Pearl Global Industries Limited · NSE:PGIL
Pearl Global Industries — Investor Presentation (June 2024)
43 slides from Pearl Global Industries's investor presentation, Jun 12, 2024
Slide 1: Exchange filing cover letter
PEARL GLOBAL - Exceeding Expectations... Always PGlL/SE/2024-25/017 Date: June 12, 2024 THE GENERAL MANAGER, THE GENERAL MANAGER, DEPARTMENT OF CORPORA TE SERVICES - LISTING DEPARTMENT CRD NATIONAL STOCK EXCHANGE OF INDIA BSE LTMlTED LTD. 1sr FLOOR, NEW TRADING RING " EXCHANGE PLAZA", PLOT NO. C-1,
Slide 2: Corporate Presentation June 2024
Pearl Global Industries Limited Corporate Presentation June 2024 1
Slide 3: Safe Harbour
Safe Harbour This presentation has been prepared by and is the sole responsibility of Pearl Global Industries Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitat
Slide 4: Pearl Global: Everything From Fibre To Fashion
Pearl Global: Everything From Fibre To Fashion Founded in 1987, Pearl Global Industries Limited (PGIL) is a leading apparel manufacturer offering end-to-end sustainable solutions to the fashion industry. We began our journey with a single unit in New Delhi and today we are proud to have over 27,000
Slide 5: Our Journey Spanning Over 36 Years
Our Journey Spanning Over 36 Years 1987 1998 2002 2004 Established presence in Hong Commencement of Indonesian Established import and distribution in the USA, UK Pearl Global started operations Kong operations and Norp 1 in Bangladesh 2017 2014-16 2007-11 2014: Demerged from House of Pearl 2007: Got
Slide 6: Architects Of Our Vision & Leaders Behind Our Mission
Architects Of Our Vision & Leaders Behind Our Mission Architects Leaders Shifalli Seth Pallab Banerjee Sanjay Gandhi Ratna Singh Thought Leader- Managing Director Group CFO Group CHRO Design & CSR Gurusankar Vikas Mehra Pankaj Bhasin Sundeep Chatrath Gurumoorthy (CEO - Bangladesh) (CEO - Woven India
Slide 7: Board of Directors
Board of Directors Deepak Kumar Seth Pulkit Seth Shifalli Seth Pallab Banerjee Chairman Vice Chairman Non-Executive Director Managing Director Abhishek Goyal Neha Khanna Shailesh Kumar Deepak Kumar Independent Independent Executive Director Executive Director Director Director Rajiv Kumar Independen
Slide 8: Our Manufacturing Units Are Strategically Established
OUR MANUFACTURING UNITS ARE STRATEGICALLY ESTABLISHED TO MEET EXPECTATIONS ACROSS GEOGRAPHIES 7
Slide 9: Today Our Presence Is Global
TODAY OUR PRESENCE IS GLOBAL THANK YOU UNITED KINGDOM SPAIN USA (NEW YORK) BANGLADESH HONG KONG For further information, please contact GUATEMALA Company : Investor Relations Advisors : VIETNAM INDIA (GURGAON, CHENNAI, BANGALORE) INDONESIA CIN: L74899DL1989PLC036849 CIN: U74140MH2010PTC204285 Mr. Sa
Slide 10: Manufacturing Facilities
Manufacturing Facilities Capacity Utilization Location No of Units Annual Capacity as on FY24 Specialization % (Blended) FY24 In-House Partnership Woven and Knit products including women’s fashion wear, men’s wear and kid’s wear. Design and Marketing India 7 - 61% 26.4 mn pieces p.a. South factories
Slide 11: Product Portfolio
Product Portfolio Gender wise Split Woven Knits Dress, Tops, Top, Shirt, Long Shirt, Dress Women Skirts, Sweater ,T Shirt, Sleepwear, Huddie, legging Jogger Shirt, Sleepwear, T Shirts, Hoodies Men Pyjama, Polo T shirt Boys Shirts T Shirt, 2 Pc Set TT Shirts, Shirts, Skirt, Skirt, Girls Girls Top, Sk
Slide 12: Synergies From Partnership Model
Synergies From Partnership Model Working Capital Investment Responsible for optimum capacity utilization at Industrial Engineer Pearl partner facility Designing Global Ensures Compliances Monitors Production Processes Appointment of industrial Engineer Fabric Procurement 15% Capex and Labour Expense
Slide 13: Key Clientele
Cle S ind See 7 N wd Cr Getting Calvin ln. bigger & betterwith —_— Key Clientele every collaboration! ve | Cle Se Cavin Kein > TOMMY SB HILFIGER ( PEARL GLOBAL
Slide 14: Robust Clientele Portfolio
Robust Clientele Portfolio 13
Slide 15: Robust Growing Customer Relationship
Robust Growing Customer Relationship Revenue Contribution from Key Clients Revenue Contribution from customers added in last 5 years 44.0% 44% +69.7% 56% 24.5% 21.2% 10.4% 4.7% 5.3% FY19 FY20 FY21 FY22 FY23 FY24 5+ years <5 years 14
Slide 16: Productivity Improvements
PEARL GLOBAL PEAR! GLOBAL Exceeding Expectations...Always Conscious steps towards a Sustainable future Productivity Improvements
Slide 17: Digitization
DIGITIZATION END OF LINE FABRIC VETTED FABRIC CUTTING - PCS INSPECTION FINISHING RECEIVE PLY TO GARMENT QR FINISHING QUALITY ISSUE PCS CODE ISSUE INSPECTION SAP GRN FABRIC ROLLS SUPERMARKET DISPATCH PACKING CREATION FABRIC QR ROLL TO CODE INVENTORY PRODUCTION CUTING - PILES WASHING UPDATE LINE GARME
Slide 18: Cotton Traceability
Cotton Traceability KNITTING PROCESSING GARMENT GINNING SPINNING RETAILERS MANUFACTURING WEAVING Doc Set 1 Doc Set 2 Doc Set 3 Doc Set 4 Doc Set 5 1. Invoice 1. Invoice 1. Invoice 1. PO to customer 1. Invoice 2. Packing list 2. Packing list 2. Packing list 2. Packing list 2. Packing list 3. Bill of
Slide 19: Efforts Towards Sustainable Production #MISSION ZERO
Efforts Towards Sustainable Production MAKE THE WORLD Aqua Less Missi n A BETTER PLACE WITH LESS It’s our new technology to reduce 85%the water Dry bag softener step Aqualess Oz-One Dry Bag Novascraper Indigo Aged Powder Softner Conventional Aqua Less Missi n 85% WATER REDUCTION DESIZING – STONE WAS
Slide 20: Industry Updates & Key Drivers
Industry Updates & Key Drivers
Slide 21: Global Scenario
Global Scenario USA EU UK Japan • In February 2024, US • EU apparel imports in • UK apparel imports in • In February 2024, Japan’s apparel imports were US$ February 2024 were US$ 6.5 February 2024 were US$ 1.4 apparel imports were US$ 1.7 6.2 Bn. which is the same Bn. which is 10% lower than Bn. whi
Slide 22: Share Of Major Suppliers In Key Markets
Share Of Major Suppliers In Key Markets US$ 99.8 Bn. US$ 78.8 Bn. US$ 18.2 Bn. US$ 99.1 Bn. US$ 86.1 Bn. US$ 20.2 Bn. China 22% 21% 20% China 29% 28% 26% Vietnam 18% 18% 18% Bangladesh 10% 9% 9% 21% 22% Bangladesh 22% USA EU India 6% 6% 7% 6% 5% 6% Turkey 12% 12% Indonesia 12% India 5% 5% 5% 4% 5% 5
Slide 23: Bangladesh RMG Industry: SWOT Analysis
Bangladesh RMG Industry: SWOT Analysis S W O T Strengths Weaknesses Opportunities Threats 1. Cost Competitive Labor cost advantage 1. Diversification: The industry can 1. Environmental : The environmental Global Economic Uncertainty: Economic compared competing RMG Manufacturing explore product dive
Slide 24: Bangladesh RMG Industry: Outlook
Bangladesh RMG Industry : Outlook What does this mean for companies operating in the sector? • Companies investing in the Man-Made Fiber segment are likely to witness faster growth • Companies expanding their portfolios with higher-margin product categories will perform better • Companies expanding
Slide 25: Vietnam's garment & textile export turnover over the years
Vietnam’s garment & textile export turnover over the years (Unit: USD million) 40,324 2023 23,297 17,027 44,392 2022 25,489 18,903 40,454 2021 24,243 16,212 35,067 2020 19,589 15,479 38,886 2019 22,367 16,519 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 Export Import Trade Surplus 24
Slide 26: Macro Factors - Vietnam
Macro Factors - Vietnam Opportunities • The market is showing signs of recovery, and it is Challenges expected that the export turnover will increase • Application of EPR (extended producer responsibility) • Free trade agreements will support Vietnam to be and CBAM (carbon border adjustment mechanis
Slide 27: Our Unique Proposition
Our Unique Proposition Multinational Presence Robust Design Team Shift Towards Asset Light Model Strong Customer Relationship • 24 manufacturing facilities • Fashion trend analysis by • Partnership model to drive • Long term relationship with well- spread across 5 countries talented design personnel
Slide 28: Growth Drives for PGIL
Growth Drives for PGIL New Customer Acquisition Geographical Expansion Automation Of Facilities Optimum Utilization Of Existing Facilities Growth Through Partnership Facilities PLI Scheme To Act As A Growth Engine 27
Slide 29: Key Financial Highlights
PEARL GLOBAL Exceeding Expectations...Always We believe in the Triple Bottom Line Approach \ KA OOS
Slide 30: Consolidated Group Performance
Consolidated Group Performance In Rs. Crs Revenue Adj EBITDA* 8.2% 9.2% 3,436.2 3,158.4 COVID-19 Impact COVID-19 Impact 2,713.5 5.2% 316.4 4.0% 4.1% 258.2 1,685.1 1,490.9 140.6 66.9 60.9 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 EBITDA EBITDA Margin(%) Adj PBT# PAT After Minority Interest^ 5
Slide 31: Improved Working Capital Days
Improved Working Capital Days Working Capital Days Inventory Days 66 67 73 63 68 57 59 53 38 30 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Debtor Days Creditor Days 59 60 59 48 49 52 45 39 28 24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Ratios are calculated on sales 30
Slide 32: Consolidated Financial Parameters
Consolidated Financial Parameters Networth (Rs. Crs.) Gross Debt (Rs. Crs.) Cash and Bank Balance (Rs. Crs.)^ 817 564 743 285 448 445 254 615 514 530 357 325 144 109 93 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Return on Capital Employed
Slide 33: Consolidated Performance Highlights FY24
Consolidated Performance Highlights FY24 Geographical Revenue Split (Rs in Crs) No. Of Pieces Shipped (Mn pieces) Product wise Split 3,436 3,158 954 56.9 2,714 50.9 1,104 934 58% 59% 55% 63% 70% 1,685 1,491 825 2,482 771 2,055 1,780 42% 41% 45% 37% 860 30% 720 FY20 FY21 FY22 FY23 FY24 FY23 FY24 FY20
Slide 34: Risk Mitigation & Governance
Risk Mitigation & Governance
Slide 35: Risk Management
Risk Management Currency Raw Material Early projection and booking of raw materials, Maintaining a natural hedge in all along with periodic review of physical count & overseas operations, including India- utilization of stock export-forward cover Social and Ethical Compliance Product Robust internal
Slide 36: Robust Governance To Protect Value
Robust Governance To Protect Value Structure & Integrity PGIL Group Initiatives People & Team ▪ Ernst & Young appointed as Statutory auditor in Hong Kong ▪ Ernst & Young appointed as Internal auditor in India & Bangladesh ▪ KPMG appointed as Statutory auditor in Bangladesh GOVERNANCE Policies & Proc
Slide 37: Improving Credit Rating Over The Years
Improving Credit Rating Over The Years 2021 2022 2023 Long Term [ICRA] BBB (Stable) [ICRA] BBB+ (Stable) [ICRA] A- (Stable) Short Term [ICRA] A3+ [ICRA] A2 [ICRA] A2+ Reasons For Upgrade Resulting into borrowing of funds at low-cost debt Consistent Business re-routing Multinational Performance amids
Slide 38: Regular Dividend Payouts
Regular Dividend Payouts Dividend 18.6% 9.7% 15.4% 10.6% 22.5% Payout FY20 & FY21 The Company has finalized a Due to impact of Covid-19, the 169.1 dividend policy wherein the Company has restrained from 153.0 Company will declare dividend of giving dividend to maintain at least 20% of the consolidat
Slide 39: Way Forward
PEARL GLOBAL Exceeding Expectations...Always Way Forward
Slide 40: Strategic Pathway To Growth
Strategic Pathway To Growth Multinational 2.0 Presence Smart Factories, Diversified Product Digitization, Strong Offering Processes 2.0 Sustainable, New COPs, Licensed Products Robust Design Team 2.0 Market Intelligence, 3D Designing, Fabric R&D Strong Customer Relationships 2.0 Strategic Partnershi
Slide 41: Guidance vs Achievement
Guidance vs Achievement Doubled our revenue from Rs 1,490.9 crore in FY21 to Rs 3,158.4 crore in FY23, 1 To grow at 12-15% CAGR and cross the Rs 3,000 1 crore revenue mark thereby surpassing our growth guidance Guidance With the acquisition of Guatemala unit in 2023 the company is now present in 3 o
Slide 42: Way Forward: Maximising Return to Stakeholders
Way Forward GROWTH IN EBIT BORROWING LEVERAGE WORKING CAPITAL Maximising CAPITAL OPTIMIZATION Return to ALLOCATION Stakeholders FIXED ASSETS OPTIMUM GOVERNANCE UTILISATION FRAMEWORK 41
Slide 43: Thank You
THANK YOU For further information, please contact Company : Investor Relations Advisors : CIN: L74899DL1989PLC036849 CIN: U74140MH2010PTC204285 Mr. Sanjay Gandhi - Group CFO Mr. Karan Thakker / Mr. Rahul Agarwal sanjay.gandhi@pearlglobal.com karan.thakker@sgapl.net / rahul.agarwal@sgapl.net +91 8169
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