Sangam (India) Limited · NSE:SANGAMIND
Sangam (India) — FY2016 Earnings Presentation
30 slides from Sangam (India)'s earnings presentation, May 16, 2016
Slide 1: Sangam India Ltd. Investor Presentation FY2016
Sangam India Ltd. Investor presentation FY2016 16 May 2016
Slide 2: Safe Harbor
Safe Harbor The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the business activities of t
Slide 3: Contents
Contents Key Business Highlights Q4 FY16 Financial Update Corporate Overview New Product Launch Annual Financial Highlights Business Outlook 16 May 2016
Slide 4: Key Business Highlights
Key Business Highlights Company launched superior value added products under the brand name “C9” during the year With this, Company enters lucrative margin accretive women active life style apparels. Company has installed fully imported machinery with capacity to produce 3.6 million pieces per annum
Slide 5: Expansion Highlights
Expansion Highlights Company consolidated its denim fabrics offering by commissioning addition capacity of 8 million meters per annum during 2015‐16. Installation of 26,736 spindles for mfg PV Dyed Yarn at new site , village Soniyana, Chittorgarh, Rajasthan. Installation of 74 new weaving machines a
Slide 6: Q4 FY16 Financial Update
Q4 FY16 Financial Update Rs. In Crores Q4 FY16 Q4 FY15 YoY % FY16 FY15 YoY % Total Revenue 387 362 7.0 1511 1477 2.3 Raw Materials & change in stocks 217 197 821 848 Employee Cost 36 31 140 119 Other Expenses 80 74 317 293 EBIDTA 54 60 ‐10.0 233 217 7.3 EBIDTA margin (%) 14.0 16.5 15.4 14.7 Deprecia
Slide 7: Company Overview
Company Overview Commenced operations in 1984 Net Sales Presence across the value chain: Dyed Yarn Fabric Garments Rs. 1511 Crores Market leader in PV yarn: ~25% market share EBIDTA ISO 9001:2008 certified Rs. 233 Crores Company is the largest producer of PV dyed yarn in Asia, at a single location C
Slide 8: Corporate Overview
Corporate Overview Capacities Manufacturing Units Open End Weaving Spindles Rotors Machines SANGAM (INDIA) LIMITED 211296 3908 437 Weaving, Knitting Seamless Texturising Processing & Denim Plant Machine Garment Knitting Seamless Garment Machines Machines (Biliya Kalan, Plant (Atun, Bhilwara) 18 36 3
Slide 9: Corporate Overview
Corporate Overview Products Export Markets PV Blended Cotton Spun Cotton Open End USA UK China Egypt Dyed/ Grey Yarn Yarn Yarn Poland Brazil Belgium Chile Synthetic Seamless Texturised Yarn Blended Fabric Garments Italy Spain Australia Japan Denim Fabric Cotton Knitted Generation of South UAE Turkey
Slide 10: Revenue Model – FY2016
Revenue Model – FY2016 Sales : Rs.1511 crs Yarn Others Fabrics 55% 4% 41% PV Cotton PV Denim Garments 79% 21% 45% 52% 3% Dom ‐77% Exp ‐23% Dom ‐72% Exp ‐28% 16 May 2016
Slide 11: Manufacturing Capacities
Manufacturing Capacities Atun Biliya Kalan & PV Fabrics – Sareri 24 mln PV Dyed Yarn, mtrs. P.A PV Yarn & Cotton Yarn Processed Fabrics – 53 1,14,432 mln mtrs spindles P.A (Sareri) 15 MW CPP Seamless Biliya Kalan Garments ‐ Denim Fabric – 32 mln meters 3.6 mln 96,864 spindles mtrs. P.A 16MW CPP 16 M
Slide 12: Segmental Analysis
Segmental Analysis Key Statistics Demand Drivers • Yarn Production Increased applications ‐ 44,894 MTPA Earlier used predominantly for bottom wear • Yarn Sales Now also used in ‐ 36,463 MTPA Summer suits • Net Revenues Carpets Rs. 668.56 Crores Socks, Knitted fabrics Proposed Strategy
Slide 13: Segmental Analysis
Segmental Analysis Key Statistics Demand Drivers Buoyancy in domestic demand • Yarn Production Increased usage in Readymade Garments 19,179 MTPA Increased consumption of denim fabric • Yarn Sales 9,899 MTPA Growing income level and urbanization • Net Revenues Penetration of organized retai
Slide 14: Segmental Analysis
Segmental Analysis Key Statistics Demand Drivers • Fabric Production Increasing use in summer suits 22.485 MMPA Increasing use in women bottom wear • Grey fabric Production 9.139 MMPA Increase in use for knitted fabrics • Fabric Sales 22.725 MMPA • Grey Fabric Sales 9.134 MMPA Proposed Strateg
Slide 15: Segmental Analysis
Segmental Analysis Key Statistics Demand Drivers • Fabric Production Favorable demographics 28,084 MMPA Increased fashion awareness • Fabric Sales 28,021 MMPA Denim usage extended to regular wear • Net Revenues Rapid urbanization Rs. 328.47 Crores Demand buoyant from rural India as well Pr
Slide 16: Strategy for Existing Business
Strategy for Existing Business Increase in‐ • Introduce Yarn house value added consumption Leading (PV + Fabric products Increase • Increase to Cotton) capacity exports Capacity expansion to be undertaken to augment our integration capabilities Prudent Capex Funding: internal cash generation + assum
Slide 17: Prudent Financial Management
Prudent Financial Management FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Total PAT (Rs. Crs.) 24.78 27.02 5.37 ‐15.98 17.15 56.59 17.08 51.30 40.50 51.57 77.04 352.57 CFO (Rs. Crs.) 15.69 ‐19.83 59.30 110.16 63.73 74.85 209.04 155.29 162.60 136.02 153.23 1120.1 CFO / PAT (X) 0.63 ‐0.73 11
Slide 18: Brand Launch in FY2016
Brand Launch in FY2016 Next Big Step from B2B to B2C Intimate Wear Active Wear Casual Wear One piece garment free of side seams Light , Smooth and soft to touch fabrics Moisture regain capacity 9 times more than polyester Skin friendly and high durability fabrics 16 May 2016
Slide 19: Merchandise Mix
Merchandise Mix Intimate Wear (50%) Active Wear (20%) Fashion wear (30%) Bra – 20% Sports bra – 4% Tops – 10% Panties – 25% Tank Tops – 3% T‐shirts – 5% Shape wear – 5% T‐shirt – 3% Legging – 10% Leggings – 5% Capri's – 5% Capri's – 3% Camisole – 2 % 16 May 2016
Slide 20: Omni Channel Strategy
Omni Channel Strategy 20 Exclusive outlets 600 multi brand outlets targeted to be launched across 24 states by March 2017. 1000 stores targeted Tie up with Central Asset light, franchisee In discussions with model to be adopted EBO MBO other large retailers E‐ LFS In discussions for 5‐
Slide 21: Annual Financials - Income
Annual Financials ‐ Income (Rs. Crs) Mar‐11 Mar‐12 Mar‐13 Mar‐14 Mar‐15 Mar‐16 5yr CAGR Sales 1,171.52 1,417.22 1,478.84 1,432.61 1,476.94 1511.46 1.23% Expenses 970.60 1,269.36 1,270.47 1,244.18 1,259.55 1278.12 OP 200.92 147.86 208.37 188.43 217.39 233.34 10% Other Income 8.01 12.53 12.56 13.10 2.
Slide 22: Annual Financials – Balance Sheet
Annual Financials – Balance Sheet (Rs. Crs) Mar‐11 Mar‐12 Mar‐13 Mar‐14 Mar ‐15 Mar-16 Equity Share Capital 39.42 39.42 39.42 39.42 39.42 39.42 Reserves 200.16 212.66 258.43 292.01 332.28 399.83 Secured Loans 672.97 576.64 564.43 497.64 534.71 582.84 Unsecured Loan 45.00 74.96 ‐ ‐ Total 957.55 903.6
Slide 23: Shareholding Pattern
Shareholding Pattern As on 31st March 2016 Public 13% Promoter 47% Body Corporate 26% FII Insurance 10% 4% 16 May 2016
Slide 24: Annexure
Sangam India Ltd. Annexure 16 May 2016
Slide 25: Weaving & Processing plant - Atun
Weaving & Processing plant ‐ Atun • Production began in 1985 • 253 Looms for Synthetic 30 Million Meters Fabric Weaving • 53.40 Million Meters Fabric Processing P.A. • 36 Knitting Machine for Seamless Garment Manufacturing 1985 2000 2015 • 8 Looms for • 227 Looms for • 253 Looms for Synthetic Fabric
Slide 26: Spinning Plant – 1 (Biliya Kalan)
Spinning Plant – 1 (Biliya Kalan) • Production began in 1995 • Biggest PV Dyed Yarn Plant at single location in Asia • Spindles – 96864 • Texturising ‐ 3 Machines • 16.0 MW Coal Based Captive Thermal Power Plant 1995 1999 2003 2009 2015 • 17280 Spindles • 27072 Spindles • 48384 Spindles • 96864 Spin
Slide 27: Spinning Plant – 2 (Sareri)
Spinning Plant – 2 (Sareri) • Production began in 2006 • 53856 Spindles ‐ For Production of Cotton Yarn • 60576 Spindles ‐ For Production of P/V Dyed/Grey Yarn • 18 nos. ‐ Knitting Machines • 3908 ‐ Open End Rotors • 15.0 MW Coal Based Captive Thermal Power Plant. 15.0 MW Coal Based Captive Thermal
Slide 28: Denim Weaving & Processing Plant (Biliya Kalan)
Denim Weaving & Processing Plant (Biliya Kalan) • Production began in 2009 • 184 Looms – For Denim Fabric Weaving with 4 Processing Lines. • Production Capacity: 32 Million Meters P.A Wind power 5 MW plant ‐ Jaisalmer 16 May 2016
Slide 29: Distribution Network in India
Distribution Network in India 16 May 2016
Slide 30: Thank You
Value through values 16 May 2016