PRESENTATION ON T T Limited

Indian Cotton story… Figures are in mln bales Of 170 kgs each

About the Indian crop Varieties of Indian Raw Cotton Specifications of various types Pros and cons of Indian types Relevant issues pertaining to trade with Bangladesh Indian cotton market today

About the Indian crop… 3 rd year in running, bumper crop expected – million bales of 170kg (10% more than last season) Both area and productivity has grown Estimates for 2012 is between 39.0 to 45.0 mln bales Quality is better due to use of better quality and BT seeds Trash levels/contamination is relatively lower due to better ginning practise and BT seeds Average length of cotton fibre is growing due to BT seeds – hence shortage of short length fibre All cotton is double roller gin except J 34 J 34 (27mm), Shankar 6 (28mm+) and MCU 5 (30mm+) are the popular varieties Lustre, dye absorption and neps is amongst the best in the world

Current Balance Sheet is… … Carry forward stock has come down, leading to pressure on prices (in million bales of 170 kg each) – 2007 SUPPLY Opening Stock Crop Imports DEMAND Consumption Exports CARRY OVER

STATES AREAPRODNYIELDAREAPRODNYIELD PUNJAB HARYANA RAJASTHAN GUJARAT MAHARASHTRA M. P A. P TAMIL NADU KARNATAKA OTHERS LOOSE LINT1.20 TOTAL …and regionwise break up is NOTE: AREA IS IN HECTARES/PRODUCTION IN MILLION BALES OF 170 KGS/YIELD IS IN KGS/HECTARE

India has wide range of cotton… Shankar 6 Bunny MCU 5 DCH 32 LRA Mech 1 H4 J 34 V 797 Etc etc… …caters to need of yarn from 4/1 to 120/1

…and their basic specs are TypeLength(mm)MicStrength (gpt) Trash (%) S – – MCU – – – DCH – – – Mech – – – Bunny29.5 – – – – 3.5 H – – – J – – – LRA25.0 – – – – 4.5 Y124.5 – – – V – –

Why Indian cotton ? TypeProsCons S 6 Excellent grade, absorption, lustre and strength Contamination MCU 5 Good staple length, lustre, absorption and strength Contamination DCH 32 Staple length, strengthLow micronaire, relatively higher trash Mech 1 Cheaper than S- 6Marginally low on all parameters agst S-6 J 34 Good dye absorption, high mic/maturity High Trash H 4 Price lowest in its length peersLow uniformity/grade Bunny Price lowest in its length peersGrade lower than MCU 5 LRA Trash lower than J-34Mic variance high, grade lower than J 34 V 797 Inspite of high trash, final yarn good as it falls out & good lustre High trash

Relevant issues for Bangladesh… High incidence of freight – 1 to 2 cents/lbs extra cost agst Far East countries Availability of a standard recognised laboratory to settle disputes amicably Lack of proper weightment facilities in Chittagong and many factories sites Popular misconceptions of Indian cotton –Shankar 6 ? – only in Gujarat –MCU 5 ? – only in A.P/Tamil Nadu/Orissa Another misconception – Indian cotton not good for knitting yarn: all Indian mills making knitted yarn from this cotton Mic values/strength/nep levels are very good in S 6 – comparable with any origin Indian shippers have no system of hedging/buying forward, hence difficult for them to sell forward – better to buy prompt Correlation with NY Futures is low

Indias cotton market today… Arrivals have dropped to about bales per day agst bales last year same time Total arrivals for the season have crossed 24.5 mln bales agst 21.0 mln bales last yr Ginners are holding good quality stock in anticipation of price increase as ending stocks are expected to be lower than last yr Spot prices have softened a bit due to poor yarn mkt and rupee appreciation Import contracts of over 125,000 bales of medium staple cotton have been contracted in last one mth Low staple cotton availability is very low Expected fall in acreage in Gujarat in (origin of Shankar 6) expected, as cotton may be replaced by sugarcane etc