nandan denim limited
TRANSCRIPT
Presented by :• Zil Shah
NANDAN DENIM LIMITED
The global denim fabric market is approx $17 billion, growing at a modest rate of 3-5% a year.
Asia accounts for about 70% of the global production of denim fabric capacities.
World trade in denim fabric averaged 670,000 tonnes over the past one decade.
In value terms, it fluctuated between $3 billion and $3.5 billion.
Geographically, Europe have been the largest consumers of denim jeans followed by consumers in North Americans, Japan, and Korea.
Asia-Pacific is forecast to emerge as the fastest growing market with a CAGR of 9.4% over the analysis period.
INDUSTRY OVERVIEW
The global denim jeans market was valued at $58 billion for the year 2014, and it continues to grow on account of its lifespan as compared to other apparel.
This market is further classified into three major categories such as mass market denim jeans, standard or economy jeans, and premium denim jeans.
Premium denim accounts for roughly 26% of the overall Jeans market with the highest market potential and is also the fastest growing segment of the market.
Denim companies in market to grow at a CAGR of over 8% until 2019.
Women dominated the market with a little over 55% of the market share.
The men’s and children’s denim category also exhibits a huge growth potential for the forecast period.
GLOBAL MARKET
INDIAN MARKET
Nandan Denim Limited (NDL) is the second-largest textile company in India.
Located in Gujarat, the textile hub of India, the Company is engaged in the manufacture of denims, cotton fabrics and khakis through fully integrated facilities.
With a projected denim manufacturing capacity of 110 MMPA,
NDL is currently the 2nd largest manufacturing facility in India.
Machinery with latest technology from Germany and Japan, capable of producing wide range of denim fabrics.
~10% domestic fabric market share. NDL is a part of the Chiripal Group, a leading
business conglomerate diversified across several businesses.
INTRODUCTION
MILESTONE
Amongst the Top 5 Denim Manufacturing Capacity in the World by FY2017
Nandan Denim exports its denim to more than 28 countries across the globe through its strong global dealer-distribution network.
KEY PLAYERS IN WORLD
Capacity 0f top 5 denim manufacturers in India.
MMPA
Arvind 130
Nandan Denim 110
Vicunha Textil 230
ISKO 200
Tavex Corporation 160
KEY PLAYERS IN INDIA
Capacity 0f top 5 denim manufacturers in India.
MMPA
Arvind 130
Nandan Denim 110
Aarvee Denim 84
Sudarshan Jeans 70
Etco Denim 50
Our strategy is to have a portfolio of hybrid brands, straddling across consumer segments and price points.Product Range:• Denim in all weights.• Woven knitted denim.• Denims in any fabric.• Coated denims in any fabric.• Re-cycle denim.• Denim in many colors.• Shirting fabric.• Printed fabric.
PRODUCT PORTFOLIO
Sales breakup
94.4% 94.6%93.8%92.5% 92.5%82.1%79.8% 79.2%77.9%71.9%
64 6499 547671 40 4057
50
FY11 FY12
CapacityFY13 FY14
Capacity Utilisation
FY15 FY11 FY12
CapacityFY13 FY14 FY15
Capacity Utilisation
132.7 98.6% 90.8%
90.2%
88.5%
88.7%
87.3%90.9%
120.5 120.2 89.7%85.1%111.7 80.5%101.1
70.856.353.540.939.9
19.5%14.9%
12.7%
11.5%
11.3%10.3% 9.8
%9.2%9.1% 1.4%
FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15
ExportsDenim Sales (Metres)
Realisations
Manufactured Goods
Traded Goods
Domestic Sales
DENIM REALISATIONS (RS/METRE)
DENIM FABRIC CAPACITY (MMPA) SPINNING CAPACITY (TPD)
sales
2012 2013 2014 2015 2016 2017 201805
1015202530
13
2327
2217
10 8
Growth in sales
2011 2012 2013 2014 2015 2016 2017 2018
5073 5738 70318937
1096512829 14112 15241Sales
1 2 3 4 5 6 7 8
-60%-40%-20%
0%20%40%60%80% 62% 57% 54%
-46%
53% 48% 47% 46%
EBIDTA MARGIN
1 2 3 4 5 6 7 8-40%-20%
0%20%40%60%80%
100%74% 71% 69%
-31%
69% 64% 62% 61%
GROSS MARGIN
1 2 3 4 5 6 7 8
-100%-50%
0%50%
100% 57% 51% 48%
-51%
48% 43% 41% 39%
EBIT Margin
As % of Sales
1 2 3 4 5 6 7 8
-60%-40%-20%
0%20%40%60% 54% 47%
4%
-54%
45% 40% 38% 36%
PBT Margin
As % of Sales
1 2 3 4 5 6 7 8
-80%-60%-40%-20%
0%20%40%60%
PAT Margin
As % of Sales
1 2 3 4 50%
10%
20%
30%
0% 0%
18%25%
13%
Dividend payout
1 2 3 4 5 6 7 8
-30%-20%-10%
0%10%20%30%
18% 17%
1%
-23%
18% 15% 14% 13%
Return on equity
1 2 3 4 5 6 7 80
102030405060 56
26 28 28 30 30 30 30
Creditors (Days)
1 2 3 4 5 6 7 80
50100150 125
44 47 50 50 50 50 50
Debtors (Days)
1 2 3 4 5 6 7 85055606570 66
63 6257
63 63 63 63
Inventory (Days)
Thank you.