Investor Update Banswara Syntex Limited Investor by zhangyun


									Banswara Syntex Limited
Investor Update
MAY 2011

BSE Code: 503722
Bloomberg Code: BSWL IN
Reuters Code: BANS.BO
                                 KEY HIGHLIGHTS OF 2010-11

   Total Income increased by 28.13%                   Net Worth Rs. 160 Cr.

   EBIDTA increased by 29.79%                         Net Worth and DTL Rs. 190 Cr.

   PAT more than 1.52 times.                          Book Value of Shares Rs. 108.37 per share

   Basic EPS Rs. 32.05                                Dividend 50%

                                                             20% Interim in Nov-10

                                                             30% Final in FY 2011

     32,000  Tones
     32,000  Tones        A Complete composite mill  up to fabric 
                          A Complete composite mill  up to fabric 
                                                                         Export Culture with  over 65% Export 
                                                                        Export Culture with  over 65% Export 
         Yarn              stage at single location so advantage of 
                          stage at single location so advantage of 
       Production                                                                        Sales
                                           lead time
                                          lead time

      400 Lac Mtr
      400 Lac Mtr        WE ARE “LYCRA ASSURED and Accredited”
                         WE ARE “LYCRA ASSURED and Accredited”
        Wooven                                                            Company based on pillars of trust, 
                                                                          Company based on pillars of trust, 
        Fabric                                                             innovation, service and reliability
                                                                          innovation, service and reliability

                           Design Studio for Fabric and Garment
                           Design Studio for Fabric and Garment
        5 Million 
       5 Million 
     Meters/Month                                                        Laboratory accredited by  M & S and  
                                                                        Laboratory accredited by  M & S and  
       Finishing                                                            world  leading brand  “AATCC”
                                                                           world  leading brand  “AATCC”
                           World Class Yarn, Fabric Testing Lab
                           World Class Yarn, Fabric Testing Lab

        300 Lac 
        300 Lac 
      Pcs/Month                                                          On going Research & Development
                                                                         On going Research & Development
      Garments                Capable and Experienced Team
                              Capable and Experienced Team

                                                                        European Quality available in India due 
                                                                       European Quality available in India due 
       30/36 MW
       30/36 MW                                                            to Joint venture with Carreman of 
                                                                          to Joint venture with Carreman of 
                          Production Facility for technical fabrics 
                          Production Facility for technical fabrics 
      Power Plant
      Power Plant                                                                        France
                                 including jacquard fabrics
                                including jacquard fabrics                                                            BANSWARA SYNTEX LIMITED

    This presentation outlines the business model of
    Banswara 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.                                                   BANSWARA SYNTEX LIMITED

   About Us                                      1

   Business Process                              4

   Our Plants                                    5

   Our Customers                                 11

   Shareholding Pattern as on March 31, 2011     14

   Dividend and Bonus History                    15

   Historical Product-Wise / Market-Wise Revenues 16

   Historical Financial Performance              18

   BSL’ Share Price v/s BSE Sensex               19

   Awards and Achievements                       20

   Investment Rationale                          21

   Major Milestones                              22

   Corporate Social Endeavors                    25

   Contacts                                      26                                  BANSWARA SYNTEX LIMITED

   Banswara Syntex Ltd. (BSL) was incorporated in the year 1976 as 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. Currently, BSL is a Public Limited Company and the
   promoters holding 53.53% of Equity Share Capital.

   Initially it was a spinning mill with 12,500 spindles. BSL has been on an
   ongoing roadmap of expansion, diversification and modernization plans.
   Over the last 3 decades, BSL has increased the Spinning capacity to
   1,44,452 spindles commenced production of Fabric from 1993,
   Readymade Garments from 2004, Made-ups and Worsted Spinning from
   2008. BSL has also entered into a 50:50 JV with Carreman Michel
   Thierry Group (CMTG) of France.

   BSL is a Government recognized Trading House and has won the
   Highest Export Performance award from SRTEPC for the last 8 years
   in a row. The Company also owns state awards for “Export Excellence”
   for export made in last 3 Years from 2005-06 to 2007-08.

 BSL is one of the LARGEST vertically integrated textile player                                1                        BANSWARA SYNTEX LIMITED
About Us

                Mr. R L Toshniwal – Chairman & Managing Director
                He holds a Masters degree in Textiles from Leeds University, UK and has a vast
                experience of 48 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 – Joint Managing Director
                He holds a B.Tech (Chem.) from IIT, Mumbai and has also undergone OPM Course of
                Harvard University, USA. He has 19 years of experience in Textile Industry and is
                responsible for the overall activities of the company.

                Mr. Rakesh Mehra – Whole Time Director
                He is a Chartered Accountant by qualification and has 23 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 Director
                He holds a Bachelors degree in Business Management from Bentley College, USA and has
                over 8 years of experience in the field of Textile Industry. He is responsible for the
                readymade garment units of the company at Daman and Surat.                          2                              BANSWARA SYNTEX LIMITED
   About Us

   Banswara Syntex Limited has 13 Directors including 4 managing & whole
   time directors, 1 nominee director appointed by EXIM Bank and other 8
   directors who are independent professional directors on the Board.
   Independent Directors are:
   1.   Mr. Kamal Kishore Kacholia   - Industrialist

   2.   Mr. Parduman Kumar           - (Rtd) Chief GM IDBI

   3.   Mr. Vijay Mehta              - Renowned Financial Consultant

   4.   Mr. Vijay Kumar Agarwal      - Industrialist

   5.   Mr. A N Jariwala             - Industrialist

   6.   Mr. D P Garg                 - Industrialist

   7.   Mr. S B Agarwal              - Consultant Ex -Group Executive President (Textile)

                                      of Grasim

   8.   Dr. R. Swaminthan            - (Rtd.) I.A.S Exim Bank
        (nominee director)

   9.   CA Pradeep Bhandari
                                     - Director of Raymonds                  3                              BANSWARA SYNTEX LIMITED

             Spinning                Weaving & Processing                                   Garmenting

  1.VSF                                                              Yarn
  2.PSF                                                           (Rayon /
  3.ASF                                                          Polyester)
  4.Cotton                                                                                         Domestic
  5.Lycra                 SPUN                                                                      Sales
                          YARN         Weaving
  6.Linen                              Including 
  7.Wool                 Internal 
                           Sales       Technical
                                                                                       /Made Ups

             SPINNING                Processing & 
                                       Finishing                Internal 
                                                                P. Fabric
                                                                / Fabric

                                     External Sales
             External                   P. Fabric 
                                       / T. Fabric    P. Fabric – Performance Fabric
                                        / Fabric
                                                      T. Fabric – Technical Fabric                      4                                          BANSWARA SYNTEX LIMITED
 Our Plants

           Spinning                            &                             Garments

           Banswara                        Banswara                       Daman & Surat

 Ring Spindles – 1,29,316         Shuttle-less Looms – 254           Jacquard made-ups – 12,500
                                                                     pcs / month
 Worsted Yarn Spindles – 14,400   Jacquard Looms – 20
                                                                     Readymade Trousers – 2,70,000
                                                                     pcs / month
 Air Jet Spindles - 736           Fabric – Processing Capacity – 5
                                  Million Meters / Month             Readymade Jackets – 22,500
                                                                     pcs / month                        5                            BANSWARA SYNTEX LIMITED
       Installed Capacity

         PRODUCT                      UNIT                       CAPACITY
         Spinning                     BSL                70,036        Spindles
                                      BFL                59,280        Spindles
                                    AIRJET                736          Spindles
                                   WORSTED               14,400        Spindles
          Weaving                  TOSHCO                 130           Looms
                                      BJF                 107           Looms
                                   JAQUARD                 20           Looms
                               CARREMAN - JV               77           Looms
    Fabric Processing                 BTM                  5          Million Mtr*
         Garments                   DAMAN               1,50,000       Trousers*
                                    DAMAN                7,500         Jackets*
                                    SURAT               1,20,000       Trousers*
                                    SURAT                15,000        Jackets*

        Power Plant                 Thermal              30/36            MW
                                  Furnace Oil             9.07            MW

          Dyeing**                Fiber & Yarn           1,200            MT*

  *(Per Month)
  ** Includes 150 MT for wool dying, 150 MT for yarn dying and 900 MT for fibre dying.                                                      6            BANSWARA SYNTEX LIMITED
      Installed Capacity

 BSL is a vertically integrated textile player engaged in manufacturing of
 man-made synthetic blended yarn, wool and wool mixed yarn, all type
 of suiting and jacquard furnishing and technical fabrics besides
 production of trousers, jackets and made-ups.

 BSL specializes in producing blends of viscose staple fibre, polyester
 staple fibre, acrylic staple fibre, lycra, cotton, linen and wool.

 BSL has a total production capacity of 32,220 tones of yarn per
 annum. It includes 30,600 tones polyester blended dyed yarns and
 1,620 tones wool mix yarn per annum. The Company also specializes in
 producing various type of fancy spun yarns.

 The present installed capacities are as under:-

    Ring Spindles                                  1,29,316

    Worsted Yarn Spindles                           14,400

    Air Jet Spindles                                   736                                  7                    BANSWARA SYNTEX LIMITED
       Installed Capacity

 Fabric - Weaving & Processing
 BSL produces Hi-Quality, Hi-Performance textile wear,
 technical & jacquard finished fabric for both domestic and
 overseas markets. BSL has 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: “LYCRA ASSURED and Accredited”
 » Specialty Fnishings: Stain, Wrinkle, Moisture Management
 » Two Zone Fabric
 » Fire Retardant Fabric
 » Fabric Design and Development innovations
 » Laminated Technical Fabric

   Shuttles-less Looms                                   254

   Jacquard Looms                                         20

   Fabric Processing Capacity       5 Million Meters/Month                                   8      BANSWARA SYNTEX LIMITED
     Installed Capacity

 Readymade Garments

 BSL’s Garmenting units are located in Daman and Surat. At both these
 locations, BSL specializes in productions of Trousers and Jackets, therbeby
 making BSL – a complete vertically integrated textile player (ie – right
 from conceiving an idea for fabric to the final product ready to wear in the
 least possible lead-time).

 Both these unites are equipped with a full complement of high-end machines
 to manufacture Trousers and Jackets of the finest quality, namely
 - Marking and Grading on a CAD system from Rich Peace
 - Sewing line onsists of Juki machines
 - Automatic Welting Machines from Eagle
 - Curtain Felling Machines from Union Special, Eyelet Buttonhole Machines
 from Reece and Blind Loop Machines from Mair
 - Complete Pressing process from Rotondi incl leggers, toppers & side seam
    Jacquard made-ups                 12,500 pcs/month

    Readymade Trousers              2,70,000 pcs/month

    Readymade Jackets                 22,500 pcs/month                              9                           BANSWARA SYNTEX LIMITED
     Installed Capacity

                          1st unit of 15/18 MW Thermal Power Plant commenced operations from

                          2nd unit of 15/18 MW Thermal Power Plant commenced operations from
                          March’11.                 10                           BANSWARA SYNTEX LIMITED
In India

Across the globe   13   BANSWARA SYNTEX LIMITED
 as on March 31, 2011

 No.          Category of Shareholder                         Total No. of Shares % of Total Share Capital

 (A)          Shareholding of Promoter and Promoter  

       (i)    Individuals/ Hindu Undivided Family                       6908816                   46.82%

       (ii)   Bodies Corporate                                           989969                   06.71%

              (A) Total                                                 7898785                   53.53%

 (B)          Public shareholding

       (a)    Institutions                                              1301296                    8.82%

       (b) Non‐institutions                                                    0                        0

       (i)    Bodies Corporate                                          2338858                   15.85%

       (ii)   Individuals ‐

              i. Individual shareholders holding nominal                2234903                   15.14%
              share capital up to Rs. 1 lakh. 

              ii. Individual shareholders holding nominal                982519                   06.66%
              share capital in excess of Rs. 1 lakh. 

              Sub‐Total (b)                                             5556280                   37.65%

              (B) Total Public Shareholding (a) +b)                     6857576                   46.47%

              TOTAL SHARE CAPITAL (A + B)                              14756361                  100.00%                                                                 14                    BANSWARA SYNTEX LIMITED

   Year                          Percentage
   2004 – 05                            12%

   2005 – 06                            20%

   2006 – 07                            20%

   2007 – 08                            12%

   2008 – 09                            18%

   2009 – 10 Interim Dividend           15%
   2009 – 10 Final Dividend             20%    35%

   2010 – 11 Interim Dividend           20%
   2010 – 11 Final Dividend             30%    50%

   Company issued 1 Bonus Share for 2 Shares held by
   the shareholders on the record date i.e. 18.08.2006                          15       BANSWARA SYNTEX LIMITED

                                                                                                             (INR in Crore)

  PARTICULARS       FY 2006-2007           FY 2007-2008          FY 2008-2009       FY 2009-2010        FY 2010-2011

                AMT          %     AMT             %       AMT           %      AMT          %      AMT            %

 TOTAL INCOME   393.95    100.00   438.10        100.00    548.94      100.00   630.96     100.00   808.45     100.00

 YARN           211.50     53.69   230.42        52.60     254.65      46.39    289.22     45.84    340.05      42.06

 FABRICS        149.70     38.00   168.17        38.39     238.36      43.42    285.53     40.97    353.86      43.77

 GARMENT        22.91      5.82    29.72          6.78     43.65        7.95    58.50       9.27    79.54        9.84

 OTHERS          9.84      2.50     9.79          2.23     12.28        2.24    24.71       3.92    35.00        4.33                                    16                                 BANSWARA SYNTEX LIMITED
  Market-wise Revenue For The Last 5 Year

                                                                                         (INR in Crore)

                                 EXPORT *                  DOMESTIC              TOTAL
                           AMT              %        AMT              %    AMT                %

    2006-2007             256.94        65.22    137.01           34.78   393.95         100.00

    2007-2008             281.52        64.26    156.58           35.74   438.10         100.00

    2008-2009             366.44        66.75    182.50           33.25   548.94         100.00

    2009-2010             411.13        65.16    219.84           34.84   630.97         100.00

    2010-2011             522.75        64.66    285.71           35.34   808.45         100.00
   *Includes incentives                          17                        BANSWARA SYNTEX LIMITED
    Historical Financial Performance
                                                                                                                               (INR In Crores)

         S.NO    PARTICULARS                            F/Y 2010‐2011            F/Y 2009‐2010             F/Y 2008‐2009 
           1     TOTAL INCOME                                           808.45                   630.97                     548.94
           2     EXPORTS (Incl. Export Benefits                         522.75                   411.13                     366.44

           3     EBIDTA*                                                138.99                   107.09                      73.92
                 EBIDTA / TOTAL INCOME   %                              17.19%                   16.97%                     13.47%

           4     EBITA*                                                 104.97                    76.35                      44.54
                 EBITA / TOTAL INCOME  %                                12.98%                   12.10%                      8.11%

           5     PBT *                                                   62.51                    43.34                      11.29
                 PBT / TOTAL INCOME    %                                 7.73%                    6.87%                      2.06%

           6     PAT *                                                   46.93                    30.88                       9.59
                 PAT / TOTAL INCOME    %                                 5.80%                    4.89%                      1.75%

           7     GROSS FIXED ASSETS                                     677.83                   535.17                     475.29
           8     EQUITY SHARE CAPITAL                                    14.74                    13.08                      13.08
           9     PREFERENCE SHARE CAPITAL                                 1.73                     1.73                       1.73
          10     RESERVES & SURPLUS                                     145.18                   101.31                      76.22
          11     NET WORTH (Excluding DTL)                              159.92                   114.39                      89.31
          12     DIVIDEND %                                   20.00% (Interim)         15.00% (Interim)                     18.00%
                                                                30.00% (Final)           20.00%  (Final)
                 ISSUE OF BONUS SHARES  
          13                                                                 ‐                         ‐                         ‐
                 (Bonus: Equity Share)  
          14     BOOK VALUE PER SHARE  (Rs.)                            108.37                    87.45                      68.14

          15     EARNING PER SHARE  ‐Basic (Rs.)                         32.05                    23.56                       7.29

                                      ‐Diluted (Rs.)                     31.79                    20.92                       6.47

       *Including Extraordinary Item                                           18                                           BANSWARA SYNTEX LIMITED

    The company has got “Export Excellence” Award from the Rajasthan State Government for its
    export performance for the year 1993-94 and 1994-95, and also from 2005-06 to 2007-08

        Year         Category
       1996-97      Second Best Overall Export Performance
       1997-98      Best Export Performance in the category of Acrylic yarn
       1998-99      Third Best Overall Export Performance
       1999-00      Best Export Performance in the category of Man-Made Fibre Blended Fabrics
       2001-02      Fifth Highest Overall Export Performance in Synthetic & Rayon Textiles
       2001-02      Highest Export Performance in Acrylic Yarn
       2001-02      Highest Export Performance in Polyester Spun Fabrics
       2001-02      Highest Export Performance in Man-Made Fibre Blended Fabrics
       2002-03      Best Export Performance in Polyester Spun Fabrics

       2002-03      Best Export Performance in Man-made Fibre Blended Fabrics
       2003-04      Fourth Best Overall Export Performance in Synthetic & Rayon Textiles
       2003-04      Best Export Performance in Man-Made Fibre Blended Fabrics
       2004-05      Best Export Performance in Man-Made Fibre Blended Fabrics
       2005-06      Highest Export Performance in Man Made Fibre Blended Fabrics
       2006-07      Highest Export Performance in Man Made Fibre Blended Fabrics
       2007-08      Highest Export Performance in Man Made Fibre Blended Fabrics                                           20                             BANSWARA SYNTEX LIMITED

 1.   Rising Value Addition
      - BSL is India’s one of biggest integrated textile manufacturer.
      - BSL produces 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 (annual production 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 include technical
      textiles and shirting fabric.
 2.   Growth
      - BSL is increasing its weaving capacity and almost doubling its garmenting capacity over the next 3 years
      besides growing yarn dyeing, cotton and wool dying.
 3.   Targetting New Markets
      - Set-up of marketing office in UK.
      - Key Customers of the company are gradually finding their operations in the developed markets unviable
      and shifting their business to BSL.
      - Ongoing addition of new customers of repute and size from the past couple of years.
 4.   Sustaining Profitability
      - BSL is amongst the few companies which sustained 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.                                  21                             BANSWARA SYNTEX LIMITED

     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.                                        2008
     Started production of Made-ups`/Décor 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.                                   22                      BANSWARA SYNTEX LIMITED

      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 persons other than
       promoters at a price of Rs.41/- per warrant. These warrant have been
       converted into equal number of Equity Shares by the Board of
       Directors of the company in its meeting held on 27th April, 2010.
      Purchased 18292 sq. ft. land and 18089 sq. ft. building constructed
       thereon at Daman to further expand the garment business of the
      Board of Directors announced Rs. 1.50 per Share as interim dividend.
      The Company has taken up installation of 2nd unit of power plant and
       project for technical textile.
      Taking up further expansion of Weaving, Processing and Garmenting
       capacities and also modernization of its spinning division.
      Acquire office premises at company’s existing Mumbai office to take
       care of increase volume of company’s business.                                23                       BANSWARA SYNTEX LIMITED

         Addition of new production capacities:-

               Spinning - 7824 Ring Spindles, 168 Airjet Spindles

               Weaving – 66 Looms

               Processing- -2 Stenters


                Garments – 2 Trouser Lines

                TPP – 2nd Unit of 15/18 MW
         Royal Bank of Scotland an Institutional Investor purchased 8.81%
          Equity Share Capital of the Company.

         Establishment of Marketing Office at London (UK).

         Commenced generation of power on 2nd Unit of Thermal Power Plant of
          15 MW Capacity.

         Commenced supply of Govt. Quota Coal to reduce the power cost.

         Fabric Testing capacity increased by 45%.

         Laboratory has been accredited by Railway Authorities , Accreditation
          renewed by LEVI’s, M&S for third consecutive year.

         Set up for testing fire retardant and laminated fabric.                                      24                    BANSWARA SYNTEX LIMITED

“AWAAS SEVA SADAN “                                                          Home away from home

  AWAAS is a home for Senior Citizen to Love in Dignity, Love and Affection with Community. Awaas is located in
  Dongargaonwadi, Lonavala. The Founder Trustee of Awaas Seva Sadan Trust is Owner of Gatt No. 237, VIll.
  Dongargaonwadi, Lonavala Admeasuring about 3 acres. Awaas Seva Sadan Trust developed and constructed 50 Room of
  approx. 200 Sq. ft. each with two Hall Approx. 1,000 sq. ft. each, total built up are 19,000 sq. ft. It will have 50 Rooms
  (100% occupancy) with attached bath and cooking platform. Rooms for residents is free of charge except maintenance
  expenses shared on a co-operative basis. All rooms are well furnished.

             "we would like to make life as
              enjoyable and as interesting as
                         possible for Retired
                          and Elder Persons.“

                                  (Founder Trustee)                                       25                                   BANSWARA SYNTEX LIMITED
    Contact Us

    Corporate Office

       5th Floor, Gopal Bhawan, 199, Princess Street,
       Mumbai – 400 002

    Banswara Plant and Registered Office
       Industrial Area, Dahod Road,
       Banswara - 327 001 (Rajasthan)

    Daman Plant

       Survey No. 713/1, 713/2, 713/3, 725/2 & 725/1,
       Village Dabhel, Nani Daman,
       Daman - 396210

    Surat Plant
       Plot No. 5-6, G.I.D.C., Apparel Park, SEZ Sachin,
       Surat – 394 230 (Gujarat)                              26     BANSWARA SYNTEX LIMITED
            Administrative Block    Thermal Power Plant

             Spinning Unit         Surat SEZ Unit                              BANSWARA SYNTEX LIMITED
                Design Studio           Quality Testing Laboratory

         Finished Fabric Inspection   Three Layer-Technical Fabric                                 BANSWARA SYNTEX LIMITED
 For further details, please contact:
  Mr. J. K. Jain
   Sr. V. P. (F&C) & Company Secretary
   Banswara Syntex Limited

                                         Web:                              BANSWARA SYNTEX LIMITED

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