Zodiac Clothing Company Limited · NSE:ZODIACLOTH
Zodiac Clothing — Investor Presentation (November 2013)
42 slides from Zodiac Clothing's investor presentation, Nov 14, 2013
Slide 1: Zodiac Mensana shirts
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 Design Driven Branded Business Own Retail Business International Business 111 company managed Across India and St
Slide 4: Sales Break up
Sales Break up Branded / International Sales Split H1 13-14 Channelwise Branded Sales Split Independent Branded Retailers 49% 43% Company International managed stores 51% 49% National Chains 7% Geographical Sales Split Middle East 6% India 49% North America 33% UK 4% Europe 8% Emphasis on aggressive
Slide 5: ZCCL: 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: ZCCL: 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: ZCCL: 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
Slide 9: Superfine 140's Pure Wool Suits
an wool Suits crafted from SUPERFINE 140’s PURE WOOL SUITS ZODIAC FINEST QUALITY CLOTHING
Slide 10: Vicenza Ties - 100% Pure Silk
Slide 11: Macereto shirts
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
Slide 13: 19
19
Slide 14: Clubwear
cL_UBWEAR
Slide 15: 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
Slide 16: 1Q /P
1Q /P
Slide 17: 1°77
1°77
Slide 18: ZCCL: 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 19: ZCCL: Retail Focus
ZCCL: Retail Focus Growing Contribution of Own Retail to Branded Business
Slide 20: Retail Footprint
Retail Footprint No.of ZRS Count - Cityw ise North Store cities Count 1 Delhi NCR 22 2 Chandigarh 3 3 Dehradun 1 4 Jalandhar 1 5 Ludhiana 1 6 Amritsar 1 7 Patiala 1 8 Varanasi 1 9 Lucknow 2 No.of Store East cities Count 1 Kolkata 6 2 Siliguri 1 3 Ranchi 1 4 Bhubaneshwar 1 5 Patna 1 No.of Store West
Slide 21: Amanora - Pune
Amonara - Pune y1
Slide 22: Express Mall - Chennai
Express Mall - Chennai
Slide 23: Infiniti Andheri - Mumbai
ss) 70D] Infiniti Andheri - Mu
Slide 24: ZCCL: 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 25: Financial Snapshot (Consolidated)
Financial Snapshot (Consolidated) Income Statement (Rs in lacs) Year ended March 31 6 months ended Sept 30 2011 2012 2013 2012 2013 H1-O-H1 growth Revenue 35,711 377,53 35,998 15950 19433 21.83% % growth 9.16% 5.7% -4.65% EBITDA 4,120 3,123 3,130 13,11 19,96 % margin 12.05 12.05 9.14 8.69 % 10.72% N
Slide 26: Performance over the last years (Consolidated)
Performance over the last 3 years (Consolidated) Overall Revenue (FY) 38,000 37,753 37,500 37,000 (Rs lakhs) 36,500 35,998 36,000 35,711 35,500 35,000 Overall Revenue (6M) 34,500 2011 2012 2013 19,500 19,433 18,698 19,000 18,500 (Rs lakhs) 18,000 17,500 17,000 16,500 15,950 16,000 15,500 H1FY'12 H1F
Slide 27: Standalone Performance
Standalone Performance Standalone sales (in Rs. lacs) 9,000 8,524 8,158 7,800 7,470 8,000 7,130 7,000 6,480 6,330 6,000 5,000 4,000 3,000 2,000 1,000 0 4Q'FY12 1Q'FY13 2Q'FY13 3Q'FY13 4Q'FY13 1Q'FY14 2Q'FY14 EBITDA margin (%) Net Profit (in Rs. lacs) 800 722 14% 11.8% 700 12% 10.7% 568 567 9.6% 600
Slide 28: Performance over the last 9 years
Performance over the last 9 years Growing Contribution of Branded Business (Consolidated) Growing Contribution of Branded Business in ZCCL (Standalone)
Slide 29: ZCCL: Enhancing Shareholder Value
ZCCL: Enhancing Shareholder Value Corporate Governance • A distinguished Board of Directors that brings rich and varied experience. • Approx 75% of the Board are independent directors since ZCCL was listed • Audit committee headed by & includes finance veterans ensuring strict financial discipline
Slide 30: ie mr
ie mr eee ee
Slide 31: Pure Silk pochettes and cufflinks
Slide 32: Experienced Promoters Distinguished Board of Directors
Experienced Promoters Distinguished Board of Directors Mr. M. Y. Noorani - Chairman & Founder Founder of ZODIAC, Clothing Manufacturers Association of India Mr. M. L. Apte - Former Sheriff of Bombay, former Chairman of the (and its President for 3 terms) Textiles Committee, currently Director of
Slide 33: Significant Events: Apr. – Sept. 2013
Significant Events: Apr. – Sept. 2013
Slide 34: Significant Events: Apr. – Sept. 2013
Significant Events: Apr. – Sept. 2013 – Fabric prices: • The depreciation of the Indian Rupee has impacted the cost of fabrics being imported for manufacturing • Moreover the cost of fabric itself has gone up – Input Costs: • The cost of furnace oil, electricity & other raw materials have gone to hi
Slide 35: Significant Events: Apr. – Sept. 2013
Significant Events: Apr. – Sept. 2013 – Indian Economy & Consumer Demand Has Been Erratic & Volatile Throughout SS 2013 • Inflation continues unabated and negative sentiment driven by news on corruption, political instability, likely downgrade of India by rating agencies, poor corporate results and
Slide 36: ZCCL's Business
ZCCL’s Business – ZCCL’s design-driven International Business • Order books were erratic but show a healthy position overall – On The Retail Front: • ZCCL has 111 company managed stores as of Sept 2013 • 6 new stores opened between April - Sept 2013 • 4 new store fit-outs have commenced and should b
Slide 37: The Branded Business
The Branded Business – Our “No Discounting” policy is firmly entrenched • We do not show growth at the cost of eroding bottom line – The Apr. – Sept 13 period Y/Y • Own store sales up (LTL) by 9% & All Stores by approx 11%, which, looking at the overall economic and results of other industries, is n
Slide 38: The Branded Business
The Branded Business – Apr. – Sept. 2013: Linen across ZCCL’s brands • ZODIAC: Over the past decade ZODIAC has become synonymous with pure Linen. In SS 2013 we brought a colorful range of shirts, trousers, pochettes, jackets & suits in 100% Linen for the contemporary Indian male • Z3 Relaxed Luxury:
Slide 39: Positano Linen Suits & Jackets
Slide 40: Z3 Vintage Linens
Z3 Vintage Linens ALY
Slide 41: ZOD! Linen visual
ZOD! Linen visual
Slide 42: Thank you
Thank you AY
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