Professional Documents
Culture Documents
Corporate Presentation
March 2010
Disclaimer
INTEGR ATE D TE XTILE SO LU TION S
The information and opinions contained in this presentation are current, if not stated
otherwise, as of the date of this presentation. We undertake no obligation to update or
revise any information or the opinions expressed in this presentation as a result of new
information, future events or otherwise.
This presentation contains certain forward looking statements concerning Alok Industries
Limited (Company) and its subsidiaries' future business prospects and business
profitability, which are subject to a number of risks and uncertainties and the actual
results could materially differ from those in such forward looking statements. The risks
and uncertainties relating to these statements include, but are not limited to, risks and
uncertainties, regarding fluctuations in earnings, our ability to manage growth,
competition (both domestic and international), economic growth in India and globally, our
ability to manage our international operations, government policies, fiscal deficits,
regulations, etc. The Company does not undertake to make any announcement in case
any of these forward looking statements become materially incorrect in future or update
any forward looking statements made from time to time by or on behalf of the Company.
No part of this presentation shall be reproduced, copied, forwarded to any third party
either in print of in electronic form without prior express consent of the Company.
This presentation does not constitute an offer or solicitation of an offer to purchase or
subscribe for any securities in any jurisdiction including India and the United States. No
part of this presentation should form the basis of or be relied upon in connection with any
investment decision or any contract or commitment to purchase or subscribe for any
securities. None of our Companys securities may be offered or sold in the United States,
without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an
exemption from registration therefrom.
This presentation is confidential and may not be copied or disseminated, in whole or in
part, and in any manner. No person is authorized to give any information or to make any
representation not contained in or inconsistent with this presentation and, if given or
made, such information or representation must not be relied upon as having been
authorized by us.
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Alok Overview INTEGR ATE D TE XTILE SO LU TION S
Vertically Integrated
Textile Company both in
cotton and polyester
Sales of Rs. 2,976.93
crores (US$ 620.2 mn.)
and PAT of Rs. 188.37
crores (US$ 39.2 mn.) in
FY 2009
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1US$ - Rs. 48.00
Alok Industries Ltd TMIntegrated Textile Solutions
INTEGR ATE D TE XTILE SO LU TION S
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Segment Wise Revenue Rs. in Crores
INTEGR ATE D TE XTILE SO LU TION S
Share of
Share of Share of
Business HY
Segment Target Customer Business 2009 Business 2008
September 2009
(Audited) (Audited)
(Provisional)
493.00
508.49 619.15
POLYESTER YARN Domestic power loom weavers (US$ 102.71
(US$ 105.94 mn.) (US$ 128.99 mn.)
(POY & Texturised Yarn) Direct exports mn.)
(28.88%) (20.80%)
(22%)
2,170.41
1,761.07 2,976.93
(US$ 452.17
Total (US$ 366.89 mn.) (US$ 620.19 mn.)
mn.)
(100%) (100%)
(100%)
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1US$ - Rs. 48.00
Aloks Advantage INTEGR ATE D TE XTILE SO LU TION S
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1US$ - Rs. 48.00
Global Sized Capacities INTEGR ATE D TE XTILE SO LU TION S
Capacities under
Divisions Units Current Capacities Capacities Post Expansion
Implementation
HOME
TEXTILES
Special Finishes
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Industrial Research
Organic Cotton Initiatives INTEGR ATE D TE XTILE SO LU TION S
Global retailers and brands increasingly prefer fair trade and organic cotton,
since it:
Promotes eco-friendly textile products
Addresses global warming concerns
NGO International
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Brands
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Certifications INTEGR ATE D TE XTILE SO LU TION S
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
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
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INTEGR ATE D TE XTILE SO LU TION S
Financial Analysis
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General Information Alok Industries Ltd. INTEGR ATE D TE XTILE SO LU TION S
Present Equity Rs. 605.69 crores (about US$ 126.18 mn.) (605.69 million shares)
Employees 19,000 +
Profitability
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Historical Financials
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Sales
EBIDTA
3500 900
CAGR 28 % 2976.93 803.75
3000 800 CAGR 40 %
700
2500
2170.41 600 547.75
2000 1824.68
500
Rs. in Crores
Rs. in Crores
410.96
1500 400
1000 300
200
500
100
0
0
2006-07 2007-08 2008-09
2006-07 2007-08 2008-09
PAT Networth
250 2000
217.04 1800 CAGR 31 % 1755.06
CAGR 27 %
200 1600 1431.34
167.73 1400
150 135.18 1200
1024.44
Rs. in Crores
Rs. in Crores
1000
100 800
600
50 400
200
0 0
14 2006-07 2007-08 2008-09
2006-07 2007-08 2008-09
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From Cotton to Finished Fabric*
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Particulars Amount
(Rs. Per Kg)
Raw Material Cost
Raw Cotton Cost 73.00
Add: Additional Cotton consumed ( 0.33%) 24.00
Sub-Total 97.00
Less: Waste Realized 12.00
Total Raw Material Cost (a) 85.00
Conversion Cost
-Spinning (Conversion from Cotton to Cotton yarn) 32.00
-Weaving (Conversion from Cotton yarn to Fabric) (1 kg = 4 mtrs) 32.00
-Processing (for processing and Finishing of fabrics) 50.00
Total Conversion Cost (b) 114.00
Sub Total (a+b) 199.00
Add: Wastage about 5% 10.00
Total Cost 209.00
Average Selling Price (Rs. 82.50 per mtrs X 4 mtrs) 330.00
Contribution 121.00
16 Contribution as a % of Sales 36.7%
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* Management Representation
From Finished Fabric to Garment*
INTEGR ATE D TE XTILE SO LU TION S
Particulars Amount
(Rs. per garment)
Raw Material Cost
Fabric Cost 82.50
Add: Additional Fabric Coat (1.6 mtrs. per garment) 49.50
Total Raw Material Cost (a) 132.00
Conversion Cost
- Accessories 30.00
- Labour 70.00
Total Conversion Cost (b) 100.00
Sub Total (a+b) 232.00
Add: Wastage @ 2% 5.00
Total Cost 237.00
Average Selling Price ( USD 5.8 per garment) 270.00
Contribution 33.00
Contribution as a % of Sales 12.2%
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17
* Management Representation
From PTA to DTY*
INTEGR ATE D TE XTILE SO LU TION S
Conversion Cost
Conversion Cost
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18
* Management Representation
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Global Textile Trade Vision 2015 INTEGR ATE D TE XTILE SO LU TION S
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%
USD bn.
Expected Growth World Trade
805 Top Exporters Amount US$ BN. %
1000 650
583
Europe 183.99 31.56%
530
800
China 176.17 30.22%
600
505 Turkey 22.73 3.90%
390
400 311 345
India 19.10 3.28%
200
219 238 260 300 United States 16.68 2.86%
0
2006 2007 2010 2015
Others 164.33 28.18%
Textile Apparel
Total 583.00 100.00%
Source: - WTO
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Indian Textile Industry INTEGR ATE D TE XTILE SO LU TION S
Snapshot
Second largest producer of cotton yarn in the world
Second largest employer in India (after agriculture) Direct Employment
to 38 mn. People
Constitute 26% of Indias Manufacturing Sector
Constitutes 17% of Indias total exports earnings
Contributes 14% to Industrial production
Contributes 6% to GDP
Advantage
Growing Domestic Market Growing @18% since last 5 years
Cost Advantage Labour cost is about USD 0.70/hr against USD 20/hr
Skilled Labour Availability High Literacy Rate
Raw Material Availability Second largest producer of cotton
Integrated Set up Covers entire textile value chain
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Indian Textile Industry INTEGR ATE D TE XTILE SO LU TION S
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Alok H&A Limited INTEGR ATE D TE XTILE SO LU TION S
Present Status
The Companys cash & carry operations have now been transferred from
Alok Retail (India) Limited to cash and carry company Alok H&A Limited,
a 100% subsidiary of the company
Stores offer products in home textiles, mens wear, womens wear, kids
wear and accessories like ties, handkerchiefs, cuff lings etc.
154 Dealership as on date on dealership basis
Private Equity tied up with Asiabridge Fund I, LLC for growth of the venture
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Overseas Retail - Grabal Alok (UK) Ltd INTEGR ATE D TE XTILE SO LU TION S
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INTEGR ATE D TE XTILE SO LU TION S
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 91 million as on March 2009
The company has been able to reduce its total cost from GBP 62 mn. in 2007-
08 to GBP 57 mn. in 2008-09 and further expected to be about GBP 48 mn in
2009-10
Gross Sales grew by 6.45% to GBP 51.01 mn. during April Sept 2009
compared to GBP 47.9 mn. in corresponding period of previous year with cash
profits of GBP 0.01 mn. compared to a loss of GBP 10.06 mn. during April
Sept 2008
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Overseas Textile Manufacturing - Mileta International INTEGR ATE D TE XTILE SO LU TION S
Brands like Mileta, Erba, Cottonova, Wall Street and Lord Nelson:
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available for introduction in the domestic market
INTEGR ATE D TE XTILE SO LU TION S
641,589 sq ft of office premises with 600 car Ashford Investment & Trading Company Pvt.
parks Ltd and Alok Infrastructure Pvt. Ltd. jointly
Total project cost Rs. 1,225 crores; Funded by propose (50:50) to develop an residential
Equity of Rs. 525 crores and Debt of Rs. 700 complex on a 7 acre plot at Nahur
crores Proposed saleable area of 1.1 mn Sq. ft.
Possession December 2010 Total project cost is estimated to be about Rs.
450 crores; Funded by Equity of Rs. 150
crores and Debt of Rs. 300 crores
Possession March 2012
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Corporate Social Responsibility (CSR) INTEGR ATE D TE XTILE SO LU TION S
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Silvassa Plant INTEGR ATE D TE XTILE SO LU TION S
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Spinning Unit INTEGR ATE D TE XTILE SO LU TION S
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Weaving Unit INTEGR ATE D TE XTILE SO LU TION S
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Quilting Unit INTEGR ATE D TE XTILE SO LU TION S
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Knitting Unit INTEGR ATE D TE XTILE SO LU TION S
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POY Unit INTEGR ATE D TE XTILE SO LU TION S
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Vapi Plant INTEGR ATE D TE XTILE SO LU TION S
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Knit Processing Unit INTEGR ATE D TE XTILE SO LU TION S
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Apparel Processing Unit INTEGR ATE D TE XTILE SO LU TION S
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INTEGR ATE D TE XTILE SO LU TION S
Products Garments
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INTEGR ATE D TE XTILE SO LU TION S
Thank you