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1 of 29 == CORPORATE PRESENTATION ==. Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed.

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Presentation on theme: "1 of 29 == CORPORATE PRESENTATION ==. Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed."— Presentation transcript:

1 1 of 29 == CORPORATE PRESENTATION ==

2 Disclaimer 2 No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements“ based on the currently held beliefs and assumptions of the management of Sumeet Industries Limited (“Company” or “Sumeet”), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it 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 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.

3 Index 3 TABLE OF CONTENTSPAGE NO. Industry Overview4 Company Overview6-7 Objects of QIP16-17 Financial Snapshot21-22

4 Textile Industry - Overview 4 Contributes to 4 % to GDP and 17 % to India’s Export Earnings Provides employment to over 35 mn people According to the Confederation of Indian Textile Industry (CITI), the potential size of the Indian textiles industry is expected to reach US$ 110 billion by 2012 Key Segments of Textile Industry

5 Textile Industry Advantage to India 5 Raw material production India has the largest area under cotton cultivation —9 million hectares —constituting 25 per cent of the world’s total cultivation area. India is the second-largest producer of silk in the world. Sourcing hub Several international retail giants such as Marks & Spencer are leveraging India as a key global sourcing destination. Favourable governm ent policies Initiatives such as the Technology Upgradation Fund Scheme (TUFS) and Technology Mission on Cotton (TMC), among several others, aid the development of the domestic industry and attract potential investors. Availability of skilled workforce The industry is the second-largest employment generator after agriculture. Several centres of excellence are available for research in textiles. Sources: Ministry of Textiles 2008–09 annual report; “Note on sericulture and the silk industry,” Ministry of Textiles

6 Man-Made Staple Fibre And Filament Yarn Industry 6 Cont…2

7 Man-Made Staple Fibre And Filament Yarn Industry 7

8 Company Snapshot 8  Incorporated in 1988 by Mr. Shankarlal Somani and his family to carry on the business of Polyester.  First plant set up in 1993-94 to manufacture Polypropylene Multifilament Yarn (“PPMFY”) with installed capacity of 1500 TPA.  Gradual expansion in Polyester Filament Yarn (“POY”), Polyester Filament Yarn (“FDY”) and PET Chips with current installed capacity of 1,00,000 TPA.  Among the best quality manufacturers in India, for producing dope dyed polypropylene yarn in which accuracy and uniformity of color is guaranteed.  Products marketed under the brand name “SUMILON”; approximate share of 20% in India.  Received a Star Export House status by Ministry of Commerce & Industry in 2004-05.  Maiden public issue in December 1992; listed on BSE & NSE.  Company has shown tremendous growth with 343% CAGR of Turnover (FY06- FY10) and 1179% CAGR of Profit after Tax (FY06-FY10).

9 Sumeet Industries Limited - Overview 9 Products Overview P. P. Multi Filament Yarn (PPMFY) Polyester Filament Yarn (POY) Polyester Filament Yarn (FDY) Pet Chips 3,900 Tons36,000 Tons17,000 Tons 47,000 Tons Annual Capacity

10 Sumeet Industries Limited - Overview 10 Products Overview PET CHIPS TEXTURISEDPOY / FDY POY CRIMPTWISTED POLYESTER POLY PROPYLENE

11 Journey thus Far - Milestones and Achievements 11 1988 Incorporation of Sumeet Synthetics Private Limited 1992 Conversion from Private Limited to Public Limited 2004 2009 This Prestigious Expansion cum Backward Integration Plan completed with total investment of Rs. 150.00 Crores and increased company’s capacity from 12000 tons to 100000 tons (More than 8 times) 2010 1993 Installed capacity of 1500 tons per annum of Polypropylene Multifilament yarn with total project cost of Rs. 200 Million Installed capacities of Texturising & Twisting of 1500 MT per annum for value addition with total project cost of Rs. 45 Million Change of Name of the Company (Sumeet Synthetics Limited to Sumeet Industries Limited) Increased the capacity of Polypropylene Multifilament Yarn to 3900 MT per annum with capital investment of Rs. 144 Million 1995 1997 Increased the capacity of Texturising & Twisting to 3900 MT & 2000 MT respectively per annum Installed coal based power plant of 2.5 MW for captive power generation with capital investment of Rs. 60 Million 1999 2005 Installed Polyester Spinning Plant to manufacture 12000 MT Polyester Filament Yarn (POY) per annum with capital investment of Rs. 300 Million Installed 60 Water Jet Looms to manufacture 3.5 Million meters Woven Fabric per annum 2006 2007 The Company converted its coal based power plant of 2.5 MW to Gas based Gen Set Power Plant for further reducing its power cost. The Company has tie-up with Gujarat Gas Company for supplying the Gas through Pipeline for the said Power Plant The Company has commissioned fully imported C.P. PLANT (Continuous Polymerization Plant) of 288 tones per day capacity or 100000 tones per annum as Expansion cum Backward Integration Project 2009 Commissioned 6 MW Gas based Genset Captive Power Plant, enhancing the capacity of captive power generation by 8.5 MW

12 Business Strategy 12 Strong Distribution Network Business Strategy Investing in Advanced Technology Enhance visibility of our Brand Maintain Relationship with Clients Low Cost Advantage Quality Products

13 Competitive Strengths 13 Experienced PromoterProcess and Technology Professional Management Team Location and Cost BenefitsDiverse Product Line

14 Experienced Promoters 14 Rs. in Lakhs Name & DesignationEducationProfile Mr. Shankarlal Somani Chairman and Executive Director Graduation in Commerce from University of Rajasthan Over 3 decades of experience in the textile industry Plays a key role in management of our Company Has served social prestigious posts like Managing committee member of Sarvajanik Education Society and Shri Maheswari Vidyapeeth Mr. Rajkumar Somani Managing Director Bachelors degree in Commerce from University of Rajasthan Has experience of about 28 years in the textile industry Instrumental in establishing a Polyester Filament Yarn and Twisted & Texturised Yarn plants Mr. Sumeet Somani Whole Time Director M.Com from South Gujarat University, D.B.M. from S. P. Jain Institute of Management & Research, Mumbai Looking after Company’s expansion plan and future business planning with core management of the Company He is managing a process house SANYA FASHIONS and Priyanshi Creations Private Limited at Surat

15 Export Turnover 15 The products manufactured by Company are at par with International Quality Standards During the current year i.e. 2010-11 Company expect to achieve export turnover of Rs. 540 Million in comparison to Rs. 114 Million in last year, about 480% increase in Y.O.Y basis U.S.A. ARGENTINA INDONESIASRI LANKA SOUTH AFRICA EGYPT SAUDI ARABIA SPAIN

16 Objects of the QIP 16 Cost of the Project 1 To finance the cost of enhancement of spinning capacity of POY/FDY from 53,000 TPA to 1,00,000 TPA. This expansion will utilize balance capacity of poly condensation plant as captive consumption by manufacturing POY/FDY directly from MEG & PTA instead of producing PET chips. This project will also enhance the scale of operation and improve the cost competitiveness of Company’s products 14,150.00 2To augment the existing working capital requirements3,000.00 Total17,150.00 Rs. in Lakhs Cont…2

17 Objects of the QIP 17 Means of Finance Rs. in Lakhs 1QIP Proceeds 6,000.00 2ECA loan from KBC Bank Deutschland AG 5,894.30 3ECB loan of US$ 10 MN 4600.00 4Internal Accruals 655.70 Total 17,150.00

18 Peer Group Comparison 18 PAT Margin & EBITDA Margin RONW & EPS Sources: Capitalline Rs.

19 Stock Performance Analysis 19 Monthly Analysis (July – Dec 2010) Annual Analysis (FY08 – FY10) Sources: www.bseindia.com Rs.

20 Corporate Structure 20 Shareholding PatternBoard of Directors Name of the Director DesignationNature of Directorship Mr. Shankarlal Somani Chairman Non-Independent, Executive Mr. Raj Kumar Somani Managing Director Non-Independent, Executive Mr. Sumeet Somani Chief Financial Officer Non-Independent, Executive Mr. Dinesh KhareDirector Non- Independent, Executive Mr. B. C. ChordiaDirector Independent, Non- Executive Mr. Vinod LadiaDirector Independent, Non- Executive Mr. Mangilal Lahoti Director Independent, Non- Executive Mr. Devi Prasad Saboo DirectorIndependent, Non- Executive www.bseindia.com, as on 31 st Dec. 2010

21 Strong Financial Performance 21 Rs. In Lakhs

22 Strong Financial Performance 22 Rs. In Lakhs Rs. * EPS after Rights Issue of 1:1 in Jan. 2009 ** EPS is not annualised

23 Thank You 23


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