Indian Terrain Fashions Limited · NSE:INDTERRAIN
Indian Terrain Fashions — Investor Presentation (2014)
36 slides from Indian Terrain Fashions's investor presentation, 2014
Slide 1: Indian Terrain: A Leading Player in Branded Men's Casual Apparel Segment
INDIAN TERRAIN: A LEADING PLAYER IN BRANDED MEN’S CASUAL APPAREL SEGMENT 0
Slide 2: Contents
Contents 1 Industry Prospects 2 Corporate Overview 3 Business Overview 4 Management Team 5 Financial Metrics 6 Strategic Vision 1
Slide 3: Rising Private Consumption Supported By Demographic Changes
Rising Private Consumption Supported By Demographic Changes Expanding working age population,… ... a young consumer base, … 65.8% Mean age of BRIC countries (years) BRIC average = 35 years 42 BRIC average = 31 years 35 36 37 29 31 64.9% 27 26 64.5% 2009 2011 2013 Male Female India Brazil China Russi
Slide 4: Apparel Consumption To Grow Along With Private Consumption Growth
Apparel Consumption To Grow Along With Private Consumption Growth Apparels market , which accounts for ~4% of private consumption,… … still remains small compared to peer countries… Case-In-Point: Comparison Between India & China Private consumption (~INR 60 Tn) accounts for ~60% of total GDP Per-ca
Slide 5: Menswear to Benefit From Emerging Trends In The Industry
Menswear to Benefit From Emerging Trends In The Industry Menswear, which is the largest user category within apparels,… …is dominated by shirts & trousers segments Kidswear Menswear Others 20% Suits 10.2% Shirts 5.2% T-shirts 29.2% 42% 6.3% 2013 Market: 2013 Market: INR 2.3 Tn Innerwear 7.1% INR 1.0
Slide 6: Increasing preference for ready-to-wear, casual products with rise in corporatized retail
Increasing preference for ready-to-wear, casual products with rise in corporatized retail A Increasing preference to casualwear è The term ‘casualwear’ covers a gamut of products Men’s casualwear market has higher penetration and is more mature ─ ‘Business casuals’ or ‘corporate casuals’, which are
Slide 7: Contents
Contents 1 Industry Prospects 2 Corporate Overview 3 Business Overview 4 Management Team 5 Financial Metrics 6 Strategic Vision 6
Slide 8: Corporate Overview
Corporate Overview History & background Shareholding pattern** è Indian Terrain brand (“the Brand”) is a leading player in branded casual men’s apparel segment Others 26% è Initially launched in 2000 as part of Celebrity Fashions Limited, and subsequently demerged in FY11* Bennett, Col Promoters ema
Slide 9: Key Highlights [1/2]
Key Highlights [1/2] § Indian private consumption has been rising driven by rising urbanization, a young consumer base and growing working population. Textiles & apparels is the fourth largest segment within India’s private consumption accounting for 5.4% in 2013. Indian per-capita apparel consumpti
Slide 10: Key Highlights [2/2]
Key Highlights [2/2] § The product offerings of the Company are distributed through multiple channels strategically chosen to increase customer reach Established pan-India § Currently, Indian Terrain has distribution channels are spread across more than 200 cities in India through a presence through
Slide 11: Contents
Contents 1 Industry Prospects 2 Corporate Overview 3 Business Overview Brand Positioning & Product Offerings Operational Value Chain & Distribution Network 4 Management Team 5 Financial Metrics 6 Strategic Vision 10
Slide 12: Brand Offering
Brand Offering Brand positioning & target customer profile Pillars of brand offering Strong customer connect, as evidenced by over 3.7 lakh registered EBO è Premium, casual wear brand with price points for core products (shirts & loyalty program members, developed by focusing on 3 pillars trousers)
Slide 13: Product Offerings
Product Offerings Product portfolio dominated by shirts, trousers and t-shirts, … …firmly positioned in the premium price segment … Key Products Typical MRP Ranges (INR) FY14 revenue break-up by products FY14 volume break-up by products Knitwear Shirts 1,599 – 2,299 Shorts Others Jackets Others 2% K
Slide 14: Contents
Contents 1 Industry Prospects 2 Corporate Overview 3 Business Overview Brand Positioning & Equity Operational Value Chain & Distribution Network 4 Management Team 5 Financial Metrics 6 Strategic Vision 13
Slide 15: Operational Value Chain
Operational Value Chain Value chain Managed in-house Managed in-house Outsourced operation Managed in-house Design Procurement* Manufacturing Branding & Distribution Critical in ensuring product Vital for ensuring the products Leverages the ample Key to creating demand pull for the offerings are con
Slide 16: Design & Procurement Capabilities
Design & Procurement Capabilities Best-in-class design and procurement, with quality control mechanisms in place è Dedicated 10-member in-house design team § Head of the design team has strong product understanding and design sensibility accumulated over 10 years working at Celebrity Fashions, servi
Slide 17: Judicious channel mix to expand geographic footprint and customer reach
Judicious channel mix to expand geographic footprint and customer reach Spread across 200+ cities through different distribution channels Points of sale (POS) EBO LFO MBO è Provides increased brand è Gives access to large untapped EBO – company EBO – franchisee visibility and customer reach regional
Slide 18: Channel – Exclusive Branded Outlets
Channel – Exclusive Branded Outlets Channel overview è Displays an extensive range of products in an environment aligned with the intended brand image, building brand equity Channel characteristics è Store formats range in area from 280 sq. ft. to 3500 sq. ft. è Around three-fourth of the stores run
Slide 19: Channel – Large Format Outlets
Channel – Large Format Outlets Channel overview è Provides large number of footfalls in cities and towns where modern retail format is expanding è Present across Shoppers Stop, Lifestyle, Central, Westside and Globus Channel characteristics è Counters present in departmental stores, together with br
Slide 20: Channel – Multi-Branded Outlets
Channel – Multi-Branded Outlets Channel overview è A cost efficient way to access a large customer base that is serviced by traditional mom & pop, single-outlet shops Channel characteristics è No investment risk as all required investments are undertaken by the shop-owners è Limited control over bra
Slide 21: Contents
Contents 1 Industry Prospects 2 Corporate Overview 3 Business Overview 4 Management Team 5 Financial Metrics 6 Strategic Vision 20
Slide 22: Organization Chart
Organization Chart Board of Directors Chairman & Managing Director V. Rajagopal Chief Executive Officer Charath Narasimhan* Chief Operating Officer Chief Financial Officer* Logistics & Warehousing* Head - Human Resource* Head - Finance and Head - Design & Accounts & Board of Directors Development Se
Slide 23: Management Team
Management Team V. Rajagopal è Promoter of Indian Terrain. Over 25 years of experience in garmenting industry. Served in Indian Police Service for a Chairman & Managing decade before entering into the business of garment exports in 1988 Director Charath è With Indian Terrain brand since Nov 2005 and
Slide 24: Contents
Contents 1 Industry Prospects 2 Corporate Overview 3 Business Overview 4 Management Team 5 Financial Metrics 6 Strategic Vision 23
Slide 25: Revenue, Profitability & Cash Flows
Revenue, Profitability & Cash Flows Net revenue from operations and growth Earnings before interest, tax and depreciation and margin 2500 2,321 300 12% 245 12% 2000 250 11% 1,567 200 1,410 158 11% 11% 1500 150 131 10% 10% 1000 10% 100 9% 9% 500 50 9% 0 0 8% FY12 FY13 FY14 FY12 FY13 FY14 Net revenue
Slide 26: Working Capital
Working Capital Strengthening of supply chain by identifying and developing a pool of suppliers, increasing procurement frequency and better inventory planning to ensure “right-merchandise-at-right-store” is resulting in steady working capital cycle improvement Debtor days Creditor days Debtor days
Slide 27: Leverage, Coverage & Asset Utilization Metrics
Leverage, Coverage & Asset Utilization Metrics Debt/Equity ratio Interest coverage ratio (EBITDA/Finance charges) Financial leverage steadily declined Interest coverage strengthened as the Company profitability increased 2.9x 2.6x 2.4x 1.7x 1.6x 1.3x FY12 FY13 FY14 FY12 FY13 FY14 Return on average a
Slide 28: Profit & Loss Statement
Profit & Loss Statement (In INR Mn) FY12 FY13 FY14 H1 FY15* Revenue from Operations (net) 1,410 1,567 2,321 1,554 Other Income 6 6 3 1 Total income 1,416 1,573 2,323 1,555 Cost of Materials 419 485 736 336 Purchases of Finished Goods 170 115 279 285 Changes in Inventories (3) 2 (118) 39 Employee Ben
Slide 29: Balance Sheet
Balance Sheet (In INR Mn) FY12 FY13 FY14 H1 FY15* ASSETS Total fixed assets 91 84 79 64 Long-term loans and advances 71 76 85 95 Other non-current assets 1 2 2 1 Total Non-Current Assets 163 161 167 160 Inventories 324 324 431 380 Trade receivables 626 691 771 1,029 Cash and bank balances 59 26 27 2
Slide 30: Cash Flow Statement
Cash Flow Statement (In INR Mn) FY12 FY13 FY14 Cash flow from Operating Activities Net Profit before Tax and before Extra-Ordinary Items 23 48 125 Adjustments for non-cash items 0 14 1 Net finance charges 95 94 96 Operating Profit before Working Capital Changes 119 156 222 Changes in working capital
Slide 31: Contents
Contents 1 Industry Prospects 2 Corporate Overview 3 Business Overview 4 Management Team 5 Financial Metrics 6 Strategic Vision 30
Slide 32: Strategic Vision
Strategic Vision Indian Terrain has built a menswear brand profitably over the last decade, which currently provides potential for expansion across products / geographies / distribution models • The Brand already has presence in 200+ towns and cities Focus in under- penetrated markets • Owing to the
Slide 33: Contents
Contents 1 Industry Prospects 2 Corporate Overview 3 Business Overview 4 Management Team 5 Financial Metrics 6 Strategic Vision 7 Annexure 32
Slide 34: Overview And Rationale for Demerger From Celebrity Fashions
Overview And Rationale for Demerger From Celebrity Fashions Overview of Celebrity Fashions è Set up in 1988, Celebrity Fashions has over two decades of rich experience in designing and manufacturing apparels è Primarily an exporter with long standing relationships with leading premium international
Slide 35: Disclaimer
Disclaimer This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, or a solicitation of any offer, to purchase or sell any securities of Indian Terrain Fashions Limited ( the “Company”). This presentation should not be considered as a recommendation
Slide 36: Thank You
Thank You 35
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