2. Safe Harbour
This presentation may include statements which may constitute forward-looking statements. All statements that
address expectations or projections about the future, including, but not limited to, statements about the
strategy for growth, business development, market position, expenditures, and financial results, are forward
looking statements. Forward-looking statements are based on certain assumptions and expectations of future
events. The company cannot guarantee that these assumptions and expectations are accurate or will be realised.
The actual results, performance or achievements, could thus differ materially from those projected in any such
forward-looking statements. The company assumes no responsibility to publicly amend, modify or revise any
forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise.
While every effort is made to ensure that this presentation conforms with all applicable legal requirements, the
company does not warrant that it is complete, comprehensive or accurate, or commit to its being updated. No
part of the information provided herein is to be construed as a solicitation to make any financial investment and
is provided for information only. Any person/ party intending to provide finance / invest in the
shares/businesses of the Company shall do so after seeking their own professional advice and after carrying out
their own due diligence procedure to ensure that they are making an informed decision.
In no event shall the company be liable for any damages whatsoever, whether
direct, incidental, indirect, consequential or special damages of any kind or including, without limitation, those
resulting from loss of profit, loss of contracts, goodwill, data, information, income, expected savings or business
relationships arising out of or in connection with the use of this presentation.
5. Mandhana Industries Limited (MIL) 5
at a Glance…
Multi-divisional, Multi-geographical textile company
Presence across India and more than 25 other countries
Strong topline growth at a 5-year CAGR of 36.54%
Robust bottomline growth at a 5-year CAGR of 36.14%
Net Turnover (in ` Cr.) PAT (in ` Cr.)
838.29
625.79 66.75
463.25 43.4
406.94
35.3 36.56
241.21
19.43
2006-07 2007-08 2008-09 2009-10 2010-11 2006-07 2007-08 2008-09 2009-10 2010-11
Manufacturing of Textile and Garments with state-of-the-art infrastructure
Activities include Designing, Yarn Dyeing, Weaving, Processing, Dyeing and
Corporate Overview
Garment Manufacturing
Phenomenal Growth since inception due to our ability to delight customers
through consistent innovation
Focus on gaining greater visibility and traction on enhanced branding, retailing
and social outreach programmes through exclusive tie-ups
Employee Strength of around 5,000
MIL Corporate Presentation, September 2011
6. 6
18%*
MIL
Divisions *
Textiles Garments
* As per FY 2010-11 audited financials
82%
Textile Segment Garment Segment
2010-11 Revenue Growth: 40% 2010-11 Revenue Growth: 12%
Products: Greige and finished fabrics incl. cotton textiles, yarn dyed Products: Readymade woven garments including shirts, ladies
fabrics, embroidered, embellished and blended cotton fabrics including tops, dresses, skirts, kids wear and sportswear
cotton blends with nylon, lycra, viscose, mélange etc.
Exports: 95% garments are exported to more than 25 countries
Imports: We import fabrics also
Division Turnover (in ` Cr.) Division Turnover (in ` Cr.)
Corporate Overview
350
1050
900
692.59 200
154.57 145.7
494.23 129.49
308.68
2008-09 2009-10 2010-11 2011-12(E) 2012-13(P) 2008-09 2009-10 2010-11 2011-12(E) 2012-13(P)
CAGR 35.81% CAGR 22.67%
MIL Corporate Presentation, September 2011
7. Our presence 7
across the value
Yarn
Dyeing (Process)
Weaving
Dyeing (Process) Greige Fabric
Printing Processing Activity
Surface Ornamentation
Finished Fabrics
Stitching (Activity)
Embellishments & Washing
Corporate Overview
MIL Corporate Presentation, September 2011
8. The MIL 8
story of Evolution…
1984 Incorporation of 1994 Began the processing 1998 Commenced 2002 Set-up weaving 2003 Established a
Mandhana unit with a capacity of garment unit at Tarapur garment unit at
Industries Limited 10,00,000 mtrs p.m. exports with a capacity of Bengaluru to
5,00,000 mtrs p.m. produce
1,20,000
garments p.m.
2008 Set-up one 2006 Established new garment 2005 ◙ Set-up ‘Mandhana Europe’- 2004 Tarapur-Augmented
more units at Bengaluru and liaison office in Paris. weaving capacities and
garment unit Mumbai to manufacture ◙ Set-up a new yarn dyeing plant processing capacities
at Bengaluru additional 1,30,000 and weaving plant at Tarapur with 2,00,000 mtrs
to roll out garments p.m. with capacities of 1,50,000 kgs p.m. and 7,00,000
additional p.m. and 8,00,000 mtrs p.m. mtrs p.m. respectively
50,000 pieces
respectively
p.m.
Corporate Overview
2009 ◙ Commenced CDR/CBR 2010 Floated an 2011 ◙ Tie up with ‘Being Human’ – 2012 ◙ Tarapur & Baramati
processing with printing- IPO to raise Retail Brand owned by Salman garment units to
26,00,000 mtrs p.m. ` 107.90 Cr. Khan begin commercial
◙ Installed an additional ◙ Doubled the weaving capacity operation
capacity of 1,00,000 kgs from 15,00,000 mtrs p.m. to ◙ Apparel retail brand
per month in the Yarn 30,00,000 mtrs p.m. “Being Human” to
Dyeing unit be launched
MIL Corporate Presentation, September 2011
9. MIL’s 9
Exports
Corporate Overview
Italy, Czech Republic, France, Switzerland, The Netherlands, United Kingdom, Greece, Spain, Finland, Hungary, Turkey,
Russia, Poland, Germany, Malaysia, Mexico, USA, Australia, Saudi Arabia, Israel, Singapore, Indonesia, Romania, Chile and Hong Kong.
MIL Corporate Presentation, September 2011
10. Diversified 10
Domestic and International
customer base
DomesticClientele
Allen Solly, Louis Phillipe, Van Heusen , Pantaloons, Indian Terrain, Pepe
Jeans, Wills, Lilliput ,Shoppers Stop, Mufti
InternationalClientele
Jeans and High-Street Wear
J.C. Rags, Colin’s, Bensherman, Killah, Pepe
jeans, Energie, Scotch & Soda, FCUK, Miss Sixty, River
Island, Tommy Hilfiger, Denim Rifle, Bonobo, Cache
cache, Benetton
Sports and surf Wear
Corporate Overview
Quicksilver, Aigle, Rip Curl, Roxy Oxbow
Catalogue
Bonprix, LA-Redoute, Otto
Premium Luxury Brands
Max Mara, D&G, Iceberg, Emporic Armani
Corporate Brands
Switcher
MIL Corporate Presentation, September 2011
12. 12
Strengths
◙ Vertically integrated operations and proven execution capabilities
◙ Technological, marketing & designing capabilities
◙ In-house style lab and textile studio
◙ Quickest turnaround time
◙ Diversified domestic and international customer base having strong
relationships with global retailers and top fashion brands
◙ Wide product basket
◙ A blend of youth & experienced personnel
MIL’s Vigour
◙ Excellent financial track record with highest realisations compared to peers
MIL Corporate Presentation, September 2011
13. 13
Quality
Assurance
ISO 9001 (Management ET System)
Oeko - Tex (Using environment-
friendly chemicals)
Flo - Cert (Fair Trade)
Gots (Organic cotton production)
Control Union (Eco-friendly
products)
◙ Globally benchmarked superior quality assurance using Statistical Quality Control (SQC) techniques
◙ Industrial engineering through skill evaluation, time management, planning, execution
MIL’s Vigour
◙ Quality Control through process flow, functions, controls, traceability, testing and auditing
◙ Quality Assurance through 2.5 AQL System, management of people, defining roles, process planning, product information
◙ Accreditations
MIL Corporate Presentation, September 2011
14. Experienced 14
Management Team
Mr. Purshottam C. Mandhana, Chairman & Managing Director
◙ Founder of MIL
◙ A Visionary and an entrepreneur with proficiency in every sphere of textiles
◙ An administrator par excellence with more than three decades of industry experience
Mr. Biharlal C. Mandhana, Executive Director
◙ Co-Founder of MIL
◙ Insight into human resources and logistics
◙ Exhaustive sourcing capabilities and ability to perceive opportunities and threats
◙ More than three decades of industry experience
MIL’s Vigour
Mr. Manish B. Mandhana, Jt. Managing Director
◙ Driving constant modernisation and progress
◙ Close to two decades of industry experience
◙ Perfectionist and an aggressive marketer
MIL Corporate Presentation, September 2011
15. Experienced 15
Management Team
Mr. Ghyanendra Nath Mr. Khurshid M. Mr. Robin Mr. Sanjay Asher, Non-
Bajpai, Non-Executive and Thanawala, Non-Executive and Cornelieus, Non-Executive Executive Director
Independent Director Independent Director and Independent Director ◙ Solicitor & Partner in Crawford
◙ Ex-Chairman of SEBI and LIC ◙ Responsible for the establishment ◙ CEO, Switcher SA (Founder) Bayley& Co.
and management of textile mills in enjoying 80% of market ◙ Invitee by the Government of
◙ Ex-Non-Executive Chairman
Kenya and Indonesia in the recognition in Switzerland India in the committee formed
of NSE, SHCIL, LIC Housing
capacity of Managing
Finance Co. Ltd. ◙ Winner of ‘International by the Department of
Director, 1965-1984 Disinvestment
◙ Ex-Director of Corporate Conscience Award
GIC, ICICI, UTI, India ◙ Director of Textile 2003’ by SAI (Society ◙ Committee Member in respect
International Insurance Ltd. Consultancy, Management and Accountability to Indo US Financial Institutions
agency companies in East International), New York Reforms & Expansion Projects
◙ Visiting Professor at Africa, Switzerland, Singapore and
Middlesex University, London India 1965-1984
MIL’s Vigour
◙ Conferred the ‘Outstanding ◙ Managing Director, Barmag India
Contribution to Development Pvt. Ltd., Sales and Service of
of Finance’ Award by the Textile Machinery for the chemical
Honourable Prime Minister and natural fibre, 1985-1996
Shri Manmohan Singh
◙ Managing Director, Oerlikon
Textile India Pvt. Ltd.
MIL Corporate Presentation, September 2011
16. 16
Achievements
◙ Tarapur and Baramati projects conferred with ‘MEGA PROJECT’
status-June 2011
◙ ‘Outstanding Exporter of the year’ award for FY 2008-09 at the
International Trade Awards
◙ Awarded the ‘NIRYAT SHREE’ Gold Trophy by the Federation of
Indian Exporters Organisation (FIEO) for remarkable growth in
exports - FY 2003-04
◙ Awarded the ‘NIRYAT SHREE’ certificate of excellence for
remarkable growth in exports - FY 2004-05 and FY 2008-09
◙ Conferred the ‘UDYOG RATNA’ award for excellence in
productivity, quality, innovation and management by the Institute of
Economic Studies, Delhi (IES) - 2007
◙ Obtained the SA 8000 Certification for Social Accountability in
Business Practice - 2006
◙ Runner Up at the ‘International Textile Awards’
◙ Nominated as one of the top 3 contenders in the textile and
MIL’s Vigour
apparel category of the ‘Emerging India Awards’ - 2007
MIL Corporate Presentation, September 2011
18. 18
Future
Roadmap
Post Expansion
Capacities
Yarn Dyeing - 3 Mn kgs p.a.
◙ Foray into apparel retail through Being Human, a brand promoted by the renowned
Bollywood actor, Salman Khan
Weaving - 36 Mn mtrs p.a.
Future Endeavours
◙ Planning 500 sales points for Being Human by 2013
◙ Over USD 50 Mn investment plan underway for expansion projects
Fabric Processing - 51.6 Mn mtrs
◙ Projecting a turnover of ` 1,400 Cr. by 2013
◙ ‘Dress Shirt’ manufacturing unit at Baramati under SITP (Scheme for Integrated Textile
Garmenting - 9 Mn pieces
Park) by the Ministry of Textiles
MIL Corporate Presentation, September 2011
19. Focusing 19
on scale
We have emerged as a niche player in the Indian Textile
industry through vertical integration.
Expansion of the weaving facility
Location: Plot No. C-2, MIDC, Tarapur, Maharashtra
Capacity: Expanded the capacities from 18 Mn mtrs p.a. to 36 Mn mtrs p.a. during the year
Stage: Commenced commercial operations on 22nd March, 2011
Setting up Garment Manufacturing Plant
1. Location: Plot No. E-132, MIDC, Tarapur, Maharashtra 2. Location: Baramati Hi-tech Textile Park
Capacity: Expand to 7 Mn pieces p.a. from 3.6 Mn Features: Project under SITP
Future Endeavours
pieces p.a. Total Capital Expenditure - estimated at ` 95 Cr.
Completion: Final stage of machinery selection, order Commercial operation expected to begin from
placement & installation March, 2012
Status: Expected to begin commercial operations Proposed Capacity: 3 Mn pieces p.a.
from October, 2011
Status: Land Acquisition completed
Factory building construction has already commenced
MIL Corporate Presentation, September 2011
20. Widening 20
the Human Angle
◙ A tentative Capital investment of around ` 60 Cr.
◙ Deal for 9 years and 3 months
◙ Deal focus on the branding, retailing and various
promotional activities
◙ Plans to roll-out total 500 selling points over next two years
through a mix of flagship stores, SIS (Store-in-stores) and
franchise formats
Positioning Target Customers Geographic Focus Price Mix
‘Fashion with a Heart’ ◙ Households with an income ◙ Sept’2011- Oct’2012 Premium pricing range
of ` 10 Lacs + ◙ 2-3 EBOs (Exclusive Brand
◙ Consumers will be in the Outlets) COCO (Company
age group of 20-35 years in owned Company
Future Endeavours
SEC (Socio-Economic Class) Operated), each in Mumbai &
A 1 & 2 categories Delhi
◙ 1-2 EBO’s (COCO) in the rest
of 7 Top cities in India
◙ Company to foresee
opportunities at Tier 2 & 3
cities via franchising
MIL Corporate Presentation, September 2011
21. 21
Product
Mix
Casual clothing with primary focus on Tees & Denims with
casual shirts, casual bottoms and accessories
A slightly higher concentration on Men’s wear as the market is
bigger and less complicated than Women’s wear
◙ Men’s to make up 60% of product portfolio majorly due to Men’s
market making up a large part of organized apparel chain
◙ Women’s will initially start with 40% product profile which is higher
than most competitors
Future Endeavours
MIL Corporate Presentation, September 2011
22. 22
Product Categories
Break-Up 50-60% Core range, another 20-25% Fashion and rest Festive and
Occasion based collection
Men’s Product Mix Women’s Product Mix
10% 15%
20% 45%
20% 50%
Future Endeavours
25% 15%
Tees Shirts Denims Trousers Tees Tops & Dresses Denims Trousers & Capris
MIL Corporate Presentation, September 2011
23. 23
Enhancing
Consumer Brand Experience
Stage I Pre-Launch
Creating brand awareness and consumer involvement
Stage II Launch
Generate footfalls and conversions from an active consideration for the product to regular consumption
Future Endeavours
Stage III Build
Brand recall and repeat visits through relationship building and spreading awareness through word-of-mouth
MIL Corporate Presentation, September 2011
24. 24
Marketing Activities
across different
stages
◙ Social media marketing
◙ Offline PR activities involving Salman Khan for fund raising (Fashion, Films & Sports)
◙ Outdoor hoardings and print campaign
Future Endeavours
◙ Radio ads
◙ Viral marketing and other below-the-line activities along with Being Human Foundation
◙ Product placement in movies
◙ In–store communication, promotions and offers and gift vouchers
◙ Brand development through traditional media
◙ Co-promotion activities with other like-minded organisations like CRY and Smile Foundation help gain a fan following
MIL Corporate Presentation, September 2011
25. 25
Business
Strategy
Geographic expansion Strengthening apparel Expand geographic Improve operational
design and product reach efficiency
◙ Enhance garment manufacturing
capacity to tap overseas market development processes
◙ Explore opportunities in ◙ Identify separate cost centres so
◙ Innovating designs & samples countries where there is as to monitor major costs
◙ Reap maximum benefit from
for fabrics & garments demand for value added textile
government incentives such as ◙ Controlling raw material costs
supported by in-house design products
Technological Upgradation Fund through bulk purchases and
Scheme (TUFS), increase in duty studio cum sampling unit
◙ Tap domestic opportunities, sub- negotiations with suppliers
drawback / Duty Entitlement geographic penetration and
◙ Constant upgradation of design
Pass Book Scheme (DEPB) and product/ market diversification ◙ Controlling consumption and
reduction in bank interest rate studios - human resources and
to mitigate market risk and wastage through effective
on working capital loan technology
supervision on the shop floor
Future Endeavours
widen growth prospects
◙ Diversification into women’s ◙ Explore and tap the hi-end
wear in a planned manner readymade garment segment
which will help to maintain
higher sales realisation
MIL Corporate Presentation, September 2011
30. 30
Textile
Industry
Indian textile industry Indian textile and apparel Global textile and apparel
industry industry
14% of the industrial production
◙ Surged from USD 46 Bn in 2005 to ◙ Surged from USD 355 Bn in 2000 to USD
4% of the country’s GDP USD 70 Bn in 2009 612 Bn in 2008; USD 510 Bn in 2009
12% of total exports ◙ Slated to reach USD 134 Bn by 2015 ◙ Slated to reach USD 800 Bn by 2015 and
and USD 220 Bn by 2020 USD 1,000 Bn by 2020
17% of export earnings
35 Mn people are directly employed in (In USD Bn) (In USD Bn)
Textile
the industry Domestic
220 1000
Apparel
Exports
Industry Overview
Total 800
2nd largest employer after the primary Total
134 612
80 586
agriculture industry 529 510
650
70 78 45 355 500
46 309 346 362 310
23 26 140
16 89 198 350
30 47 52 240 250 200 300
157 220
2005 2009 2010(E) 2015(E) 2020(E) 2000 2006 2007 2008 2009 2015(E) 2020(E)
CAGR 11% CAGR 5%
Source: Technopak Research Report, Sep 2010 Source: Technopak Research Report, Sep 2010
MIL Corporate Presentation, September 2011
31. SCOT Analysis 31
of the Textile and Apparel Strengths Challenges
Industry
◙ Abundance of natural and ◙ Fashion sensitive market Threats Opportunities
man-made fibres
◙ High indirect costs
◙ India being one of the
largest producers of fibres
◙ Low-cost labour
◙ Fairly competitive market ◙ New Product Developments
◙ Presence of many ◙ Increased brand consciousness
unorganised players
Industry Overview
◙ Gradual shift to ready-to-wear
garments
◙ Government impetus for the
industry
MIL Corporate Presentation, September 2011
33. 33
Offices
and facilities
Offices
◙ Mumbai, Tarapur, Bengaluru, Chennai, Delhi, Paris, London (coming soon)
◙ Liaison office in Paris under the name ‘Mandhana Europe’
Operations and Welfare
Facilities
◙ Four textile manufacturing facilities at MIDC, Tarapur for yarn dyeing, weaving and fabric processing
◙ Five garment manufacturing facilities at Bengaluru
MIL Corporate Presentation, September 2011
34. 34
Employee Social
value creation accountability
◙ Health and safety compliance ◙ Swiss based NGO ISCOM has certified
us for Social Code of Conduct
◙ Grievance committee
◙ Women empowerment
◙ Opportunities for the disabled
◙ Effluent treatment of plants in all our
◙ Free canteen facilities facilities
◙ Crèche facilities ◙ Creating unbiased employment
opportunities
◙ Performance driven incentive schemes
◙ Product DNA traceability
◙ Committee for prevention of sexual
abuse ◙ Close association with social
Operations and Welfare
organisations working for the
◙ Recreation facilities underprivileged and people affected by
natural calamities
◙ Skill upgradation through ongoing
training ◙ Promoting organic cotton products
◙ Commitment to Corporate Governance
MIL Corporate Presentation, September 2011