Transcript Slide 1

Banswara Syntex Limited
Investors Update
January 2010
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BANSWARA SYNTEX LIMITED
SAFE HARBOR STATEMENT
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.
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BANSWARA SYNTEX LIMITED
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
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BANSWARA SYNTEX LIMITED
Presentation
About Us Flow
Banswara 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 Share
Capital.
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 the
Highest Export Performance award from SRTEPC for the last 8
years in a row.
BSL is one of the Largest Vertically integrated Textile Player
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BANSWARA SYNTEX LIMITED
Well Experienced Top Management
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.
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BANSWARA SYNTEX LIMITED
Board of Directors
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 are1.
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
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BANSWARA SYNTEX LIMITED
Our Business Portfolio
Weaving
Spinning
&
Processing
BANSWARA PLANT
BANSWARA PLANT
Installed Capacities
Installed Capacities

Ring Spindles – 1,19,188

Shuttle – less Looms – 194

Worsted Yarn Spindles – 14,400

Jacquard Looms – 12

Air Jet Spindles - 576
 Fabric – Processing Capacity – 4
Million Meters / Month
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Readymade
Garments
DAMAN & SURAT PLANT
Installed Capacities
 Jacquard made-ups – 12,500 pcs/
month
 Readymade Trousers – 2,25,000
pcs / month
 Readymade Jackets – 10,000 pcs
/ month
BANSWARA SYNTEX LIMITED
Business Process
SPINNING
SPINNING
SPUN
YARN
Internal
Sales
WEAVING
GARMENTING
GARMENTS /
MADE UPS
Domestic
Sales
Export Sales
P. Fabric
External Sales
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P. Fabric
Fabric
Fabric
External
Sales
PROCESSING
& FINISHING
Greige
Internal Sales
1.VSF
2.PSF
3.ASF
4.Cotton
5.Lycra
6.Linen
7.Wool
WEAVING & PROCESSING
P. Fabric – Performance Fabric
BANSWARA SYNTEX LIMITED
Our Plants
Product
Unit
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
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 *
90,000
Trousers *
Weaving
Surat
* (Per Month)
Capacity
INSTALLED CAPACITIES
Spinning
BSL is a vertically integrated textile player engaged in manufacturing of
man-made synthetic blended yarn, wool and wool mixed yarn, all type
of 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
Worsted Yarn Spindles
Air Jet Spindles
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1,19,188
14,400
576
BANSWARA SYNTEX LIMITED
INSTALLED CAPACITIES
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
Jacquard Looms
Fabric Processing Capacity
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194
12
4 Million Meters/Month
BANSWARA SYNTEX LIMITED
INSTALLED CAPACITIES
Readymade Garments
Banswara 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
 Readymade Trousers
 Readymade Jackets
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12,500 Pcs/Month
2,25,000 Pcs/Month
10,000 Pcs/Month
BANSWARA SYNTEX LIMITED
INSTALLED CAPACITIES
Coal-based Thermal Power Plant
15/18 MW
Coming up 2nd unit of the same capacity.
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BANSWARA SYNTEX LIMITED
Our Valued Customers In India
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BANSWARA SYNTEX LIMITED
Our Valued Customers In India
ARVIND
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BANSWARA SYNTEX LIMITED
Our Valued Customers around the globe
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BANSWARA SYNTEX LIMITED
Share Holding Pattern
As on December 31, 2009
No.
(A)
Category of Shareholder
Total No. of Shares
% of Total Share
Capital
Shareholding of Promoter and Promoter
Group
(i)
Individuals/ Hindu Undivided Family
6557565
50.03%
(ii)
Bodies Corporate
1210719
9.24%
7768284
59.27%
5620
0.04%
0
0
1358300
10.37%
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
(A) Total
(B)
Public shareholding
(a)
Institutions
(b)
Non-institutions
(i)
Bodies Corporate
(ii)
Individuals -
10.49%
Sub-Total (b)
5332457
40.69%
(B) Total Public Shareholding (a) +b)
5338077
40.73%
13106361
100.00%
TOTAL SHARE CAPITAL (A + B) *
* The Company has issued 16.50 Lac warrants convertible in to equal number of Equity Shares.
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BANSWARA SYNTEX LIMITED
Dividend / Bonus History
Year
Percentage
2004-05
12%
2005-06
20%
2006-07
20%
2007-08
12%
2008-09
2009-10
Interim Dividend
18%
15%
Company issued One Bonus Share for Two Shares
held by the shareholders on the record date i.e.
18.08.2006.
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BANSWARA SYNTEX LIMITED
Product wise Revenues for the last 5 years
(INR in Crore)
PARTICULARS
FY 2004-2005
AMT
FY 2005-2006
%
AMT
FY 2006-2007
%
AMT
FY 2007-2008
%
AMT
FY 2008-2009
%
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
0
0
13.75
3.99
22.91
5.54
29.72
6.58
43.65
7.81
2.71
1
5.67
1.64
9.84
2.38
9.79
2.17
12.28
2.2
GARMENT
OTHERS
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BANSWARA SYNTEX LIMITED
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
*Includes incentives
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BANSWARA SYNTEX LIMITED
Financial Highlights – Q2FY10 Results
(Rs. In Crores)
QUARTER ENDED
HALF YEAR
PARTICULARS
YEAR ENDED
31/03/2009
AUDITED
30/09/2009
30/09/2008
30/09/2009
30/09/2008
164.10
143.12
317.61
276.10
558.95
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
157.37
141.27
307.26
270.72
546.14
24.81
16.23
46.88
31.61
81.46
15.77%
11.49%
15.26%
11.68%
14.92%
10.33
-0.22
20.05
0.29
11.29
6.56%
-0.16%
6.53%
0.11%
2.07%
7.44
-0.23
13.86
0.09
9.59
4.73%
-0.16%
4.51%
0.03%
1.76%
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
164.1
143.12
317.61
276.1
558.95
GROSS SALES
Less: Excise Duty/Other Operative Income
TOTAL
EBIDTA
Item)
(Before Extraordinary
EBIDTA / NET SALES %
PBT
PBT / NET SALES %
PAT
PAT / NET SALES %
PRODUCT-WISE SALES (GROSS)
TOTAL
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BANSWARA SYNTEX LIMITED
Working Performance - last 3 years
(Rs. In Crores)
S.NO
PARTICULARS
F/Y 2006-2007
F/Y 2007-2008
F/Y 2008-2009
1
GROSS SALES
413.43
451.54
558.95
22.39
15.15
12.81
Less: Excise Duty/Other Operative Income
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
14.54%
11.73%
14.92%
40.59
29.4
52.07
10.38%
6.74%
9.53%
-
-
-7.53
14.94
4.42
9.59
EBIDTA / NET SALES %
5
EARNING BEFORE INTEREST, TAX AND EXTRAORDINARY ITEM
(EBITA)
EBITA / NET SALES %
6
EXTRAORDINARY ITEM PROFIT/(LOSS)
7
NET PROFIT AFTER TAX (PAT)
NET PROFIT / NET SALES
8
GROSS FIXED ASSETS
%
3.82%
1.01%
1.76%
339.49
434.33
475.29
12.51
13.08
13.08
1.73
1.73
1.73
9
EQUITY SHARE CAPITAL
10
PREFERENCE SHARE CAPITAL
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
-
-
61.5
62.97
68.14
12.02
3.34
7.29
(Bonus: Equity Share)
15
BOOK VALUE PER SHARE (Rs.)
16
EARNING PER SHARE (Rs.)
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BANSWARA SYNTEX LIMITED
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.
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BANSWARA SYNTEX LIMITED
Global Textile Industry
•
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
•
USD Bn
Expected Growth World Trade
1000
800
600
400
200
0
505
311
345
390
219
238
260
300
2006
2007
2010
2015
Year
Textile
Apparel
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
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BANSWARA SYNTEX LIMITED
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.
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BANSWARA SYNTEX LIMITED
Major Milestones in the last 3 years

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.
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BANSWARA SYNTEX LIMITED
Major Milestones in the last 3 years
(Contd….)

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.
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BANSWARA SYNTEX LIMITED
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.
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BANSWARA SYNTEX LIMITED
Address
Plant
For Spinning/Weaving/Processing Capacity for
production of yarn, fabric and Made-ups at :Industrial Area, Dahod Road,
Banswara -327 001 (Raj)
Phone : +91-2962-257676-681
Fax : +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)
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BANSWARA SYNTEX LIMITED
Address
Offices
Registered Office
Industrial Area, Dahod Road,
Banswara -327 001 (Raj)
Phone : +91-2962-257676-681
Fax : +91-2962-240692
Head/Marketing Office
5th Floor, Gopal Bhawan, 199, Princess Street,
Mumbai – 02
Phone : (022) 56336571-75
Fax : (022) 22064486
Delhi Office
Flat No. 204, E-2, A.R.A. Centre,
Jhandewalan Extn.,
Delhi-55
Phone : (011) 23676124, 23676948
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BANSWARA SYNTEX LIMITED
Further Detail…..
For further details, please contact:
Mr. J. K. Jain
Sr. V. P. (F&C) & Company Secretary
Banswara Syntex Limited
Email: [email protected]
Web : www.banswarasyntex.com
Phone : +91-2962-257676-681 (Ext. 4304)
Fax : +91-2962-240692
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BANSWARA SYNTEX LIMITED
THANK YOU ……………… for your interest
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BANSWARA SYNTEX LIMITED