Alok Industries Limited · NSE:ALOKINDS
Alok Industries — Investor Presentation (April 2011)
57 slides from Alok Industries's investor presentation, April 2011
Slide 1: Corporate Presentation April 2011
INTEGR ATE D TE XTILE SO LU TION S Corporate Presentation April 2011 1
Slide 2: Alok Overview
Alok Overview Vertically Integrated Textile Company both in cotton and polyester Sales of Rs. 4,311.17 Crores and PAT of Rs. 247.34 Crores in FY 2010 Export of Rs. 1,558.99 Crores in FY 2010 State of the art manufacturing facilities with Integrated Management System Certification Two decad
Slide 3: Alok Vision and Mission
Alok Vision To be the world‟s best integrated textile solutions enterprise with leadership position across products and markets, exceeding customer & stakeholder expectations Alok Mission WE WILL: Be a knowledge leader & an innovator in our businesses Maximise people development initiatives Optim
Slide 4: Textile Industry Synopsis
Textile Industry Synopsis 4
Slide 5: Global Textile Trade – Vision 2020
Global Textile Trade –Vision 2020 2009 Global trade in textiles and clothing increased to US$ 510 bn from US$ 355 bn. in 2000 - CAGR of 4.63% 2020 Global trade expected to grow to US$ 1000 bn from US$ 510 bn in 2009 - CAGR of 6.3% Global Textile & Apparel Trade USD bn. 1200 5 % CAGR Top Exporter
Slide 6: Shifting of Production Base
SHIFTING OF PRODUCTION BASE Over the years, production has converged towards Asia from Western countries 6
Slide 7: Indian Textile Industry
Indian Textile Industry GDP : US $1,370 bn Snapshot Second largest Private Consumption: Public Spending & producer of cotton in the US$ 795 bn (58%) Investment: US$ 575 bn (42%) world Second largest Retail: US$ 435 Non Retail: US$ bn (55%) 360 bn employer in India (after agriculture) – Direct Em
Slide 8: Indian Textiles - Vision 2020
Indian Textiles - Vision 2020 220 80 Domestic M arket Exports 134 78 70 45 46 140 23 26 16 89 47 52 30 2005 2009 2010 (E) 2015 (E) 2020 (E) Projections The domestic textile market in India is projected to grow from USD 52 bn. in 2010 to USD 140 bn. by 2020 at a CAGR of 10.5% The export market in
Slide 9: Indian Textiles - Domestic Growth
Indian Textiles - Domestic Growth 2005 2009 2010(E) 2015(E) 2020(E) Total Total Total Total Total US$ 47 bn US$ 47 bn US$ 140 bn US$ 30 bn US$ 89 bn INR cr INR cr INR cr INR cr INR cr 4,18,670 2,18,570 2,18,570 6,56,6000 1,39,330 Apparel Apparel Apparel Apparel Apparel US$ 22bn US$ 61bn US$ 100bn US
Slide 10: Indian Textiles – Export Growth
Indian Textiles – Export Growth Indian Textile & Apparel Exports 100 -4% 9% 12% CAGR 80.0 80 45.0 US $ bn 30 60 40 21.6 23.5 20 50 20 12.8 10.6 12.8 25 9.7 11 10.7 0 2007 2008 2009 2015 (E) 2020 (E) Year Apparel Textile India has the potential to increase its export share in the world trade from t
Slide 11: Textile Industry-Opportunity
Textile Industry-Opportunity • The global textile and apparel industry is reviving after the recent global recession with increasing consumer demand. With the positive outlook the global textile and apparel trade has the potential to grow up to USD 800 bn. by 2015 from about USD 510 bn. in 2009 • Th
Slide 12: Challenges
Challenges Challenges Mitigation Rising cotton cost in spite of India being a This season, bumper crop is expected in India : cotton surplus country. estimated production of 33 mn bales. The Cotton prices at all time high being driven by country‟s has sufficient cotton inventory of about internation
Slide 13: Alok Industries Ltd – Integrated Textile Solutions
Alok Industries Ltd – TMIntegrated Textile Solutions 13
Slide 14: Segment Wise Revenue
Segment Wise Revenue Rs. in Crores Share of Share of Segment Target Customer Business 2010 Business 2009 Captive Consumption 327.10 111.10 COTTON YARN Export to traders, manufacturing units, 7.59% 3.73% weavers Garment exporters in India / converter APPAREL FABRICS countries 1,942.73 1,609.56
Slide 15: Alok’s Advantage
Alok’s Advantage Timely expansions resulting in first mover advantage Exports increased from Rs. 100 Crores in 2004 to about 1,559 Crores in 2010 at a CAGR of about 60% Preferred Vendor status from leading retailers Critical supplier for the Buyer due to Quality, Cost & Delivery (QCD) Econ
Slide 16: Global Sized Capacities
Global Sized Capacities Current Capacity under Capacities Post Divisions Units Market Position Capacities Implementation Expansion Tons 58,500 17,960 80,000 Largest at Single SPINNING (Spindles) (300,096) (111,744) (411,840) Location in India HOME TEXTILES Processing mn. Mtrs 82.50 22.50 105.00 Larg
Slide 17: Diversified Customer Base
Diversified Customer Base Export ® Domestic Creative Garments Other leading garments exporters and retailers 17
Slide 18: Organic Cotton Initiatives
Organic Cotton Initiatives Global retailers and brands increasingly prefer „fair trade‟ and organic cotton, since it: Promotes eco-friendly textile products Addresses global warming concerns Tie up with an NGO called Zameen organic Entered into agreement for complete supply chain and produ
Slide 19: Focussed Segment – Speciality Fabrics
Focussed Segment – Speciality Fabrics Special Finishes Stain Guard Flame Retardant Anti Static Water Repellent Soil Release Infra Red Finish 3X Dry Insect Repellent Brushed Fabric High Visibility Anti Bacterial Aroma Finish Finish User Industry Defense Fire Brigades Aviation Oil Refineries Hospitali
Slide 20: Certifications
Certifications ISO Certifications The company is now accredited with Integrated Management System (IMS). There are 4 certificates under this system: 1. ISO 9001: 2000 – Quality Management System 2. ISO 14001:2004 – Environmental Management System 3. OHSAS 18001: 2007 – Occupational Health & Safety
Slide 21: Financial Analysis
Financial Financial Analysis Analysis 21
Slide 22: Credit Rating – Basel II Norms
Credit Rating – Basel II Norms Long Term Credit Rating of “CARE A+” assigned to the long term facilities by Credit Analysis & Research Ltd (CARE) Instruments with this rating are considered to offer adequate safety for timely servicing of Debt Obligation Short Term – CP/NCD CARE has upgrad
Slide 23: General Information – Alok Industries Ltd.
General Information – Alok Industries Ltd. Present Equity Rs. 787.798 Crores (787.79 million shares) Listed at BSE and NSE Market Price Rs. 20.35 as on March 15, 2011 Market Capitalization Rs. 1,603 Crores 52 weeks High / Low High: Rs. 35.00 Low: Rs. 17.75 Plant Locations Vapi, Silvassa, Navi Mumbai
Slide 24: Historical Financials
Historical Financials Rs. in Crores Profitability December 2010 2010 2009 2008 9 months (Audited) (Audited) (Audited) (Provisional) Sales 4163.05 4,311.17 2,976.93 2,170.41 Operating EBITDA 1211.99 1,272.48 822.61 547.75 Operating PAT 216.83 247.34 188.37 167.73 Cash Profit 581.26 711.89 513.98 393.
Slide 25: Holding Structure and Subsidiaries
Holding Structure and Subsidiaries 25
Slide 26: Alok Structure
Alok Structure INTEGR ATED TEXTILE SO LU TION S Textile Manufacturing Cotton Spinning Polyester Yarn Apparel Fabrics Home Textiles Garment International Domestic Cash & Domestic Garment Infrastructure & Realty Business Carry Manufacturing Alok Infrastructure Ltd Alok Industries Alok H&A Ltd (100% Al
Slide 27: Alok H&A Limited
“ALOK, xo) 2 E = < 03 - =< 2 A
Slide 28: Alok H&A Present Status and Future Strategy
Present Status • The Company‟s retail operations are now carried out in cash and carry company called “Alok H&A Ltd.”, a 100% subsidiary of the company • Stores offer quality products in home textiles, mens wear, womens wear, kids wear and accessories like ties, handkerchiefs, cuff lings etc. • 271
Slide 29: Overseas Retail - Grabal Alok (UK) Ltd
Overseas Retail - Grabal Alok (UK) Ltd 29
Slide 30: Grabal Alok (UK) Ltd Sales Growth
Alok Group presently has a stake of 91% in Grabal Alok (UK) Ltd. (Alok Industries International Ltd. 41.7% and 49.3% by Grabal Alok International Ltd.) Currently, the chain comprises of 215 stores and employ about 2,500 people The stores offer a value proposition for quality apparel for women,
Slide 31: Mileta International
Mileta International Alok holds 93.20% stake in Mileta, a Czech based manufacturing company through its wholly own subsidiary Alok Industries International limited Derived benefits from Mileta‟s technology skills in yarn-dyed fabrics and hemming: results in higher per-unit realizations and new p
Slide 32: Alok Realtors – Ashford Royale – Premium
Alok Realtors Pvt. Ltd. – Ashford Royale – Premium Ashford Centre, Lower Parel Peninsula Business Park, Lower Residential Complex, Nahur Parel • 641,589 sq ft of ultra modern office • Ashford Investment & Trading • 60,000 square feet of prime office premises with 600 car parks Company Pvt. Ltd and A
Slide 33: Way Forward
Way Forward Having built sizeable capacities across all business segments, the company to focus on maximising returns in next few years with main focus on effective utilisation of capacities and cost control Thrust on increasing presence in value added yarn dyed (structured) fabrics, Technical t
Slide 34: Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) INTEGR ATE D TE XTILE SO LU TION S CSR is an integral part of Alok - some of the CSR initiatives includes: Employment to tribal women on weaving looms and garment/made up stitching machines after intensive training and orientation Private Public Partnership
Slide 35: Product and Plant Gallery
Product and Plant Gallery 35
Slide 36: Vapi Plant
Vapi Plant Continuous processing plant – wider width Vapi 36
Slide 37: Silvassa Plant
Silvassa Plant Airjet Weaving plant- Silvassa 37
Slide 38: Spinning Unit
Spinning Unit Rieter Spinning unit- Silvassa 38
Slide 39: Weaving Unit
Weaving Unit Airjet Weaving Machinery- Silvassa 39
Slide 40: Terry Towel
Terry Towel Terry Towel Jacquard Looms - Vapi 40
Slide 41: Made Ups Unit
Made Ups Unit Made Ups Unit - Vapi 41
Slide 42: Texturising
Texturising Texturising unit- Silvassa 42
Slide 43: Quilting Unit
Quilting Unit Made up unit- Silvassa 43
Slide 44: Knitting Unit
af ~ ALOK IMOUSTHIES LOMITED
Slide 45: Knit Processing Unit
Knit Processing Unit 45
Slide 46: Apparel Processing Unit
Apparel Processing Unit 46
Slide 47: POY Unit
POY Unit 47 POY Lines - Silvassa
Slide 48: Embroidery Unit
Embroidery Unit Multihead Embroidery Machines - Silvassa 48
Slide 49: Infrastructure - Fire Fighting
Infrastructure - Fire Fighting Mecedes Fire Fighting Trucks - Silvassa 49
Slide 50: Staff Housing Colony
Staff Housing Colony 50
Slide 51: Products - Home Textiles – Sheet Sets, Quilts, Comforters
…Products - Home Textiles – Sheet Sets, Quilts, Comforters, Blankets, Bed in a bag 51
Slide 52: Products - Home Textiles – Towels
…Products - Home Textiles –Towels 52
Slide 53: Products – Apparel Fabrics
…Products – Apparel Fabrics 53
Slide 54: Products – Knitted Fabrics
…Products – Knitted Fabrics 54
Slide 55: Products – Dyed & Polyester Yarn
…Products – Dyed & Polyester Yarn 55
Slide 56: Products – Garments
…Products – Garments 56
Slide 57: Thank you
Thank you Alok Industries Limited Peninsula Towers, Peninsula Corporate Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400 013. Tel. +91 (22) 2499 6200 / 500, Fax: +91 (22) 2493 6078 E-mail: info@alokind.com Website: www.alokind.com 57