investors update january 2010 - ace analyser meet/103722_20100112.pdfbanswara syntex ltd. (bsl) was...

Banswara Syntex Limited

BANSWARA SYNTEX LIMITEDwww.banswarasyntex.com

Investors Update

January 2010

This presentation outlines the business model of Banswara Syntex Limited and its future growth strategy.

It is for reference of the intended recipient only and any unauthorized sharing of the same is prohibited. This document does not constitute an offer or invitation to offer for purchase / sale of any securities. The document may contain certain “forward looking statements”, which the Management believes to be true in terms of the present organizational strategy. There is no warranty, implied or otherwise that the information is accurate or otherwise complete and neither the company nor its Management shall be held responsible for any act or omission on the part of the recipient of this document.

SAFE HARBOR STATEMENT


Presentation Flow

About - Banswara Syntex Limited

Our Plants – Installed Capacities

Our Valued Customers

Shareholding Pattern

Dividend/Bonus History

Product Wise and Domestic & Export Sales

Financial Highlights – Q2FY10

Working Performance for FY 07,08,09

Status of the projects under implementation

Global Textile Industry

Investment Consideration

Milestones

Address & Contacts


Presentation FlowAbout UsBanswara Syntex Ltd. (BSL) was incorporated in the year 1976.While Incorporation it was a joint sector company with RIICO Ltd. (A Govt. of Rajasthan Undertaking) and Mr. R.L.Toshniwal. In 1982 Mr.Toshniwal purchased the shares from RIICO. Presently it is a Public Limited Company, the promoters holding is 59.44% of Equity ShareCapital.

Initially it was a spinning mill with 12500 spindles. As the journey continued the Company completed expansion, diversification and modernization plans. Over the last 3 decades, Company besides increasing the Spinning capacity to 134164 spindles started production of Fabric from 1993, Readymade Garments from 2004,Made-ups and Worsted Spinning from 2008. The Company also Entered Into JV with a French Company Carreman in 2006.

It is a Government recognized Trading House and has won theHighest Export Performance award from SRTEPC for the last 8 years in a row.


BSL is one of the Largest Vertically integrated Textile Player

Mr. R L Toshniwal – Chairman & Managing Director

He holds a Masters degree in Textiles from Leeds University, UK and has a vast experience of 46 years in the field of Textile Industry. Besides Banswara, he is on the board of five other companies and also holds the office of Chairman of the Synthetic & Rayon Textile Export Promotion Council (SRTEPC).

Mr. Ravi Toshniwal – Jt. Managing Director

He holds a B.Tech (Chem.) from IIT, Mumbai and has also undergone OPM Course of Harvard University, USA. He has 17 years of experience in Textile Industry and is responsible for the overall activities of the company.

Mr. Rakesh Mehra – Whole Time Director

He is a Chartered Accountant by qualification and has 21 years of experience in Textile Industry. He is responsible for the entire commercial and financial activities besides export sales of yarn.

Mr. Shaleen Toshniwal – Whole Time Director

He holds a Bachelors degree in Business Management from Bentley College, USA and has over 5 years of experience in the field of Textile Industry. He is responsible for the readymade garment units of the company at Daman and Surat.

Well Experienced Top Management

www.banswarasyntex.com BANSWARA SYNTEX LIMITED

Banswara Syntex Ltd, has twelve directors including four whole time directors, one nominee director appointed by EXIM Bank, and other seven directors which are independent professional directors on its Board. Independent Directors are-

Board of Directors

1. Mr. Kamal Kishore Kacholia

2. Mr. Parduman Kumar

3. Mr. Vijay Mehta

4. Mr. Vijay Kumar Agarwal

5. Mr. A N Jariwala

6. Mr. D P Garg

7. Mr. S B Agarwal

8. Dr. R. Swaminthan – Nominee Director


Installed Capacities

Ring Spindles – 1,19,188

Worsted Yarn Spindles – 14,400

Air Jet Spindles - 576

Installed Capacities Installed Capacities

Shuttle – less Looms – 194

Jacquard Looms – 12

Fabric – Processing Capacity – 4

Million Meters / Month

Jacquard made-ups – 12,500 pcs/ month

Readymade Trousers – 2,25,000 pcs / month

Readymade Jackets – 10,000 pcs / month

BANSWARA PLANT BANSWARA PLANT DAMAN & SURAT PLANT

Our Business Portfolio


1.VSF2.PSF3.ASF4.Cotton5.Lycra 6.Linen7.Wool

SPINNINGSPUN YARN

Internal Sales

WEAVING

Filament

Yarn

(Rayon /

Polyester)

SPINNING WEAVING & PROCESSING

PROCESSING & FINISHING

External Sales

Internal Sales

GARMENTS / MADE UPS

External Sales

Export Sales

DomesticSales

GARMENTING

Business Process

P. Fabric – Performance Fabric


Greige

Our Plants

* (Per Month)

Product Unit Capacity

Power Plant Thermal 15/18 MW

Furnace Oil 9.07 MW

Dying Fiber & Yarn 1,000 MT*

Spinning BSL 69,964 Spindles

BFL 49,224 Spindles

AirJet 576 Spindles

Worsted 14,400 Spindles

Weaving Toshco 124 Looms

BJF 70 Looms

Jacquard 12 Looms

Carreman - JV 60 Looms

Fabric Processing BTM 4 Million Mtr *

Home Textile Made-Ups 12,500 Sets *

Garments Daman 1,35,000 Trousers *

10,000 Jackets *

Surat 90,000 Trousers *

INSTALLED CAPACITIES

BSL is a vertically integrated textile player engaged in manufacturing of man-made synthetic blended yarn, wool and wool mixed yarn, all typeof suiting and jacquard furnishing fabrics besides production of trousers, jackets and made-ups.

We specialize in producing blends of viscose staple fibre, polyester staple fibre, acrylic staple fibre, lycra, cotton, linen and wool. We have a total production capacity of 30,000 tones of yarn per annum. It includes 28,000 tones polyester blended dyed yarns and 2000 tones wool mix yarn per annum. The Company also specializes in producing various type of fancy spun yarns

The present installed capacity is as under:-

Ring Spindles 1,19,188

Worsted Yarn Spindles 14,400

Air Jet Spindles 576

Spinning



Fabric - Weaving & Processing

We produce Hi-Quality Hi- Performance Textile wear finished fabric for both domestic and Exports. We have high qualified, skilled and dedicated Technical team where we produce textile fabrics from fibre stage to yarn, weaving, finishing and Garmenting.

Our Specialty in textile include:

» Stretch fabrics. WE ARE “LYCRA ASSURED and Accredited”

» Specialty finishes for touch (Stain, Wrinkle, Moisture Management etc.)

» Fire Retardant Fabric.

» Fabric Design and Development innovations.

» Laminated Technical Fabric

Shuttles-less Looms 194

Jacquard Looms 12

Fabric Processing Capacity 4 Million Meters/Month



Readymade GarmentsBanswara Garments is located in Daman and SEZ Surat. The garment units are a specialized in Trousers and Jackets production. It makes the offering of Banswara complete textile vertical. Our team will take you right from conceiving an idea for fabric to the final product ready to wear in the least possible lead-time.

These factories are equipped with a full complement of machines to be able to manufacture trousers and Jackets of the finest quality. We do all our marking and grading on a CAD system from Rich Peace. The sewing line primarily consists of Juki machines. There are automatic Welting Machines from Eagle. Curtain Felling Machines from Union Special, Eyelet Buttonhole Machines from Reece and Blind Loop Machines from Mair. The pressing is entirely from Rotondi, including leggers, toppers and side seam presses.

Jacquard made-ups 12,500 Pcs/Month

Readymade Trousers 2,25,000 Pcs/Month

Readymade Jackets 10,000 Pcs/Month



Coal-based Thermal Power Plant

15/18 MW

BANSWARA SYNTEX LIMITED

Coming up 2nd unit of the same capacity.

www.banswarasyntex.com

Our Valued Customers In India


Our Valued Customers In India

ARVIND


Our Valued Customers around the globe


Share Holding PatternAs on December 31, 2009

No. Category of Shareholder Total No. of Shares % of Total Share Capital

(A) Shareholding of Promoter and Promoter Group

(i) Individuals/ Hindu Undivided Family 6557565 50.03%

(ii) Bodies Corporate 1210719 9.24%

(A) Total 7768284 59.27%

(B) Public shareholding

(a) Institutions 5620 0.04%

(b) Non-institutions 0 0

(i) Bodies Corporate 1358300 10.37%

(ii) Individuals -

i. Individual shareholders holding nominal share capital up to Rs. 1 lakh.

2598890 19.83%

ii. Individual shareholders holding nominal share capital in excess of Rs. 1 lakh.

1375267 10.49%

Sub-Total (b) 5332457 40.69%

(B) Total Public Shareholding (a) +b) 5338077 40.73%

TOTAL SHARE CAPITAL (A + B) * 13106361 100.00%

BANSWARA SYNTEX LIMITED

* The Company has issued 16.50 Lac warrants convertible in to equal number of Equity Shares.

www.banswarasyntex.com

Company issued One Bonus Share for Two Shares held by the shareholders on the record date i.e. 18.08.2006.

Dividend / Bonus History

Year Percentage

2004-05 12%

2005-06 20%

2006-07 20%

2007-08 12%

2008-09 18%2009-10Interim Dividend 15%

BANSWARA SYNTEX LIMITEDwww.banswarasyntex.com`

(INR in Crore)

Product wise Revenues for the last 5 years

PARTICULARS FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2007-2008 FY 2008-2009

AMT % AMT % AMT % AMT % AMT %

TOTAL SALES 272.07 100 344.95 100 413.43 100 451.54 100 558.95 100

YARN 165.30 60.75 210.55 61.04 230.98 55.87 243.86 54.01 264.66 47.35

FABRICS 104.06 38.25 114.98 33.33 149.7 36.21 168.17 37.24 238.36 42.64

GARMENT 0 0 13.75 3.99 22.91 5.54 29.72 6.58 43.65 7.81

OTHERS 2.71 1 5.67 1.64 9.84 2.38 9.79 2.17 12.28 2.2


*Includes incentives

Domestic and Export Sales

(INR in Crore)

FINANCIAL YEAR EXPORT * DOMESTIC TOTAL AMT % AMT % AMT %

2004-2005 160.00 58.81 112.07 41.19 272.07 100

2005-2006 212.18 61.51 132.77 38.49 344.95 100

2006-2007 256.94 62.15 156.49 37.85 413.43 100

2007-2008 281.52 62.35 170.02 37.65 451.54 100

2008-2009 366.44 65.56 192.51 34.44 558.95 100


(Rs. In Crores)

Financial Highlights – Q2FY10 Results

PARTICULARS QUARTER ENDED HALF YEAR YEAR ENDED

31/03/2009 AUDITED 30/09/2009 30/09/2008 30/09/2009 30/09/2008

GROSS SALES 164.10 143.12 317.61 276.10 558.95

Less: Excise Duty/Other Operative Income 6.73 1.85 10.35 5.38 12.81

NET SALES 157.37 141.27 307.26 270.72 546.14

DOMESTIC 58.02 45.87 105.96 89.46 179.7

EXPORT 99.35 95.4 201.3 181.26 366.44

TOTAL 157.37 141.27 307.26 270.72 546.14

EBIDTA (Before Extraordinary Item) 24.81 16.23 46.88 31.61 81.46

EBIDTA / NET SALES % 15.77% 11.49% 15.26% 11.68% 14.92%

PBT 10.33 -0.22 20.05 0.29 11.29

PBT / NET SALES % 6.56% -0.16% 6.53% 0.11% 2.07%

PAT 7.44 -0.23 13.86 0.09 9.59

PAT / NET SALES % 4.73% -0.16% 4.51% 0.03% 1.76%

PRODUCT-WISE SALES (GROSS)

YARN 83.55 73.86 150.5 142.22 264.66

CLOTH 53.47 54.54 118.87 109.67 238.36

GARMENT 18.19 12.21 31.26 20.34 43.65

OTHERS 8.89 2.51 16.98 3.87 12.28

TOTAL 164.1 143.12 317.61 276.1 558.95


(Rs. In Crores)

Working Performance - last 3 years

S.NO PARTICULARS F/Y 2006-2007 F/Y 2007-2008 F/Y 2008-2009

1 GROSS SALES 413.43 451.54 558.95

Less: Excise Duty/Other Operative Income 22.39 15.15 12.81

2 NET SALES 391.04 436.39 546.14

3 EXPORTS (Incl. Export Benefits 256.94 281.52 366.44

4 EARNING BEFORE INTEREST, DEPRECIATION, TAX AND EXTRAORDINARY ITEM (EBIDTA) 56.85 51.2 81.46

EBIDTA / NET SALES % 14.54% 11.73% 14.92%

5 EARNING BEFORE INTEREST, TAX AND EXTRAORDINARY ITEM (EBITA) 40.59 29.4 52.07

EBITA / NET SALES % 10.38% 6.74% 9.53%

6 EXTRAORDINARY ITEM PROFIT/(LOSS) - - -7.53

7 NET PROFIT AFTER TAX (PAT) 14.94 4.42 9.59

NET PROFIT / NET SALES % 3.82% 1.01% 1.76%

8 GROSS FIXED ASSETS 339.49 434.33 475.29

9 EQUITY SHARE CAPITAL 12.51 13.08 13.08

10 PREFERENCE SHARE CAPITAL 1.73 1.73 1.73

11 RESERVES & SURPLUS 64.63 69.45 76.22

12 NET WORTH (Excluding DTL) 77.14 82.53 89.31

13 DIVIDEND % 20.00% 12.00% 18.00%

14 ISSUE OF BONUS SHARES 01:02 - -

(Bonus: Equity Share)

15 BOOK VALUE PER SHARE (Rs.) 61.5 62.97 68.14

16 EARNING PER SHARE (Rs.) 12.02 3.34 7.29


Status of the Projects under implementation

a) Expansion, modernization and diversification project in textiles

(Total Capital Cost Rs.60 Crores – Term Loan Sanctioned Rs. 44 Crores under TUF)

The company proposed investment in spinning, dyeing, weaving, fabric processing and garmenting units. The project is likely to be completed by March 2010. The company has received most of the machines in all these segments. Some of these have been installed and few are under installation. The orders for the rest have been finalized and advances already given.

b) 2nd unit of 15/18 MW Captive Thermal Power Plant

(Total Capital Cost Rs.52 Crores)

The company has already placed the orders for all major parts/equipments like Turbine, Boiler, Water Softening Plant, construction contractors etc. The capital cost of the project at Rs.52 crores is less than Rs.3 Crores per MW. The commercial production will start from January 2011. The power generation through this Thermal Power Plant is mainly for internal consumption, however, if found surplus will be available for sale. The profit from this unit will be eligible for Tax holiday benefit for 10 years.


• Global textiles trade increased to US$ 583 bn in 2007 from US$ 334 bn in 1999 - CAGR of 7%

• Global trade expected to grow to US$ 650 bn in 2010

• India bound to be key beneficiary of global textile trade due to

– strong knowledge and capacity base,

– competitive advantage of raw material,

– unique strength in traditional handlooms & handicrafts &

– A growing domestic demand

• India market share of 4%, while China market share of 33% demonstrates tremendous scope for growth

Textile basic need of every individual - Industry bound to subsist up to perpetuity & to grow with overall growth in GDP & per capita income

Global Textile Industry


Expected Growth World Trade

219 238 260 300

311 345 390505

0200400600800

1000

2006 2007 2010 2015

Year

USD

Bn

Textile Apparel

Investment Consideration

1. Rising Value Addition

BSL is country’s one of biggest integrated textile manufacturer. We produce all types of fabric i.e. poly viscose, poly viscose lycra, 100% cotton and its mix, All wool and wool blends, linen etc. BSL is largest producer of PV Lycra fabric in the country. Our monthly production of this category of fabric is almost 3 times the production of rest of the producers in India. BSL offers complete package solution from fibre to the garments in all product range. It also commenced the production of technical textiles.

BSL is also leader in new product development of yarn and fabrics. It has latest technology machines and testing laboratory.

2. Growth

BSL is increasing its weaving capacity and almost doubling its garmenting capacity over the next 3 years besides growing yarn dyeing, cotton and wool dying. Its turnover is increasing almost 20% every year.

3. Opening up of New Markets

Key Customers of the company are gradually finding their operations in the developed markets unviable and shifting their business to BSL. It has added many new customers of repute and size in last couple of years.

4. Consistent profits

BSL is amongst the few companies, which stained in the textile downturn due to its integrated capacity, new product development and strong relationship with its key customers.

BSL has consistently generated profits and has never restructured its debts alike many other companies in the textile sector.


Commencement of commercial production of

15/18 MW captive thermal power plant.

Garment Unit at SEZ Surat.

Jackets at Garment factory at Daman

Commencement of trial production of furnishing fabrics in Jacquard Weaving Division.

The Company discontinued the labour job spinning contract with Banswara Fabrics Limited and taken over the workforce of BFL on its rolls.

Major Milestones in the last 3 years


Started Worsted Spinning Division to produce wool mixed yarns.

Commencement/ utilization of enhanced processing capacity from 16 lacs meters/month to 22 lacs meters/month.

Started additional lines for production of trousers and jackets at Surat SEZ Plant and Suits at Daman Plant.

Started production of Made-ups`/Décor at Banswara.

Started Cotton yarn dyeing at Banswara.

Developed world class fabric testing laboratory as per ISO, AATCC, ASTM, LS & Co., M & S etc. testing protocol. The laboratory has successfully achieved accreditation of Levis & Co., Marks & Spencer and undergoing ISO 17025 NABL accreditation.

Developed fabric designing section and created a garment studio at Mumbai for improvement in fabric and garment designs.

Major Milestones in the last 3 years (Contd….)


Company started production of technical fabric and jacquard technical fabric.

Company added one more imported Italian make Stenter with other balancing/value adding machines to increase the fabric processing capacity up to 4 million meters a month.

Board of Directors allotted 16.50 lacs warrants to other than promoters at a price of Rs.41/- per warrant. Each warrant will be converted into 1 fully paid Equity Share.

Purchased 18292 sq. ft. land and 18089 sq. ft. building constructed thereon at Daman to further expand the garment business of the Company.

Board of Directors announced Rs. 1.50 per Share as interim dividend.

Taking up 2nd unit of power plant and project for technical textile.


Major Milestones in the last 3 years (Contd….)

Address

PlantFor Spinning/Weaving/Processing Capacity forproduction of yarn, fabric and Made-ups at :-

Industrial Area, Dahod Road, Banswara -327 001 (Raj)Phone : +91-2962-257676-681Fax : +91-2962-240692

For Readymade Garments (Trousers & Jackets) at:

98/3, Village Kadaiya, Nani Daman, Daman – 396210 (U.T.)

Survey No. 713/1, 713/2, 713/3, 725/2 & 725/1, Village Dabhel, Nani Daman, Daman-394 230 (U.T.)

Plot No. 5-6, G.I.D.C., Apparel Park, SEZ Sachin, Surat – 394 230 (Gujarat)


Address

OfficesRegistered Office

Industrial Area, Dahod Road, Banswara -327 001 (Raj)Phone : +91-2962-257676-681Fax : +91-2962-240692

Head/Marketing Office

5th Floor, Gopal Bhawan, 199, Princess Street, Mumbai – 02Phone : (022) 56336571-75Fax : (022) 22064486

Delhi Office

Flat No. 204, E-2, A.R.A. Centre, Jhandewalan Extn., Delhi-55Phone : (011) 23676124, 23676948


Further Detail…..

For further details, please contact:

Mr. J. K. JainSr. V. P. (F&C) & Company Secretary

Banswara Syntex Limited

Email: [email protected] : www.banswarasyntex.comPhone : +91-2962-257676-681 (Ext. 4304)Fax : +91-2962-240692


THANK YOU ……………… for your interest


investors update january 2010 - ace analyser meet/103722_20100112.pdfbanswara syntex ltd. (bsl) was...

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