Ashapura Intimates Fashion Limited

Transcription

1 Ashapura Intimates Fashion Limited Investor Presentation May 2015

2 INDEX Executive Summary Company Overview Business Overview Industry Overview Financial Overview

3 :: CORPORATE VALUES Ashapura Intimates Fashion Limited as an organisation is drivenby its Ashapura Intimates Fashion Limited as an organisation is driven by its SEVEN CORPORATE VALUES. These values act as driving forces to strengthen the organisation, its teams and they work as a competitive advantage. These values provide a framework to our leaders and team members to perform their roles and responsibilities. It also acts as a guide from the management to its team to have a common business attitude and approach towards managing business. These values have grown to become the very DNA of the Ashapura and greatly influence the organisation s vision.

4 :: EXECUTIVE SUMMARY Ashapura Intimates Fashion Limited was incorporated in 2006 and was listed on the BSE SME IPO segment in 2013, it has a current market capitalization of approximately INR 5 Bn The company is in the business of designing, branding, marketing and retailing clothing products such as lounge wear, sleep wear, bathrobes and women innerwear since its inception. Recently, it has also launched sports wear and kids loungewear products.

5 :: FINANCIAL PERFORMANCE FINANCIALS Revenue grew from INR 1,018 Mn in FY12 to INR 1,792 Mn in FY15; 3 year CAGR of 21%. EBIDTA grew from INR 96 Mn in FY 12 to INR 249 Mn in FY15; 3 year CAGR of 37%. Net Profit grew from INR 34 Mn in FY12 to INR 87 Mn in FY15; 3 year CAGR of 37%.

6 COMPANY OVERVIEW

7 :: COMPANY OVERVIEW Ashapura Intimates Fashion Ltd (AIFL) is a fashion house that designs, brands, markets and retails intimate garments for men, women and children. Its products consist of lounge wear, bridal night wear, honeymoon sets, bathrobes and night wear. AIFL also offers sports wear, women's inner wear, including lingerie The company is headquartered out of Mumbai, India and its central warehousing facility is located at Thane, India. 2,000 1,500 TOTAL REVENUE (INR MN) 1,676 1,792 1,018 1,312 1, FY12 FY13 FY14 FY15

8 OUR JOURNEY 1999 Ashapura Apparels, a proprietorship firm was started by Mr. Harshad Thakkar. Brand Valentine was born to market loungewear products Ashapura Apparels Private Limited was incorporated New facility was established at Thane for designing and marketing to support the growth in sales Machineries i were modernized dand marketing network was expanded along with the launch of the brand N Line 2009 Launched the brand Night & Day to increase product range 2011 Added new product categories Women Inner wear and Lingerie under the brand name extensions Valentine Pink and Valentine Secret Skin respectively Company got listed on BSE SME segment :: Launched Valentine Sportswear. :: Launched FIVE Exclusive Brand Outlets (EBO) in Mumbai. :: Launched total THIRTEEN EBOs across India. :: Plans to open 100+ EBOs in the coming years.

9 :: MANAGEMENT Mr. Harshad Thakkar Chairman & Managing Director From humble beginnings in a small village in Kutch, Gujarat, Mr. Harshad Thakkar began his foray in the intimate wear industry at his uncle s showroom at the age of 18 and now has accumulated over 2 decades of experience. Started his own venture in 1999 and opened his own manufacturing unit in The huge influx of orders required the opening of a bigger plant at Thane where AIFL is currently situated. Associated with AIFL since incorporation and thus is familiar with all its aspects. Chairman of the Lingerie Committee Clothing Chairman of the Lingerie Committee, Clothing Manufacturing Association of India (CMAI).

10 :: MANAGEMENT & TEAM Mr. Dinesh Sodha, Director Marketing Head Intheintimategarmentsbusinessfor16years.Responsible for day to day management of the centralised warehousing facility Joined the Board of Directors in 2012 Mr. Hitesh Punjani, Additional Director Experience in the intimate garments business for about 12 years In charge ofensuring qualityproductionprocess, timely delivery of goods and quality output. LEADERSAND AND BUSINESS HEADS Mr. Mohit Shah, Chief Financial Officer Ms. Kiran Mestry, Head Fashion Design Mr. Bhavik Dhirwani, Head Logistics Rajaram Gottimukkula, National Head, Sales & Marketing Over 10 years of total experience Management degree in Sales & Marketing Responsible for strategy planning & implementation, business development, marketing & brand building

11 :: ADVANTAGE ASHAPURA Largest Product Basket Range of products handled by the company includes lounge wear, night wear, maternity wear, bridal wear, bathrobes, sports wear and kids wear, which is larger than any of the peer companies. Strong Brand Identity All brands owned by AIFL Strong brands across price and customer segments High brand recall and brand pull Strategic Backward Integrated Relationship Strategic Tie up with Momai Apparels to manufacture its garments Improved response time and market realization. High quality and inventory control Large Distribution Network Strong network of 115 distributors, including an overseas distributor, 10 C&F agents and 65 salesmen all over India. Over 14,000 point of sales, tie ups with various MBOs along with a strong online presence. Promoter Expertise Two decades industry experience has aided in building business relationships. Promoter s association since incorporation has allowed him to develop an intimate knowledge of the business.

12 :: OUR DESIGN Creative team consists of young, energetic professionals from the bestdesign schools in thecountry. t Process flow commences with the conceptualization of fashion trends, range, choice of fabric, color, designing pattern, look and feel of the product and other details. Trends are forecasted before the season commences to draw an inspiration for various product lines. In any season, the company launches more than 1,200 designs The design are developed taking into consideration the demographic, traditional and geographical aspects. Fabrics are designed; embellishments and styling are planned to create collections based on the inspirations. Once samples are prepared and approved by the marketing team, the product parameters (size, price) are finalized.

13 :: OUR MANUFACTURING AIFL does not manufacture its products in house, they select exclusive vendors to do the manufacturing for them. Further, AIFL has a strategic manufacturing tie up with Momai Apparels Limited (MAL) Vendors manufacture products subject to stringent ti t quality control measures Product sample is produced according to the specifications provided Production report is prepared and corrections are made to make it error free. Accordingly, a detailed production schedule is devised MAL has a capacity of roughly 35 lakh pieces per annum. MAL has also recently received an in principle approval at the Vibrant Gujarat conclave to set up a manufacturing facility in Gujarat. Momai Apparels Shareholding Pattern (As on 31 st March 2015) Public 46% Ashapura Intimates Fashion 20% Promoter Group 20% Corporate Bodies 14%

14 :: OUR DISTRIBUTION PROCESS Distribution Products sold to customers goes through thecentralized warehousing facility via carrier services The company hires services of independent professionals on a commission basis who contact distributors on regular basis depending upon the product category Brands are promoted through various hoardings, event sponsorships, special event advertisements and advertising in selected print media

15 :: DISTRIBUTION CHANNELS DISTRIBUTOR MODEL Pan India presence with a network of 115 distributors and 15 carrying and forwarding agents cater 14,000 point of sales. Future Plans Our future plan is to convert distributors to super distributors thus reducing the credit period from 3 months to15 days. This would significantly reduce the working capital requirement of the company.

16 :: DISTRIBUTION CHANNELS MULTI BRAND OUTLETS Retails directly to various MBOs operating in different regions of India VIJAY STORES GLOBUS CENTRAL CHUNMUN BIG LIFE LA LINGERIE a few to name Future Plans Strategic Tie ups with larger MBOs such as Lifestyle and Reliance Trends Shift to cash and carry distribution model for MBOs

17 :: DISTRIBUTION CHANNELS E COMMERCE MODEL The company Retails its products through websites Online sales contributed about INR 20Mn in FY14 Future Plans AIFL is targeting to increase the sales through this medium by more than 100% every year VALENTINE E COMMERCE PORTAL Besides marketing through other e commerce portals we are also marketing our products through our own e commerce website

18 :: DISTRIBUTION CHANNELS BANDRA, MUMBAI BANGLORE EXCLUSIVE BRAND OUTLETS AIFL currently has five Exclusive Branded Outlets in Mumbai, three franchisees in Bangalore, two in Ahmedabad, one in Kochi, Pune and Ghaziabad EBITDA margins are higher by 15 20% in the EBO model along with a lower credit period MULUND, MUMBAI Future Plans To open 100 more EBOs in Tier 1 cities like Ahmedabad and Delhi in the next two to three years

19 :: DISTRIBUTION CHANNELS ASHAPURA S GLOBAL PRESENCE EXPORTS The company caters to an overseas distributor who in turn distributes AIFL s products to the Middle East and other countries Export sales grew from INR 30Mn in FY11 to 102Mn in FY14, 3 year CAGR of 50% As of December 2014, AIFL has generated exports revenue of INR 250Mn Presence in a country EXPORTING TO COUNTRIES Future Plans To open a sales office in Dubai UAE Bahrain Iran Sri Lanka Saudi Arabia Yemen Sudan Iraq

20 :: BUSINESS OVERVIEW SEGMENTAL REVENUE AIFL markets and retails a large variety of products catering to all age groups of men, women and children Night Wear 16% Some of the products include: Lounge wear for men, women,,teenagers and dtoddlers. It is a category of clothing designed for leisure wear and Includes t shirts, shorts, hoodies and other comfort wear Inner Wear 24% Lounge Wear 60% Nightwear including bridal night wear and honeymoon sets. It can be made from cotton, silk, satin or nylon and may be decorated with lace appliques or embroidery at the bust or hem Inner wear for women includes slips, camisoles and lingerie Sports wear and gym wear / yoga wear for both men and women worn for practical, comfort and safety reasons

21 WOMEN S PRODUCTS SLEEPWEAR LOUNGE WEAR INNER WEAR SPORTS WEAR WOMEN SLEEPWEAR The brand presents an eclectic array of premium nightwear for women Products are available in fabrics such as woven, viscose, knits, satin, georgette, stretched etc., in comfort fit and include cottonnight ih wear, maternity feeding night wear, satin two piece night wear. Prices in this product line range from Rs. 500 to Rs. 3,000

22 WOMEN S PRODUCTS SLEEP WEAR LOUNGE WEAR INNER WEAR SPORTS SWEAR WOMEN LOUNGEWEAR Loungewear has been Valentine s flagship product. These products are made with fabrics such as viscose, knits, woven, satin, georgette, stretched, lycranet and terry material, in vibrant styles. We also have a range catering to the economy segment consisting garments made from knits & cotton fabrics. Some of the products include bermudas, capris, pajamas, bridal sets in power net, chiffon, satin and other silky fabrics, individual sets and couple sets in terry fabric. In lounge wearalone, AIFL features around 1,000 designs in its summer collection and 1,200 designs in its winter collection. Prices range from Rs. 599 to Rs. 1,399.

23 WOMEN PRODUCTS SLEEP WEAR LOUNGE WEAR INNER WEAR SPORTSWEAR WOMEN INNER WEAR Valentine brand consists of products in the women s inner wear category such as bras, slips, camisoles and leggings. The products are made from materials such as cotton lycra, lycra rib, interlock, modal, viscose, etc., in comfort fit Valentine Pink includes women s lingerie, bras and panty sets and corsets. Products in this category are made from fabric such as cotton lycra, nylon, stretched net, laces, knits with elastics and other accessories Prices in this product line range from Rs. 250 to Rs. 750

24 KIDS WEAR SLEEP WEAR LOUNGEWEAR KIDS LOUNGE & SLEEP WEAR Valentine has developed a range of products catering to the young kids and toddlers. The products cover loungewear and sleep wear.

25 MENS PRODUCTS SLEEPWEAR LOUNGEWEAR SPORTSWEAR MEN LOUNGE & SLEEP WEAR We produce some the finest loungewear and sleep wear products for men Products include bermudas, t shirts, capris etc. Prices in this product line range from Rs. 500 to Rs. 3,000

26 MEN AND WOMEN PRODUCTS SPORTS WEAR SPORTS WEAR UNISEX Valentine Sports collection consists of products like gym wear, yoga wear, jogging wear etc. for men & women. The MRP of Valentine sports wear ranges from Rs. 399 to Rs. 899 It is made from diverse fabrics like 100% cotton single jersey (knitted), viscose, satin, modal, cotton lycra, 100% cotton fbi fabric etc Recently launched new sports wear made out of dry fit fabric exclusively made for teens and plus sizes

27 INDIAN TEXTILE AND APPAREL INDUSTRY

28 :: INDUSTRY OVERVIEW INDIAN TEXTILE AND APPAREL INDUSTRY :: The Indian Textile and Apparel (T&A) industry, contributes 5.4% of India s GDP. It was worth INR 5,700Bn in 2013, and is estimated to grow at a promising CAGR of 9% over the next 10 years (including domestic market and exports). INDIAN APPAREL MARKET :: Men s wear is the largest segment in India s apparel market, accounting for 42% of the overall market. In comparison, women s wear makes up 38%, while kids wear comprises 20%, of the market. Kidswear, 2 0% :: The men s wear market is expected to grow at a CAGR of 8.5% over Menswear the next five years and women s wear market is expected to grow at a 42% CAGR of 9% for the next five years. Womensw :: India's share of the world's apparel exports stands at 4.5%. It is ear estimated that due to the increasing shift ofapparel and textile 38% production to Asian nations and the deteriorating exportcompetitiveness of China, this figure will grow to 8% by 2020, with a total exports value of $82 billion. :: The per capita monthly income in India was Rs 5,130 in as compared to Rs 4,513 in The per capita private final consumption expenditure in was estimated at Rs 42,065 as against Rs 36,677 in the year , showing an increase of 15%. Source: Technopak Analysis 2012

29 :: INDUSTRY OVERVIEW INNERWEAR MARKET Inner wear, active wear and t shirts are the high growth categories in the men s wear and women s wear segments with CAGRs of above 12%. The active wear category primarily constitutes of sports wear, gym wear and swim wear. The size of the Indian inner wear market is INR 178Bn; CAGR of 13% and is expected to reach INR 322Bn by 2018 and INR 595Bn by 2023 Men s inner wear contributes 40% and is expected to grow at a CAGR of 9%. The women s inner wear market contributing around 60% of the market, worth INR 109Bn is one of the fastest growing categories within women s apparel. This category is growing at a CAGR of 15%, and is expected to reach INR 440Bn by INNERWEAR MARKET (INR BN) WOMEN S INNERWEAR MARKET (INR BN) Source: Technopak Analysis 2012

30 :: INDUSTRY OVERVIEW KIDS WEAR MARKET IN INDIA The kids wear market makes up approximately 20% of the total apparel market, and it is expected to grow at a CAGR of 10.5% over the next ten years. The segment is currently estimated at worth INR 452Bn and is projected to reach INR 1,230Bn by Withinthekidswearsegment,boyswearhastheshareof52%.Currently,itisworthINR234Bnandisestimatedto grow at a CAGR of 10% to reach INR 614Bn by In contrast, the girls wear market stands at INR 218Bn and is poised to grow at an optimistic CAGR of 11% to reach INR 617Bn by KIDSWEARMKT (INRBN) BOYS WEARMKT (INRBN) GIRLSWEARMKT (INRBN) 1,500 1, , (P) 2023 (P) (P) 2023 (P) Source: Technopak Analysis 2012

31 :: INDUSTRY OVERVIEW GROWTH DRIVERS The high growth of the inner wear category is driven by the transition of inner wear from a utility based product to an aspirational one. Indian consumer spend on inner wear products is significantly lower WOMEN S INNER WEAR MARKET SEGMENTATION 12% 2% than other Asian peers. This trend is visible across both men s and 30% 56% women s segments with gaps of over 90% against countries like Thailand and China. This suggests that there is significant room for growth driven by rising per capita spending on such products. Economy Mid Premium Super Premium The main growth drivers of demand for the innerwear industry are: Increasing income levels and high spending power Preference for recognizable brands Growing urbanization Growth in penetration of organized retail Increasing penetration of electronic media leading to greater preference for branded products. MEN S INNER WEAR MARKET SEGMENTATION Economy 15% 5% 36% 44% Mid Source: Technopak Analysis 2012

32 FINANCIAL PERFORMANCE

33 :: STANDALONE P&L 33 Particulars (INR Mn) FY12 FY13 FY14 FY15 Revenue from Operations 1,015 1,306 1,657 1,774 Other Income Total Revenue 1,018 1,312 1,676 1,792 Total Expenses 922 1,168 1,475 1,543 EBITDA EBITDA Margin (%) 94% 9.4% 11.0% 12.0% 13.9% Depreciation Finance Cost PBT Tax PAT PAT Margins (%) 3.3% 3.6% 3.2% 4.9% Diluted EPS NA

34 :: STANDALONE BALANCE SHEET Particulars (INR mn) FY14 FY15 Shareholders Fund Share Capital Reserves and Surplus Loan Funds CAPITAL EMPLOYED 995 1,084 Total Fixed Assets Investments Current Assets, Loans and Advances: Inventories Sundry Debtors Cash and Bank Balances Other Current Assets Short term loans and advances 4 10 Deferred Tax Assets 3 3 Less: Current Liabilities & Provisions: Liabilities Provisions CAPITAL EMPLOYED 995 1,084

35 :: FINANCIAL PERFORMANCE Total Income (INR Mn) EBIDTA (INR Mn) 2,000 1,500 1, ,676 1,792 1,312 1,018 FY12 FY13 FY14 FY15 Net Profit (INR Mn) FY12 FY13 FY14 FY15 Debt/ Equity FY12 FY13 FY14 FY FY12 FY13 FY14 FY15

36 :: DISCLAIMER Ashapura Intimates Fashion Limited No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of Ashapura Intimates Fashion Limited ( Company or AIFL ),whichareexpressedingoodfaithandintheiropinion reasonable, including those relating to the Company s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment. Forward looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward looking statements, including future changes or developments in the Company s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward looking statements. The Company disclaims any obligation to update these forward looking statements to reflect future events or developments. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it 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 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 there from. This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner. Valorem Advisors Disclaimer: Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review For further details please contact our Investor Relations Representatives: VALOREM ADVISORS Anuj Sonpal Tel: /37 anuj@valoremadvisors.com

37 Ashapura Intimates Fashion Limited Investor Presentation May 2015