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Investor Presentation

December 2014
Safe Harbour
This presentation and the accompanying slides (the Presentation), which have been prepared by Sarla Performance Fibers Ltd.
(the Company), have been prepared solely for information purposes and do not constitute any offer, recommendation or
invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or
binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering
document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but
the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth,
accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive
and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any
omission from, this Presentation is expressly excluded.

Certain matters discussed in this Presentation may contain statements regarding the Companys market opportunity and business
prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees
of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict.
These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of
various international markets, the performance of the tire industry in India and world-wide, competition, the companys ability to
successfully implement its strategy, the Companys future levels of growth and expansion, technological implementation, changes
and advancements, changes in revenue, income or cash flows, the Companys market preferences and its exposure to market risks,
as well as other risks. The Companys actual results, levels of activity, performance or achievements could differ materially and
adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-
looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included
in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and
projections.

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Overview
Manufacturer of Specialized & High Amongst the First manufacturers of covered
Margin Polyester Yarn & Nylon Yarn yarn & now one of the Largest in India

Only company in India to manufacture Nylon 66,


a high tenacity & low shrinkage product

Tie-ups with leading Global Players like


Supplies to 116 customers in over 40 Jockey, Gildan, Renfro, Hanes, Delta Galil &
Coats
countries in 6 continents

Successful overseas Joint ventures &


growing US manufacturing facility
Presence of Manufacturing & Distribution hub in
close proximity to demand centres globally
Products with High Value Add &
Applications
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Company Overview
Background Presence Financials
Commenced operations in Services over 116 customers Last 10 years CAGR
1993 as a manufacturer of in 40 countries Revenue: 13%
commodity yarns Presence in India, USA & EBITDA: 20%
Gradually progressed to Europe
PAT: 21%
specialized and higher value 2 manufacturing units in
added yarns Consistent EBITDA margin of
Silvassa with installed
A 100% EOU with focus on about ~ 18%
capacity of 11,900 TPA
high margin specialty Listed on the BSE in 1995
In-house dyeing plant in Vapi
polyester & nylon yarns and NSE in 2007
Capacity of 3,200 TPA
Products find application in Operating cash flows
3 main segments namely: Wind mills with capacities in prudently deployed back
Satara (2MW), Sangli (4MW) into the business for
Narrow Fabrics, Hosiery,
Innerwear & Sportswear
& Vapi (1.25 MW) enhanced productivity and
Threads and Set up manufacturing efficiency
operations in Turkey in 2010 Being a 100% EOU, majority
Industrial Yarns
Effectively catering to both the of the revenues are from
Started manufacturing Nylon Turkish & European Markets exports
66 in the year 2013 at
Silvassa plant Set up plant in South Raised Rs. 46.7 crores
Carolina, US with capacity 30 through QIP in October 2014
tons per day in 2013

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Group Structure

Sarla Performance Fibers

100% 100%

Sarla Overseas SarlaFlex Inc.


Holding Ltd. BVI USA

60% 45% 40% 33%

Sarla Europe MRK SA DE


Sarla Tekstil Savitex SA.
LDA C.V.
Turkey Honduras
Portugal Honduras

Note :
Management is in the process of winding up the JVs present in Honduras

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Promoter Profile

Holds a Bacherlors Degree in Commerce


Madhusudan
The Business is spearheaded by Mr. Madhusudan Jhunjhunwala who has been
Jhunjhunwala
actively involved in the textile industry since 1962 having more than 45 years of
Chairman & experience in the industry
Whole Time
Is involved in Finance Management, General Administration and overview of other
Director matters of the organization

Holds a Bacherlors Degree in Commerce


Krishnakumar Mr. Krishnakumar Jhunjhunwala actively manages the business and has been
Jhunjhunwala associated in the textile business since the age of 21 having more than 25 years of
Managing experience in the industry
Director & CEO Is involved in Production Management, Marketing and maintaining Customer
Relationships

Promoters are involved full time in running the business and have singular
business interests in the Company

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Growth Trajectory
Operations started in SarlaFlex Inc. at Walterboro, South Carolina, USA 2014 Nylon 66
Incorporation of SarlaFlex Inc., a 100% subsidiary of SPFL in South Carolina, yarn
USA for the manufacturing and marketing of yarn to the USA and
2011
2013 project at
neighbouring markets Silvassa

Shares were listed on the NSE. Marketing subsidiary in


Expanded production capacities and facilities in Silvassa 2009 Portugal, Sarla Europe
with the addition of 2 new building units. 2007
LDA
Crossed the Rs. 100 crore sales mark.

Established its 1st joint venture overseas in


Formed with the status of a 100% 2006
Honduras, Central America
Export Oriented Unit (EOU). 2004
Shifted focus from commodity yarns to providing
1999
Introduced its customers with value added products.
2nd core 1997
productNylon Established an in-house dyeing plant in Vapi consequently broadening
textured /twisted 1996 the product offering to dyed yarns.
and dyed yarn

Established its first manufacturing unit in Silvassa for polyester textured /twisted yarn
1995 SPL was listed on Bombay Stock Exchange Limited (BSE).

1993 Formed with the status of a 100% Export Oriented Unit (EOU).

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Key Products - Existing

Key Products

Textured
Textured Textured High
Nylon Covered
Polyester Bulkon Sewing Tenacity Dyed Yarns
Stretch Yarns
Yarns Thread Yarns
Yarns

End use application of our products

Narrow Fabrics, Hosiery, Innerwear & Sportswear

Threads

Industrial Yarns

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New Products Nylon 66

Commenced manufacture of Nylon-66 yarn at Silvassa in 2013 on pilot basis

Nylon-66 is high tenacity and lower shrinkage yarn product

Being a niche product on its own, extremely specialized and margins are substantially higher

Finds applications in parachutes , shoes, seat belts and car airbags, specialized sewing applications in
automotive, shoes, leather, industrial filters, hoses

Installed Capacity of 450 TPA commissioned at Silvassa

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Global Presence

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Manufacturing Facility India
Manufacturing Dyeing

2 Manufacturing Facilities located in


In-house Dyeing facility at Vapi
Facility Silvassa, next to each other
Installed capacity 3,200 TPA
Total Installed capacity 11900 TPA

Product Offering
Increased product offering to Dyed yarns
Textured Polyester Yarns
Large scale expansion, upgradation &
Bulkon modernisation undertaken in 2010
Highlights
Textured Nylon Stretch Yarns Being only 12 km from Silvassa facilitates
Textured Sewing Thread movement of goods to quickly cater to
customer orders
Covered Yarns & High Tenacity Yarns

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India Facility Silvassa
External View of Plant

Plant & Machinery

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India Facility Vapi
External View of Plant

Plant & Machinery

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High-End Application products produced in India
Raw Materials Processes & Products Applications
Polyster POY Texturising Texturised Yarn

Nylon POY Twisting Twisted Yarn Threads, Hosiery, Elastics,


Medical Bandages
Fully Drawn Yarn

Nylon Chips Extrusion Nylon 6 & Nylon 66 Parachutes, Shoes, Seat Belts
and Car Airbags

High Tenacity High Tenacity Fishing Nets, Twines ,Filter


Twisting
Polyester Nylon 6 Nylon & Polyester Fabrics & Industrial
Applications

Lycra/ Spandex/ Socks, Hosiery,


Rubber Texturised Covering Covered Yarn Elastics, Innerwears
Polyester / Nylon
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Overseas Operations
Sarla Europe LDA,
Sarla Tekstil, Turkey SarlaFlex Inc.
Portugal
In 2009, entered into a Joint In 2011, entered into a Joint In 2013, the Company entered
Venture, Sarla Europe LDA, Venture, Sarla Tekstil Filament US markets through its 100%
holding 60% share through its Sanayi Ve Tic, holding 45% subsidiary SarlaFlex Inc.
100% subsidiary Sarla share through its 100%
Overseas Holding Limited subsidiary Sarla Overseas Installed capacity of 9,900 TPA
Holding Limited for POY and 4,400 TPA for
Operates as a marketing Twisted Yarn
subsidiary in Portugal Located at the gateway to
Europe catering to both the Duty free benefits on goods
Services customer Turkish & European markets manufactured inside the US as
requirements of the European per NAFTA & CAFTA
region
Being located at the western
tip of Europe, Sarla Europe
LDA is able to service
customers in South America as
well

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Manufacturing Facility Overseas
Manufacturing South Carolina, USA

Manufacturing unit in Charleston, South Carolina


which manufactures POY (Partially Oriented Yarn)
Textured Polyester Yarn and Twisted Yarn
Charleston, South Total Installed capacity POY and Textured
Carolina Polyester Yarn 9,900 TPA each and Twisted Yarn
4,400 TPA
Phase I of project completed in December 2013
with a capital investment of USD 13.8 million

First Indian Textile company to set up a facility in the US


Product offering expanded into furnishings, automotive and industrial markets
This move is taken on the motive of CAFTA/NAFTA laws which are in favour of companies having
manufacturing units set up in the region
Exporting to North and Central American countries is viable only for companies manufacturing in the
region as they are waived off duties to the extent of 32%

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Focus of US Manufacturing
Raw Materials Processes & Products Applications

Polyster chips Texturised


Texturising & Twisted Yarn

Threads, Hosiery ,
Narrow
Twisting Solution Dyed Fabrics/ Elastics,
Yarn Mattress Ticking
Apparel & Industrial
application

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US Facility
External View of Plant

Plant & Machinery

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Financial Breakups
Segmental Breakup Geographical Breakup
America
Commodities
HISN*
2014 18%
25% Asia Pacific
34% Total Revenue 37%
INR 2,618
Industrial Yarns
10% million
38%
6%
32% Middle East & Europe
Africa
Threads
*Hosiery, Innerwear, Narrow Fabrics, Sports Wear

Commodities
15% Asia Pacific
2013 America
HISN* 28%
38% 34%
Industrial Yarns 17% Total Revenue
INR 2,587
million 7%
Africa
30% 30%
Threads Middle East & Europe
*Hosiery, Innerwear, Narrow Fabrics, Sports Wear

No Single Customer exceeds more than 15% of Revenue


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Source: Annual Reports
Financials Growth Story
Revenues EBITDA

+15%
2,587 2,710 +18% 575
2,336 476
1,930
1,553 360 345
296

2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

Profit After Tax Networth

+17%
+17%
32 1,692
27 28 1,425
23 1,244
1,082
17 892

2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

Rs. in Million 20
Consolidated Profit & Loss account
Rs. In Million FY2014 FY2013 FY2012
Revenues 2,618 2,587 2,227
Raw Material 1,379 1,376 1,211
Manpower Cost 122 53 44
Other Operating Expenses 650 690 635
EBITDA 467 468 332
EBITDA Margin 17.8% 18.1% 14.9%
Other Income 108 8 13
Depreciation 110 82 81
Interest 44 44 30
PBT 421 350 235
Tax 100 71 46
PAT 321 280 189
PAT Margin 12.3% 10.8% 8.5%

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Quarterly Highlights
Rs. In Million Q2 FY15 Q2 FY14 YoY % Q1FY15 QoQ % H1 FY15 H1 FY14 YoY %
Revenues 807 673 20% 841 -4% 1,648 1,282 29%

Raw Material 410 354 459 870 671

Manpower Cost 64 14 67 131 28

Other Operating Expenses 198 200 192 390 338

EBITDA 134 105 28% 123 9% 258 245 5%

EBITDA Margin 16.7% 15.6% 14.6% 15.6% 19.1%

Other Income 52 48 16 68 53

Depreciation 41 24 40 81 46

Interest 11 9 10 22 23

PBT 134 121 11% 89 50% 224 230 -3%

Tax 34 27 26 60 53

PAT 101 94 6% 63 59% 164 176 -7%

PAT Margin 12.5% 14.0% 7.5% 10.0% 13.8%

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Consolidated Balance Sheet
Rs. in Million Sept-14 Mar-14 Mar-13 Mar-12
Shareholders Fund 1,801 1,692 1,425 1,244
Share capital 70 70 70 70
Reserves & Surplus 1,732 1,622 1,355 1,175
Non-current liabilities 1,382 1,475 548 189
Long term borrowings 1,202 1,291 371 77
Other non-current liabilities 180 185 177 112
Current liabilities 1,636 1,467 1,136 970
Short term borrowings 973 742 701 548
Other current liabilities 663 724 435 423
Total Equity & Liabilities 4,819 4,633 3,109 2,404
Non-current assets 2,552 2,588 1,401 920
Fixed assets 1,931 1,970 1,287 823
Non Current Investments 548 548 0 0
Long-term loans and advances 73 70 114 96
Foreign Currency Monetary Item 28 25 4 0
Current assets 2,239 2,021 1,704 1,484
Inventories 793 708 607 542
Trade receivables 835 756 584 645
Cash and bank balances 416 369 218 125
Short-term loans and advances 161 150 209 133
Other current assets 33 38 87 38
Total Assets 4,819 4,633 3,109 2,404

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Key Strengths
Amongst the largest manufacturers of covered yarn in India
Focused on High Margin value added products: Specialised Polyester and Nylon Yarns
Amongst a few players globally catering to Specialised Yarns Used in a variety of niche applications

Direct involvement of top management in the Indian & US manufacturing process

Presence of manufacturing and distribution hub in close proximity to demand centers globally
Effectively positioned to be a preferred supplier to global manufacturers in both the Eastern as well as the
Western Hemisphere
One of the rare Indian companies to be directly present in NAFTA and CAFTA regions

Track record of prudent deployment of funds


Extremely low leverage India Textile business has Zero Long Term Debt

Strong relationship with reputed clients like Jockey, Gildan, Coats in US and Europe

Proven R&D and technical capabilities

Enhanced productivity, efficiency and profitability of the Company

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For further information, please contact:

Company : Investor Relations Advisors :

Sarla Performance Fibers Limited Strategic Growth Advisors Pvt. Ltd.


CIN: L31909DN1993PLC0000562596 CIN: U74140MH2010PTC204285

Mr. Mahendra Sheth, CFO Mr. Sudeep Chatterjee / Ms. Ruchi Rudra
msheth@sarlafibers.com csudeep@sgapl.net / rruchi@sgapl.net

www.sarlafibers.com www.sgapl.net

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