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Corporate Presentation
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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
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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
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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
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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
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Forex losses
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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
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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
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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
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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
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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
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e ups e w en ensus s re ease
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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
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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
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THANK
YOU
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