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...
 The global denim jeans market was valued at $58
billion for the year 2014, and it continues to grow on
account of its li...
INDIAN MARKET
 Nandan Denim Limited (NDL) is the second-largest
textile company in India.
 Located in Gujarat, the textile hub of Indi...
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 ne...
KEY PLAYERS IN WORLD
Capacity 0f top 5 denim
manufacturers in India.
MMPA
Arvind 130
Nandan Denim 110
Vicunha Textil 230
I...
KEY PLAYERS IN INDIA
Capacity 0f top 5 denim
manufacturers in India.
MMPA
Arvind 130
Nandan Denim 110
Aarvee Denim 84
Suda...
Our strategy is to have a portfolio of hybrid brands,
straddling across consumer segments and price
points.
Product Range:...
Sales breakup
94.4% 94.6%93.8%
92.5% 92.5%82.1%79.8% 79.2%77.9%
71.9%
64 64
99 54
7671 40 4057
50
FY11 FY12
Capacity
FY13 ...
sales
13
23
27
22
17
10
8
0
5
10
15
20
25
30
2012 2013 2014 2015 2016 2017 2018
Growth in sales
5073 5738
7031
8937
10965
...
62% 57% 54%
-46%
53% 48% 47% 46%
-60%
-40%
-20%
0%
20%
40%
60%
80%
1 2 3 4 5 6 7 8
EBIDTA MARGIN
74% 71% 69%
-31%
69% 64% ...
57% 51% 48%
-51%
48% 43% 41% 39%
-100%
-50%
0%
50%
100%
1 2 3 4 5 6 7 8
EBIT Margin
As % of Sales
54% 47%
4%
-54%
45% 40% ...
-80%
-60%
-40%
-20%
0%
20%
40%
60%
1 2 3 4 5 6 7 8
PAT Margin
As % of Sales
0% 0%
18%
25%
13%
0%
10%
20%
30%
1 2 3 4 5
Dividend payout
18% 17%
1%
-23%
18%
15% 14% 13%
-30%
-20%
-10%
0%
10%
20%
30%
1...
56
26 28 28 30 30 30 30
0
10
20
30
40
50
60
1 2 3 4 5 6 7 8
Creditors (Days)
125
44 47 50 50 50 50 50
0
50
100
150
1 2 3 4...
66
63 62
57
63 63 63 63
50
55
60
65
70
1 2 3 4 5 6 7 8
Inventory (Days)
Thank you.
of 20

Nandan Denim Limited

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.
Published on: Mar 5, 2016
Published in: Economy & Finance      
Source: www.slideshare.net


Transcripts - Nandan Denim Limited

  • 1. Presented by : • Zil Shah NANDAN DENIM LIMITED
  • 2.  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 INDUSTRY OVERVIEW
  • 3.  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. GLOBAL MARKET
  • 4. INDIAN MARKET
  • 5.  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. INTRODUCTION
  • 6. MILESTONE
  • 7. Amongst the Top 5 Denim Manufacturing Capacity in the World by FY2017
  • 8. Nandan Denim exports its denim to more than 28 countries across the globe through its strong global dealer-distribution network.
  • 9. 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
  • 10. 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
  • 11. 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. PRODUCT PORTFOLIO
  • 12. Sales breakup 94.4% 94.6%93.8% 92.5% 92.5%82.1%79.8% 79.2%77.9% 71.9% 64 64 99 54 7671 40 4057 50 FY11 FY12 Capacity FY13 FY14 Capacity Utilisation FY15 FY11 FY12 Capacity FY13 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 70.8 56.353.540.939.9 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)
  • 13. sales 13 23 27 22 17 10 8 0 5 10 15 20 25 30 2012 2013 2014 2015 2016 2017 2018 Growth in sales 5073 5738 7031 8937 10965 12829 14112 15241 2011 2012 2013 2014 2015 2016 2017 2018 Sales
  • 14. 62% 57% 54% -46% 53% 48% 47% 46% -60% -40% -20% 0% 20% 40% 60% 80% 1 2 3 4 5 6 7 8 EBIDTA MARGIN 74% 71% 69% -31% 69% 64% 62% 61% -40% -20% 0% 20% 40% 60% 80% 1 2 3 4 5 6 7 8 GROSS MARGIN
  • 15. 57% 51% 48% -51% 48% 43% 41% 39% -100% -50% 0% 50% 100% 1 2 3 4 5 6 7 8 EBIT Margin As % of Sales 54% 47% 4% -54% 45% 40% 38% 36% -100% -50% 0% 50% 100% 1 2 3 4 5 6 7 8 PBT Margin As % of Sales
  • 16. -80% -60% -40% -20% 0% 20% 40% 60% 1 2 3 4 5 6 7 8 PAT Margin As % of Sales
  • 17. 0% 0% 18% 25% 13% 0% 10% 20% 30% 1 2 3 4 5 Dividend payout 18% 17% 1% -23% 18% 15% 14% 13% -30% -20% -10% 0% 10% 20% 30% 1 2 3 4 5 6 7 8 Return on equity
  • 18. 56 26 28 28 30 30 30 30 0 10 20 30 40 50 60 1 2 3 4 5 6 7 8 Creditors (Days) 125 44 47 50 50 50 50 50 0 50 100 150 1 2 3 4 5 6 7 8 Debtors (Days)
  • 19. 66 63 62 57 63 63 63 63 50 55 60 65 70 1 2 3 4 5 6 7 8 Inventory (Days)
  • 20. Thank you.

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