VERTICALLY INTEGRATED ODM* INDIA’s PREMIER ODM INTEGRATED PLAYER LONG-TERM among the across the RELATIONSHIPS TOP 5 PLAYERS DENIM VALUE CHAIN with GLOBAL & INDIAN BRANDS Estd. in 1962 by Led by Headquartered in Shri L N AGARWAL Sh
Slide 7: Vertically Integrated Manufacturing
Company Overview Industry Overview Our Strategy Corporate Information VERTICALLY INTEGRATED MANUFACTURING Controlling all aspects Integration to Reverse of manufacturing from 1 rise up the value chain 2 yarn to finished garments 3 engineering for product enhancement Raw Material Ginning Spinning Dye
Slide 8: Strong Pillars of Growth
Company Overview Industry Overview Our Strategy Corporate Information STRONG PILLARS OF GROWTH ALIGNING WITH BRANDS VERTICAL INTEGRATION R&D-led PREMIUM DENIMS • ODM to key denim • Integration across the • New R&D-led launches brands entire value chain to ensure higher premium – smart • Partnering a
Slide 9: Charting Strategic Growth Aligned with Market Demands
Company Overview Industry Overview Our Strategy Corporate Information CHARTING STRATEGIC GROWTH ALIGNED WITH MARKET DEMANDS Year Milestone Focus Turnover in Cr. • Established Fancy yarn manufacturing unit with a capacity of 25,000 spindles 2016 760 at Amravati, Maharasthra Rising up the value chain
Slide 10: A Business Aligned with Brands
Company Overview Industry Overview Our Strategy Corporate Information A BUSINESS ALIGNED WITH BRANDS Partnering Top 20 global fashion and retail brands as a private label outsourced manufacturing partner SURYALAKSHMI GLOBAL PRIVATE LABEL & STORE BRANDS Understand value Consumer dynamics Launched ove
Slide 11: Product Intelligence & R&D Strength
Company Overview Industry Overview Our Strategy Corporate Information PRODUCT INTELLIGENCE & R&D STRENGTH Investments in R&D and Product Intelligence INVESTMENTS IN R&D & PRODUCT INTELLIGENCE BEST IN CLASS QUALITY • Collaboration with denim fashion designers from Europe to • From yarns that comprise
Slide 12: Revenue Enhancement + Fiscal Prudence
Company Overview Industry Overview Our Strategy Corporate Information REVENUE ENHANCEMENT + FISCAL PRUDENCE • Healthy Y-o-Y growth on revenues and profits GROSS REVENUE NET REVENUES CAPITAL EMPLOYED • Healthy financial ratios including debt equity of 933 cr. 775 cr. 680 cr. 0.48 • EBITDA margins of
Slide 13: Delivering Robust Performance Across Spinning, Denim Fabric, Garments
Company Overview Industry Overview Our Strategy Corporate Information DELIVERING ROBUST PERFORMANCE ACROSS SPINNING DENIM FABRIC GARMENTS TOTAL NET SALES TOTAL NET SALES TOTAL NET SALES 387 cr. 423 cr. 65 cr. SPINDLES CAPACITY CAPACITY P.A. IN MILLION MTR. CAPACITY PER DAY 86,352 40 5,000 COUNTRIES
Slide 14: Achieving Profitable Growth Consistently
Company Overview Industry Overview Our Strategy Corporate Information ACHIEVING PROFITABLE GROWTH CONSISTENTLY Sales Turnover (INR Crore) Net Profits (INR Crore) Debt Equity Ratio 760 762 30 30 1.07 22 0.93 0.80 705 705 0.67 702 12 12 0.48 FY 13 FY 14 FY 15 FY 16 FY 16 FY 13 FY 14 FY 15 FY 16 FY 17
Slide 15: State-of-the-Art Manufacturing
Company Overview Industry Overview Our Strategy Corporate Information STATE-OF-THE-ART MANUFACTURING SPINNING + FABRIC MFG. + GARMENT MFG. CAPTIVE Investments in POWER R&D and PLANT Product Intelligence • Spinning units > cotton, polyester, fancy, synthetic & blended yarns 25 MW Thermal power plant
Slide 16: Industry Overview
INDUSTRY OVERVIEW Suryalakshmi Cotton Mills Limited
Slide 17: Evolution of Denim in India
Company Overview Industry Overview Our Strategy Corporate Information EVOLUTION OF DENIM IN INDIA GROWING PREFERENCE OF DENIM AS WORKWEAR Fashion wear Casual wear Friday wear Work wear • Market skewed towards the men’s Versatility of use segment Western Indo-western Accessories Furnishings • Women’s
Slide 18: Denim Economy – Witnessing Explosive Growth
Company Overview Industry Overview Our Strategy Corporate Information DENIM ECONOMY – WITNESSING EXPLOSIVE GROWTH India Denim Market Overview# 42% 6 0 ,0 0 0 54,600 45% Global denim market 29% 40% 5 0 ,0 0 0 35% Segment-wise sales of denim brands USD 55 4 0 ,0 0 0 30% 27,200 25% (as per value) 3 0 ,
Slide 19: Denim Economy – Growth in India
Company Overview Industry Overview Our Strategy Corporate Information DENIM ECONOMY – GROWTH IN INDIA Jeans category growing By 2023, India will be a in India at a 1 CAGR of 15% 2 Rs. 54,600 crore market*. while the global market is growing at 3-5% Indian market is perennially in discount mode – MYT
Slide 20: Denim Economy – The Export Opportunity
Company Overview Industry Overview Our Strategy Corporate Information DENIM ECONOMY – THE EXPORT OPPORTUNITY Utilization rates Global denim market Indian manufacturing capacity 80-85% p.a. to increase from USD 64 BILLION 1.2 to 1.5 MTR. Domestic consumption to BY 2020 BILLION BY 2020 export ratio se
Slide 21: Denim Economy – The Growth Drivers
Company Overview Industry Overview Our Strategy Corporate Information DENIM ECONOMY – THE GROWTH DRIVERS According to industry analysts, denim is the preferred segment in the Indian textile industry with potential to grow manifold KEY DRIVERS Mid-value Consumer Expansion of Emergence of 1 segment dr
Slide 22: Our Strategy
OUR STRATEGY Suryalakshmi Cotton Mills Limited
Slide 23: Expansion Strategy – 2V Theory (Vol + Value)
Company Overview Industry Overview Our Strategy Corporate Information EXPANSION STRATEGY – 2V THEORY (Vol + Value) Yarn Denim Denim Garments Spinning Manufacturing Manufacturing COMMISSIONED NEW SPINNING UNIT INCREASE DENIM FABRIC SALES through AMALGAMATION with our 100% (25,344 spindles) at Amravat
Slide 24: Expansion Strategy – 2V Theory (Vol + Value)
Company Overview Industry Overview Our Strategy Corporate Information EXPANSION STRATEGY – 2V THEORY (Vol + Value) Changing Revenue Mix Investments in High Value Items Capacities with High Value Margins Increased Export Volumes – Changing Revenue Mix 2017 (Est.)* Export Markets, 30% Domestic Markets
Slide 25: Top Key Export Markets Leveraging Synergies
Company Overview Industry Overview Our Strategy Corporate Information TOP 30 KEY EXPORT MARKETS MARKET- GLOBAL LEVERAGING PRODUCT STANDARDS SYNERGIES ALIGNMENT State-of-the-art infrastructure Approaching high-growth Ensure optimum capacity + skilled workforce = global fashion markets with value- uti
Slide 26: Partnering Leading Global and Indian Brands
Company Overview Industry Overview Our Strategy Corporate Information PARTNERING LEADING GLOBAL AND INDIAN BRANDS Indian Retail Labels Global Brands § Aditya Birla § Levis § UFO § Peter England § Wrangler § Perry Ellis § Levis India § VF § Next § DKNY Retail Chain - Brands § Marks & Spencer § JC Pen
Slide 27: Corporate Information
CORPORATE INFORMATION Suryalakshmi Cotton Mills Limited
Slide 28: Our Promoters
Company Overview Industry Overview Our Strategy Corporate Information OUR PROMOTERS 0.67 % 0.02% Shareholding Pattern (31st March, 2017) 7.43% Shri L N Agarwal Chairperson Established SCML in 1962 35.94% 55.94% Shri Paritosh Agarwal Managing Director Joined SCML in 1995 Graduate from University of N
Slide 29: Company Financials
Company Overview Industry Overview Our Strategy Corporate Information COMPANY FINANCIALS In INR Crs. Year 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Total Revenue (INR Cr) 678 714 718 714 773 775 Total Costs (INR Cr) 586 609 632 630 663 678 EBIDTA (INR Cr) 92 105 86 84 111 97 EBIDTA margin (%)
Slide 30: Company Financials
Company Overview Industry Overview Our Strategy Corporate Information COMPANY FINANCIALS In INR Crs. Division Sales EBIDTA EBIDTA % PBT PBT % 2012-13 Denim 419 76 18.1% 39 9.3% Spinning 296 32 10.8% 14 4.7% Power 20 -3 -11 2013-14 Denim 376 53 14.1% 20 5.3% Spinning 303 25 8.2% 7 2.3% Power 42 5 11.
Slide 31: Manufacturing Responsibly – Safety Before Profitability
Company Overview Industry Overview Our Strategy Corporate Information MANUFACTURING RESPONSIBLY – SAFETY BEFORE PROFITABILITY Certifications & Qualifications Near-zero Human rights Stringent control accidents & protection policies procedures for environment at par with global health and safety incid
Slide 32: Health, Safety & Environment
Company Overview Industry Overview Our Strategy Corporate Information HEALTH, SAFETY & ENVIRONMENT 1 HEALTH & SAFETY 2 NEAR-ZERO INCIDENTS 3 EMPLOYEE WELLBEING Mid-value segment Safer workplace with near- Transport facility for all driving high growth zero safety and employees environment incidents
Slide 33: Thank You
THANK YOU Corporate Office: Suryalakshmi Cotton Mills Limited. Surya Towers, 6th Floor, 105, Sardar Patel Road, Secunderabad - 500 003, Telangana, India. Tel No : +91 40 27819856/7 Site Address: Village Nagardhan, Tehsil Ramtek, Nagpur – 440 010 Maharashtra, India. investors@suryalakshmi.com www.sur
Slide 34: Competition Analysis
Company Overview Industry Overview Our Strategy Corporate Information COMPETITION ANALYSIS JEANS FABRIC PRICE RANGE## (SALES IN %) Market Share Installed Installed in Indian Average Price Manufacturing Indian Peers Capacity Denim Fabric Realization Capacity (mmpa)# Utilization* Market Per meter ** 0
Slide 35: Competition Analysis
Company Overview Industry Overview Our Strategy Corporate Information COMPETITION ANALYSIS Share in World Labour Cost Power Cost Water Cost Fiber Countries Capacity (Mtrs) Exports Trade* (US $ / month) (US $ / kwh) US cents / m3 Availability China 3 billion 29% 250-275 0.15-0.16 57 Importer Vietnam
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