information memorandum 2012 - shri lakshmi · swot analysis: 3: contents: ... cmd, entrepreneur...
TRANSCRIPT
This Information Memorandum is being delivered on behalf of Shri Lakshmi Cotsyn Limited (“Company”). The sole purpose of thisMemorandum is to assist the recipient in deciding whether to proceed with a further investigation of the Company, in connection with theproposed investment in listed shares of the Company. This Memorandum does not purport to be all-inclusive or to necessarily contain all theinformation that a prospective investor may desire in investigating the Company.By accepting this Memorandum, the recipient agrees to keep permanently confidential the information contained herein or made available inconnection with any further investigation of the Company. This Memorandum may not be photocopied, reproduced, or distributed to others atany time without the prior written consent of the.This Memorandum has been prepared for informational purposes and upon the express understanding that it will be used for only thepurposes set forth above. The Company does not make any express or implied representation or warranty as to the accuracy or completenessof the information contained herein or made available in connection with any further investigation of the Company. The Company expresslydisclaims any and all liability which may be based on such information, errors therein or omissions there from. The recipient shall be entitledto rely solely on the representations and warranties made to it by the Company in any final private placement agreement.In furnishing this Memorandum, the Company does not undertake any obligation to provide the recipient with access to any additionalinformation. This Memorandum shall not be deemed an indication of the state of affairs of the Company nor shall it constitute an indicationthat there has been no change in the business or affairs of the Company since the date hereof. Except where otherwise indicated, thisMemorandum speaks as of the date thereof. The Memorandum includes certain statements, estimates and projections provided by theCompany with respect to the anticipated future performance of the Company. Such statements, estimates and projections reflect variousassumptions, which may or may not prove to be correct. No representations are made as to the accuracy of such statements, estimates orprojections.
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Disclaimer
Investment HighlightsFinancial Performance / ValuationCompany OverviewMilestonesLocationsGroup StructureManagementDiversified Textiles PortfolioExisting CapacitiesBrandsSLCL in Defence- Defense Products PortfolioRecent DevelopmentsInnovationsRecognitionsValue PropositionSWOT Analysis
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Contents
Investment Highlights
One of the largest textile manufacturers in Northern India with a diverse product range
Shri Lakshmi Cotsyn Limited (SLCL) is a multi-product company involved in the manufacturing of cotton and blended fabrics, readymade garments, technical textiles, embroidered fabric, quilts, fusible interlining, denim, terry towels, bottom weights, home furnishing etc.
Presence in the high margin, value added textiles segment (Technical and Safety Textiles)
SLCL manufactures the high margin technical and safety textiles (Water Repellent Bed Linen, Vitamin E bed Linen, FireRetardant Fabrics, Organic Bedspread, Breathable Fabrics, NBC (Nuclear, Bio-Chemical) Fabrics, MSCN (MultispectralCamouflage Nets) Fabric, Flex Fabric, Black out & ECW ( Extreme Cold Weather) Fabric
Gradual change in revenue mix with increasing share of high margin business verticals like technical & safety textile andretailing etc
Blue Chip international clients are testimony to the high quality products and processes of SLCL Blue chip international clients of SLCL products include Wal-Mart, Macy’s, Ikea, Bed Bath & Beyond, Loblaws, JC
Penney, Shopco, Meijer’s, Lacoste, Frette, Westport, HBC, El-Corte Ingles and Sheet Street
Presence in the Defence sector
SLCL is an approved supplier to government defence establishments ( Indian Army, Navy, Air Force and State Police) and is registered with several regulatory agencies. This ensures acceptance of its products
The Company is supplying combat uniform gears, bulletproof jackets and helmets, body armors, MSCN fabric, ECW fabric and 360* protected Armoured Vehicles
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Investment Highlights State of the Art manufacturing facilities with focus on R&D
The company has world class standard machineries in all its factories. In-house chemical auxiliary unit Focus on nanotechnology that would enable the company to manufacture smart fabrics. Value creation from waste products like conversion of Rice Husk Ash (RHA) into value added products like sodium
silicate and precipitated silica.
Experienced and Professional Management team led by Dr. M.P. Agarwal
Headed by Dr. M.P. Agarwal, CMD, entrepreneur with over thirty-eight years of experience Supported by an experienced second in line management team
Solid financial performance Over a period of time generating value for shareholders: SLCL’s revenues have been growing at a C.A.G.R. of 24.67% over the past 3 yrs. The revenues have increased by
17.12% y-o-y from 15354.8 mn to 17983.8 mn and the profits increased by 13.58% y-o-y from 916.5 mn to 1041.0 mn. for the year ended June 2011.
SLCL stock trades at a FY11 P/E of 2.18 x (at a CMP of Rs, 106.50 on 30 June, 2012), making it a growth stock available at a very low valuation
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(in INR Million)
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Consolidated Financial Performance
SLCL has delivered high growth in revenues despite economic downturn It is a large size player in value added textiles segment In FY11, the EBITDA margins have improved over the previous year The revenues are expected to increase post completion of the expansion plan in December 2011 SLCL is an undervalued stodgy player in textiles and defence sector. It is poised for high growth on account of increase in capacities, more visibility of its brands and launch of new brands, increased demand for technical and safety textiles and increased demand for defence products.
FY 2009 FY 2010 FY2011 FY 2012(Prov.) CAGR Profit & Loss Account Net Sales 11,580 15,355 17,984 23,968 27.44%Growth 25% 33% 17% 33%
Other Income 114 113 150 238Total Expenditure 10,317 11,418 15,394 19747EBITDA 1,739 2,058 2,740 4459 31.87%Margin 15.0% 13.4% 15.2% 18.6%Interest 680 738 1,075 2047
Depreciation 252 270 371 617EBT 807 1,050 1,294 1795
Tax 174 133 253 551PAT 630 917 1,041 1244 25.46%Margin 5.4% 6.0% 5.8% 5.2%Balance Sheet
Share Capital 156 200 211 281
Share Warrant 220 1,280 847 -Reserves and surplus 2,839 3,995 5,073 7339Total Debt 8,239 11,289 16,448 23489Net Fixed Assets 4,360 4,455 7,919 16,387Capital Work in Progress 796 1,709 3,185 1457Current Assets 6,940 10,369 12,344 14972
Current Liabilities 527 831 990 1,112
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CMP = Rs. 106.35 (as on June 30, 2012 ) FY11
Market Cap INR Mn 2,028
Net Sales Revenue INR Mn 17,984
EBITDA INR Mn 2,739
PAT INR Mn 1,041
EPS INR 49.35
EPS Growth % 7.49%
ROE % 16.35%
P/E x 2.16
SLCL is available at a FY11 P/E of 2.16x which is very low as compared to the underlying fundamentals of the company.
– Large size player in value added textiles– Increasing demand for products manufactured by SLCL – home furnishings, shirting, technical
textiles, denim fabric, safety textiles and defence products– Branding of products is expected to improve margins– Emerging player in defence products– Capacity expansion nearing completion and is expected to boost revenues and profitability
This presents a great investment opportunity for a savvy investor
Valuation
Source: CRISIL
Company Overview Shri Lakshmi Cotsyn was established in 1993 and today is a well established multi-products company with
multi-markets Core expertise in manufacturing of Denim, Terry Towel, Bottom weight, Home furnishings, Garments and
Technical & Safety textiles
One of the leading manufacturer and supplier of Technical & Safety Textiles and Fabricated items for the defence sector
Listed on NSE, BSE, UPSE and SGX (Bonds)
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Public, 51.13%
Promoter & Promoter
Group, 48.83%
Institutions, 4%
Shareholding Pattern as on 30th June 2012
Commenced production of
Quilted Fabrics(0.4
mmpa)
Commissioned Technical Textiles (6 mmpa)
1993 1995 1998 1999 2002 2005 2006 2007 2008 2009 2011
Capacity Expansion of poly-fibre filled quilted to 0.8 mmpa.
Expansion of Suiting/Shirting to 12 mmpa
Manufacture of Fusible Interlining Fabrics with 10 mmpa
Entered domestic retail through ‘Weaves’
Commenced garment production at Roorkee (6.6 mn pcs)
• Launched DYFI Brand
of Garments
Setup of Spinning unit with 10,000 Spindles.
Commenced production of
suiting/shirting (6 mmpa)
Manufacture of embroidery
fabric (0.8 mmpa)
Expansion of Suiting/
Shirting division to 18 mmpa
Expansion of
Suiting/Shirting division
to 24 mmpa
Expanded /Diversified to:
Commenced production of 360 degree protected armoured vehicles
Acquired unit at Noida to manufacture comforters
Set up 16 Mw co-generation Power plant for captive use
Wider width fabrics
Bottom wear fabrics
Terry Towels
Denim Fabric
Yarn Dyeing
Nylon coated fabric
Home furnishings
2010
Expansion of Capacities
Denim20 mmpa Sheeting18 mmpa Technical
Textile 75 mmpa
Milestones
Locations Headquartered in Kanpur; eight manufacturing facilities spread in Malwan, Aung, Abhaypur, Rewari
Bujurg, Rhasupur, Noida (Uttar Pradesh), Roorkee (Uttarakhand) and Sonepat (Haryana)
A strong dealer and distributor network across India with retail presence through 1150 multi-brand outlets (MBO)
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Group Structure – Integrating Growth
Shri Lakshmi Group
Shri Lakshmi Cotsyn LimitedListed
Shri Lakshmi Defence Solutions Limited
SLCL Overseas (FZC), UAE
100% 100%
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Board of DirectorsDr. M. P. Agarwal, CMD •He has been a guiding force behind the sharp rise in Company’s turnover over the last 18 years
•An ICWAI and Doctorate in Textile Costing
Mr. Pawan Kumar Agarwal, Jt. MD
•Responsible for production, quality controls and marketing
Mr. Devesh Gupta, Dy. MD
•A Chemical Engineer by qualification•He is responsible for looking after technical plant
Mr. Dileep Bajaj, ED •He has more than 31 years of experience in project and financial management especially in textile industry
Mrs. Sharda Agarwal, Director
•She is actively involved in Company’s business and management
Dr. G. N. Mathur, Independent Director
•An eminent senior scientist and ex-Director Defence Materials and Stores Research and development Establishment•He is working on Nano technology and its application in textiles to manufacture smart textiles.
Mr. Ram SharanSrivastava, Independent Director
•A retired IAS Officer. Had been in administration for more than 30 years.
Dr. J. V. Rao, Independent Director
•He has over 30 years of experience in textile technology•He is also a director in Northern India Textile Research Association (NITRA) Ghaziabad
Mr. R. K. Garg, Independent Director
•He has over 30 years of experience and has previously worked with DLF and DCM
Mr. K. D. Gupta, Independent Director
•A retired IRS Officer•Ex. Administrator U.P. Stock Exchange Association Ltd.
Shri G.N. BajpaiIndependent Director
• Ex Chairman SEBI , Ex Chairman LIC
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Textiles
Defence Production
Legacy Business Suiting and
shirting Embroidered Quilted Fabrics Lace &
embroidery
Export Oriented Terry Towel Bed Sheets Comforters Pillow Covers
Others Denim Garments Bottom weight Zippers
Technical Textiles Safety Textiles
Fusible Interlining Black out Fabric Flex Fabric MSCN/IRR Fabric NBC Fabric PU/PVC coated fabric Water Repellent Fabric Breathable fabric Fire retardant fabric
Bulletproof Jackets, Coat for Combat
Sleeping bags Infra-red camouflage nets Ballistic body armour Bulletproof helmet Mosquito net
Textiles: Diversified Product Portfolio
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Garments Do You Fit In (DYFI) brand of readymade garments launched in FY10 Products sold through more than 1150 multi-branded outlets (MBOs) SLCL has state of the art technology for manufacturing garments (6.6 mn pcs. p.a.) from Italy and
Germany SLCL manufactures knitted t-shirts, skirts, denim jeans and uniform dresses
Denim Product range comprises of cross-hatches, rains satins, drills, tussors, linen, Lycra, ecru and dobby
designs in varied deep indigo and blue black combinations The products climb the value chain by special treatment of mercerizing, over dyeing etc To introduce nep denims, chambrey greens cast and vintage fabrics in the future
Embroidered fabrics & Lace Computerised multi-needle embroidery machine, imported from Switzerland Team of designers design the fabrics (both in cotton and tissue) and Lace Marketed under the brand name of “Alisha Embroidery”
Fusible interlining SLCL manufactures Microdot fusible interlining, fusing fabric for shirt collars, cuffs, belt rolls and
Packlets Marketed under the brand name of “Star Track”
Zippers Imported the largest zipper manufacturing plant from Taiwan The product ranges from (a) IFC and CFC zippers used in trousers, (b) concealed invisible zippers
used in salwars, skirts and evening dresses, (c ) Metal Zippers for Jackets and Jeans, and (d) Long chain zippers used in suitcases, bags and shoes
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Textiles – Diverse Range
Terry Towels
Commenced production of terry towels in March 2007 (3,000 TPA)
Expanded the capacity to 15000 TPA in 2010
One of the leading manufacturer of entire gamut of Terry Towels in India
High quality ranging from 380 to 800 GSM towels and for bath mat 500 to 2000 GSM
Producing towels in all sizes from Wash, Guest, Kitchen, Hand, Bath, Bath sheet, Beach towels, Bath mat and Bath Robes
Product range is available in Dobby, Jacquard, Embellished and Embroidered towels
Bed Linen
Commenced production of bed linen
in October 2007 (12 MMPA)
Expanding the capacity by Dec. 2011, (30MMPA)
SLCL has the capacity to weave, process,
embroider and finish 1,60,000 sets every month
The range is available in cotton, polyester cotton blend, percale and satin and prints upto 16 colours
SLCL is fast emerging as a preferred vendor partner to global buyers in the home textile space • Blue chip international clients of SLCL products include Wal-Mart, Macy’s, Ikea, Bed Bath & Beyond, Loblaws, JC Penney, Shopco, Meijer’s, Lacoste, Frette, Westport, HBC, El-Corte Ingles and Sheet Street
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Textiles -Terry Towel and Home Furnishings
Bed Linen/Home furnishings
Product Specialty
Water Repellent Bed Linen
Ideal for nursing mothers
Vitamin E Bed linen Protects body tissue from damage caused by unstable substance
Fire retardant fabric Specialized fabric which does not catch fire
Organic bedspread 100% pure organic materials such as cotton, bamboo, linen and hemp blended together
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REGULAR TEXTILES:
Suiting & Shirting 24 MMPA
Denim 40 MMPA
Bottom Weight 6 MMPA
Terry T owel 15000 TPA
Wider Width 30 MMPA
Comforters 0.3 Mn. Pcs.
Garments 6.6 Mn. Pcs.
Quilted Fabric 0.4 MMPA
Embroidery Fabric
0.8 MMPA
TECHNICAL TEXTILE:
Technical Textile FABRIC 12 MMPA
Fusible Interlining 25 MMPA
Nylon coated Fabric 1.25 MMPA
Black out Fabric 20 mn mtrs
Flex fabrics 17 mn mtrs
NBC Fabric 10 mn mtrs
IRR/ MSCN fabric 5 mn mtrs
Existing Capacity (p.a.)
Brand Name Product Launched Specialty
Star Track Fusible interlining fabric 1997 40 varieties of fusible interlining (with zero shrinkage)
Galaxy Embroidery 1997 Range of embroidery like chikan, etc
Alisha Clothing Accessories 2000 Range of clothing accessories, lace, etc
SVL Zippers 2006 150 shades with different zippers for garments, bags and luggage
Weaves Home Furnishings 2008 Home furnishing – value-added bed sheets, bed covers to terry towels, pillows, cushions, comforters, table covers
“DYFI” Garments 2010
Stitching through technology driven machines. Presently, there are 5 owned company stores which will be increased to 20 in FY12. Overall, presence pan India through multi-brand outlets. SLCL would be increasing the advertising budget for DYFI and would be going in for targeted ad spends
Textiles: Multi-brand Product Portfolio
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Shri Lakshmi in Defence businessSLCL manufactures uniforms, fabrics and fabricated textile items for the armed forces
SLCL’s subsidiary, Shri Lakshmi Defence Solutions Limited (SLDSL), incorporated in 2006-07, manufactures the following for the defense and homeland security sector:
•Ballistics•Body armour• Bulletproof helmets• Bomb Blanket•Bomb Suits•Composite armour panels for vehicles•Armoured Vehicles (360* protection)
•DHRUV – Armoured Troop Carrier •DRONA – Blast and Mine Protection Vehicle•VIPER – Fast moving attacking armoured vehicle•SHERPA MK7 – Latest armoured protection vehicle
SLDSL is approved supplier for Indian Army NavyAir Force
SLDSL is registered with •Directorate General of Supplies & Disposal•Director General of Quality Assurance•Forces Ministry of Defence (Navy)•Defence Material Stores R&D Est•Federation of Indian Export Organization•RDSO (Indian Railways•Indian Postal Department
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Shri Lakshmi Defence Solutions SLDSL has entered Agreement with Ford India Ltd. for armouring vehicle on Ford chassis.
The Major markets for SLDSL products include:
India
USA
Canada
Europe
Australia
Middle East
Africa
Asia
Growth Drivers – Modernization programs to upgrade the Indian Defence Recent terrorist attack on India Threat from terrorists, naxalities, etc. in different parts of the country Threats from neighbour countries Strengthening the Indian Army Protection of VVIPs
Technical & Safety Textiles – Defence Applications
Product Specialty
Waterproof Repellent Fabric Protects the soldiers from getting wet
Breathable fabric 100% cotton made and carbon coated to make it easilybreathable and light weight
Fire retardant fabric Protects soldiers from fire
Nuclear Bio-Chemical Fabric Protects soldiers in nuclear war. Nitrogen packing enables use even after 10 years
High altitude Soldiers will feel warm even at -40 degree centigrade
Dual shade fabric Camouflages and prevents enemy detection
Bulletproof jackets and helmets Officers protection
Infra-red reflector fabric Cannot be detected by infra-red rays
Sleeping bags Comfortable and portable
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Technical and Safety Textiles – for Defence
SLDSL has developed indigenous manufacturing facilities for technical and security related fabrics for all types of military usage. It has a range of ballistic products and an established network and affiliates around the world, backed
by long-term strategic alliances with local as well as global manufacturers
Ballistic Blanket
Ballistic Shield Sniper SuitFire Resistant
SuitN. B. C. Suits
Smart Uniforms
Body ArmoursBulletproof
VestsBulletproof
JacketAnti-riot helmets
Sleeping Bag Armour Plates
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Technical and Safety Textiles - Defence
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Extremely Cold Weather (ECW) clothingsFire Retardant Fabrics & Suits Nuclear, Biological, Chemical (NBC) Protective Suits and Gear
Multi Spectrum Camouflage FabricConductive Fabrics and Health Monitoring Sensors
Capabilities in Technical and Safety Textiles SLDSL has already developed the capabilities in the following high end technical and safety textiles and gear
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Recent Developments Textile Park
The Ministry of Textiles Govt. of India vide their letter dated 08.11.2011, has approved Shri Lakshmi Textile ParkLimited for setting up Integrated Textile Park Project with world class infrastructure facilities for promoting industrialunits.
R&D Centre
DSIR (Directorate for Scientific and Industrial Research), Govt. of India has given R&D recognition to the company videtheir letter dated 23.09.2011.
Skill Up gradation CentreShri Lakshmi Cotsyn Ltd. has also been approved by Ministry of Textile Govt. of India to under take Skill UpgradationDevelopment programme for the unskilled workers.
OthersSLCL has developed an anti-bedbug bedsheet
SLCL has converted rice husk ash (RHA) into Sodium Silicate for the use in detergent soaps and tyres and further converting it into precipitated silica for the use in tooth paste and tooth powders.
SLDSL - Mine Protection Vehicles for Nepal Government SLDSL has supplied 4 specialized mine protection vehicles to Nepal Govt. for their troops deployed on United Nations missions and is expecting orders worth Rs. 800 mn to 1 billion.
SLDSL - supply of vehicles to Ministry of Home SLDSL has supplied 6 Bullet Proof Commando vehicles to Gujrat Police and 4 Bullet Proof Commando vehicles to Madhya Pradesh Police and expecting the repetition of order worth Rs. 100 Crores.
2008 •Nano Technology - to `produce smart textiles e.g. smart caps, vests and bed sheets equipped with Nano Carbon Sensors and manufacturing of value added bed sheets viz water repellent, mosquito repellent, vitamin E etc.
2007•Screen Making Technology with 1600 resolutions
2006 •Sets up a Denim manufacturing plant with Rope Dying Technology
2004 •Facilities to manufacture Technical Textiles like NBC (Nuclear Bio-Chemical) fabric, IR (Infrared Reflective) fabric
2003 •Signed TOT (Transfer of Technology) agreement with DMSRDE (A DRDO unit) to manufacture Glacier Tents and High Altitude Sleeping Bags
1999•Installed Fusible Interlining plant with Microdot Coating Technology
1998 •Developed an in-house technology to manufacture Textile Auxiliary Chemicals for Captive Consumption resulting in better fabric quality at cheaper rates
1995•Installed 130 " wide Fully Electronic Lockstitch Swiss Quilting machine with 360 degree quilting facilities, first of its kind in India
2009
2010
•Launched WEAVES brand in Home Textile segment•Acquired a comforter unit at Noida with the capacity of 3 lac numbers per annum.
•Completed Terry Towel Expansion from 3000 TPA to 15000 TPA and launched DYFI brand offering garments stitched through technology driven machines.
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Innovation through the years•Commisioned Rs.992 Crores Expansion projects of Technical Textile, Denim & Sheeting.2011
Nanotechnology
Working on Nano technology fabrics and smart textiles with NCT technologies under guidance and supervision of Dr. G. N. Mathur Ex- Director of DRDO
To access flexible sensor technology to monitor fatigue stress heart condition and blood pressure
Functional Fabric
Water proof, wind tight, breathable, humidity, transport etc
Optimized material properties e.g. Colour fastness tensile and abrasion resistance,
Heat proof and cold resistant
Smart Intelligent Fabric
Smell release or odour control
Advanced wearing comfort and heating insulation
Microcapsules with phase change materials
Reflection materials EIV fed protection UIV Protection Developments
with additional electronicfunctions.
Developments with new raw materials
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From Functionality to “Intelligent” textiles
Ranked 117th among the top 400 manufacturing companies in India (source : Dalal Street Journal –
Mid Cap 400 issue 2011)
Ranked 294th among the top 1000 companies in BS- 1000, issue 2012.
Ranked 319th among the top 500 manufacturing companies in India (Source: Industry 2.0 –
Technology Management for Decision Makers, September 2011.
Ranked 319th among the top 500 companies of India, published in ET-500, October 2010 issue.
Possessing certificates like ISO 9001-2008,ISO 14001-2004, OHSAS – 18001-2001, GOTS, OE-
100, Oelotex and Reach
Ranked Star Export House by the office of the Joint Director-General of Foreign Trade, Ministry
of Commerce and Industry.
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Accreditations and Accolades
Received an award from Indian Carbon Outlook 2011 for accelerating Market driven Sustainability
Received an award from Community of International Sewing Machine Industry , India
(CISMI) by GARTEXMA for valuable support in apparel and home textiles machine industry (11th
October, 2010).
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Value Proposition (contd….)
Value proposition elements
Type of value
Integrated Textile Player Completely integrated player from yarn dyeing to processing to garmenting and retailing leading to huge cost advantages
Diversified product portfolio
High margin and value added products in technical textiles segment with both civilian and defence applications
Established brands through distributors and MBO
Differentiated products SLCL is not just another plain vanilla textiles company but an integrated player with deep capabilities in manufacturing high quality technical and safety textiles (NBC fabrics, MSCN fabrics, water repellent fabrics, ECW fabrics, combat uniforms etc)
Global blue chip clients include Ikea, Wal-Mart, Macy’s, Bed Bath & Beyond, Loblaws, JC Penney, Shopco, Meijer’s, Lacoste, Frette, Westport, HBC, El-Corte Ingles and Sheet Street. Some of the major textile players in India have not been able to make it to the IKEA approved list of suppliers.
SLCL continues to introduce innovative textiles and is working on nano technology based fabrics which will have health benefits and applications in healthcare
Dynamic promoter having deep understanding of industry trends
The Promoter brings in his rich insight from over 25 years of experience in textile costing and manufacturing
PhD in textile costing
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State of the art manufacturing plants at 6 locations, quality intensive processes
The plant and machinery has been imported from reputed suppliers in Europe
Advanced TQM methodologies followed to deliver consistent and internationally benchmarked quality standards
SLCL products are in the IKEA approved list
It has developed an in-house technology to manufacture Textile Auxiliary Chemicals for captive consumption resulting in better fabric quality at cheaper rates
Visibility on future growth Largest product offering in the textile industry and capacity expansion in place by Dec 2011 to fuel future growth across products
Plethora of opportunities in defence – grown from uniforms to ballistics to Armoured Vehicles Increase in use of Armored Vehicles due to increase in terrorist activities and demand from
defence sector
Large and growing domestic and international client base to ensure steady growth
Extensive marketing and distribution network to push products and increased advertising spend to build strong brands in readymade garments
Growth platform for investors
Play on the consumption theme in India
Attractive valuations with strong fundamentals
Value proposition elements
Type of value
Value Proposition
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SWOT Analysis
Integrated across all verticals from yarn manufacture, dyeing to garmenting and retail
Among India’s top ten textile manufacturers Global blue chip clients include Ikea, Wal-Mart, Macy’s, Bed Bath & Beyond,
Loblaws, JC Penney, Shopco, Meijer’s, Lacoste, Frette, Westport, HBC, El-Corte Ingles and Sheet Street. Some of the major textile players in India have not been able to make it to the IKEA approved list of suppliers.
State of the art large manufacturing facilities at 6 locations Strong presence in technical and safety textiles (water repellent bed sheets,
mosquito repellent bed sheets, fire retardant fabrics etc.) with defenceapplications
Strong presence in defence related textiles (uniforms, camouflage textiles to armoured vehicles)
Strong R&D capabilities proven over a decade with launch of innovative products
Multiple brands for different segments Market leader in fusible interlining segment (35% plus market share) Extensive marketing and distribution network (products sold in more than
1150 multi brand outlets)
Low brand visibility in readymade garments due to lack of exclusive stores
Relatively high leverage Input cost variations may affect
profitability
Platform is ready for strengthening of brands (DYFI, Weaves etc) in a major way in readymade garments and home furnishings. The brands need to be made more visible by increased ad spends and reach.
Opportunity to add more global blue chip clients in US and Europe Opportunity to cater to defence forces in India and abroad in higher value
added areas – armoured vehicles, technical and safety textiles Opportunity to launch high quality fabrics in healthcare using nanotechnology
Increasing competition fromexisting players in textiles and defence related products
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Contact Details
Rakesh Kumar SrivastavaCompany Secy. cum Financial ControllerShri Lakshmi Cotsyn Limited19/X-1, Krishnapuram, G. T. Road, Kanpur – 7, (U. P.)
M : +919554950710L : +91 512 2401492F: +91 512 2402339Email: [email protected]
Contact Details