banswara syntex limited

Banswara Syntex LimitedBANSWARA SYNTEX LIMITEDwww.banswarasyntex.comInvestors Update February 2010

This presentation outlines the business model ofBanswara 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 STATEMENTBANSWARA SYNTEX LIMITEDwww.banswarasyntex.com

Presentation FlowAbout - Banswara Syntex LimitedOur Plants Installed CapacitiesOur Valued CustomersShareholding Pattern Dividend/Bonus HistoryProduct Wise and Domestic & Export SalesFinancial Highlights Q3FY10Working Performance for FY 07,08,09Status of the projects under implementationGlobal Textile IndustryInvestment ConsiderationMilestonesAddress & Contacts

BANSWARA SYNTEX LIMITEDwww.banswarasyntex.com

Presentation Flow About 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 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.

BANSWARA SYNTEX LIMITEDwww.banswarasyntex.comBSL is one of the Largest Vertically integrated Textile Player

Mr. R L Toshniwal Chairman & Managing DirectorHe 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 DirectorHe 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 DirectorHe 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 DirectorHe 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 Managementwww.banswarasyntex.comBANSWARA 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 DirectorsMr. Kamal Kishore Kacholia Mr. Parduman KumarMr. Vijay MehtaMr. Vijay Kumar AgarwalMr. A N JariwalaMr. D P GargMr. S B AgarwalDr. R. Swaminthan Nominee Directorwww.banswarasyntex.comBANSWARA SYNTEX LIMITED

Installed Capacities Ring Spindles 1,19,188 Worsted Yarn Spindles 14,400 Air Jet Spindles - 576Installed CapacitiesInstalled Capacities Shuttle less Looms 194 Jacquard Looms 12Fabric Processing Capacity 4 Million Meters / MonthJacquard made-ups 12,500 pcs/ monthReadymade Trousers 2,25,000 pcs / monthReadymade Jackets 10,000 pcs / monthBANSWARA PLANTBANSWARA PLANTDAMAN & SURAT PLANTOur Business Portfoliowww.banswarasyntex.comBANSWARA SYNTEX LIMITED

VSFPSFASFCottonLycra LinenWool SPINNINGSPUN YARNInternal SalesWEAVINGFilament Yarn (Rayon / Polyester)SPINNINGWEAVING & PROCESSINGPROCESSING & FINISHINGExternal SalesInternal SalesGARMENTS / MADE UPSExternal SalesExport SalesDomesticSalesGARMENTINGBusiness ProcessP. Fabric Performance Fabricwww.banswarasyntex.comBANSWARA SYNTEX LIMITEDGreige

Our Plants* (Per Month)

INSTALLED CAPACITIESBSL 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 576Spinning


INSTALLED CAPACITIESFabric - 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


INSTALLED CAPACITIESReadymade 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/MonthBANSWARA SYNTEX LIMITEDwww.banswarasyntex.com

INSTALLED CAPACITIESBANSWARA SYNTEX LIMITEDwww.banswarasyntex.com Coal-based Thermal Power Plant15/18 MW

Coming up 2nd unit of the same capacity.

Our Valued Customers In IndiaBANSWARA SYNTEX LIMITEDwww.banswarasyntex.com

Our Valued Customers In IndiaARVINDwww.banswarasyntex.comBANSWARA SYNTEX LIMITED

Our Valued Customers around the globewww.banswarasyntex.comBANSWARA SYNTEX LIMITED

Share Holding PatternAs on December 31, 2009BANSWARA SYNTEX LIMITED* The Company has issued 16.50 Lac warrants convertible in to equal number of Equity Shares.www.banswarasyntex.com

No. Category of Shareholder Total No. of Shares % of Total Share Capital (A) Shareholding of Promoter and Promoter Group (i) Individuals/ Hindu Undivided Family 655756550.03%(ii) Bodies Corporate 12107199.24% (A) Total 776828459.27%(B) Public shareholding (a) Institutions 5620 0.04% (b) Non-institutions 0 0 (i) Bodies Corporate 135830010.37%(ii) Individuals - i. Individual shareholders holding nominal share capital up to Rs. 1 lakh. 259889019.83% ii. Individual shareholders holding nominal share capital in excess of Rs. 1 lakh. 137526710.49% Sub-Total (b) 533245740.69% (B) Total Public Shareholding (a) +b) 533807740.73% TOTAL SHARE CAPITAL (A + B) *13106361100.00%

Company issued One Bonus Share for Two Shares held by the shareholders on the record date i.e. 18.08.2006.Dividend / Bonus HistoryBANSWARA SYNTEX LIMITEDwww.banswarasyntex.com`

Year Percentage2004-05 12%2005-06 20%2006-07 20%2007-08 12%2008-09 18%2009-10Interim Dividend15%

(INR in Crore)Product wise Revenues for the last 5 yearsBANSWARA SYNTEX LIMITEDwww.banswarasyntex.com

PARTICULARS FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2007-2008 FY 2008-2009 AMT % AMT % AMT % AMT % AMT % TOTAL SALES 272.07100344.95100413.43100451.54100558.95100YARN 165.3060.75210.5561.04230.9855.87243.8654.01264.6647.35FABRICS 104.0638.25114.9833.33149.736.21168.1737.24238.3642.64GARMENT 0013.753.9922.915.5429.726.5843.657.81OTHERS 2.7115.671.649.842.389.792.1712.282.2

*Includes incentives

Domestic and Export Sales (INR in Crore)BANSWARA SYNTEX LIMITEDwww.banswarasyntex.com

FINANCIAL YEAR EXPORT * DOMESTIC TOTAL AMT % AMT % AMT % 2004-2005 160.0058.81112.0741.19272.07100 2005-2006 212.1861.51132.7738.49344.95100 2006-2007 256.9462.15156.4937.85413.43100 2007-2008 281.5262.35170.0237.65451.541002008-2009 366.4465.56192.5134.44558.95100

(Rs. In Crores) Financial Highlights Q3FY10 ResultsBANSWARA SYNTEX LIMITEDwww.banswarasyntex.com

PARTICULARS QUARTER ENDED NINE MONTHS PERIOD ENDEDYEAR ENDED 31/03/2009 AUDITED 31/12/200931/12/200831/12/200931/12/2008GROSS SALES 141.08130.61458.69406.71558.95Less: Excise Duty/Other Operative Income 5.474.3015.829.6812.81NET SALES 135.61126.31442.87397.03546.14DOMESTIC 53.0636.80159.01126.26179.7EXPORT 82.5589.51283.86270.77366.44TOTAL 135.61126.31442.87397.03546.14EBIDTA (Before Extraordinary Item) 23.6520.1970.5451.8081.46EBIDTA / NET SALES % 17.44%15.98%15.93%13.05%14.92%PBT 10.48-1.6230.53-1.3311.29PBT / NET SALES % 7.73%-1.28%6.89%-0.33%2.07%PAT 7.54-1.7921.40-1.709.59PAT / NET SALES % 5.56%-1.42%4.83%-0.43%1.76%PRODUCT-WISE SALES (GROSS) YARN 67.6562.81218.16205.04264.66CLOTH 57.0955.96175.96165.63238.36GARMENT 12.569.5343.8329.8743.65OTHERS 3.782.3120.746.1712.28TOTAL 141.08130.61458.69406.71558.95

(Rs. In Crores) Working Performance - last 3 yearsBANSWARA SYNTEX LIMITEDwww.banswarasyntex.com

S.NO PARTICULARS F/Y 2006-2007 F/Y 2007-2008 F/Y 2008-2009 1GROSS SALES 413.43451.54558.95 Less: Excise Duty/Other Operative Income 22.3915.1512.812NET SALES 391.04436.39546.143EXPORTS (Incl. Export Benefits 256.94281.52366.444EARNING BEFORE INTEREST, DEPRECIATION, TAX AND EXTRAORDINARY ITEM (EBIDTA) 56.8551.281.46 EBIDTA / NET SALES % 14.54%11.73%14.92%5EARNING BEFORE INTEREST, TAX AND EXTRAORDINARY ITEM (EBITA) 40.5929.452.07 EBITA / NET SALES % 10.38%6.74%9.53%6EXTRAORDINARY ITEM PROFIT/(LOSS) - - -7.537NET PROFIT AFTER TAX (PAT) 14.944.429.59 NET PROFIT / NET SALES % 3.82%1.01%1.76%8GROSS FIXED ASSETS 339.49434.33475.299EQUITY SHARE CAPITAL 12.5113.0813.0810PREFERENCE SHARE CAPITAL 1.731.731.7311RESERVES & SURPLUS 64.6369.4576.2212NET WORTH (Excluding DTL) 77.1482.5389.3113DIVIDEND % 20.00%12.00%18.00%14ISSUE OF BONUS SHARES 01:02 - - (Bonus: Equity Share) 15BOOK VALUE PER SHARE (Rs.) 61.562.9768.1416EARNING PER SHARE (Rs.) 12.023.347.29

Status of the Projects under implementation

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.

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.BANSWARA SYNTEX LIMITEDwww.banswarasyntex.com

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 tostrong 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 incomeGlobal Textile Industrywww.banswarasyntex.comBANSWARA SYNTEX LIMITED

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Home Textiles5.410

Apparel31.660

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Exports5045

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Textile1525

Home Textiles5.410

Apparel31.660

Total5295

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20062010

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Exports5045

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Investment ConsiderationRising Value AdditionBSL is countrys 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.GrowthBSL 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.Opening up of New MarketsKey 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.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.www.banswarasyntex.comBANSWARA SYNTEX LIMITED

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 yearsBANSWARA SYNTEX LIMITEDwww.banswarasyntex.com

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`/Dcor 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.)BANSWARA SYNTEX LIMITEDwww.banswarasyntex.com

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.

BANSWARA SYNTEX LIMITEDwww.banswarasyntex.comMajor Milestones in the last 3 years (Contd.)

AddressPlant For Spinning/Weaving/Processing Capacity for production of yarn, fabric and Made-ups at :-

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


AddressOffices Registered 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) 56336571-75 Fax : (022) 22064486 Delhi Office Flat No. 204, E-2, A.R.A. Centre, Jhandewalan Extn., Delhi-55Phone : (011) 23676124, 23676948 BANSWARA SYNTEX LIMITEDwww.banswarasyntex.com

Further Detail..

For further details, please contact:

Mr. J. K. JainSr. V. P. (F&C) & Company SecretaryBanswara Syntex Limited

Email: [email protected] : www.banswarasyntex.com Phone : +91-2962-257676-681 (Ext. 4304)Fax : +91-2962-240692BANSWARA SYNTEX LIMITEDwww.banswarasyntex.com

THANK YOU for your interestBANSWARA SYNTEX LIMITEDwww.banswarasyntex.com

banswara syntex limited

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public limited company

toshniwal chairman

years of experience

field of textile industry

joint sector company

french company carreman

time directorhe