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Welspun India Limited Presentation on Seizing The Emerging Global Textiles Opportunity.

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Presentation on theme: "Welspun India Limited Presentation on Seizing The Emerging Global Textiles Opportunity."— Presentation transcript:


2 Welspun India Limited Presentation on Seizing The Emerging Global Textiles Opportunity

3 Strictly Private & Confidential Welspun Group Profile US$ 400 million, engaged in Terry Towels Largest Terry Towel producer in Asia Polyester Filament Yarn One of the largest Specialty Polyester Filament Yarn producer In India Polyester Buttons and Resins Largest producer of Polyester Buttons in Asia Cotton Yarn One of the prominent players in India Saw Pipes One of the largest capacities of Saw Pipes in Asia, outside Japan. PAGE 2

4 Strictly Private & Confidential WELSPUN INDIA LTD- Overview Asias largest and worlds 4 th largest Terry towel producer Current Terry towel capacity :10,800 Tons being expanded to tons Becoming a complete home textile player by addition of bed linen Plant at Vapi Gujarat and Anjar, coastal Gujarat, India Distribution network in 32 countries Exports revenue- 94% of total revenue ( 68% to the US market) Certification: ISO 9002/14001 and SA 8000:2001 by M/S BVQI Only Indian company to license life-style brand in Home Textiles Nautica for towels in US and Canada Tommy Hilfiger for Home Textiles in India PAGE 3

5 PAGE 4 Welspun – Welspun – Journey to become a Global Home textile Player

6 Strictly Private & Confidential CIRCA 1994 Polyester yarn manufacturer Turnover was Rs 90 Crs, Net Profit of Rs 4 Crs Started Towel Business Challenges: To produce Towel – New Business Line To produce Quality Towel To Export Quality Towel – EOU status To Export Quality Towel to Knowledgeable Matured Market PAGE 5

7 Strictly Private & Confidential CIRCA 1994 – Cont….. Emphasis on Maximum Production Quality improvement at each stage of production Product Analysis based on Customer feed-back Emphasis on Volume Growth Focus on Sales from the maximum Outlets Started Business through Intermediaries – Exporters, Buying Houses. PAGE 6

8 Strictly Private & Confidential CIRCA 1999 Produced Quality Towels Exported Quality Towels Expanded Capacities from 2500 Tons to 7800 Tons Grew in Volume and Value Terms Emerged as largest Exporter of Towels from India Turnover – Rs 325 Crs – significant for Towel Co Profit after Tax of Rs (31.5 Crs) PAGE 7

9 Strictly Private & Confidential CIRCA Cont….. External Dependence- All Business through Intermediaries Presence in Generic Products – Yarn and Plain Dyed Towels Focus on Sales rather than Marketing Limited Designing Efforts Limited Processing capabilities – right color/right shade/right mix was a challenge Financial Crunch In nut shell Innovation was a missing Link PAGE 8

10 CIRCA Putting heads together for a New Beginning PAGE 9

11 Strictly Private & Confidential Strategy Adopted Vision to become a Truly Global Player and communicate to all our employees Breaking the midriff - middle-men/agents from the business cycle – Jettisoning Extra Baggage Direct Relationships even at the cost of dip in sales Decided to invest in Product Developments and Design Capabilities In Essence Adopted Innovation in entire Business Operation - Product, Processes, Practices and People PAGE 10

12 Strictly Private & Confidential Innovation In Products Paradigm shift from USE to COLLECTION range of products New Value added product lines – Egyptian Cotton, Embroidery, Supima (American Cotton), Kid Centric Towels. Experimented with different inputs like PVA fibers New Product development – Hygro Cotton – Zero-twist – Subslistatic Printed – Blister Pile Towels Developed new shades and floral prints that are trendy and inline with the Fashion Industry PAGE 11

13 Strictly Private & Confidential PAGE 12 Process House: Fully Atomized color mixing Design Innovation Developed new Designs by creating one of the best Home textile designing team Design Studios Design house in India - 5 people 2 designers each in US and UK Appointed World class Designer from the Industry Innovation In Processes

14 Strictly Private & Confidential Innovation in Sales and Marketing Processes Selection of Right Business Partners Created Marketing Infrastructure Sales team in US 6000 sq. ft. exclusive showroom in New York Distribution alliance in the US for distribution and warehousing Created Welspun USA - 100% subsidiary to handle customers directly Product Development skills complimented by Global Sales Network Innovation In Processes PAGE 13

15 Strictly Private & Confidential Utilizing IT as Integrator – EDI & RFID in Welspun USA – Integration with Customers – Electronic Coloring and Design Matching which integrates Product Design & Development – SAP R/3 - Integrates Operations, Marketing and Supply Chain – Reverse Auction Innovation In Practices PAGE 14

16 Strictly Private & Confidential Innovation In Practices Market Intelligence : Conducted Grid analysis of top retailers with respect to: Product range, Fast Moving Items best selling SKUs Profit margin expectation Collection of Samples to understand global developments PAGE 15

17 Strictly Private & Confidential People Paradigm shift in Mindset from Manufacturer to Marketer. Adequate Training in SAP enabled Production and Operations Appointed International Textile consultant to improve skill sets of employees Appointed Experienced and result oriented people from the Industry. Performance based Reward system PAGE 16

18 Strictly Private & Confidential YEAR Revisited PAGE 17

19 Strictly Private & Confidential Product wise sales – in terms of % (based on ex-mill values) The proportion of the value added products has increased PAGE 18

20 Strictly Private & Confidential Time Value Creation Indirect Export Direct Export Choose & Pick amongst Retailers High end products Branding Marketing & Outsourcing PAGE 19 Progress in Value Chain

21 Strictly Private & Confidential Long standing relationship with 12 out of 20 top retailers in the world Customer centric Planning and Production mechanism BETTERNWELT MITSUKOSH Customer Relationship PAGE 20

22 Strictly Private & Confidential Value Chain contribution May&Co, Federated, Dillards BB&B, LNT, Kohls J C Penny, Target, Shopko Wal-Mart, K Mart, Costco Tommy Hilfiger, Nautica, Polo Ralph Lauren, DKNY, Calvin Klein Designer Brands Department Stores Specialty Stores Fashion Stores Mass Merchants x + 5-7% % 2x Retail Price Expansion PAGE %2%0% 32% 33%15% 22%12%15% 1%5%10% 3%4% 10% 8%12%15% Indirect Business

23 Strictly Private & Confidential FY 1999 (Rs. Crs)ParticularsFY 2005 (Rs. Crs) 325Turnover374 (35)Net Profit295 41Market Cap.800 -FII Holdings24% 2.66%Venture Capital & Mutual Funds 32.19% Comparison PAGE 22

24 Global Opportunities PAGE 23

25 Strictly Private & Confidential Todays Global market place Quota phase out – An additional market of $ 1.25 bn in Towel and $ 1.75 bn in bed linen Segment alone Shrinking supplier base released Pillowtex - bankruptcy - $ 450 mn of towel and $ 220mn of bed linen supply. WPS - Chapter 11 – $ 455 mn of towels and $ 580 mn of bed linen supply. Lucrative European market of $ 600 mn with shrinkage of supplier base. Australian and New Zealand market of $ 50 mn – Dropping duties – 25 to 17.5%, rendering there capacities idle Increased domestic demand – Few organized player in the home arena to cater to the market Low interest rates and higher disposable income PAGE 24

26 Strictly Private & Confidential Key Differentiators PAGE 25

27 Strictly Private & Confidential Textiles has been forecasted as another BPO success story, what Y2K did for IT, Y2K5 could do for Textile Industry Mantra For Success as followed by Infoys - P: Profitability S: Scalability P: Predictability D: Dependability Success Algorithm PAGE 26

28 Strictly Private & Confidential Vision 2005 and Beyond PAGE 27

29 Strictly Private & Confidential Innovation in 2005 and beyond Products: Continuous Innovations in Products- Bamboo Filaments, Hollow Yarn, Natural Towels New Business Lines like Bed Linen Processes: Automatic Recipe matching – Orgatex, Automated Operations like Cut and Sew. Practices: Patenting of New products to Create differentiators. People: Knowledge Management, Six Sigma and ESOPs PAGE 28

30 Strictly Private & Confidential Vision – This is what we are aiming at……………. Fully integrated textile company 4 Fs - from farming to factory to fashion to foreign retailing Organic and inorganic initiatives to target Growth Preferred partner in Home Textiles for any global initiative. Leader in embracing new technologies, product innovation, market intelligence - to offer competitive end- to-end solutions to our customers. Among top three home textile companies in the world. Market leader in Indian home textile market. PAGE 29

31 Strictly Private & Confidential RECOGNITIONS National Export Award for outstanding performance from Government of India, for the year Texprocil* gold trophy for outstanding export performance for successive three years ( , & ) Best Global Vendor by Wal-Mart in 2002 for Terry towel Vendor of the year, FY 2002 by Shopko Stores Inc., USA for all its product categories Operational Excellence Award by JC Penney Stores, USA for Year 2003 PAGE 30


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