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.