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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
4
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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