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Corporate Presentation - Shri Lakshmi Cotysn, Ltd

Corporate Presentation - Shri Lakshmi Cotysn, Ltd

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Information Memorandum20121


DisclaimerThis Information Memorandum is being delivered on behalf of <strong>Shri</strong> <strong>Lakshmi</strong> Cotsyn Limited (“Company”). The sole purpose of thisMemorandum is to assist the recipient in deciding whether to proceed with a further investigation of the Company, in connection with theproposed investment in listed shares of the Company. This Memorandum does not purport to be all-inclusive or to necessarily contain all theinformation that a prospective investor may desire in investigating the Company.By accepting this Memorandum, the recipient agrees to keep permanently confidential the information contained herein or made available inconnection with any further investigation of the Company. This Memorandum may not be photocopied, reproduced, or distributed to others atany time without the prior written consent of the.This Memorandum has been prepared for informational purposes and upon the express understanding that it will be used for only thepurposes set forth above. The Company does not make any express or implied representation or warranty as to the accuracy or completenessof the information contained herein or made available in connection with any further investigation of the Company. The Company expresslydisclaims any and all liability which may be based on such information, errors therein or omissions there from. The recipient shall be entitledto rely solely on the representations and warranties made to it by the Company in any final private placement agreement.In furnishing this Memorandum, the Company does not undertake any obligation to provide the recipient with access to any additionalinformation. This Memorandum shall not be deemed an indication of the state of affairs of the Company nor shall it constitute an indicationthat there has been no change in the business or affairs of the Company since the date hereof. Except where otherwise indicated, thisMemorandum speaks as of the date thereof. The Memorandum includes certain statements, estimates and projections provided by theCompany with respect to the anticipated future performance of the Company. Such statements, estimates and projections reflect variousassumptions, which may or may not prove to be correct. No representations are made as to the accuracy of such statements, estimates orprojections.2


Contents‣Investment Highlights‣Financial Performance / Valuation‣Company Overview‣Milestones‣Locations‣Group Structure‣Management‣Diversified Textiles Portfolio‣Existing Capacities‣Brands‣SLCL in Defence- Defense Products Portfolio‣Recent Developments‣Innovations‣Recognitions‣Value Proposition‣SWOT Analysis3


Investment HighlightsOne of the largest textile manufacturers in Northern India with a diverse product range• <strong>Shri</strong> <strong>Lakshmi</strong> Cotsyn Limited (SLCL) is a multi-product company involved in the manufacturing of cotton andblended fabrics, readymade garments, technical textiles, embroidered fabric, quilts, fusible interlining, denim, terrytowels, bottom weights, home furnishing etc.Presence in the high margin, value added textiles segment (Technical and Safety Textiles)• SLCL manufactures the high margin technical and safety textiles (Water Repellent Bed Linen, Vitamin E bed Linen, FireRetardant Fabrics, Organic Bedspread, Breathable Fabrics, NBC (Nuclear, Bio-Chemical) Fabrics, MSCN (MultispectralCamouflage Nets) Fabric, Flex Fabric, Black out & ECW ( Extreme Cold Weather) Fabric• Gradual change in revenue mix with increasing share of high margin business verticals like technical & safety textile andretailing etc Blue Chip international clients are testimony to the high quality products and processes of SLCL• Blue chip international clients of SLCL products include Wal-Mart, Macy’s, Ikea, Bed Bath & Beyond, Loblaws, JCPenney, Shopco, Meijer’s, Lacoste, Frette, Westport, HBC, El-Corte Ingles and Sheet StreetPresence in the Defence sector• SLCL is an approved supplier to government defence establishments ( Indian Army, Navy, Air Force and State Police)and is registered with several regulatory agencies. This ensures acceptance of its products• The Company is supplying combat uniform gears, bulletproof jackets and helmets, body armors, MSCN fabric, ECWfabric and 360* protected Armoured Vehicles4


Investment HighlightsState of the Art manufacturing facilities with focus on R&D• The company has world class standard machineries in all its factories.• In-house chemical auxiliary unit• Focus on nanotechnology that would enable the company to manufacture smart fabrics.• Value creation from waste products like conversion of Rice Husk Ash (RHA) into value added products like sodiumsilicate and precipitated silica.Experienced and Professional Management team led by Dr. M.P. Agarwal• Headed by Dr. M.P. Agarwal, CMD, entrepreneur with over thirty-eight years of experience• Supported by an experienced second in line management teamSolid financial performance Over a period of time generating value for shareholders:• SLCL’s revenues have been growing at a C.A.G.R. of 24.67% over the past 3 yrs. The revenues have increased by17.12% y-o-y from 15354.8 mn to 17983.8 mn and the profits increased by 13.58% y-o-y from 916.5 mn to 1041.0 mn.for the year ended June 2011.• SLCL stock trades at a FY11 P/E of 2.18 x (at a CMP of Rs, 106.50 on 30 June, 2012), making it a growth stock availableat a very low valuation5


Consolidated Financial Performance(in INR Million)FY 2009 FY 2010 FY2011 FY 2012(Prov.) CAGRProfit & Loss AccountNet Sales 11,580 15,355 17,984 23,968 27.44%Growth 25% 33% 17% 33%Other Income 114 113 150 238Total Expenditure 10,317 11,418 15,394 19747EBITDA 1,739 2,058 2,740 4459 31.87%Margin 15.0% 13.4% 15.2% 18.6%Interest 680 738 1,075 2047Depreciation 252 270 371 617EBT 807 1,050 1,294 1795Tax 174 133 253 551PAT 630 917 1,041 1244 25.46%Margin 5.4% 6.0% 5.8% 5.2%Balance SheetShare Capital 156 200 211 281Share Warrant 220 1,280 847 -Reserves and surplus 2,839 3,995 5,073 7339Total Debt 8,239 11,289 16,448 23489Net Fixed Assets 4,360 4,455 7,919 16,387Capital Work in Progress 796 1,709 3,185 1457Current Assets 6,940 10,369 12,344 14972Current Liabilities 527 831 990 1,112 SLCL has delivered high growth in revenues despite economic downturn It is a large size player in value added textiles segment In FY11, the EBITDA margins have improved over the previous year The revenues are expected to increase post completion of the expansion plan in December 2011 SLCL is an undervalued stodgy player in textiles and defence sector. It is poised for high growth on account ofincrease in capacities, more visibility of its brands and launch of new brands, increased demand for technical and safetytextiles and increased demand for defence products.6


ValuationCMP = Rs. 106.35 (as on June 30, 2012 )FY11Market Cap INR Mn 2,028Net Sales Revenue INR Mn 17,984EBITDA INR Mn 2,739PAT INR Mn 1,041EPS INR 49.35EPS Growth % 7.49%ROE % 16.35%P/E x 2.16Source: CRISILSLCL is available at a FY11 P/E of 2.16x which is very low as compared to the underlyingfundamentals of the company.– Large size player in value added textiles– Increasing demand for products manufactured by SLCL – home furnishings, shirting, technicaltextiles, denim fabric, safety textiles and defence products– Branding of products is expected to improve margins– Emerging player in defence products– Capacity expansion nearing completion and is expected to boost revenues and profitabilityThis presents a great investment opportunity for a savvy investor7


Snapshot of Financial PerformanceNet Sales (INR Mn)PAT (INR Mn)EBITDA (INR Mn)EPS (INR)8


Company Overview<strong>Shri</strong> <strong>Lakshmi</strong> Cotsyn was established in 1993 and today is a well established multi-products company withmulti-marketsCore expertise in manufacturing of Denim, Terry Towel, Bottom weight, Home furnishings, Garments andTechnical & Safety textilesOne of the leading manufacturer and supplier of Technical & Safety Textiles and Fabricated items for thedefence sectorListed on NSE, BSE, UPSE and SGX (Bonds)Shareholding Pattern as on30 th June 2012Institutions, 4%Promoter &PromoterGroup, 48.83%Public, 51.13%9


MilestonesCommencedproduction ofQuiltedFabrics(0.4mmpa)• CapacityExpansion of polyfibrefilled quiltedto 0.8 mmpa.• Expansion ofSuiting/Shirting to12 mmpa• Manufacture ofFusible InterliningFabrics with 10mmpaExpansionof Suiting/Shirtingdivision to18 mmpaExpansionofSuiting/Shirting divisionto 24 mmpa• Entered domesticretail through‘Weaves’• Commencedgarmentproduction atRoorkee (6.6 mnpcs)• Launched DYFIBrandof Garments• Setup ofSpinning unitwith 10,000Spindles.Expansion ofCapacities• Denim20 mmpa• Sheeting18 mmpa• TechnicalTextile 75mmpa1993 1995 1998 1999 2002 2005 2006 2007 2008 2009 2010 2011Commencedproduction ofsuiting/shirting(6 mmpa)Manufactureof embroideryfabric(0.8 mmpa)CommissionedTechnicalTextiles(6 mmpa)Expanded /Diversified to:Wider width fabricsBottom wear fabricsTerry TowelsDenim FabricYarn DyeingNylon coated fabric• Commenced production of360 degree protectedarmoured vehicles• Acquired unit at Noida tomanufacture comforters• Set up 16 Mw cogenerationPower plantfor captive useHome furnishings


LocationsHeadquartered in Kanpur; eight manufacturing facilities spread in Malwan, Aung, Abhaypur, RewariBujurg, Rhasupur, Noida (Uttar Pradesh), Roorkee (Uttarakhand) and Sonepat (Haryana)A strong dealer and distributor network across India with retail presence through 1150 multi-brand outlets (MBO)11


Board of DirectorsDr. M. P. Agarwal, CMD•He has been a guiding force behind the sharp rise in Company’s turnover over the last 18 years•An ICWAI and Doctorate in Textile CostingMr. Pawan KumarAgarwal, Jt. MDMr. Devesh Gupta,Dy. MDMr. Dileep Bajaj, EDMrs. Sharda Agarwal,DirectorDr. G. N. Mathur,Independent DirectorMr. Ram SharanSrivastava, IndependentDirectorDr. J. V. Rao,Independent Director•Responsible for production, quality controls and marketing•A Chemical Engineer by qualification•He is responsible for looking after technical plant•He has more than 31 years of experience in project and financial management especially in textileindustry•She is actively involved in Company’s business and management•An eminent senior scientist and ex-Director Defence Materials and Stores Research and developmentEstablishment•He is working on Nano technology and its application in textiles to manufacture smart textiles.•A retired IAS Officer. Had been in administration for more than 30 years.•He has over 30 years of experience in textile technology•He is also a director in Northern India Textile Research Association (NITRA) GhaziabadMr. R. K. Garg,Independent DirectorMr. K. D. Gupta,Independent Director•He has over 30 years of experience and has previously worked with DLF and DCM•A retired IRS Officer•Ex. Administrator U.P. Stock Exchange Association <strong>Ltd</strong>.<strong>Shri</strong> G.N. BajpaiIndependent Director• Ex Chairman SEBI , Ex Chairman LIC13


Textiles: Diversified Product PortfolioTextilesLegacy Business• Suiting andshirting• Embroidered• Quilted Fabrics• Lace &embroideryExport Oriented• Terry Towel• Bed Sheets• Comforters• Pillow CoversOthers• Denim• Garments• Bottom weight• ZippersDefence ProductionTechnical TextilesSafety Textiles• Fusible Interlining• Black out Fabric• Flex Fabric• MSCN/IRR Fabric• NBC Fabric• PU/PVC coated fabric• Water Repellent Fabric• Breathable fabric• Fire retardant fabric• Bulletproof Jackets, Coatfor Combat• Sleeping bags• Infra-red camouflage nets• Ballistic body armour• Bulletproof helmet• Mosquito net14


Textiles – Diverse RangeGarments• Do You Fit In (DYFI) brand of readymade garments launched in FY10• Products sold through more than 1150 multi-branded outlets (MBOs)• SLCL has state of the art technology for manufacturing garments (6.6 mn pcs. p.a.) from Italy andGermany• SLCL manufactures knitted t-shirts, skirts, denim jeans and uniform dressesDenim• Product range comprises of cross-hatches, rains satins, drills, tussors, linen, Lycra, ecru and dobbydesigns in varied deep indigo and blue black combinations• The products climb the value chain by special treatment of mercerizing, over dyeing etc• To introduce nep denims, chambrey greens cast and vintage fabrics in the futureEmbroidered fabrics & Lace• Computerised multi-needle embroidery machine, imported from Switzerland• Team of designers design the fabrics (both in cotton and tissue) and Lace• Marketed under the brand name of “Alisha Embroidery”Fusible interlining• SLCL manufactures Microdot fusible interlining, fusing fabric for shirt collars, cuffs, belt rolls andPacklets• Marketed under the brand name of “Star Track”Zippers• Imported the largest zipper manufacturing plant from Taiwan• The product ranges from (a) IFC and CFC zippers used in trousers, (b) concealed invisible zippersused in salwars, skirts and evening dresses, (c ) Metal Zippers for Jackets and Jeans, and (d) Longchain zippers used in suitcases, bags and shoes15


Textiles -Terry Towel and Home FurnishingsTerry TowelsBed Linen• Commenced production of terry towels inMarch 2007 (3,000 TPA)• Expanded the capacity to 15000 TPA in 2010• One of the leading manufacturer of entiregamut of Terry Towels in India• High quality ranging from 380 to 800 GSMtowels and for bath mat 500 to 2000 GSM• Producing towels in all sizes fromWash, Guest, Kitchen, Hand, Bath, Bathsheet, Beach towels, Bath mat and BathRobes• Product range is available inDobby, Jacquard, Embellished andEmbroidered towels• Commenced production of bed linenin October 2007 (12 MMPA)Expanding the capacity by Dec. 2011, (30MMPA)• SLCL has the capacity to weave, process,embroider and finish 1,60,000 sets every month• The range is available in cotton, polyester cotton blend, percaleand satin and prints upto 16 coloursProductWater Repellent BedLinenVitamin E Bed linenBed Linen/Home furnishingsSpecialtyIdeal for nursing mothersProtects body tissue from damage causedby unstable substanceFire retardant fabricSpecialized fabric which does not catch fireOrganic bedspread100% pure organic materials such ascotton, bamboo, linen and hemp blendedtogetherSLCL is fast emerging as a preferred vendor partner to global buyers in the home textile space• Blue chip international clients of SLCL products include Wal-Mart, Macy’s, Ikea, Bed Bath & Beyond, Loblaws, JCPenney, Shopco, Meijer’s, Lacoste, Frette, Westport, HBC, El-Corte Ingles and Sheet Street16


Existing Capacity (p.a.)REGULAR TEXTILES:TECHNICAL TEXTILE:Suiting & Shirting24 MMPATechnical Textile FABRIC12 MMPADenim40 MMPAFusible Interlining25 MMPABottom Weight6 MMPANylon coated Fabric1.25 MMPATerry T owel15000 TPABlack out Fabric20 mn mtrsWider Width30 MMPAComforters0.3 Mn. Pcs.Flex fabrics17 mn mtrsGarments6.6 Mn. Pcs.NBC Fabric10 mn mtrsQuilted Fabric0.4 MMPAEmbroideryFabric0.8 MMPAIRR/ MSCN fabric5 mn mtrs17


Textiles: Multi-brand Product PortfolioBrand Name Product Launched SpecialtyStar Track Fusible interlining fabric 1997 40 varieties of fusible interlining (with zero shrinkage)Galaxy Embroidery 1997 Range of embroidery like chikan, etcAlisha Clothing Accessories 2000 Range of clothing accessories, lace, etcSVL Zippers 2006Weaves Home Furnishings 2008“DYFI” Garments 2010150 shades with different zippers for garments, bags andluggageHome furnishing – value-added bed sheets, bed18covers toterry towels, pillows, cushions, comforters, table coversStitching through technology driven machines. Presently,there are 5 owned company stores which will be increasedto 20 in FY12. Overall, presence pan India through multibrandoutlets. SLCL would be increasing the advertisingbudget for DYFI and would be going in for targeted adspends


<strong>Shri</strong> <strong>Lakshmi</strong> in Defence businessSLCL manufactures uniforms, fabrics and fabricated textile items for the armed forcesSLCL’s subsidiary, <strong>Shri</strong> <strong>Lakshmi</strong> Defence Solutions Limited (SLDSL), incorporated in 2006-07,manufactures the following for the defense and homeland security sector:•Ballistics•Body armour• Bulletproof helmets• Bomb Blanket•Bomb Suits•Composite armour panels for vehicles•Armoured Vehicles (360* protection)•DHRUV – Armoured Troop Carrier•DRONA – Blast and Mine Protection Vehicle•VIPER – Fast moving attacking armoured vehicle•SHERPA MK7 – Latest armoured protection vehicleSLDSL is approved supplier for•Indian Army•Navy•Air ForceSLDSL is registered with•Directorate General of Supplies & Disposal•Director General of Quality Assurance•Forces Ministry of Defence (Navy)•Defence Material Stores R&D Est•Federation of Indian Export Organization•RDSO (Indian Railways•Indian Postal Department19


<strong>Shri</strong> <strong>Lakshmi</strong> Defence SolutionsSLDSL has entered Agreement with Ford India <strong>Ltd</strong>. for armouring vehicle on Ford chassis.The Major markets for SLDSL products include:• India• USA• Canada• Europe• Australia• Middle East• Africa• AsiaGrowth Drivers –• Modernization programs to upgrade the Indian Defence• Recent terrorist attack on India• Threat from terrorists, naxalities, etc. in different parts of the country• Threats from neighbour countries• Strengthening the Indian Army• Protection of VVIPs20


Technical and Safety Textiles – for DefenceTechnical & Safety Textiles – Defence ApplicationsProductWaterproof Repellent FabricSpecialtyProtects the soldiers from getting wetBreathable fabric100% cotton made and carbon coated to make it easilybreathable and light weightFire retardant fabricNuclear Bio-Chemical FabricHigh altitudeProtects soldiers from fireProtects soldiers in nuclear war. Nitrogen packing enables useeven after 10 yearsSoldiers will feel warm even at -40 degree centigradeDual shade fabricCamouflages and prevents enemy detectionBulletproof jackets and helmetsOfficers protectionInfra-red reflector fabricCannot be detected by infra-red raysSleeping bagsComfortable and portable21


Technical and Safety Textiles - DefenceBody ArmoursBulletproofVestsBulletproofJacketAnti-riothelmetsSleeping BagArmour PlatesSLDSL has developed indigenous manufacturing facilities for technical and security related fabrics for all types ofmilitary usage. It has a range of ballistic products and an established network and affiliates around the world, backedby long-term strategic alliances with local as well as global manufacturersBallisticBlanketBallistic ShieldSniper SuitFire ResistantSuitN. B. C. SuitsSmartUniforms 22


Capabilities in Technical and Safety TextilesSLDSL has already developed the capabilities in the following high end technical and safety textiles and gearFire Retardant Fabrics & SuitsExtremely Cold Weather (ECW) clothingsNuclear, Biological, Chemical (NBC)Protective Suits and GearConductive Fabrics and Health Monitoring SensorsMulti Spectrum Camouflage Fabric23


Recent DevelopmentsTextile Park• The Ministry of Textiles Govt. of India vide their letter dated 08.11.2011, has approved <strong>Shri</strong> <strong>Lakshmi</strong> Textile ParkLimited for setting up Integrated Textile Park Project with world class infrastructure facilities for promoting industrialunits.R&D Centre• DSIR (Directorate for Scientific and Industrial Research), Govt. of India has given R&D recognition to the company videtheir letter dated 23.09.2011.• Skill Up gradation Centre<strong>Shri</strong> <strong>Lakshmi</strong> Cotsyn <strong>Ltd</strong>. has also been approved by Ministry of Textile Govt. of India to under take Skill UpgradationDevelopment programme for the unskilled workers.Others•SLCL has developed an anti-bedbug bedsheet•SLCL has converted rice husk ash (RHA) into Sodium Silicate for the use in detergent soaps and tyres andfurther converting it into precipitated silica for the use in tooth paste and tooth powders.SLDSL - Mine Protection Vehicles for Nepal Government• SLDSL has supplied 4 specialized mine protection vehicles to Nepal Govt. for their troops deployed on United Nationsmissions and is expecting orders worth Rs. 800 mn to 1 billion.SLDSL - supply of vehicles to Ministry of Home• SLDSL has supplied 6 Bullet Proof Commando vehicles to Gujrat Police and 4 Bullet Proof Commando vehicles toMadhya Pradesh Police and expecting the repetition of order worth Rs. 100 Crores.24


Innovation through the years2011•Commisioned Rs.992 Crores Expansion projects of Technical Textile, Denim & Sheeting.20102009•Completed Terry Towel Expansion from 3000 TPA to 15000 TPA and launched DYFI brand offering garments stitched through technologydriven machines.•Launched WEAVES brand in Home Textile segment•Acquired a comforter unit at Noida with the capacity of 3 lac numbers per annum.2008 •Nano Technology - to `produce smart textiles e.g. smart caps, vests and bed sheets equipped with Nano Carbon Sensors and manufacturing ofvalue added bed sheets viz water repellent, mosquito repellent, vitamin E etc.2007•Screen Making Technology with 1600 resolutions2006•Sets up a Denim manufacturing plant with Rope Dying Technology2004•Facilities to manufacture Technical Textiles like NBC (Nuclear Bio-Chemical) fabric, IR (Infrared Reflective) fabric2003•Signed TOT (Transfer of Technology) agreement with DMSRDE (A DRDO unit) to manufacture Glacier Tents and High Altitude Sleeping Bags1999•Installed Fusible Interlining plant with Microdot Coating Technology1998 •Developed an in-house technology to manufacture Textile Auxiliary Chemicals for Captive Consumption resulting in better fabric quality atcheaper rates1995•Installed 130 " wide Fully Electronic Lockstitch Swiss Quilting machine with 360 degree quilting facilities, first of its kind in India25


From Functionality to “Intelligent” textilesNanotechnology• Working on Nano technologyfabrics and smart textiles withNCT technologies underguidance and supervision of Dr.G. N. Mathur Ex- Director ofDRDO• To access flexible sensortechnology to monitor fatiguestress heart condition and bloodpressureFunctional Fabric• Water proof, wind tight,breathable, humidity, transportetc• Optimized material properties e.g.Colour fastness tensile andabrasion resistance,• Heat proof and cold resistantSmart IntelligentFabric• Smell release or odourcontrol• Advanced wearing comfortand heating insulation• Microcapsules with phasechange materials• Reflection materials• EIV fed protection• UIV Protection• Developmentswith additionalelectronicfunctions.• Developments withnew raw materials26


Accreditations and AccoladesRanked 117 th among the top 400 manufacturingcompanies in India (source : Dalal Street Journal –Mid Cap 400 issue 2011)Ranked 294 th among the top 1000 companies inBS- 1000, issue 2012.Ranked 319th among the top 500 manufacturingcompanies in India (Source: Industry 2.0 –Technology Management for DecisionMakers, September 2011.Ranked 319 th among the top 500 companies ofIndia, published in ET-500, October 2010 issue.Possessing certificates like ISO 9001-2008,ISO14001-2004, OHSAS – 18001-2001, GOTS, OE-100, Oelotex and ReachRanked Star Export House by the office of theJoint Director-General of Foreign Trade, Ministryof Commerce and Industry.Received an award from Indian Carbon Outlook2011 for accelerating Market driven SustainabilityReceived an award from Community ofInternational Sewing Machine Industry , India(CISMI) by GARTEXMA for valuable support inapparel and home textiles machine industry (11 thOctober, 2010).27


Value Proposition(contd….)Value propositionelementsIntegrated Textile PlayerType of valueCompletely integrated player from yarn dyeing to processing to garmenting and retailing leadingto huge cost advantagesDiversified product portfolioHigh margin and value added products in technical textiles segment with both civilian anddefence applicationsDifferentiated productsEstablished brands through distributors and MBOSLCL is not just another plain vanilla textiles company but an integrated player with deepcapabilities in manufacturing high quality technical and safety textiles (NBC fabrics, MSCNfabrics, water repellent fabrics, ECW fabrics, combat uniforms etc)Global blue chip clients include Ikea, Wal-Mart, Macy’s, Bed Bath & Beyond, Loblaws, JCPenney, Shopco, Meijer’s, Lacoste, Frette, Westport, HBC, El-Corte Ingles and Sheet Street. Someof the major textile players in India have not been able to make it to the IKEA approved list ofsuppliers.SLCL continues to introduce innovative textiles and is working on nano technology based fabricswhich will have health benefits and applications in healthcareDynamic promoter havingdeep understanding ofindustry trendsThe Promoter brings in his rich insight from over 25 years of experience in textile costing andmanufacturingPhD in textile costing28


SWOT AnalysisSTRENGTHS‣ Integrated across all verticals from yarn manufacture, dyeing to garmentingand retail‣ Among India’s top ten textile manufacturers‣ Global blue chip clients include Ikea, Wal-Mart, Macy’s, Bed Bath & Beyond,Loblaws, JC Penney, Shopco, Meijer’s, Lacoste, Frette, Westport, HBC, El-Corte Ingles and Sheet Street. Some of the major textile players in India havenot been able to make it to the IKEA approved list of suppliers.‣ State of the art large manufacturing facilities at 6 locations‣ Strong presence in technical and safety textiles (water repellent bed sheets,mosquito repellent bed sheets, fire retardant fabrics etc.) with defenceapplications‣ Strong presence in defence related textiles (uniforms, camouflage textiles toarmoured vehicles)‣ Strong R&D capabilities proven over a decade with launch of innovativeproducts‣ Multiple brands for different segments‣ Market leader in fusible interlining segment (35% plus market share)‣ Extensive marketing and distribution network (products sold in more than1150 multi brand outlets)WEAKNESSES‣ Low brand visibility in readymadegarments due to lack of exclusivestores‣ Relatively high leverage‣ Input cost variations may affectprofitabilityOPPORTUNITIES‣ Platform is ready for strengthening of brands (DYFI, Weaves etc) in a majorway in readymade garments and home furnishings. The brands need to bemade more visible by increased ad spends and reach.‣ Opportunity to add more global blue chip clients in US and Europe‣ Opportunity to cater to defence forces in India and abroad in higher valueadded areas – armoured vehicles, technical and safety textiles‣ Opportunity to launch high quality fabrics in healthcare using nanotechnologyTHREATS‣ Increasing competition fromexisting players in textiles anddefence related products30


Contact DetailsRakesh Kumar SrivastavaCompany Secy. cum Financial Controller<strong>Shri</strong> <strong>Lakshmi</strong> Cotsyn Limited19/X-1, Krishnapuram, G. T. Road,Kanpur – 7, (U. P.)M : +919554950710L : +91 512 2401492F: +91 512 2402339Email: rakesh@shrilakshmi.in31

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