2. Private & Confidential
Executive Summary 3
Business Overview 5
Product Profile 6
Business Strategy 8
Competitive Strengths 9
Awards and Recognition 10
Strong Management Team 11
Industry Outlook 12
Competitors Analysis 13
Financials Performance – ASL 14
Reach Us 19
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3. Private & Confidential
Executive Summary
• ADVANCE SYNTEX LIMITED was incorporated as Advance
Syntex Private Limited on September 21, 1990.
• The Company is mainly engaged in manufacturing of
Metalized Films (MF), Lacquered (Coated) Metalized
Polyester Films (LMPF), glitter powder (Zari Powder) and
Metallic Yarn (Polyester Badla).
• The products of the Company are used in textiles, flexible
packaging, lamination, printing, decorations, advertising,
paints, inks, craft glue, glass bangles, synthetic leather, floor
tiles, walls, cosmetics (such as nail polish, eye-liner, hair gel,
lipstick etc.) and various other products.
• Presently, the manufacturing activities are undertaken at
three different units with total combined area of above 3100
sq. mtrs and installed production capacity of 18 Lakhs Kg p.a.
for LMPF, 36 Lakhs Kg p.a. for Metalized Films and 0.60 Lakhs
Kg p.a. for Resins.
Company
Overview
3
4. Private & Confidential
Issue Size: 2.52 Cr
No. of shares: 21,00,000 Shares
Face Value: Rs. 10
Issue Price: Rs. 12
Lead Manager to the Issue: Hem Securities Limited
Registrar: Sharex Dynamic (India) Private Limited
Trading Lot: The Market lot and Trading lot for the Equity
Share is 10,000 (Ten Thousand) and the multiple of 10,000;
subject to a minimum allotment of 10,000 Equity Shares to the
successful applicants.
Issue opens : XXX
Issue closes : XXX
Issue Highlights
Executive Summary
4
5. Private & Confidential
Business Overview
• The Company (Advance Syntex Limited) was originally incorporated as Advance Syntex Private Limited on
September 21, 1990 under the provisions of Companies Act, 1956 with Registrar of Companies, Gujarat.
• The Company is mainly engaged in manufacturing of Metalized Films (MF), Lacquered (Coated) Metalized
Polyester Films (LMPF), glitter powder (Zari Powder) and Metallic Yarn (Polyester Badla). Glitter Powder
and Metallic Yarn are manufactured through Job Work of LMPF produced by The Company.
• Presently, the manufacturing activities are undertaken at three different units with total combined area of
above 3100 sq. mtrs and installed production capacity of 18 Lakhs Kg p.a. for LMPF, 34 Lakhs Kg p.a. for
Metalized Films and 0.60 Lakhs Kg p.a. for Resins.
• Below are the details of the manufacturing Units:-
Unit: 1 located at 233/2 & 238/2, GIDC, POR Ramangamdi, Vadodara - 391243, Gujarat, India
Unit: 2 located at 104, GIDC, POR Ramangamdi, Vadodara, - 391243, Gujarat, India
Unit: 3 located at 149, GIDC, POR Ramangamdi, Vadodara, - 391243, Gujarat, India
5
Advance Syntex Limited
Company
Name
Vadodara, Gujarat
Registered
Office
GIDC, POR Ramangamdi, VadodaraWarehouse
S&P BSE SME IPOExchange
September 21,
1990
Date of
Incorporation
Plastic, Metallic Yarn/Fibre, Textile,
Polyester
Industry
6. Private & Confidential
Product Profile
Products Features and Applications
Metalized Films (MF) Metallized BOPET Films are used for Flexible packaging, metallic yarn, sequins
for textiles, decoratives etc. Metallized BOPP films are used for flexible
packaging, gift wraps and decoaratives
Slitted Films - Polyester (BOPET) and
BOPP films
Uses of BOPET Films includes flexible food packaging, barrier films, vacuum
insulation panels, hot stamping foil, photo resist films, insulation materials etc.
BOPP Films are widely used as a packaging material for packaging products
such as snack foods, fresh produce and confectionery.
Epoxy Resins Used in manufacturing of Lacquered (Coated) Metalized Polyester Film and
Zari threads.
Lacquered (Coated) Metalized
Polyester Film (LMPF)
Used in manufacturing of glitter powder, metallic yarn, packaging and other
decorative products
Glitter Powder ( Zari Powder) Used in Textiles, Construction Materials, Interior Decoration, Accessories and
Injection Molding
Metallic Fibres Used in making of upholstery fabrics (lace, brocade), interior decoration items
(curtains, sofa covers etc), Automotive textiles, hosiery products etc.
Metallic Yarns (Polyester Badla) Used in Weaving, Knitting, Embroidery, Laces etc.
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7. Private & Confidential
7
Glitter Powder for
Plastic Molding
Polyester Glitter
Powder for Fabrics
Iridescent Glitter
power
Polyester Glitter
Powder for
Decorations And
Events
Glitter Powder for
Plastics Master
batch
Glitter Powder for
Tile Grouting
Prime Product - Glitter Powder
8. Private & Confidential
8
Maintain and expand
long-term relationships
with clients
Company believes that business is a by-product of relationship. The business model is based
on client relationships that are established over period of time. The Company believes that a
long-term client relationship with large clients fetches better dividends.
Increasing Operational
efficiency
This is a continuous process in the organization and the skills the Company impart in the
people gives importance to clients. The Company aims to do this by leveraging the
marketing skills & relationships and further enhancing customer satisfaction.
Leveraging of the
company’s marketing
skills and relationships
The Company intends to improve operating efficiencies to achieve cost
reductions so to have a competitive edge over the competitors.
Optimal Utilization of
Resources
The Company constantly endeavors to improve the service process, and will increase
manufacturing process to optimize the utilization of resources. The Company has invested
significant resources, and intend to further invest in the activities to develop customized
systems and processes to ensure effective management control.
Continue to build-up a
professional organization
The Company has a team of professionals to look after production, commercial and
marketing divisions of the Company. The Company believes in transparency, flow of
information, and commitment to the work among the work force and with the valuable
customers, suppliers, investors, government authorities, banks, financial institutions etc.
Business Strategy
9. Private & Confidential
9
Quality Products
The Company believes in providing the customers the best possible quality products. The
scale of operations and experience of the Promoters in the business enables the Company
to produce quality products.
Facility for In-house
production of raw
materials
The Promoter Mr. Bhavan Dhirendra Vora, is engaged in manufacturing business, which
also form part of Board of Directors of The Company, have a proven background and rich
experience of more than 20 years in the industry. Also, The Company is managed by a
team of experienced personnel.
Management Expertise
The Company has in-house facility for production of raw materials required to
manufacture Lacquered (Coated) Metalized Polyester Film (LMPF).
Existing relationship
with suppliers
The Company has acquired raw materials from several suppliers and has contacts with
them for a long time. The company believes that the strong relationships with suppliers
will enable the company to continue to grow the business.
Existing customer
relationship
The existing customer relationships help the company to get repeat business from the
customers. This has helped the company maintain a long term working relationship with
the customers and improve the customer retention strategy.
Competitive Strengths
10. Private & Confidential
Awards & Recognition
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Certificate for Best MSME Award 2011 by Government of Gujarat (Industries & Mines Department) for Outstanding
Performance in Growth in Production & Profit in the Category of Medium Enterprise for manufacturing of Lacquered
Polyester Film & Metalized Polyester Film.
SKOCH Order of Merit Certificate for Qualifying Amongst India’s Best SMEs – 2014, given on 21st March, 2014, at New
Delhi.
Certificate from Federal Bank Ltd. and Dun & Bradstreet India for being featured in “Dun & Bradstreet’s premier
publication” as “Leading SME of India 2014”.
Certificate of Excellence from Small & Medium Business Development Chamber of India (SME Chamber of India) in
recognition of exemplary achievement in “Manufacturing Sector”, given on 16th September, 2014 at Mumbai.
Bank of India (BOI) India SME – 100 Award for 2013 year.
India SME 100 Award from Ministry of Micro, Small and Medium Enterprises and India SME Forum for scoring in the
Top 100 in the overall evaluation of financial & Non financial parameters constituted for the India SME 100 Awards,
given on 28th April, 2016.
11. Private & Confidential
Strong Management Team
Mr. Sanjeev Manickchand Rakhecha
• Current Position
Chairman & non Executive Independent
Director
• Experience
Mr. Sanjeev Manickchand Rakhecha
possesses 10 years of experience in the field
of exports and marketing.
Mr. Bhavan Dhirendra Vora
• Current Position
Managing Director
• Experience
Mr. Bhavan Dhirendra Vora has played a
major role in introducing the company’s
products to foreign countries by way of
Exports and has maintained cordial
relationships with national as well as with
the foreign Customers. He is responsible
for ensuing that appropriate governance
procedures are in place and well
entrenched in the culture of the Company.
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12. Private & Confidential
Industry Outlook
12
Plastics Industry in
India
The Indian plastics industry offers excellent potential in terms of capacity,
infrastructure and cheap labour availability. It is supported by a large number of
polymer producers, and plastic process machinery and mould manufacturers in the
country. Among the industry’s major strengths is the availability of raw materials in
the country. Thus, plastic processors do not have to depend on imports. These raw
materials, including polypropylene, high-density polyethylene, low-density
polyethylene and PVC, are manufactured domestically.
Packaging Industry
The future for the Indian textile industry looks promising, buoyed by both strong
domestic consumption as well as export demand. With consumerism and disposable
income on the rise, the retail sector has experienced a rapid growth in the past
decade with the entry of several international players like Marks & Spencer, Guess
and Next into the Indian market. The organised apparel segment is expected to grow
at a Compound Annual Growth Rate (CAGR) of more than 13 per cent over a 10-year
period.
Indian Textile Industry
Various upgraded technologies are being used in industry such as aseptic packaging,
retort packaging and biodegradable packaging to enhance the life of food product.
The packaging industry is poised to grow rapidly led by increasing use of the
innovative packaging equipments and the rising flexible packaging market.
14. Private & Confidential
Financial Performance
14
Particulars
For Nine month
ended December 31,
2015
For Year Ended 31st March
2015 2014 2013
Net Sales 340,309,140 472,172,568 361,473,102 296,379,336
Other Income 1,849,281 3,199,878 747,654 1,300,687
Total Income 342,158,422 475,372,446 362,220,756 297,680,023
Total Expenditure(excluding Interest
& Depreciation)
282,880,862 424,746,614 329,105,096 268,377,266
PBIDT 59,277,560 50,625,832 33,115,660 29,302,757
Interest/Finance Cost 29,799,800 24,851,762 17,358,696 13,484,403
PBDT 29,477,760 25,774,070 15,756,964 15,818,354
Depreciation 16,312,819 23,502,022 4,265,912 3,910,233
PBT 12,778,973 2,272,048 11,491,052 11,908,121
Tax 5,397,310 432,939 2,299,100 2,382,547
Deferred Tax -2,559,146 -4,656,469 882,331 1,101,811
Provision for earlier years 790,380 374,785 0 0
Reported PAT 9,150,429 6,120,793 8,309,621 8,423,763
15. Private & Confidential
Balance Sheet
15
Particulars For Nine month ended
December 31, 2015
For Year Ended 31st March
2015 2014 2013
LIABILITIES
Share Capital 58,146,600 38,764,400 34,860,100 28,760,100
Reserves & Surplus 21,1218,53 31,353,624 25,232,831 16,923,210
Share Application Money Pending
Allotment
3,384,300
Net worth 79,268,453 70,118,024 63,477,231 45,683,310
Non Current Liabilities 78,496,412 72,133,175 50,129,730 54,245,107
Long-Term Borrowings 74,696,601 65,810,969 39,201,721 44,358,360
Deferred Tax liability 3,456,681 6,015,825 10,672,294 9,789,963
Long term provisions 343130 306381 255715 96784
Other Long Term Liabilities 0 0 0 0
Current Liabilities 271,556,976 204,707,729 173,778,626 137,223,464
Total Liabilities 429,321,842 346,958,928 287,385,587 237,151,882
ASSETS
Non Current Assets 92,610,608 96,445,701 84,927,592 78,141,908
Fixed Assets 89,428,654 95,009,701 83,491,592 76,705,908
Other Non-Current Assets 3,181,954 1,436,000 1,436,000 1,436,000
Current Assets 336,711,235 250,513,227 202,457,995 159,009,974
Total Assets 429,321,842 346,958,928 287,385,587 237,151,882
16. Private & Confidential
Financial Ratio’s
16
Particulars
For Nine month ended
December 31, 2015
For Year Ended 31st
March
2015 2014 2013
Return on Average Assets (%) 2.36 1.93 3.17 4
Return on Net worth (%) 11.54 8.73 13.83 18.44
Average Debt/Average Net worth 2.87 2.36 2.42 3.22
Average Net worth as a percentage of Average
Total Assets (%)
19.24 21.06 20.81 18.42
Basic Earnings per share 1.57 1.08 1.80 2.43
Diluted Earnings per share 1.57 1.08 1.80 2.43
Book Value per share 13.63 18.09 17.24 15.88
17. Private & Confidential
Financial Performance
17
FY 2015 FY 2014 FY 2013
Total Revenue 4753.72446 3622.20756 2976.80023
Restated profit for the year 61.20793203 83.09620748 84.23763259
0
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Financial Performance (In Rs. Lacs)
18. Private & Confidential
Financial Summary
Revenue
Earnings before Interest, Tax, Depreciation &
Amortization (EBITDA)
Net Worth
24%
31%
24%
CAGR (2 Years FY 13 – FY 15)
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19. Private & Confidential
THANK YOU
14/15, 1st Floor, Khatau Bldg.,
40, Bank Street, Fort, Mumbai - 01
Tel: +91 - 22 – 4906 0060
Email ID: ib@hemonline.com
Website: www.hemonline.com
19
233/2 & 238/2 GIDC, POR
Ramangamdi, Vadodara-391243,
Gujarat, India
Tel No: +91- 265- 2831850
E-mail: info@midasglitter.com
Website: www.midasglitter.com
