INTEGRATED TEXTILE SOLUTIONS
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
INTEGRATED TEXTILE SOLUTIONS
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
INTEGRATED TEXTILE SOLUTIONS
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
INTEGRATED TEXTILE SOLUTIONS
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%
INTEGRATED TEXTILE SOLUTIONS
7
Alok Industries Ltd – TMIntegrated Textile SolutionsINTEGRATED TEXTILE SOLUTIONS
INTEGRATED 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
INTEGRATED TEXTILE SOLUTIONS
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
INTEGRATED TEXTILE SOLUTIONS
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
INTEGRATED TEXTILE SOLUTIONS
11
Diversified Customer BaseExport
Domestic
Creative Garments
Other leading garments exporters and retailers
®
INTEGRATED TEXTILE SOLUTIONS
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
INTEGRATED TEXTILE SOLUTIONS
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
INTEGRATED TEXTILE SOLUTIONS
INTEGRATED TEXTILE SOLUTIONS
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
INTEGRATED TEXTILE SOLUTIONS
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
INTEGRATED TEXTILE SOLUTIONS
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
INTEGRATED TEXTILE SOLUTIONS
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%
INTEGRATED TEXTILE SOLUTIONS
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
INTEGRATED TEXTILE SOLUTIONS
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
INTEGRATED TEXTILE SOLUTIONS
Alok Structure
INTEGRATED TEXTILE SOLUTIONS
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)
INTEGRATED TEXTILE SOLUTIONS
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
INTEGRATED TEXTILE SOLUTIONS
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
INTEGRATED TEXTILE SOLUTIONS
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
INTEGRATED TEXTILE SOLUTIONS
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
INTEGRATED TEXTILE SOLUTIONS
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
INTEGRATED TEXTILE SOLUTIONS
INTEGRATED TEXTILE SOLUTIONS
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
INTEGRATED TEXTILE SOLUTIONS
…Products - Home Textiles
– Sheet Sets, Quilts, Comforters, Blankets, Bed in a bag
48
INTEGRATED TEXTILE SOLUTIONS
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