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1 of 29 == CORPORATE PRESENTATION == == CORPORATE PRESENTATION ==
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1 of 29 == CORPORATE PRESENTATION ==. Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed.

Dec 17, 2015

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Page 1: 1 of 29 == CORPORATE PRESENTATION ==. Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed.

1 of 29

== CORPORATE PRESENTATION ==== CORPORATE PRESENTATION ==

Page 2: 1 of 29 == CORPORATE PRESENTATION ==. Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed.

Disclaimer

2

No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or

correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the

date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward

looking statements“ based on the currently held beliefs and assumptions of the management of Sumeet Industries Limited (“Company” or

“Sumeet”), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and

strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory

environment.

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial

condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance

or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s

business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative

of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on

these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or

developments.

This presentation is for general information purposes only, without regard to any specific objectives, financial situations or

informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any

securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any

investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in

the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration

therefrom.

This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.

Page 3: 1 of 29 == CORPORATE PRESENTATION ==. Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed.

Index

3

TABLE OF CONTENTS PAGE NO.

Industry Overview 4

Company Overview 6-7

Objects of QIP 16-17

Financial Snapshot 21-22

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Textile Industry - Overview

4

• Contributes to 4 % to GDP and 17 % to India’s Export Earnings• Provides employment to over 35 mn people• According to the Confederation of Indian Textile Industry (CITI), the

potential size of the Indian textiles industry is expected to reach US$ 110 billion by 2012

Key Segments of Textile Industry

Page 5: 1 of 29 == CORPORATE PRESENTATION ==. Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed.

Textile Industry Advantage to India

5Sources: Ministry of Textiles 2008–09 annual report; “Note on sericulture and the silk industry,” Ministry of Textiles

Page 6: 1 of 29 == CORPORATE PRESENTATION ==. Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed.

Man-Made Staple Fibre And Filament Yarn Industry

6

Cont…2

Page 7: 1 of 29 == CORPORATE PRESENTATION ==. Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed.

Man-Made Staple Fibre And Filament Yarn Industry

7

Page 8: 1 of 29 == CORPORATE PRESENTATION ==. Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed.

Company Snapshot

8

Incorporated in 1988 by Mr. Shankarlal Somani and his family to carry on the business of Polyester.

First plant set up in 1993-94 to manufacture Polypropylene Multifilament Yarn (“PPMFY”) with installed capacity of 1500 TPA.

Gradual expansion in Polyester Filament Yarn (“POY”), Polyester Filament Yarn (“FDY”) and PET Chips with current installed capacity of 1,00,000 TPA.

Among the best quality manufacturers in India, for producing dope dyed polypropylene yarn in which accuracy and uniformity of color is guaranteed.

Products marketed under the brand name “SUMILON”; approximate share of 20% in India.

Received a Star Export House status by Ministry of Commerce & Industry in 2004-05.

Maiden public issue in December 1992; listed on BSE & NSE. Company has shown tremendous growth with 343% CAGR of Turnover (FY06-

FY10) and 1179% CAGR of Profit after Tax (FY06-FY10).

Page 9: 1 of 29 == CORPORATE PRESENTATION ==. Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed.

Sumeet Industries Limited - Overview

9

Products Overview

P. P. Multi Filament Yarn

(PPMFY)

PolyesterFilament Yarn

(POY)

PolyesterFilament Yarn

(FDY)Pet Chips

3,900 Tons 36,000 Tons 17,000 Tons 47,000 Tons

Annual Capacity

Page 10: 1 of 29 == CORPORATE PRESENTATION ==. Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed.

Sumeet Industries Limited - Overview

10

Products Overview

PET CHIPS TEXTURISED POY / FDY

POY CRIMP TWISTED

POLYESTER

POLY PROPYLENE

Page 11: 1 of 29 == CORPORATE PRESENTATION ==. Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed.

Journey thus Far - Milestones and Achievements

11

1988 • Incorporation of Sumeet Synthetics Private Limited

1992 • Conversion from Private Limited to Public Limited

2004

2009

• This Prestigious Expansion cum Backward Integration Plan completed with total investment of Rs. 150.00 Crores and increased company’s capacity from 12000 tons to 100000 tons (More than 8 times)

2010

1993 • Installed capacity of 1500 tons per annum of Polypropylene Multifilament yarn with total project cost of Rs. 200 Million

• Installed capacities of Texturising & Twisting of 1500 MT per annum for value addition with total project cost of Rs. 45 Million

• Change of Name of the Company (Sumeet Synthetics Limited to Sumeet Industries Limited)

• Increased the capacity of Polypropylene Multifilament Yarn to 3900 MT per annum with capital investment of Rs. 144 Million

1995

1995

1997

• Increased the capacity of Texturising & Twisting to 3900 MT & 2000 MT respectively per annum

• Installed coal based power plant of 2.5 MW for captive power generation with capital investment of Rs. 60 Million

1999

2005 • Installed Polyester Spinning Plant to manufacture 12000 MT Polyester Filament Yarn (POY) per annum with capital investment of Rs. 300 Million

• Installed 60 Water Jet Looms to manufacture 3.5 Million meters Woven Fabric per annum 2006

2007 • The Company converted its coal based power plant of 2.5 MW to Gas based Gen Set Power Plant for further reducing its

power cost. The Company has tie-up with Gujarat Gas Company for supplying the Gas through Pipeline for the said Power Plant

• The Company has commissioned fully imported C.P. PLANT (Continuous Polymerization Plant) of 288 tones per day capacity or 100000 tones per annum as Expansion cum Backward Integration Project

2009 • Commissioned 6 MW Gas based Genset Captive Power Plant, enhancing the capacity of captive power generation by 8.5 MW

Page 12: 1 of 29 == CORPORATE PRESENTATION ==. Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed.

Business Strategy

12

Page 13: 1 of 29 == CORPORATE PRESENTATION ==. Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed.

Competitive Strengths

13

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Experienced Promoters

14

Rs. in Lakhs

Name & Designation Education Profile

Mr. Shankarlal Somani

Chairman and Executive Director

Graduation in Commerce from University of Rajasthan

• Over 3 decades of experience in the textile industry

• Plays a key role in management of our Company

• Has served social prestigious posts like Managing committee member of Sarvajanik Education Society and Shri Maheswari Vidyapeeth

Mr. Rajkumar Somani

Managing Director

Bachelors degree in Commerce from University of Rajasthan

• Has experience of about 28 years in the textile industry

• Instrumental in establishing a Polyester Filament Yarn and Twisted & Texturised Yarn plants

Mr. Sumeet Somani

Whole Time Director

M.Com from South Gujarat University, D.B.M. from S. P. Jain Institute of Management & Research, Mumbai

• Looking after Company’s expansion plan and future business planning with core management of the Company

• He is managing a process house SANYA FASHIONS and Priyanshi Creations Private Limited at Surat

Page 15: 1 of 29 == CORPORATE PRESENTATION ==. Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed.

Export Turnover

15

The products manufactured by Company are at par with International Quality StandardsDuring the current year i.e. 2010-11 Company expect to achieve export turnover of Rs. 540 Million in comparison to Rs. 114 Million in last year, about 480% increase in Y.O.Y basis

U.S.A. ARGENTINA INDONESIA SRI LANKA

SOUTH AFRICA

EGYPT

SAUDI ARABIA

SPAIN

Page 16: 1 of 29 == CORPORATE PRESENTATION ==. Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed.

Objects of the QIP

16

Cost of the Project

1 • To finance the cost of enhancement of spinning capacity of POY/FDY from 53,000 TPA to 1,00,000 TPA.

• This expansion will utilize balance capacity of poly condensation plant as captive consumption by manufacturing POY/FDY directly from MEG & PTA instead of producing PET chips.

• This project will also enhance the scale of operation and improve the cost competitiveness of Company’s products

14,150.00

2 To augment the existing working capital requirements 3,000.00

Total 17,150.00

Rs. in Lakhs

Cont…2

Page 17: 1 of 29 == CORPORATE PRESENTATION ==. Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed.

Objects of the QIP

17

Means of Finance

Rs. in Lakhs

1 QIP Proceeds 6,000.00

2 ECA loan from KBC Bank Deutschland AG 5,894.30

3 ECB loan of US$ 10 MN 4600.00

4 Internal Accruals 655.70

Total 17,150.00

Page 18: 1 of 29 == CORPORATE PRESENTATION ==. Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed.

Peer Group Comparison

18

PAT Margin & EBITDA Margin

RONW & EPS

Sources: Capitalline

Page 19: 1 of 29 == CORPORATE PRESENTATION ==. Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed.

Stock Performance Analysis

19

Monthly Analysis (July – Dec 2010)

Annual Analysis (FY08 – FY10)

Sources: www.bseindia.com

Page 20: 1 of 29 == CORPORATE PRESENTATION ==. Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed.

Corporate Structure

20

Shareholding Pattern Board of Directors

Name of the Director

Designation Nature of Directorship

Mr. Shankarlal Somani

Chairman Non-Independent, Executive

Mr. Raj Kumar Somani

Managing Director

Non-Independent, Executive

Mr. Sumeet Somani

Chief Financial Officer

Non-Independent, Executive

Mr. Dinesh Khare Director Non- Independent, Executive

Mr. B. C. Chordia Director Independent, Non- Executive

Mr. Vinod Ladia Director Independent, Non- Executive

Mr. Mangilal Lahoti

Director Independent, Non- Executive

Mr. Devi Prasad Saboo

Director Independent, Non- Executivewww.bseindia.com, as on 31st Dec. 2010

Page 21: 1 of 29 == CORPORATE PRESENTATION ==. Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed.

Strong Financial Performance

21

Page 22: 1 of 29 == CORPORATE PRESENTATION ==. Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed.

Strong Financial Performance

22

* EPS after Rights Issue of 1:1 in Jan. 2009** EPS is not annualised

Page 23: 1 of 29 == CORPORATE PRESENTATION ==. Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed.

Thank You

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