Presentation on vardhaman yarns mills

Submitted to: Submitted by: Mrs. Harpreet dhawan Gaurav sudha KD 2

VardhmanGroup

Rooted in Values, Creating World Class Textiles

Vardhmān

Established. Mr S P Oswal is the Chairman of the globally active Vardhman Group. The Vardhman Group was founded in 1965 by Lala Rattan Chand Oswal and is now one of the largest enterprises in the Indian textile industry

Incorporated in 1965 under the leadership of Mr. S.P. Oswal One of the largest integrated textile houses in the country with a turnover of over $700million and a workforce of more than 23,000 employees One of the largest installed capacity in spinning in India at 800,000 spindles Amongst the largest Yarn producer in India Amongst the largest manufacturer & exporter of Cotton Yarn from India One of the largest consumers of raw cotton in the country Market Leader in Hand Knitting Yarn Second largest producer of Sewing Threads One of the leading integrated fabric producer Highest quality acrylic manufacturer of the country High economies of scale due to integrated operations and large cotton inventory holdingcapacity

Owner

Vardhman pvt. ltdVardhman Group of India is an undisputed market leader in the yarn production sector and has a corporate philosophy that attaches great value to first class production facilities equipped with the latest technology. In the mid-1980s, the Vardhman Group commenced its yarn conditioning activities and from the outset, worked closely with the Swiss XORELLA AG, which developed this technology and is the leader in the related market.

VardhmanYarn : De-risking the Revenue ModelCotton Lyocell Cotton SilkCotton Bamboo Cotton ModalCotton Tencel Cotton ViscoseSpecialized ProductsDe-risking by Value AdditionCompact Yarn Fibre DyedCotton Lycra Gas MercerisedMelange Yarn Fancy YarnsCotton Dyed Slub YarnsPC Yarn Dyed Acrylic YarnsYarn Dyed Hand Knitted YarnsValue Added Products

Vardhman yarns

Overview of the Presentation

Brief Snapshot of Vardhman Group

Business-wise Analysis

Financial Performance

Strategic Direction

Corporate Social Responsibility

Market Performance

Vardhmān

Vardhman Group

Incorporated in 1965 under the leadership of Mr. S.P. Oswal

One of the largest integrated textile houses in the country with a turnover of over $700million and a workforce of more than 23,000 employees

One of the largest installed capacity in spinning in India at 800,000 spindles

Amongst the largest Yarn producer in India

Amongst the largest manufacturer & exporter of Cotton Yarn from India

One of the largest consumers of raw cotton in the country

Market Leader in Hand Knitting Yarn

Second largest producer of Sewing Threads

One of the leading integrated fabric producer

Highest quality acrylic manufacturer of the country

High economies of scale due to integrated operations and large cotton inventory holdingcapacity

VALUE ADDITION THROUGH SUPPLY CHAIN

The unique business model of the company having presence in entire value chain

from Fibre (acrylic) to Fabric gives it flexibility in down turn and advantages over

competitors to rise in upturn of the industry cycle

Vardhmān

Largest spinning capacity in the country with > 0.87 mln spindles 12 production plants located in the states of Punjab, Himachal Pradesh and MadhyaPradesh Technical tie-ups with the world leaders from Switzerland, Germany, Japan and Korea Amongst the largest exporter of yarn from India. The total export of the group is about 5%

Business yarn

Products

Cotton Yarn Special

Blended Yarn

Organic Cotton Yarn Cor

e Spun Yarn

Fair Trade cotton Yarn Melanges

Organic Fair Trade Cotton Yarn Gassed

Mercerised

Ellitwist Modal Yarn

Vortex Yarn Te

ncel

Yarn

Slub Yarn Viscose

Yarn

Acrylic Yarn Hand Knitting

Yarn

Poly -Cotton Yarn Speciality

Yarn

Acrylic - Cotton yarn

1998 2000 2002 2006 2007 2008 2009 2010 (E)Dyeing-Tpd 25.50 34.50 52.00 55.00 55.00 55.00 55.00 55.00Mercerization-Tpd 1.70 5.00 6.75 6.75 8.00 8.50 10.00 10.00Acrylic Fibre-Tpa 16,500 16,500 16,500 16,500 18,000 18,000 18,000 18,000Steel-Mtpa 65,000 40,000 40,000 80,400 80,400 80,400 80,400 80,400Other

Capacity

Price

52 Week Low 40.1052 Week High 280.95Market Cap (Rs mn) 13,186Last price 228.25

Vardhman Industries has reported a sales turnover of Rs 84.80 crore and a net profit of Rs 3.72 crore for the quarter ended Sep 2010.

For the quarter ended Sep 2009 the sales turnover was Rs 57.10 crore and net profit was Rs 1.72 crore.

Annual Turnover

ThreadVardhmanBusiness - Sewing Thread The Group entered Thread business in 1982 as a forward integration to its Yarn business. Current capacity 33 tpd in 4 plants at Punjab, Tamil Nadu & Himachal Pradesh. In 2002, joined hands with American & Efird, Inc. USA (A&E) for manufacturing &distribution of A&E branded sewing threads in India. Spun off the Threads business into a new company (Vardhman Yarns & Threads Ltd) in 2007and entered into a 51:49 Joint Venture with A&E. The second largest brand of specialized threads in the country. A wide product range, which includes: Apparel Sewing Threads Specialty Threads Textile Crafts Embroidery Threads Kite Flying Threads Tea Bags Cosmetic Threads Industrial Threads

CONTACT

Address: VARDHMAN mills Chandigarh road ludhianaPin code: 141008Contact no : 0161-2761567 0161-4532164 9988459527

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