Raymond Cp 10

8/7/2019 Raymond Cp 10

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Corporate Presentation



DISCLAIMER

.additional information including but not limited to retail sales, branded sales etc. but other than

Raymond Ltd. Standalone financial results have been compiled by the management and are being

provided only by way of additional information. These are not to be construed as being provided

under any legal or regulatory requirements. The accuracy of this information and provisional

quarter y conso i ate num ers ave neit er een vette nor approve y t e Au it Committee an

the Board of Directors of Raymond Ltd., nor have they been vetted or reviewed by the Auditors, andtherefore may differ significantly from the actual. The Company assumes no responsibility for the

use of information mentioned herein.

2. Statements in this “Presentation” describing the Company’s objectives, projections, estimates,

expectations or predictions may be “forward looking statements” within the meaning of applicable

securities laws and regulations. Actual results could differ materially from those expressed or implied.

Important factors that could make a difference to the Company’s operations include global and Indian

eman supp y con ons, n s e goo s pr ces, npu ma er a ava a y an pr ces, cyc ca

demand and pricing in the Company’s principal markets, changes in Government regulations, tax

regimes, economic developments within India and the countries within which the company conducts

business and other factors such as litigation and labor negotiations. The Company assumes no

responsibility to publicly amend, modify or revise any forward looking statement, on the basis of any

subsequent development, information or events, or otherwise.

NOTE, ,

at an exchange rate of USD 1 = INR 47

2



3



ABOUT RAYMOND GROUP

Overview

Eight decades old group, in operation since 1925

One of India's largest branded fabric and fashion retailer

Market leader in the worsted fabrics business with over 60% market share

Second largest branded apparel business in India

Owns award winning brands like Raymond, Park Avenue, Colorplus, Parx

One of the largest exclusive retail networks in the textile and fashion space in India

Large India focus, with more than three fourth of revenues from domestic market

Raymond Ltd, the flagship company of the group, is listed on BSE and NSE

4



FULLY INTEGRATED ACROSS THE VALUE CHAIN

Fibre Fabric* Garment* Brands Retail

Wool

Polyester

Worsted

Suitings

Premium

Shirts

Trousers

Raymond

Park Avenue

TRS

Park Avenue

EBO

Viscose

Cotton

Suitings

High Value

Cotton

Shirting

Jackets

Full Suits

Parx

Colorplus

Parx EBO

Colorplus EBO

Denim

Woolen

Outerwear

uxe os

Jeans

Shawls

Manzoni

Park Avenue

Women

Made to

Measure

Neckties &

More

Accessories Shirts & More

*Refer Annexure 1 & 2 for Capacity Information5



FINANCIAL PERFORMANCE (CONSOLIDATED)

mne a es mn

434

510544 544

500

600

68 71

56

7170

80

364

200

300

400

3030

4050

0

100

0

10

20

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Issues

ERP roll out

Successful resolution of all issues has enabled the company to

turnaround and has put it back on a profitable track

Denim business

Issues

GAS joint venture

Denim business

6

Forex losses



7



STRATEGIC THRUST AREAS

Strong thrust on our core business areas of Branded Fabrics and Apparel

Immediate expansion plan in high value cotton shirting fabric business – current

capacity 11.5 mn meters p.a. to be increased to 21.6 mn meters

–

new stores opened since then upto June 2010)

‐

in Textiles business of 3‐4% per annum

Focus on profitable growth across businesses

8



MARKET SIZE AND OPPORTUNITY

Share

of

average

household

consumptionMarket

Size

(Rupees

billions)

39%54% 61% 70%60%

80%

100%

120%

539

842

500

600

700

800

900

CAGR 9%

61%46% 39%

30%0%

20%

1995 2005E 2015E 2025F

383446

158 181 192 225

331

2128 30 35 65

0

100

200

300

400

2006 2007 2008 2009 2014

CAGR 13%

CAGR 8%

• Large domestic market opportunity• Men’s wear accounts for a ma or ortion of the market

Spending

The

spending

habits

of

the

consumers

are

moving

to

discretionary led rather than necessity led, driven by

Source: KSA TechnopakSource: Mckinsey Global Institute

Mens Wear Womens wear Kidswear

248200

250

300

Household income Rs. in '000

Source: Mckinsey Global Institute

lifestyle shifts

6082

140

0

50

100150

1995 2005E 2015E 2025FHousehold income levels are expected to

9

Household income

ncrease ea ng to g er sposa e ncomes



BRAND STRENGTH

Brand salience ‐ S ontaneous recall

40

50

60

Brand salience ‐ Top of mind recall

80

100

120

10

20

30

20

40

60

Raymond Vimal Gwalior Siyaram Reid &

Taylor

Mayur Dinesh

May‐June’09 Jul‐ Sept’09 Oct – Dec’09 Jan – Mar’10

Raymond Vimal Gwalior Siyaram Reid &

Taylor

Mayur Dinesh

May‐June’09 Jul‐ Sept’09 Oct – Dec’09 Jan – Mar’10

Source: TNS Global Market research Source: TNS Global Market research

“Raymond” has maintained its leadership position in brand track studies as compared to its

competitors

“Park Avenue” won the award for ‘Most Admired Menswear Brand 2009’ at Images Fashion

10



BRANDED FABRIC AND APPAREL RETAILING

Formal wear Casual wear

FY10 revenue

Fabric

Branded Apparel Business(In USD Million)

Super

Premium

USD 2.6 mn

Formal

USD 33 mnUSD 5.3 mnUSD 232 mn

[ domestic only ]

Casual

Premium

Popular/ mass segment

(60%)

USD 20 mn

USD 43 mn(40%)

Source: ColorPlus internal data; TechnoPak Advisors, June 2007; CRISIL research

(20%)

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COTTON SHIRTING FABRIC – EXPANSION

34.640

Sales (USD MM)

10

EBIDTA (USD MM)

21.5

27.7

20

30

5.3

6.8.

4

6

8

0

FY08 FY09 FY10

0

2

FY08 FY09 FY10

High Value Shirting Fabric business

‐ Consistently high profitability levels, working at close to full capacity

‐Capacity expansion from the current 11.5 million meters to 21.6

million meters being undertaken by March 2011

12

12



AGGRESSIVE RETAIL THRUST

Retail S ace '000 s . ft.

9531,142 1,257

1,356 • ne o e arges exc us ve re a ne wor sin the textile and apparel space in India

• 1.37 million square feet of exclusive retail

’

No. of Exclusive Stores (In India and Overseas)

2006‐07 2007‐08 2008‐09 2009‐10• The growth of like to like company stores is

5% in FY10 and in Q1FY11 is 13%

437547 584

• Thrust on smaller towns & cities (Tier 3/4/5)

through franchisee model

2006‐07 2007‐08 2008‐09 2009‐10

Town Class Total TRS Presence Balance

CLASS 1 7 7 0

CLASS 2 28 28 0

CLASS 3 36 36 0

CLASS 4 318 161 157CLASS 5 394 39 355

Grand Total 783 271 512

Town Classification based on 2001 Census. Data likely to change on

13

13

e ups e w en ensus s re ease



DUAL MANUFACTURING COSTS

Dual Manufacturing Cost at Vapi and Thane

‐

Opportunity to increase textile business margins by 3‐

4%

The state of art plant at Vapi

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IN SUMMARY

Raymond has turned around FY 10 by successfully resolving the issues faced

ow t e company s ocus s to ta e a vantage o t e n an omest c mar et

growth which is backed by increase in discretionary consumption

The retail thrust will assist the group to penetrate into newer markets in smaller

towns and cities

Operationally the group is focused on tackling the dual manufacturing cost build up

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SOME RECENT INITIATIVESThe company has been focusing Tier 3/4/5 towns and cities, below are some of the newly

opened ‘TRS ‘stores by the company.

m e oga(Maharashtra)

axau

(Bihar)

The company has recentlyinitiated two new formats

’name y ec es an ore

and ‘Shirts and More ‘which

have received very good

response

16



17



MANUFACTURING FACILITIES – FABRICS

Fabrics Processes Capacity Location

Worsted Fabric • Combing

• Spinning

• 31 mmpa • Thane – Nil (closed since

Dec 09)

• Weaving

• Finishing

• Chindwara – 14 mmpa

• Vapi – 14 mmpa• Jalgaon – 3 mmpa

Hig Va ue Cotton

Shirting Fabric

• Weaving

• Finishing

• 11.5 mmpa Ko apur

Woolen Fabric • Spinning • 1.7 mmpa Jalgaon

• Finishing

Denim Fabric • Spinning

• D ein

• 47 mmpa •Yavatmal, India – 40 mmpa

•Romania – 7 mm a

• Weaving• Finishing

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MANUFACTURING FACILITIES ‐ GARMENTING

Garment Capacity Location

Shirts • Garmenting for group • 1.5 m p.a. • Bangalore

Jackets • Has domestic and

international clients• 1.1 m p.a. • Bangalore

Trousers • 2 m p.a. • Bangalore

Denim

garmenting

• Hived off into the

denim

JV

• 1.5 m p.a. • Bangalore

u t P ant • Han ma e su ts

(Jackets and Trousers)

• , an

made suits p.a.

• Banga ore

All the facilities cater to domestic and international clients and is a part of

the One‐Sto Sho strate of the com an .

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BOARD OF DIRECTORS

• Mr Gautam Hari Singhania, Chairman & Managing Director

– Was appointed the Wholetime Director on the Board of Raymond Ltd. in 1990 and was elevated to

the position of Managing Director in mid‐1999

– Has steered Ra mond Limited with a sin le‐minded focus of bein the best brand in India

• Dr Vijaypat Singhania, Chairman Emeritus

– Has nearly four decades of experience in the management of several industrial units as the Chief

xecu ve, even e ore s curren pos on

– Has been instrumental for the successful growth and diversification plans of the Company

• Mr I D Agarwal, Independent Director

– Has 37 years of experience in Banking, Finance and Currency, Former Executive Director, Reserve

Bank of India, was an Advisor to the United Nations and has been the Director of Small Industries

Development Bank of India

• Mr Pradeep Guha, Independent Director – Has recently finished a very successful stint as the CEO of India's largest satellite broadcasting

network, Zee Entertainment Enterprises Ltd

– Associated with the print medium for 29 years and was President of The Times of India group

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BOARD OF DIRECTORS

• Mr P K Bhandari, Non Executive Director

– Has over 25 years of experience in the field of project finance, industry, business and corporate

management

' – o ne e ompany n , p aye a ey ro e n s ra eg z ng an mp emen ng e ompany s

restructuring program

• Mr Nabankur Gupta, Independent Director

– Joined the Company as Group President on August 1, 2000 and was co‐opted on the Board of

Directors of the Company as Wholetime Director and Group President effective January 15, 2001.

– Was the first Indian to receive recognition by the Advertising Age International, New York, in 1995

with the title of ‘Marketing Superstar‘

• Mr Sailesh Haribhakti, Independent Director

– A renowned Chartered Accountant, Director on the Board of 20 highly acclaimed public and private

companies holding the position of Chairman or Member of Audit Committee in ten of them

– Was a member of the ICAI's Group on Implementation of Convergence with IFRS, has been awarded"The Best Non Executive Independent Director Award 07" by Asian Centre for Corporate Governance

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., ,

Stock performance and Sensex Stock performance and CNXMIDCAP

100

150

200

250

e d

t o

1 0 0

100

150

200

250

e d

t o

1 0 0

0

50 I n d e

0

50 I n d e

Last 1 year returns

Raymond BSE SensexRaymond CNX MIDCAP Index

oc r ce

Sensex 9%

CNX Midcap 34%

Low 142

22



THANK

YOU

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Raymond Cp 10