Alok Industries Limited · NSE:ALOKINDS
Alok Industries — Investor Presentation (June 2012)
63 slides from Alok Industries's investor presentation, June 2012
Slide 1: Corporate Presentation June 2012
CORPORATE PRESENTATION June 2012
Slide 2: Alok - Overview
Alok - Overview 2 Vertically Integrated Textile Company both in cotton and polyester Sales of ` 8,900.86 Crores Retail ($1,716.65 mn.) and Operating PAT of ` 502.80 Crores ($96.97 mn.) in FY 2012 (Audited) Garments Spinning Export of ` 3,029.56 Crores ($584.29 mn.) in FY 2012 0 (Audited) Mod
Slide 3: 3
3
Slide 4: Our Vision and Mission
Our Vision and Mission 4 To be the world’s best integrated textile enterprise, driven by research & innovation, with a leadership position across products & markets exceeding customer & stakeholder expectations The barometer of our success would be the ROCE OUR MISSION WILL: Be a knowledge leader
Slide 5: Textile Industry Synopsis
5 Textile Industry Synopsis
Slide 6: Global Textile Trade – Vision 2020
Global Textile Trade – Vision 2020 6 Global trade in textiles and clothing increased to US$ 602 bn in FY2010 from US$ 355 bn. in FY2000 . Expected to grow to US$ 1,000 bn in 2020 from US$ 602 bn in 2010 at a CAGR of 5%. In US$ bn Top exporters 2005 2010 Top Importers 2005 2010 Value % Value % Va
Slide 7: Global Textile Trade – China Dominates
Global Textile Trade – China Dominates 7 China is the leading source base for textile and apparel with a majority % Market Share share of about 35% of global export: Textile production has shifted from western countries to China and India and these countries have become production hubs 26% 35% C
Slide 8: Indian Textile Industry
Indian Textile Industry 8 Second largest producer of Cotton, textiles and garments India Textile & Apparel Industry (USD Bn) after China. And is the only textile manufacturing country with 250 220 a cotton surplus 200 CAGR 11% Second largest employer in India after agriculture – Direct 80 134 Em
Slide 9: Future Trends - Indian Organized Market to Grow
9 FUTURE TRENDS - Indian Organized Market to Grow Recent Phenomena – Impact on Small & Un- Future Trend - Organized Market to Expand : Organized Players The government in the past supported small and Sudden drop in prices of cotton - Shankar 6 medium players in segments such as variety of cotton
Slide 10: India’s Exports and Imports vis-à-vis other competing countries
India’s Exports and Imports vis-à-vis other competing countries 10 USD bn. Most of the competing countries are importing textiles and exporting clothing. India is the least importer of textiles implying self sufficiency in textiles 10
Slide 11: World Cotton and Fibre Scenario
World Cotton and Fibre Scenario 11 World Cotton Production is about 24870 mn. Tonnes and world consumption of cotton is about 24460 mn. Tonnes India is the only manufacturing country in textiles, which is cotton surplus Major Producer and consumption centre are as under Mn. tonnes Country Prod
Slide 12: Investments Required in the Textile Supply Chain by 2020
Investments Required in the Textile Supply Chain by 2020 12 In order to capture the additional market (US$ 150 Bn) created for Textile and Apparel by 2020, investments to the tune of ` 3,20,000 crores (US$ 68 Bn) across the textile supply chain will be required Segment Additional Additional Capaciti
Slide 13: Raw Material Prices Likely to remain subdued this year
Raw Material Prices Likely to remain sub-duded this year13 Shankar 6 rate from April 2011 to May 2012 This year the cotton crop is likely 70000 60000 to be at record level of 356 mn. 50000 bales (325 mn. bales in previous 40000 season) due to the increase in 30000 the area under cultivation and 2000
Slide 14: Alok Industries Ltd – Innovative Textile Solutions
Alok Industries Ltd – TMInnovative Textile Solutions 14 Alok with a revenue of USD 1.72 bn. enjoys a market share of about 2.20% in the Indian Textile 1 $ = ` 51.85 as on March 31, 2012 Trade
Slide 15: Segment Wise Revenue
Segment Wise Revenue 15 ` Crores Share of Business 2012 Share of Business 2011 Segment Target Customer ` Crores $ mn. ` Crores $ mn. Captive Consumption 322.28 62.16 552.90 106.63 COTTON YARN Export to traders, manufacturing units, weavers 3.62% 8.65% Garment exporters in India / converter cou
Slide 16: Alok’s Advantage
Alok’s Advantage 16 Timely expansions have led to becoming one of the largest textile players Exports increased from ` 100 Crores (USD 19.29 mn.) in 2004 to about ` 3029.56 Crores (USD 584.29 mn.) in 2012 at a CAGR of about 53% Established relationship and Preferred Vendor status with leading
Slide 17: Manufacturing Capacities
Manufacturing Capacities 17 Current Estimated Capacities Post Divisions Units Under Implementation Capacities Expansion Tons 80,000 3,600 83,600 SPINNING (Spindles) (411,840) (11,232) (423,072) HOME TEXTILES Processing mn. Mtrs 105.00 - 105.00 Weaving mn. Mtrs 96.00 - 96.00 Terry Towels Tons 13,400
Slide 18: Diversified Customer Base
Diversified Customer Base 18 Export Domestic Other leading garments exporters and retailers
Slide 19: Focused Segment – Speciality Fabrics
Focused Segment – Speciality Fabrics 19 Special Finishes User Industry Stain Guard Hospitality Anti Static Industrial Anti Bacterial Finish Health care Infra Red Finish Defense High Visibility Aviation Flame Retardant Fire Brigades & Petrol Pumps The company would be focusing more on increasing th
Slide 20: Certifications
Certifications 20 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 & Saf
Slide 21: Credit Rating – As per Basel II Norms
Credit Rating – As per Basel II Norms 21 Credit Analysis and Research Ltd (CARE) has assigned the following rating for the facilities of the company, under BASEL II “CARE A+” rating reaffirmed for the long term facilities Instruments with this rating are considered to have adequate degree of saf
Slide 22: Financial Analysis
22 Financial Analysis
Slide 23: General Information
General Information 23 Present Equity ` 826.27 Crores (826.27 million shares) Listed at BSE and NSE Market Price ` 18.25 as on June 11, 2012 Market Capitalization ` 1,508 Crores 52 weeks High / Low High: ` 28.50 Low: ` 15.60 Plant Locations Vapi, Silvassa, Navi Mumbai and Bhiwandi Directors 11 direc
Slide 24: Historical Standalone Financials - Profitability
Historical Standalone Financials - Profitability 24 Profitability 2012 2011 2010 2009 ` Crores $ Mn ` Crores $ Mn ` Crores $ Mn ` Crores $ Mn Sales 8,900.86 1,716.66 6,388.44 1,232.10 4,311.17 831.47 2,976.93 574.14 Operating EBITDA 2,624.75 506.22 1,879.71 362.53 1,272.48 245.42 822.61 158.65 Depre
Slide 25: Historical Standalone Financials – Balance Sheet
Historical Standalone Financials – Balance Sheet 25 LIABILITIES 2012 2011 2010 2009 ` Crores $ Mn ` Crores $ Mn ` Crores $ Mn ` Crores $ Mn Equity Share Capital 826.28 159.36 787.79 151.94 787.79 151.94 196.97 37.99 Tangible Net worth 3,655.48 705.01 3,097.60 597.42 2,716.19 523.86 1,755.06 338.49 D
Slide 26: Alok Group Structure
Alok Group Structure 26 Textile Manufacturing Cotton Spinning Polyester Yarn Apparel Fabrics Home Textiles Garment Embroidery Alok Infrastructure Ltd Alok H&A Ltd (100% Subsidiary) (100% Subsidiary) Infrastructure & International Domestic Cash & Carry Business H&A Stores (291 stores Operational) Lan
Slide 27: Domestic Retail – Alok H&A Limited
Domestic Retail – Alok H&A Limited 27 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, men's wear, women's wear, kids wear and accessories like tie
Slide 28: Overseas Retail – Grabal Alok (UK) Limited
Overseas Retail – Grabal Alok (UK)Limited 28 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 221 stores and employ about 2,500 people The stores offer a val
Slide 29: Mileta International
Mileta International 29 Mileta a Czech based manufacturing company is a 100% subsidiary of Alok 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 n
Slide 30: Realty Operations - Alok Infrastructure Limited
Realty Operations - Alok Infrastructure Limited 30 Sr. Project Name Project AIPL’s Project Area Proposed Use Expected No. Location Equity Company Projected Share Type Completion (%) Date 1 Land at Surangi Village, 100% Division 538 acres Industrial Use Ready Silvassa Silvassa, 2 Peninsula Erstwhile
Slide 31: Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) 31 CSR is an integral part of Alok - some of the CSR initiatives includes: Alok started a public school with CBSE Board in Silvassa Employment to tribal women on weaving looms and garment/made up stitching machines after intensive training and orientation
Slide 32: Major Concerns on Company and Mitigation Measures
Major Concerns on Company and Mitigation Measures 32 CONCERN REASON MITIGATION MEASURES High Gearing The company did large capex of Present Long Term credit rating of the company is A+ assigned by CARE. The about ` 10793 crores (USD 2 bn.) gearing and the rating is expected to improve due to : acros
Slide 33: Way Forward
Way Forward 33 Consolidation The company to focus on maximising returns in next few years with main focus on effective utilisation of capacities and cost control Exit non-core businesses such as real estate Equity Infusion by Promoters and through QIP Issue Improving Asset Turnover and ROC
Slide 34: Plant Gallery
34 Plant Gallery
Slide 35: Spinning - Silvassa
Spinning - Silvassa Se =
Slide 36: Partially Oriented Yarn (POY) - Silvassa
Partially Oriented Yarn (POY) - Silvassa 36
Slide 37: Texturising - Silvassa
Texturising - Silvassa 37
Slide 38: Weaving - Silvassa
Weaving - Silvassa 38
Slide 39: Airjet Weaving Machines - Silvassa
Airjet Weaving Machines - Silvassa 39
Slide 40: Knitting - Silvassa
Knitting - Silvassa 40
Slide 41: Embroidery - Silvassa
Embroidery - Silvassa 41
Slide 42: Processing - Vapi
Processing - Vapi 42
Slide 43: Terry Towel (Jacquard Looms) - Vapi
Terry Towel (Jacquard Looms) - Vapi 43
Slide 44: Apparel Width Processing - Vapi
Apparel Width Processing - Vapi 44
Slide 45: Knit Processing - Vapi
Knit Processing - Vapi 45
Slide 46: Made-ups - Vapi
46 Made-ups - Vapi Yr \y Rag my : t y NF
Slide 47: Infrastructure In house Fire Fighting - Silvassa
Infrastructure In house Fire Fighting - Silvassa 47
Slide 48: Infrastructure Housing Colony - Silvassa
Infrastructure Housing Colony - Silvassa 48
Slide 49: Subsidiary Photo Gallery
49 Subsidiary Photo Gallery
Slide 50: Domestic Retail - H&A
Domestic Retail - H&A 50
Slide 51: Overseas Retail - Store Twenty One, UK
Overseas Retail - Store Twenty One, UK 51
Slide 52: Manufacturing Plant - Mileta International, Czech Republic
Manufacturing Plant - Mileta International, Czech Republic 52 Specialized in manufacturing of premium yarn dyed fabric
Slide 53: Alok Infrastructure Limited
Alok Infrastructure Limited 53 Peninsula Business Ashford Centre, Lower Parel Ashford Royale, Nahur Park, Lower Parel
Slide 54: Product Gallery
54 Product Gallery
Slide 55: Cotton & Polyester Yarn
Cotton & Polyester Yarn 55
Slide 56: Apparel Fabrics - Woven
Apparel Fabrics - Woven 56
Slide 57: Apparel Fabrics - Knits
Apparel Fabrics - Knits 57
Slide 58: Apparel Fabrics - Embroidery
Apparel Fabrics - Embroidery 58 Embroidery with Apparel Fabric & Made Up
Slide 59: Technical Textiles
Technical Textiles 59
Slide 60: Home Textiles – Sheet Sets, Quilts, Comforters, Blankets, Towels
Home Textiles – Sheet Sets, Quilts, Comforters, Blankets, Bed in a bag, Towels 60
Slide 61: Home Textiles – Sheet Sets, Quilts, Comforters, Blankets, Towels
Home Textiles – Sheet Sets, Quilts, Comforters, Blankets, Bed in a bag, Towels 61
Slide 62: Garments
Garments 62
Slide 63: Contact Us
63 Contact Us 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: [email protected] Website: www.alokind.com