Alok Industries Limited · NSE:ALOKINDS
Alok Industries — Investor Presentation (January 2013)
65 slides from Alok Industries's investor presentation, January 2013
Slide 1: Corporate Presentation January 2013
CORPORATE PRESENTATION January 2013
Slide 2: Disclaimer
Disclaimer 2 "Alok Industries Limited is proposing, subject to market conditions and other considerations, a rights issue and has filed a draft letter of offer dated 26th September, 2012 ("Draft Letter of Offer") with the Securities Exchange Board of India (the "SEBI"), BSE Limited and National Stoc
Slide 3: Alok - Overview
Alok - Overview 3 Vertically Integrated Textile Company both in cotton and polyester Sales of ` 8,900.86 Crores Spinning ($1,716.65 mn.) and Operating PAT of ` 502.80 Crores ($96.97 mn.) in FY 2012 (Audited) Garments Knitting 0 Export of ` 3,029.56 Crores ($584.29 mn.) in FY 2012 (Audited) M
Slide 4: 4
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Slide 5: Our Vision and Mission
Our Vision and Mission 5 To be the world’s best integrated textile enterprise, driven by research & innovation, with a leadership position across products & markets exceeding customer & stakeholder expectations The barometer of our success would be the ROCE OUR MISSION WILL: Be a knowledge leader
Slide 6: Textile Industry Synopsis
6 Textile Industry Synopsis
Slide 7: Global Textile Trade – Vision 2020
Global Textile Trade – Vision 2020 7 Global trade in textiles and clothing increased to US$ 706 bn in FY2011 from US$ 355 bn. in FY2000 Expected to grow to US$ 1,000 bn in 2020 from US$ 706 bn in 2011 at a CAGR of 4%. In US$ bn Top exporters 2005 2011 Top Importers 2005 2011 Value % Value % Valu
Slide 8: Top Exporters & Importers of Textiles and Clothing
Top Exporters & Importers of Textiles and Clothing 8 Top 1990 1995 2000 2005 2011 Exporters Value % Value % Value % Value % Value % China 28.3 13.3% 49.3 15.9% 78 22.0% 132.8 27.5% 248.18 35.14% EU - 27 91.6 43.2% 110.7 35.7% 101 28.3% 148.3 30.7% 192.76 27.30% India 4.7 2.2% 8.5 2.7% 10.2 2.9% 16.1
Slide 9: Global Textile Trade – China Dominates
Global Textile Trade – China Dominates 9 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 10: Indian Textile Industry
Indian Textile Industry 10 Second largest producer of Cotton, textiles and garments India Textile & Apparel Industry (USD Bn) after China. And is the only textile manufacturing country with 220 250 a cotton surplus 200 CAGR 11% Second largest employer in India after agriculture – Direct 134 80 E
Slide 11: Future Trends - Indian Organized Market to Grow
11 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 weaving, variety
Slide 12: India’s Exports and Imports vis-à-vis other competing countries
India’s Exports and Imports vis-à-vis other competing countries 12 Major competing countries- Textiles and clothing-2011 USD bn. 30.00 29.38 24.72 25.00 19.94 20.00 16.93 15.00 13.63 Imports Exports 10.83 10.00 8.67 8.63 5.56 5.65 4.79 5.00 4.21 3.40 0.00 Bangladesh Pakistan Srilanka Vientnam Indone
Slide 13: World Cotton and Fibre Scenario
World Cotton and Fibre Scenario 13 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 14: Investments Required in the Textile Supply Chain by 2020
Investments Required in the Textile Supply Chain by 2020 14 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 15: Raw Material Prices Likely to remain subdued this year
Raw Material Prices Likely to remain subdued this year 15 Rs./candy Landed 45000 This year the cotton crop is likely to be at record level of 356 mn. 40000 bales (325 mn. bales in previous 35000 39,543 35,565 35,620 37,679 37,106 season) due to the increase in 35,227 34,820 34,897 35,360 30000 the a
Slide 16: Alok Industries Ltd – Innovative Textile Solutions
Alok Industries Ltd – TMInnovative Textile Solutions 16 Garments Made ups Cotton Chain Yarn Dyeing Fabric Processing PSF Embroidery Knitting FDY Polyester Chain Spinning Weaving Texturising Alok with a revenue of USD 1.72 bn. enjoys a market share CP / POY of about 2.20% in the Indian 1 $ = ` 51.85
Slide 17: Segment Wise Revenue
Segment Wise Revenue 17 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 countries 4,
Slide 18: Alok’s Advantage
Alok’s Advantage 18 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 19: Manufacturing Capacities
Manufacturing Capacities 19 Current Estimated Divisions Units Under Implementation Capacities Post Expansion Capacities 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 20: Diversified Customer Base
Diversified Customer Base 20 Export Domestic Other leading garments exporters and retailers
Slide 21: Focused Segment – Speciality Fabrics
Focused Segment – Speciality Fabrics 21 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 22: Certifications
Certifications 22 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 23: Credit Rating – As per Basel II Norms
Credit Rating – As per Basel II Norms 23 Credit Analysis and Research Ltd (CARE) has assigned the following rating for the facilities of the company, under BASEL II “CARE A” rating assigned for the long term facilities Instruments with this rating are considered to have adequate degree of safety
Slide 24: Financial Analysis
24 Financial Analysis
Slide 25: General Information
General Information 25 Present Equity ` 826.27 Crores (826.27 million shares) Listed at BSE and NSE Market Price ` 12.14 as on January 8, 2013 Market Capitalization ` 1003 Crores 52 weeks High / Low High: ` 23.90 Low: ` 10.48 Plant Locations Vapi, Silvassa, Navi Mumbai and Bhiwandi Directors 13 dire
Slide 26: Historical Standalone Financials - Profitability
Historical Standalone Financials - Profitability 26 Profitability H1 2012-13 2012 2011 2010 ` Crores $ Mn ` Crores $ Mn ` Crores $ Mn ` Crores $ Mn Sales 5747.52 1,108.49 8,900.86 1,716.66 6,388.44 1,232.10 4,311.17 831.47 Operating EBITDA 1648.05 317.85 2,624.75 506.22 1,879.71 362.53 1,272.48 245.
Slide 27: Historical Standalone Financials – Balance Sheet
Historical Standalone Financials – Balance Sheet 27 LIABILITIES H1 2012-13 2012 2011 2010 ` Crores $ Mn ` Crores $ Mn ` Crores $ Mn ` Crores $ Mn Equity Share Capital 826.28 159.36 826.28 159.36 787.79 151.94 787.79 151.94 Tangible Net worth 3994.21 770.34 3,655.48 705.01 3,097.60 597.42 2,716.19 52
Slide 28: Historical Consolidated Financials - Profitability
Historical Consolidated Financials - Profitability 28 Profitability H1 - 2013 2012 2011 2010 ` Crores $ Mn ` Crores $ Mn ` Crores $ Mn ` Crores $ Mn Sales 6189.62 1193.76 9784.72 1,887.12 6614.90 4424.34 1,275.78 853.30 Operating EBITDA 1579.18 304.57 2471.92 476.74 1854.23 357.61 1231.79 237.57 Dep
Slide 29: Historical Consolidated Financials – Balance Sheet
Historical Consolidated Financials –Balance Sheet 29 H1 - 2013 2012 2011 2010 LIABILITIES ` Crores $ Mn ` Crores $ Mn ` Crores $ Mn ` Crores $ Mn Equity Share Capital 826.28 159.36 826.28 159.36 787.79 151.94 787.79 151.94 Tangible Net worth 3088.39 595.64 2860.37 551.66 2792.06 538.49 2732.50 527.0
Slide 30: Alok Group Structure
Alok Group Structure 30 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 (250 stores Operational) Lan
Slide 31: Monetisation of Investments
Monetisation of Investments 31 Domestic Retail – H&A The Company’s domestic cash and carry operations are carried out in 100% subsidiary “Alok H&A Ltd.” Stores offer quality products in home textiles, men's wear, women's wear, kids wear and accessories like ties, handkerchiefs, cuff lings etc.
Slide 32: Realty Operations- Alok Infrastructure Limited
Realty Operations- Alok Infrastructure Limited Sr. Project Name and location Proposed Use Alok’s Equity Area No. share (%) 1 Land at Silvassa Industrial Use 100% 538 acres 2 Peninsula Business Park, Mumbai Commercial / ITES 20 storey, 600 100% 614,999 Sq. ft. car parking 3 Ashford Royale, Mumbai Res
Slide 33: Major Concerns on Company and Mitigation Measures
Major Concerns on Company and Mitigation Measures 33 CONCERN REASON MITIGATION MEASURES jor Concerns on Company and Mitigation Measures The company did large Present Long Term credit rating of the company is A assigned by CARE. The gearing and the capex of about ` 10,793 rating is expected to improv
Slide 34: Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) 34 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 35: Strategy Going Forward
Strategy Going Forward 35 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 of real estate and retail Equity Infusion of Rs. 551 crores by Rights Issue Improving Asset
Slide 36: Plant Gallery
36 Plant Gallery
Slide 37: Spinning - Silvassa
Spinning - Silvassa —E =
Slide 38: Partially Oriented Yarn (POY) - Silvassa
Partially Oriented Yarn (POY) - Silvassa 38
Slide 39: Texturising - Silvassa
Texturising - Silvassa 39
Slide 40: Weaving - Silvassa
Weaving - Silvassa 40
Slide 41: Airjet Weaving Machines - Silvassa
Airjet Weaving Machines - Silvassa 41
Slide 42: Knitting - Silvassa
Knitting - Silvassa 42
Slide 43: Embroidery - Silvassa
Embroidery - Silvassa 43
Slide 44: Processing - Vapi
Processing - Vapi 44
Slide 45: Terry Towel (Jacquard Looms) - Vapi
Terry Towel (Jacquard Looms) - Vapi 45
Slide 46: Apparel Width Processing - Vapi
Apparel Width Processing - Vapi 46
Slide 47: Knit Processing - Vapi
Knit Processing - Vapi 47
Slide 48: Made-ups - Vapi
Made-ups - Vapi 48
Slide 49: Infrastructure: In house Fire Fighting - Silvassa
Infrastructure In house Fire Fighting - Silvassa 49
Slide 50: Infrastructure: Housing Colony - Silvassa
Infrastructure Housing Colony - Silvassa 50
Slide 51: Subsidiary Photo Gallery
51 Subsidiary Photo Gallery
Slide 52: Domestic Cash & Carry- H&A
Domestic Cash & Carry- H&A 52
Slide 53: Overseas Retail - Store Twenty One, UK
Overseas Retail - Store Twenty One, UK 53
Slide 54: Manufacturing Plant - Mileta International, Czech Republic
Manufacturing Plant - Mileta International, Czech Republic 54 Specialized in manufacturing of premium yarn dyed fabric
Slide 55: Alok Infrastructure Limited
Alok Infrastructure Limited 55 Peninsula Business Ashford Centre, Lower Parel Ashford Royale, Nahur Park, Lower Parel
Slide 56: Product Gallery
56 Product Gallery
Slide 57: Cotton & Polyester Yarn
Cotton & Polyester Yarn 57
Slide 58: Apparel Fabrics - Woven
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Slide 59: Apparel Fabrics - Knits
Apparel Fabrics - Knits 59
Slide 60: Apparel Fabrics - Embroidery
Apparel Fabrics - Embroidery 60 Embroidery with Apparel Fabric & Made Up
Slide 61: Technical Textiles
Technical Textiles 61
Slide 62: Home Textiles – Sheet Sets, Quilts, Comforters, Blankets, Towels
Home Textiles – Sheet Sets, Quilts, Comforters, Blankets, Bed in a bag, Towels 62
Slide 63: Home Textiles – Sheet Sets, Quilts, Comforters, Blankets, Towels
Home Textiles – Sheet Sets, Quilts, Comforters, Blankets, Bed in a bag, Towels 63
Slide 64: Garments
Garments 64
Slide 65: Contact Us
65 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
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