Corporate Presentation March 2010 Disclaimer INTEGRATED TEXTILE - PowerPoint PPT Presentation

INTEGRATED TEXTILE SOLUTIONS INTEGRATED TEXTILE SOLUTIONS Corporate Presentation March 2010

Disclaimer INTEGRATED TEXTILE SOLUTIONS  The information and opinions contained in this presentation are current, if not stated otherwise, as of the date of this presentation. We undertake no obligation to update or revise any information or the opinions expressed in this presentation as a result of new information, future events or otherwise.  This presentation contains certain forward looking statements concerning Alok Industries Limited (“ Company ”) and its subsidiaries' future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and globally, our ability to manage our international operations, government policies, fiscal deficits, regulations, etc. The Company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company. No part of this presentation shall be reproduced, copied, forwarded to any third party either in print of in electronic form without prior express consent of the Company.  This presentation does not constitute an offer or solicitation of an offer to purchase or subscribe for any securities in any jurisdiction including India and the United States. No part of this presentation 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 Company‟s 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. No person is authorized to give any information or to make any representation not contained in or inconsistent with this presentation and, if given or made, such information or representation must not be relied upon as having been authorized by us. 2

Alok Overview INTEGRATED TEXTILE SOLUTIONS  Vertically Integrated Textile Company both in cotton and polyester  Sales of Rs. 2,976.93 crores (US$ 620.2 mn.) and PAT of Rs. 188.37 crores (US$ 39.2 mn.) in FY 2009  Export of Rs. 1,054.50 crores (US$ 219.7 mn.) in FY 2009  Consistent dividend paying company for 17 years  CAGR of about 28% in Sales and 40% in EBIDTA over the past 3 years 3 1US$ - Rs. 48.00

Alok Industries Ltd – TM Integrated Textile Solutions INTEGRATED TEXTILE SOLUTIONS INTEGRATED TEXTILE SOLUTIONS 4

Segment Wise Revenue Rs. in Crores INTEGRATED TEXTILE SOLUTIONS Share of Share of Share of Business HY Business 2009 Business 2008 Segment Target Customer September 2009 (Audited) (Audited) (Provisional)  Captive Consumption 110.66 111.10 294.05 COTTON & COTTON  Export to traders, manufacturing units, (US$ 23.05 mn.) (US$ 23.15 mn.) (US$ 61.26 mn.) YARN weavers (6.28%) (3.73%) (14%)  Garment exporters in India / 894.80 converter countries 756.85 1,609.56 APPAREL FABRICS (US$ 186.42  Domestic garment manufacturers, (Woven & Knits) (US$ 157.68 mn.) (US$ 335.33 mn.) mn.) retailers and traders (42.95%) (54.06%) (41%) 312.09 498.54 389.00 HOME TEXTILES  Export to Overseas retailers and brands (US$ 65.02 mn.) (US$ 103.86 mn.) (US$ 81.04 mn.) (Sheet sets, comforters,  Domestic Sales through Alok H&A Terry Towels, etc) (17.72%) (16.75%) (18%) 72.98 138.58 99.56  Export to Overseas retailers and GARMENTS brands (US$ 15.20 mn.) (US$ 28.87 mn.) (US$ 20.74 mn.) (Woven & Knits)  Domestic Sales through Alok H&A (4.14%) (4.66%) (5%) 493.00 508.49 619.15  POLYESTER YARN Domestic power loom weavers (US$ 102.71 (US$ 105.94 mn.) (US$ 128.99 mn.)  mn.) (POY & Texturised Yarn) Direct exports (28.88%) (20.80%) (22%) 2,170.41 1,761.07 2,976.93 (US$ 452.17 Total (US$ 366.89 mn.) (US$ 620.19 mn.) mn.) (100%) (100%) (100%) 5 1US$ - Rs. 48.00

Alok’s Advantage INTEGRATED TEXTILE SOLUTIONS  Timely expansions resulting in first mover advantage  Exports increased from about Rs. 642 crores (US$ 133.75 mn.) in 2007 to about 1,050 crores (US$ 218.75 mn.) in 2009 at a CAGR of 28%  Preferred Vendor status for several brands / retailers  Capacities in design and manufacturing and with quality control practices, makes sourcing cost effective and efficient for our customers  Economies of scale coupled with low interest cost giving competitive advantage  Forward and backward Integration will have positive impact on our margins  Wide range of products offered across different market segments  Product development and designing strength  State of the art infrastructure with modern machines 6 1US$ - Rs. 48.00

Global Sized Capacities INTEGRATED TEXTILE SOLUTIONS Capacities under Divisions Units Current Capacities Capacities Post Expansion Implementation Tons 58,500 17,960 76,460 SPINNING (Spindles) (300,096) (111,744) (411,840) HOME TEXTILES Processing mn. Mtrs 82.50 - 82.50 Weaving mn. Mtrs 68.00 - 68.00 Terry Towels Tons 6,700 - 6,700 APPAREL FABRICS Processing mn. Mtrs 105.0 16.80 121.8 Woven Weaving mn. Mtrs 93.00 - 93.0 Knits Tons 18,200 - 18,200 GARMENTS mn. Pcs. 22.0 - 22.0 Tons 114,000 56,000 170,000 POLYESTER YARN (Machines) (92) (48) (140) POY Tons 182,500 146,000 328,500 7 FDY Tons - 65,700 65,700

Product Development – Speciality Fabrics INTEGRATED TEXTILE SOLUTIONS Special Finishes Stain Guard Flame Retardant Anti Static Water Repellent Soil Release Infra Red Finish 3X Dry Insect Repellent Brushed Fabric High Visibility Anti Bacterial Aroma Finish User Industry Finish Defense Fire Brigades Aviation Oil Refineries Hospitality Petrol Pumps Construction & Welding Industry Infrastructure Health Care Coal Mines Industrial Research 8

Organic Cotton Initiatives INTEGRATED TEXTILE SOLUTIONS  Global retailers and brands increasingly prefer „fair trade‟ and organic cotton, since it:  Promotes eco-friendly textile products  Addresses global warming concerns  Tie up with an NGO  Entered into agreement for complete supply chain and product development solution NGO International Brands INTEGRATED TEXTILE SOLUTIONS 9

Certifications INTEGRATED TEXTILE SOLUTIONS  ISO Certifications The company is now accredited with Integrated Management System (IMS). There are 4 certificates under this system: 1. ISO 9001: 2000 – Quality Management System 2. ISO 14001:2004 – Environmental Management System 3. OHSAS 18001: 2007 – Occupational Health & Safety Assessment System 4. SA 8000: 2008 – Social Accountability  ECO-Certification Alok is the first Indian Textile company to have been awarded all three certifications for its eco-friendly products as under:  EU Flower – the eco-certificate from European Union  KRAV certification for organic products  SWAN certification – a Nordic eco-labelling certification 10

INTEGRATED TEXTILE SOLUTIONS Financial Analysis 11

General Information – Alok Industries Ltd. INTEGRATED TEXTILE SOLUTIONS Present Equity Rs. 605.69 crores (about US$ 126.18 mn.) (605.69 million shares) Listed at BSE and NSE Market Price Rs. 23.60 as on March 02, 2010 Market Capitalization Rs. 1,429 crores 52 weeks High / Low High: Rs.29.50 Low: Rs. 11.32 Plant Locations Vapi, Silvassa, Navi Mumbai and Bhiwandi Directors 12 directors (4 Executive Directors) Employees 19,000 + Share Holding Pattern as on February 2010 Particulars No. of Shares % Holding Promoters & Promoter Group 222,906,351 36.80% Mutual Funds/Insurance Companies/Venture Capital Funds/Banks 58,874,581 9.72% Foreign Institutional Investor 151,989,816 25.09% OCB‟s & Indian Public 171,927,282 28.38% Total 605,698,030 100.00% 12 1US$ - Rs. 48.00

Historical Financials Rs. In Crores INTEGRATED TEXTILE SOLUTIONS Rs. in Crores Particulars Sept. 30, 2009 2009 2008 2007 (Provisional) (Audited) (Audited) (Audited) Profitability Sales 1,761.07 2,976.93 2,170.41 1,824.68 Operating EBITDA 507.13 803.75 547.75 410.96 Operating PAT 89.01 217.04 167.73 135.18 Cash Profit 252.01 542.65 329.69 258.22 Basic EPS (Rs.) 1.92 8.81 11.40 9.70 Balance Sheet Sept. 30, 2009 2009 2008 2007 (Provisional) (Audited) (Audited) (Audited) Tangible Networth 2,155.54 1,755.06 1,431.34 1,024.44 Net Debt 6,353.51 6,251.41 4,093.57 2,551.46 Net Fixed Assets 6,420.80 5,983.87 3,891.30 2,583.80 Current Assets 3,069.97 2,685.93 3,377.53 1,992.66 Net Debt / Equity 2.56 3.03 2.86 2.49 Current Ratio 1.71 1.36 1.49 1.42 13