alok industries ltd: vision 2012 - aceanalyser meet/121070_20100803.pdf · alok group presently has...

INTEGRATED TEXTILE SOLUTIONS


Corporate Presentation

July 2010


2

Sales of Rs. 4,314.67

crores (Provn.) and PAT

of Rs. 242.45 crores

(Provn.) in FY 2010

Export of Rs. 1,560.48

crores in FY 2010

(Provn.)

State of the art

manufacturing facilities

with Integrated

Management System

Certification

Two decades of

providing wide range of

quality textile products

Alok Overview Vertically Integrated

Textile Company both in

cotton and polyester


3

Textile Industry Synopsis


4

2007

Global trade in textiles and clothing increased to US$ 583 bn from US$ 342 bn.

in 2001 - CAGR of 9%

2015

Global trade expected to grow to US$ 805 bn from US$ 583 bn in 2007 - CAGR

of 4.12%

Source: - WTO

Top Exporters Amount US$ BN. %

Europe 183.99 31.56%

China 176.17 30.22%

Turkey 22.73 3.90%

India 19.10 3.28%

United States 16.68 2.86%

Others 164.33 28.18%

Total 583.00 100.00%

USD bn.

Global Textile Trade –Vision 2015

Expected Growth World Trade

219 238 260 300

311 345390

505

0

200

400

600

800

1000

2006 2007 2010 2015

Textile Apparel

530583

650

805


5

Snapshot

Second largest producer of cotton in the world

Second largest employer in India (after agriculture) – Direct Employment

to 35 mn. people

Constitutes 13% of India‟s exports

Contributes 11.50% to Industrial production

Contributes 2% to GDP

Particulars Domestic Export Total

Apparel 33.00 10.00 43.00

Home Textiles 12.00 12.00 24.00

Total 45.00 22.00 6.40

Source: Ministry of Textiles – India/Technopack

USD bn.Size - 2009

Indian Textile Industry


6

Source: - Technopak

Per Capita consumption

2005 – 20 mtrs

2010 – 30 mtrs

Growth – 9%

Direct Employment

2005 – 35 mn

2010 – 40 mn

Growth – 3 %

Indian Textiles - Vision 2014

Considering the fact that asset turnover of ratio of the industry is about 1.25, industry is likely to invest

about Rs.1,40,000 crores (USD 32.0 billion) by 2012 and need to double the production across sector

Almost 2/3 rd of the total Indian apparel and textile industry is from domestic consumption, which keeps

it isolated from the ups and downs of the global trade and the economic uncertainties of the developed

market.

25 2938 45

651113.5

1922

50

2002 2004 2007 2009 2014

Exports Domestic Market

Projections

67

115

57

42.536

CAGR-10%

CAGR- 13%

CAGR- 8%


7

Alok Industries Ltd – TMIntegrated Textile SolutionsINTEGRATED TEXTILE SOLUTIONS


8

Segment Target Customer

Share of

Business 2010

(Provisional)

Share of

Business 2009

(Audited)

COTTON YARN

Captive Consumption

Export to traders, manufacturing units,

weavers

354.50

(8.22%)

111.10

(3.73%)

APPAREL FABRICS

(Woven & Knits)

Garment exporters in India /

converter countries

Domestic garment manufacturers,

retailers and traders

1,918.45

(44.46%)

1,609.56

(54.06%)

HOME TEXTILES

(Sheet sets, comforters,

etc)

Export to Overseas retailers and

brands

Domestic Sales through H&A Retail

Stores

698.70

(16.19%)

498.54

(16.75%)

GARMENTS

(Woven & Knits)

Export to Overseas retailers and

brands

Domestic Sales through H&A Retail

Stores

132.86

(3.08%)

138.58

(4.66%)

POLYESTER YARN

(POY & Texturised Yarn)

Domestic power loom weavers

Direct exports

1,210.17

(28.05%)

619.15

(20.80%)

Total4,314.67

(100%)

2,976.93

(100%)

Segment Wise Revenue Rs. in Crores


9

Alok’s Advantage

Timely expansions resulting in first mover advantage

Exports increased from Rs. 100 crores (US$ 21.41 mn.) in 2004 to about

1,560 crores (US$ 334 mn.) in 2010 at a CAGR of about 60%

Preferred Vendor status from leading retailers

Critical supplier for the Buyer due to Quality, Cost & Delivery (QCD)

Economies of scale coupled with low interest cost giving competitive

advantage

Sustained margins due to forward and backward Integration

Wide range of products offered across different market segments

Product development and designing strength

State of the art infrastructure with modern machines

Order Book position is healthy with indication of order for the entire year

1US$ - Rs. 46.70


10

Global Sized Capacities

Divisions UnitsCurrent

Capacities Capacity under Implementation

Capacities Post Expansion

Market Position

SPINNINGTons

(Spindles)

58,500

(300,096)

17,960

(111,744)

73,650

(411,840)

Largest at Single Location in India

HOME TEXTILES

Processing mn. Mtrs 82.50 17.50 100.00 Largest Player

Weaving mn. Mtrs 68.00 24.00 92.00 Largest Player

Terry Towels Tons 6,700 13,300 20,000 Top 5 Player

APPAREL FABRICS

Processing Woven

mn. Mtrs 105.0 21.0 126.0 Largest Player

Weaving mn. Mtrs 93.00 17.00 120.0 Largest Player

Knits Tons 18,200 6,800 25,000 Largest Player

GARMENTS mn. Pcs. 22.0 - 22.0 Top 15 Player

POLYESTER DTY/FDY

Tons

(Machines)

125,000

(92)

125000

(48)

FDY 12

250000

(140)

FDY 12

Top 3 Player

POY Tons 200,000 200,000 400,000 Top 5 Player


11

Diversified Customer BaseExport

Domestic

Creative Garments

Other leading garments exporters and retailers

®

http://www.anntaylor.com/

http://www1.macys.com/index.ognc

http://shop.nordstrom.com/?origin=tab-logo

http://www.mothercare.com/gp/node/n/42764041/026-2672455-5485231?ie=UTF8&mcb=core

http://www.victoriassecret.com/

http://www.debenhams.com/webapp/wcs/stores/servlet/topcategory_10001_10001_-1

http://en.wikipedia.org/wiki/File:Kmart_logo.svg

http://www.sonalgarments.com/index.php


12

Special Finishes

Stain Guard Flame Retardant

Anti Static Water Repellent

Soil Release Infra Red Finish

3X Dry Insect Repellent

Brushed Fabric High Visibility

Anti Bacterial

Finish

Aroma FinishUser Industry

Defense Fire Brigades

Aviation Oil Refineries

Hospitality Petrol Pumps

Construction &

Infrastructure

Welding Industry

Health Care Coal Mines

Industrial Research

Product Development – Speciality Fabrics


13

Global retailers and brands increasingly prefer „fair trade‟ and organic cotton,since it: Promotes eco-friendly textile products Addresses global warming concerns

Tie up with an NGO called Zameen organic

Entered into agreement for complete supply chain and product developmentsolution

Organic Cotton Initiatives

Brands



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 & Safety

Assessment System

4. SA 8000: 2008 – Social Accountability

Alok is the only India textile company to have obtained IMS

with all the four certifications

Certifications

ECO-Certification

Alok is the first Indian Textile company to have been

awarded all three certifications for its eco-friendly products

as under:

EU Flower – the eco-certificate from European Union

KRAV certification for organic products

SWAN certification – a Nordic eco-labelling certification

14


15

Having built sizeable capacities across all business segments, the company to

focus on maximising returns in next few years with main focus on effective

utilisation of capacities and cost control

Company will be incurring normal capex of about Rs.400 crores per annum to

ensure optimisation of all its installed capacities

Thrust on increasing presence in value added yarn dyed (standard) fabrics,

Technical textiles and Institutional segments

Improving the debt: equity ratio of the company

Increasing asset turnover ratio of the company

Focusing on improving in the ROCE

Generation of Free Cash flow

Bring back investments from Realty and Retail

No more dilutions

Way Forward


16

Financial Analysis


Long Term

Credit Rating of “CARE A+” assigned to the long term facilities by Credit

Analysis & Research Ltd (CARE)

Instruments with this rating are considered to offer adequate safety for

timely servicing of Debt Obligation

Credit Rating – Basel II Norms

17

Short Term – CP/NCD

CARE has upgraded and assigned PR1+ rating from PR1 to the

company‟s short term commercial paper / MIBOR linked short term NCD

aggregating to Rs. 1,000 crores for a maturity not exceeding One year


18

General Information – Alok Industries Ltd.

1US$ - Rs. 48.00

Present Equity Rs. 787.798 crores (US$ 164.12 mn.) (787.79 million shares)

Listed at BSE and NSE

Market Price Rs. 20.10 as on June 30, 2010

Market Capitalization Rs. 1,583 crores

52 weeks High / Low High: Rs.27.90 Low: Rs. 15.80

Plant Locations Vapi, Silvassa, Navi Mumbai and Bhiwandi

Directors 12 directors (3 promoter directors)

Employees 19,000 +

Share Holding Pattern as on June 2010

Particulars No. of Shares % Holding

Promoters & Promoter Group223,376,351 28.35%

Mutual Funds/Insurance Companies/Venture Capital Funds/Banks 266,103,635 33.78%

Foreign Institutional Investor 88,464,830 11.23%

OCB‟s & Indian Public 209,853,462 26.64%

Total 787,798,278 100.00%


Rs. in Crores

Historical Financials

19

Particulars 2010

(Provisional)

2009

(Audited)

2008

(Audited)

2007

(Audited)

Profitability

Sales 4,314.67 2,976.93 2,170.41 1,824.68

Operating EBITDA 1,261.33 803.75 547.75 410.96

Operating PAT 242.45 217.04 167.73 135.18

Cash Profit 598.62 542.65 329.69 258.22

Basic EPS (Rs.) 3.38 8.81 11.40 9.70

Balance Sheet 2010

(Provisional)

2009

(Audited)

2008

(Audited)

2007

(Audited)

Tangible Networth 2,734.24 1,755.06 1,431.34 1,024.44

Net Debt 7,126.04 6,251.41 4,093.57 2,551.46

Net Fixed Assets 7,164.61 5,983.87 3,891.30 2,583.80

Current Assets 4,737.92 2,685.93 3,377.53 1,992.66

Net Debt / Equity 2.30 3.03 2.86 2.49

Current Ratio 1.84 1.36 1.49 1.42

Rs. In Crores


20

Historical Financials

EBIDTA

547.75803.75

1,261.33

-

500.00

1,000.00

1,500.00

2007-08 2008-09 2009-10

Years

Ru

pe

es

In

Cro

re

s

PAT

167.73217.04

242.45

-

100.00

200.00

300.00

2007-08 2008-09 2009-10

Years

Ru

pe

es

In

Cro

re

s

Sales

2,170.412,976.96

4,314.67

-

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

2007-08 2008-09 2009-10

Years

Ru

pe

es

In

Cro

re

s

Networth

1,431.341,755.06

2,734.24

-

1,000.00

2,000.00

3,000.00

2007-08 2008-09 2009-10

Years

Ru

pe

es

In

Cro

re

s


Holding Structure and Subsidiaries

21


Alok Structure


22

Textile

Manufacturing

Cotton Spinning

Polyester Yarn

Apparel Fabrics

Home Textiles

Garment

Domestic Cash &

Carry

Alok H&A Ltd (100%

Subsidiary)

Infrastructure & Realty

Alok Infrastructure Ltd

(100% Subsidiary)

H&A Stores

(220 Stores Operational)Alok Realtors Pvt Ltd

(100% Subsidiary)

(Peninsula Business

Park)

Ashford Royale

(50:50 Joint Venture)

(Nahur Residential

Project)

International

Business

Alok Industries

International (BVI)

Mileta International

(79.8% Holding)

Grabal Alok (UK) Ltd

(42% Holding)

Domestic Garment

Manufacturing

Alok Apparels Pvt

Ltd (100%

Subsidiary)


23

Alok H&A Limited


24

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, mens wear, womens

wear, kids wear and accessories like ties, handkerchiefs, cuff lings etc.

• 220 Stores as on date on franchisee basis compared to 167 stores as

last reported, an increase of 53 stores in three months

• Presence in more than 20 states and 60 cities

Future Strategy

• Roll out 500 stores Pan India in two years

• All New stores are on Franchisee basis, thereby reducing set-up costs

and accelerating store roll out

• Introduce new accessories like foot wear, sun glasses, perfumes etc.

• Roll out large format stores upto 2,500 sq. ft.

• To become a established affordable lifestyle store brand by 2011


25

Overseas Retail - Grabal Alok (UK) Ltd


26

Alok Group presently has a stake of 90.4% in Grabal Alok (UK) Ltd. (Alok

Industries International Ltd. 41.7% and 48.7% by Grabal Alok International

Ltd.)

Currently, the chain comprises of 215 stores and employ about 2,500

people

The stores offer a value proposition for quality apparel for women, men,

and children. They also sell accessories (artificial jewellery, shoes, leather

bags, toys etc. ), which complement the apparel range

Turnover of about GBP 117 million as on March 2010

The company has been able to reduce its total cost from GBP 62 mn. in

2007-08 to GBP 53 mn. in 2009-10

Gross Sales grew by 7.57% to GBP 117.06 mn. during April – March 2010

compared to GBP 108.82 mn. in corresponding period of previous year


27

Alok holds 79.62% stake in Mileta, a Czech based manufacturing companythrough its wholly own subsidiary Alok Industries International limited

Derived benefits from Mileta’s technology skills in yarn-dyed fabrics andhemming: results in higher per-unit realizations and new product lines

Extensive marketing network in Europe, Russia and Africa: a gateway forAlok products

Brands like Mileta, Erba, Cottonova, Wall Street and Lord Nelson:available for introduction in the domestic market

The revenues of the company for the quarter ended March 2010 was Euro4.03 mn. (Rs. 24.37 crores)

Revenue of Euro 18 mn. (Rs. 108.96 crores) in FY 2010

The Cash Profits of the company was Euro 0.30mn. (Rs. 1.83 crores)during FY 2009-10 as against cash loss of Euro 4.17 mn. (Rs. 25.26 crores)during the previous year

Mileta International


28

Alok Realtors Pvt. Ltd. –

Peninsula Business Park, Lower

Parel

Ashford Royale – Premium

Residential Complex, Nahur

Ashford Centre, Lower Parel

• 641,589 sq ft of ultra modern office

premises with 600 car parks

• Project developed by Peninsula Lands

Ltd, Civil work carried on by Shapoorji

Pallonjee

• First level starts at a height of 80 feet

from the ground, thereby offering a

fabulous view of the Arabian sea and

Mahalaxmi Race Course.

• One of the floor admeasuring about

32,000 sq. ft. has been sold

• Total project cost Rs. 1,279.50 crores;

Funded by Equity of Rs. 529.50

crores and Debt of Rs. 750 crores The

total debt component has been tied up

by the company

• Development in full swing with 19

floors already constructed

• Possession – December 2010

• Ashford Investment & Trading

Company Pvt. Ltd and Alok

Infrastructure Ltd. jointly propose

(50:50) to develop an residential

complex on a 7 acre plot (CEAT

factory) at Nahur

• Architects – Talati & Panthaky

• Proposed saleable area of 1.1 mn

Sq. ft.

• Being converted in to modern

residential complex with large

landscaped gardens and water

bodies. Club house, gymnasium,

• Total project cost is estimated to be

about Rs. 450 crores; Funded by

Equity of Rs. 150 crores, Advance

from Customers Rs. 100 crores and

Debt of Rs. 200 crores

• Construction funding being tied-up

• Received good response during the

pre-launch booking

• Possession – December 2013

• 60,000 square feet of prime office

space in Lower Parel

• Project developed by Ashford Group

with Architects – Billimoria

• 8 storey with floor plate of 7,500 sq. ft;

40 car parks.

• Proximity to Lower Parel and Currey

Road stations; 5 star hotels ITC and

Four Seasons; other major complexes

like Indiabulls, DLF; HDFC Bank

House; Ambit RSM

• Total project cost Rs. 124.50 crores

• Construction completed and

Occupancy Certificate received

• The company is looking out for a

potential buyer for the premises


Corporate Social Responsibility (CSR)

CSR is an integral part of Alok - some of the CSR initiatives includes:

Employment to tribal women on weaving looms and garment/made up stitching

machines after intensive training and orientation

Private Public Partnership with Silvassa Administration for converting the

Government owned Industrial Training Institute into a centre of excellence

Proposal to set up a 50 bed hospital at Silvassa with a portion set aside for

charitable purpose

Proposal to set up a School at Silvassa

Best in class ETP system for primary, secondary and tertiary treatment of

effluents. Reverse Osmosis plant to optimize water conservation

“Green Zones” around all facilities and planting of saplings to conserve ecological

balance

Plants certified for ISO 9001, ISO 14001, SA 8000 and OHSAS 18001

29



To be the world‟s best integrated textile solutions enterprise with leadership

position across products and markets, exceeding customer & stakeholder

expectations

Alok Vision

Alok Mission

WE WILL:

Be a knowledge leader & an innovator in our businesses

Maximise people development initiatives

Optimise use of all resources

Become a process driven organization

Exceed compliance and global quality standards

Actively explore potential market & products

Offer innovative, customized and value added services to our customers

Be an ethical, transparent and responsible global organization

30


Product and Plant Gallery

31


Vapi Plant

32

Continuous processing plant – wider width Vapi


Silvassa Plant

33

Airjet Weaving plant- Silvassa


Spinning Unit

34Rieter Spinning unit- Silvassa


Weaving Unit

35

Airjet Weaving Machinery- Silvassa

INTEGRATED TEXTILE SOLUTIONSTerry Towel

36 Terry Towel Jacquard Looms - Vapi

INTEGRATED TEXTILE SOLUTIONSMade Ups Unit

37 Made Ups Unit - Vapi

INTEGRATED TEXTILE SOLUTIONSTexturising

38 Texturising unit- Silvassa


Quilting Unit

39

Made up unit- Silvassa


Knitting Unit

40


Knit Processing Unit

41


Apparel Processing Unit

42


POY Unit

43 POY Lines - Silvassa


Embroidery unit -Lasser

44 Lasser Embroidery Unit - Silvassa

INTEGRATED TEXTILE SOLUTIONSEmbroidery Unit

45 Multihead Embroidery Machines - Silvassa


Fire Fighting

46Mecedes Fire Fighting Trucks - Silvassa

INTEGRATED TEXTILE SOLUTIONSStaff Housing Colony

47


…Products - Home Textiles

– Sheet Sets, Quilts, Comforters, Blankets, Bed in a bag

48


49

…Products - Home Textiles

–Towels


…Products – Apparel Fabrics

50


…Products – Knitted Fabrics

51


…Products – Dyed & Polyester

Yarn

52


…Products – Garments

53


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

Thank you

54

alok industries ltd: vision 2012 - aceanalyser meet/121070_20100803.pdf · alok group presently has...

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