Corporate Presentation (Company Update)
Corporate Presentation (Company Update)
Corporate Presentation (Company Update)
Corporate Presentation
August - 2015
Table of Content
1
Trident Overview
Business Highlights
Expansion Projects
Trident Overview
Trident Perspective
25 years of being different
Manufacturing Facilities
Trident Limited
Barnala, Punjab
Textiles
Worlds Largest
Integrated Terry Towel
Manufacturer
One of the largest Yarn
Spinners in India
One of the largest
Textiles Exporter from India
Paper
Budni, MP
Milestones
Spinning Unit-2
Spinning Unit-3
Towel Unit-1
Towel Unit-2
Spinning Unit-4
20 MW
Power Plant
Textile Park
(LITL)
Spinning Unit-I
9.4 MW
Power Plant
900
800
700
600
500
Inception
400
300
200
100
0
Apr-90
Mar-92
Mar-94
Dec-95
Dec-96
Dec-97
Dec-98
Dec-99
Dec-00
Mar-02
Dec-02
Dec-03
Mar-05
Mar-06
Mar-07
Milestones
20 MW
Power Plant
Paper Unit-2
Spinning Unit-5
Spinning Unit- 7
Spinning Unit-6
Spinning Unit-8
Towel Unit-4
Spinning Unit-9
Towel Unit-3
4500
4000
3500
3000
2500
2000
1500
1000
500
0
Mar-08
Mar-09
Mar-10
Mar-11
Mar-12
Mar-13
Mar-14
Mar-15
Delivering Value
Revenue Growth
Export Growth
3784
1867
1803
840
706
330
294
47
Mar-95
Mar-00
135
4
Mar-05
Mar-10
Mar-15
Mar-95
EBITDA Growth
Mar-00
Mar-05
Mar-10
Mar-15
PBT Growth
691
168
93
356
66
146
7
Mar-95
61
Mar-00
Mar-05
Mar-10
Mar-15
Mar-95
Mar-00
Mar-05
Mar-10
Mar-15
Q4 FY15
Shift %
879.1
978.0
(10.1)
682.8
783.1
389.5
Q1 FY16
Q1 FY15
Shift %
Net Revenues
879.1
913.3
(3.7)
(12.8)
Total Expenditure
682.8
730.8
(6.6)
478.6
(18.6)
- Material Consumed
389.5
444.3
(12.3)
293.4
304.5
(3.6)
293.4
286.5
2.4
198.0
195.0
1.5
EBITDA
198.0
184.0
7.6
22.5%
19.9%
+258 bps
22.5%
20.1%
+237 bps
81.4
82.9
(1.9)
Depreciation
81.4
80.9
0.6
116.6
112.1
4.0
EBIT
116.6
103.2
13.0
44.5
53.6
(17.1)
Interest
44.5
58.1
(23.5)
72.1
58.5
23.4
PBT
72.1
45.0
60.2
11.2
18.1
(38.1)
Tax
11.2
12.8
(12.3)
61.0
40.4
50.9
61.0
32.3
88.8
1.20
0.79
51.9
PAT
EPS (Diluted & non-annualized)
1.20
0.68
76.5
(In Rs)
3.6
3.4
2,240
1,916
3.2
1,862
2.0
FY11
FY12
FY13
FY14
FY15
Q1FY16
FY11
FY12
ROCE (%)
FY13
FY14
1.8
1.8
FY15
Q1FY16
ROE (%)
21.2%
18.2%
16.1%
11.7%
11.6%
12.6%
9.8%
9.6%
8.1%
7.0%
4.1%
-6.7%
FY11
FY12
FY13
FY14
FY15 Q1FY16*
FY11
FY12
FY13
FY14
FY15
Q1FY16*
86
74
80
60
40
20
0
2012
2017
Bath Linen
7%
20%
Bed Linen
Curtains
80%
Carpets, Rugs
42%
2015
14%
33%
USD billion
Bed and Bath Linen together constitute about 21% of the total
4%
96
100
Non-Towel
11
USD billion
250
200
82
150
50
100
50
31
58
cultivation area
2011
U.S. & E.U. account for about 2/3rd of Indias textile export
constitute over 50% of all fibre consumption
billion by 2021
USD billion
2016 E
Domestic
Export
38
60
26
30
18
13
2011
2021 E
90
141
93
44
24
2016 E
Apparel Textile
2021 E
12
Bed and Bath Linen together constitute about 67% of the total
USD billion
8.2
5.5
5
4
3.7
3
2
1
15%
Bed Linens
8%
Bath Linens
49%
10%
2011
2016P
2021E
Curtains
Balankets
Others
18%
13
Power
Rupee Depreciation
Advantage
Make in India
14
E.U. Free Trade Agreement Removal of 5-10% of import duties on Indian textiles likely to make India more competitive
enabling market share gains
Entry into new markets - Growing demand in new markets like Latin America & Africa to aid textile exports
Favorable domestic demographics Rising income and population levels combined with rise in organized retail to drive
domestic consumption
Favorable government policies - Interest and capital subsidies for additional capex from central and various state
governments to reduce cost of capital towards expansion
15
Trident Textiles
Business Highlights
688
5.55
3.65
3.65
3.65
388
5504
3584
FY13
FY14
Rotors
688
500
388
Spindles (Lacs)
FY15
FY16E
FY13
Q1 FY16
Export : Domestic Mix
32%
5504
3584
FY14
68%
FY15
FY16E
Export
Domestic
Textiles
17
Textile Brands
Mid Range
Premium Range
Textiles
18
Bed-Sheeting Brands
Textiles
19
Trident Innovations
Yarn Technology
Design/ Construction
Finish/ Treatment
Textiles
20
Financial Highlights
Revenues (Rs. crore)
2,626
1,945
3,046
2,096
330
242
686
FY11
FY12
FY13
FY14
FY15
Q1FY16
FY11
142
FY12
FY13
216
FY14
FY15
Q1FY16
Margins (%)
394
25.0%
20.0%
282
254
510
421
15.0%
124
84
16.9%
11.1%
10.0%
20.7%
18.4%
17.2%
16.0%
11.5%
12.9%
12.3%
9.7%
9.5%
5.9%
5.0%
0.0%
FY11
FY12
FY13
FY14
FY15
Q1FY16
FY11
FY12
FY13
EBITDA (%)
FY14
FY15
Q1FY16
EBIT (%)
Textiles
21
Way Forward
Emphasis on entry into new markets
Current marketing and distribution network spread over 100 countries across 6 continents
Association with top brands and marquee clientele
Continuous focus on spreading customers geographically
Successfully entered highly cost-conscious markets like UK, Italy, France, Japan, Australia, South Africa and Canada
Sustained focus on expanding customer base & De-commoditizing through innovative value-added products
Ramp up business volumes in New Markets Within India (Eastern & Central India) and International markets
Brand presence expanded to more than 120 multi-brand outlets across India
Increase presence on online portals reaching direct customers increasing traction in the e-commerce segment in domestic and
international market with product availability in all major e-commerce websites
De-commoditizing through increased off-take of Terry Towels on the back of expanded capacities
Textiles
22
Globally
Million tonnes
Ranked
15th
20
15
10
5
20.00
13.95
11.15
0
2012
25
10
11.3
6.0
7.0
7.6
8.3
12.8
14.0
9.2
35%
45%
2015 E
2014 E
2013 E
2012
2011
2010
2009
2008
2007
2006
0
2005
Kgs
16.5
15
2020 E
22.7
19.5
20
2016 E
20%
WPP
Newsprint
Speciality Paper
24
Government Initiatives
Key Reasons
Demand for Agro-based Paper
Government Intervention
25
Trident Paper
Business Highlights
Paper (tpd)
500
450
450
450
Pulp (tpd)
450
450
450
400
300
265
265
265
265
265
265
200
100
Trident Brands
GSM
Brightness
Royal Touch
80
90%
Spectra
75
88%
Eco Green
75
90%
Natural
72
86%
My Choice
70
87%
FY10
FY11
FY12
FY14
FY15
Q1 FY16
Export : Domestic Mix
13%
87%
Export
FY13
Domestic
Paper
27
Financial Highlights
Revenues (Rs. crore)
605
653
725
836
193
FY11
FY12
FY13
FY14
FY15
Q1FY16
111
115
FY11
FY12
66
FY13
133
30
FY11
FY12
FY14
FY15
Margins (%)
26.8%
30.0%
150
105
31
241
230
194
20.0%
43
10.0%
Q1FY16
34.2%
27.6%
29.4%
22.2%
18.3%
17.6%
5.2%
4.5%
FY11
FY12
14.5%
15.9%
FY13
FY14
18.3%
0.0%
FY13
FY14
FY15
Q1FY16
EBITDA %
FY15
Q1FY16
EBIT %
Paper
28
Way Forward
Strategic focus on high-value products
Geared towards high margin copier segment
Increased production of copier segment to more than 50% of total paper production
Improve average GSM to achieve higher profitability by increasing operational efficiencies
Improve service aspect to achieve price premium vis--vis competition
Focus on institutional/government orders for longer runs, thereby improving productivity
Product availability in all major hypermarkets and supermarkets
Paper
29
Expansion Projects
Yarn
Bed Linen
1.85 lac yarn
spindles
Competitive rate
100% of Yarn to be
captively
consumed
500 looms
Capacity of 3.6
million meters per
month
Proximity to ports
to enhance margins
of this export
focused unit
31
Advantage Budni
Proximity to
ports shall aid
exports
Easy availability
of Raw Material
(Cotton)
Full Vertical
Integration
Easy availability
of Power
TUFS will
reduce Finance
Cost
Economies of
Scale
32
Product
Terry Towels
Bed Linen
Textiles
Yarn
Dyed Yarn
Operations
Existing
Post ongoing
expansions
688 Looms
688 Looms
---
500 Looms
5,500 Rotors
5,500 Rotors
6,825 TPA
6,825 TPA
Paper &
Chemicals
Paper
175,000 TPA
2,00,000 TPA
Chemicals
100,000 TPA
100,000 TPA
Energy
Captive Power
50 MW
50 MW
33
Our Strengths
Presence in 100 countries across 6
continents
Global Reach
Raw Material
Security
Managed by a group of
professionals and an
experienced management
team with a healthy mix of
industry experts and young
energetic talent
Technology
Tridents
Strength
Strong
Management
Team
Economies of
Scale
Strong Credit
Rating
Integrated
Textile
Operations
Efficient Operations
Insulation from movement of raw
material prices
Quality control across the value chain
35
Group Strategy
Fully vertically integrated operations (from cotton-toterry towel and from cotton-to-bed linen) - ensure
greater sustainability in performance going forward
Full
Vertical
Integration
Focus on
Value
Added
Products
Strategy
Continuous
Improvement
Branding
Strategy
Geographical
Diversification
Location advantage (M.P. being closer to
ports), State Government incentives (mega project
incentives), captive power plant (reduction in power
cost) to make operations cost effective resulting in
improved profitability
36
Value Chain
Cotton
Procurement
Adopted 200
villages and provided
agricultural education
for ensuring superior
quality cotton
production
Long lasting
relationship with
cotton suppliers
Quality Control at
the very beginning of
the Value Chain
Yarn
Production
3.66 lacs spindles
for producing yarn
from 20-count to 80count
Capacity to
produce 8400
MT/month of cotton
& blended yarn
Control over yarn
supply in situations of
price rise
Design &
Development
Qualified team of
designers from topcolleges in India
End to end
product design
capability
Collaboration with
foreign designers
Finished
Products
688 looms with
capacity of producing
360 million pieces of
towel per annum
Focus on
Innovation
Air Rich
Smart Twist
Quick Dry
36% Value Added
Products
37
20%
25%
40%
75%
60%
80%
Transformed from a pure play Yarn player to a fully-integrated Home Textiles manufacturer
38
CSR Initiatives
50+
women
32
awards bestowed
on female members
every year recognizing
their contribution
towards the organization
62%
female
Leadership
Self Managed
Teams
Rewards and
Recognition
Earnability
Enhancement
An opportunity to earn
1.5
times their
40
CSR Initiatives
Trident is preparing ground for future leaders. To cater to the increasing requirements of the market, the
company has given shape to its Centre for Excellence, Takshashila
Corporate Presentation - Trident Ltd.
41
CSR Initiatives
Sustaining recovery and reuse of waste water ensuring Zero Liquid Discharge
Trident maintains a zero liquid discharge facility for complete Towel processing, saving fresh
water of 6 million litres/day directly. The facility has a biological plant for bio-degradation of
waste water and an RO system to recover 92% of water
42
CSR Initiatives
Education Promoted Sacred Heart Convent School
Organizing Medical & Blood donation camps for community
Rain Water Harvesting
Village Cluster Adoption With 200 villages and more than 71,000
acres of land and 2,000 farmers in Punjab
Technical guidance to farmers in better management crop practices &
techniques
43
Corporate Governance
Awards
44
About Us &
Investor Contacts
About Us
Trident Limited is the flagship company of Trident Group, a USD 1 billion
Indian business conglomerate and a global player. Headquartered in
Ludhiana, Punjab, Trident is the largest terry towel and wheat straw
based paper manufacturer in the world. With the establishment of the
state-of-the-art manufacturing processes and systems coupled with
appropriate human capital and credentials, Trident has frequently
received accolades from its patrons in recognition for delivering high
quality standards and for its customer-centric approach.
The Company operates in two major business segments: Textiles and
Paper with its manufacturing facilities located in Punjab and Madhya
Pradesh. Tridents customer base spans over more than 100 countries
across 6 continents and comprises of global retail brands like Ralph
Lauren,
Calvin
Klein,
JC
Penney,
IKEA,
Target,
Wal-
Mart, Macy's, Kohl's, Sears, Sam's Club, Burlington, etc. With export
turnover accounting for about 50% of total sales of the Company, Trident
Group has emerged as one of the worlds largest integrated home textile
manufacturer.
46
Investor Contacts
For more information about us, please visit www.tridentindia.com
OR
Contact:
Pawan Jain / Siddharth Gupta
Trident Limited
Email: [email protected]
Email: [email protected]
47