Investor & Analyst Forum December 2017
Introduction to Monte Carlo
INTRODUCTION TO MONTE CARLO ▪ Part of Nahar Group, Launched in 1984 as an exclusive woollen brand by Oswal Woollen Mills Limited (“OWML”). ▪ Recognized as a ‘ Superbrand ’ for woollen knitted apparel in each edition of Consumer Superbrands India STRONG ▪ Successfully diversified with a comprehensive line of woollen, cotton & cotton blended, knitted and woven apparel PEDIGREE and home furnishing under the ‘Monte Carlo’ brand ▪ Branded apparel business was demerged into Monte Carlo Fashions Limited (MCFL) in 2011. Ownership of the brand OUR BRAND ‘Monte Carlo’ is with the listed Company & PRODUCT ▪ ‘Monte Carlo’ is the flagship brand with a portfolio of woollen apparel and cotton and cotton blended apparel PORTFOLIO ▪ Launched different ranges under the Umbrella Brand “Monte Carlo” ▪ Strong Network of EBOs and MBOs including NCS. Strong distribution network and wide presence across the country ▪ MBOs - Products are supplied through 21 exclusive commission agents to over 2400+ MBOs on outright basis OUR REACH ▪ EBOs – 240* EBOs (21 EBO – COCO, 219 EBO – FOFO), and 249 NCS & PRESENCE ▪ Online presence through own portal montecarlo.in & tie-ups with other platforms like Amazon, Flipkart, Jabong, Myntra ▪ Consolidated Revenues, EBITDA and PAT were Rs. 5,841 mn, Rs. 776 mn and Rs.423 mn in 2017 OUR ▪ Strong balance sheet with Net Debt to Equity of 0.13x and high cash balance of INR 1,361 mn (includes cash and FINANCIALS bank balance along with current and non-current investments) as on March 2017 *as on date 3
INTRODUCTION TO MONTE CARLO – Our Product Portfolio Woollens Sweaters, Shawls T-shirt, Shirts, Cottons Trousers, Jackets Sweaters Jackets, T-shirt, Kids Sweat Shirts T-Shirts, Sweatshirts, Economy range Thermal-wear Home Furnishing Mink Blankets, Bed Range Sheets, Quilts Tank, Polo T-Shirts, Sports Wear Shorts, Track Pants Vest, Purse, Mufflers, Accessories Scarf, Socks 4
MONTE CARLO FASHIONS - Our Product Portfolio 5
Our Product Portfolio 6
MONTE CARLO FASHIONS – Stores Images 7
BOARD OF DIRECTORS STRONG CORPORATE GOVERNANCE Name / Position Qualification Experience • More than 50 years of experience in the textile and woollen industry. Mr. Jawahar Lal Oswal, Commerce Graduate • Started Monte Carlo Business in 1984 as CMD of OWML., business demerged Chairman & Managing Director and Promoter under his leadership in 2011 into Monte Carlo Fashions Ltd. • Awarded the ‘Udyog Ratna Award’ by the PHD Chamber of Commerce and Industry, the ‘LMA - Sat Paul Mittal Life Time Achievement Award’ by the Ludhiana Management Association and the ‘Achievers of the North’ by the Economic Times • Previously Nominated on the Board of PNB by the central government • More than 17 years of experience in administration. Mr. Sandeep Jain, Bachelor's degree in pharmacy from Dr. H.L. • Prior to joining Monte Carlo in 2008, he has worked with Oswal Woollen Mills Executive Director Thimmegowda College of Pharmacy, Bangalore University and also holds diploma in Limited • He Joined Board of Monte Carlo with effect from July 7, 2008 export management from the FTPC, Ludhiana. Certificate course in wool from the AWTA Ltd., Australian wool testing authority • More than 15 years of experience in the field of Manufacturing & Administration. Ms. Ruchika Oswal, Holds a bachelor's degree in commerce from • Prior to joining Monte Carlo in 2010, she has worked with Oswal Woollen Mills Executive Director the Government College for Women, Punjab University. Limited • She Joined Board of Monte Carlo with effect from October 30, 2010 • More than 15 years of experience in retail and administration Ms. Monica Oswal, Holds a bachelor's degree in commerce from • Prior to joining Monte Carlo in 2010, she was involved with Oswal Woollen Mills Executive Director the Government College for Women, Punjab University. Limited and Nahar Spinning Mills Limited • She Joined Board of Monte Carlo with effect from October 30, 2010 • More than 35 years of experience in the field of Corporate Finance and Taxation. Mr. Dinesh Gogna, Non Holds a bachelor's degree in law from • Involved with the Company since incorporation. Executive, Non University of Rajasthan. Successfully • Presently holding directorship on the Board of various group companies. Independent Director completed Money and Capital Market • He Joined Board of Monte Carlo with effect from July 7, 2008 “Seminar Course” from New York institute of finance, USA. 8
BOARD OF DIRECTORS STRONG CORPORATE GOVERNANCE Mr. Paurush Roy Dr. Sailen Kumar Chaudhuri Dr. yash paul Sachdeva Non-Executive Director Independent Director Independent Director More than 14 years of experience in financial More than 38 years of experience in the textile More than 22 years of experience as a services. Prior to joining Samara India Advisors industry. Previously he has worked with management academic. Currently a professor in 2018, he has worked with HSBC, Citibank Australian Wool Innovation Limited, Modi at the School of Business Studies, Punjab and Deutsche Bank. Carpets Limited, Bombay Dyeing and Tirupati Agricultural University, Ludhiana Woollen Mills Limited. Mr. Ajit Singh Chatha Dr. Manisha Gupta Mr. Suresh Kumar Singla Independent Director Independent Director Independent Director Been in IRS and IAS for more than 34 Years. More than 13 years of experience in More than 32 years of experience in the field Also held various positions with Central & State academics. Presently she is a director at Punjab of academics. Presently the Director at GNA Government. Previously served as M.D of Institute of Management and Technology. Institute of Management and Technology and Punjab State Ind. Dev. Corp. and chairman of has previously been associated with the Punjab the Punjab State Electricity Board. Agricultural University. Dr. Amrik Singh Sohi Mr. Alok Kumar Misra Additional Director Independent Director More than 38 years of experience in Teaching More than 41 years of experience in field of and Entomology Research. Retired from Punjab Finance, Accounting, Management & Admin Agriculture University, as Sr. Entomologist. Matters. Previously held the position of CMD Presently working as Consultant in PGR Cell, Sri of Bank of India and Executive Director of Rattan Tata Trust, Mumbai. Canara Bank. 9
Macroeconomic Overview 10
INDIAN ECONOMY ON A STRONG FOOTING CONSUMPTION IS SET TO RISE IN INDIA GDP Growth expected to claw back above 7.5% Forecast 8.0% 7.7% 7.5% 7.5% 7.2% 0 FY15 FY16 FY17 FY18 FY19 Private consumption has helped economy towards And Inflation cool-off has also benefited strong growth strong growth path Forecast Forecast 8.2% 8.2% 4.9% 4.8% 7.7% 4.6% 4.6% 4.5% 7.3% 7.2% 0 0 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Source: Bloomberg and Company data 11
PER CAPITA DISPOSABLE INCOME IS INCREASING IN INDIA LEADING TARNSITION FROM UNORGANIZED TO ORGANIZED RETAIL INCRESING PER CAPITA INCOME IN INDIA 2,500 2,000 1,500 1,000 FY15 FY16 FY17 FY18 FY19 FY2020 FY2015 With rising income level retail will shift 8% 24% towards organized players. India is trailing other South East Asian nations in comparison to share of organized retail 76% 92% Unorganized Organized Source: Bloomberg, IBEF and Company data 12
CONSUMPTION ASPIRATION IMPROVING WITH CHANGING INCOME PROFILE Rising share of affluent population 100% 15% 26% 30% 75% 61% 50% 65% 67% 25% 24% 3% 9% 0% CY2015 CY2020E CY2030E Affluent India Middle India Rest of the Population (More than USD 11,000) (Less than USD 2,000) INCREASING PER CAPITA INCOME IN INDIA • Readymade apparel market is expected to grow at 9% 37% 25 38% during CY16-20 35% 37% 34% 20 36% 33% • Branded apparel is expected to grow at faster rate of 35% 15 34% 31% 33% 13% in the corresponding period 10 32% 31% • Shift towards organized and branded apparel is also 5 30% 9 11 12 14 16 29% supported by growing urbanization in India - 28% CY16 CY17 CY18 CY19 CY20 Branded appareal (USD bn) Branded as % of total market 13 Source: IBEF, Bloomberg and Company data
Business Overview 14
BUSINESS OVERVIEW DIVERSIFIED PRODUCT PORTFOLIO RANGES LAUNCHED UNDER THE BRAND – “MONTE CARLO” Range Woollens & Woollen-blended Cottons & Cotton-blended Home Furnishing Kids Monte Carlo – Sweaters, thermals, woollen Shirts, trousers, t-shirts, Mink blankets, bed Premium and mid-premium accessories (caps, mufflers, shawls, track-suits and jackets sheets and quilts segments for men stoles) Luxuria – cash-wool sweaters, blazers, coats Cotton shirts, trousers and Premium range for Men t-shirts Denim – Denim trousers (jeans) and shirts Mid-premium Range Alpha – Sweaters, cardigans Shirts, t-shirts, tops, trousers, Sweat-shirts Exclusive range for Women jackets and sweat-shirts Tweens – Sweaters, Cardigans, Exclusive Kids wear Collection Shirts, t-shirts and for 7-13 years age group Bottoms Cloak & Decke r – Cotton and cotton-blended Economy range for men t-shirts Sportswear – Tank, Polo T-Shirts, fitness & fashion wear range Shorts, Track Pants “Rock.it” 15
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