Project Report

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INDEX

1 DECLARATION2 EXECUTIVE SUMMARY 3 DESCRIPTION OF PROMOTER4 DESCRIPTION OF ENTERPRISE5 ECONOMIC VIABILITY AND MARKETABILITY6 TECHNICAL FEASABILITY7 FINANCIAL PROJECTIONS8 PROFITABILITY ANALYSIS9 RELEVANT DOCUMENTS

Index

TS

Textile Industry - Overview

• 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

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Textile Industry Advantage to India

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

Man-Made Staple Fibre And Filament Yarn Industry

Cont…2

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Man-Made Staple Fibre And Filament Yarn Industry

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Company Snapshot

Incorporated in 1988 by Mr. Shankarlal Somani and his family to carry on thebusiness 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 dyedpolypropylene yarn in which accuracy and uniformity of color is guaranteed.Products marketed under the brand name “SUMILON”; approximate share of20% in India.Received a Star Export House status by Ministry of Commerce & Industry in2004-05.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).

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Sumeet Industries Limited - Overview

Products Overview

P. P. MultiFilament Yarn (PPMFY)

PolyesterFilament Yarn (POY)

PolyesterFilament Yarn (FDY)

Pet Chips

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

Annual Capacity

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Sumeet Industries Limited - Overview

Products Overview

POLYESTER

PET CHIPS TEXTURISED POY / FDY

POLYPROPYLENE

POY

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CRIMP TWISTED

Journey thus Far - Milestones and Achievements

2010

2009

2009

2007

2006

2005

2004

1999

1997

1995

1995

1993

1992

1988

• 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)• Commissioned 6 MW Gas based Genset Captive Power Plant, enhancing the capacity of captive power generation by 8.5 MW• 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• The Company converted its coal based power plant of 2.5MW 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• Installed 60 Water Jet Looms to manufacture 3.5 Million meters Woven Fabric per annum• Installed Polyester Spinning Plant to manufacture 12000 MT Polyester Filament Yarn (POY) per annum with capital investment of Rs. 300 Million• Installed coal based power plant of 2.5 MW for captive power generation with capital investment of Rs. 60 Million• Increased the capacity of Texturising & Twisting to 3900 MT & 2000 MT respectively per annum• Increased the capacity of Polypropylene Multifilament Yarn to 3900 MT per annum with capital investment of Rs. 144 Million• Change of Name of the Company (Sumeet Synthetics Limited to Sumeet Industries Limited)• Installed capacities of Texturising & Twisting of 1500 MT per annum for value addition with total project cost of Rs. 45 Million• Installed capacity of 1500 tons per annum of Polypropylene Multifilament yarn with total project cost of Rs. 200 Million• Conversion from Private Limited to Public Limited

• Incorporation of Sumeet Synthetics Private Limited

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Business Strategy

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Competitive Strengths

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Experienced Promoters

Name & Designation

Mr. Shankarlal Somani

Chairman and ExecutiveDirector

Education

Graduation inCommerce fromUniversity ofRajasthan

Profile

•

•

•

Over 3 decades of experience in thetextile industryPlays a key role in management of ourCompanyHas served social prestigious posts likeManaging committee member ofSarvajanik Education Society and ShriMaheswari Vidyapeeth

Has experience of about 28 years in thetextile industryInstrumental in establishing a PolyesterFilament Yarn and Twisted & TexturisedYarn plants

Looking after Company’s expansion plan Rs. in Lakhsand future business planning with coremanagement of the CompanyHe is managing a process house SANYAFASHIONS and Priyanshi Creations PrivateLimited at Surat

Mr. Rajkumar Somani

Managing Director

Bachelors degreein Commercefrom Universityof Rajasthan

•

•

Mr. Sumeet Somani

Whole Time Director

M.Com fromSouth GujaratUniversity,D.B.M. from S. P.Jain Institute ofManagement &Research,Mumbai

•

•

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Export Turnover

The products manufactured by Company are at par with International Quality Standards

During the current year i.e. 2010-11 Company expect to achieve export turnover of Rs. 540Million in comparison to Rs. 114 Million in last year, about 480% increase in Y.O.Y basis

U.S.A. ARGENTINA INDONESIA SRI LANKA

SOUTHAFRICA EGYPT

SAUDIARABIA

SPAIN

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Objects of the QIP

Cost of the Project

Rs. in Lakhs

1 •

•

•

To finance the cost of enhancement of spinningcapacity of POY/FDY from 53,000 TPA to 1,00,000 TPA.This expansion will utilize balance capacity of polycondensation plant as captive consumption bymanufacturing POY/FDY directly from MEG & PTAinstead of producing PET chips.This project will also enhance the scale of operationand improve the cost competitiveness of Company’sproducts

14,150.00

2 To augment the existing working capital requirements

Total

3,000.00

17,150.00

Cont…2

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Objects of the QIP

Means of Finance

Rs. in Lakhs

1

2

3

4

QIP Proceeds

ECA loan from KBC Bank Deutschland AG

ECB loan of US$ 10 MN

Internal Accruals

Total

6,000.00

5,894.30

4600.00

655.70

17,150.00

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Peer Group Comparison

PAT Margin & EBITDA Margin

RONW & EPS

Sources: Capitalline18

Stock Performance Analysis

Monthly Analysis (July – Dec 2010)

Annual Analysis (FY08 – FY10)

Sources: www.bseindia.com 19

Corporate Structure

Shareholding Pattern Board of Directors

Name of the Director

Mr. Shankarlal Somani

Mr. Raj Kumar Somani

Mr. Sumeet Somani

Mr. Dinesh Khare

Mr. B. C. Chordia

Mr. Vinod Ladia

Mr. Mangilal Lahoti

www.bseindia.com, as on 31st Dec. 2010

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Mr. Devi Prasad Saboo

Designation

Chairman

ManagingDirector

ChiefFinancial OfficerDirector

Director

Director

Director

Director

Nature of Directorship

Non-Independent, Executive

Non-Independent, Executive

Non-Independent, Executive

Non- Independent, Executive

Independent, Non- Executive

Independent, Non- Executive

Independent, Non- Executive

Independent, Non- Executive

Strong Financial Performance

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Strong Financial Performance

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

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Thank You

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