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The House of Zodiac has consistently focused on providing luxury, quality and value to discerning Indian customers. Driven y a passion for excellence,Zodiac is the undisputed leader in design innovation, delivering classic style and an up to date elegance in all its products. !ach Zodiac product, no matter ho" small or great, is crafted "ith meticulous attention to detail, and is a testament to the very essence of Zodiac.
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 Promoted by Mr. M Y Noorani, the House of Zodiac commenced operations in 1954 with nec ties. !t di"ersified into manufacturin# of men$s shirts in the 19%&$s. 'as (isted in 1994 as Zodiac )(othin# )o. *td+. ,oday, Z))*+ is "ertica((y inte#rated from desi#n to retai(, is hi#h(y de-ris ed and powered by . outstandin# men$s c(othin# brands at the premium end of the se#ment/ Zodiac, Z012 3 Z. Z))* has . businesses/ 4a5 6randed 6usiness/ 7cross !ndia and the Midd(e 8ast 4b5 0wn 9etai(/ )urrent(y 1&9 company mana#ed stores which are #rowin# a##ressi"e(y 3 profitab(y. 'e a(so ha"e 1 web-store. 4c5 1esi#n dri"en !nternationa( business for (eadin# brands 3 retai(ers in the :;, 8:, the :<, with a sma(( presence in *atin 7merica and the Midd(e 8ast. 8=tensi"e branded business product portfo(io/ ;uper fine, (i#ht wei#ht suits, >ac ets 3 trousers in pure woo( 3 1&&? (inen@ Aodhpuris in pure woo(@ premium shirts in (on# stap(e, 8#yptian cotton@ wo"en si( ties 3 men$s fine accessories (i e cuff(in s, be(ts, wa((ets, pochettes, hand erchiefs, soc s 3 (eather shoes. Z))* has been consistent(y profitab(e with an un-interrupted di"idend record in (ine with best practices on pay out ratio across industries e"er since (istin#.
Financial Summary (Consolidated) Market Statistics

Background

FY2013 Revenues !$IDT% +et Income !./ Rs 359,98 Lac &s. #1,#' (ac &s. 1,,'2 (ac &s. -.20 + Not annua(iBed

Q1 14 Rs. 92,01 Lac &s. ).** (ac &s. ,.-1 (ac &s. '.*01 # Share Price (Aug 27th, 201 ) ! "s 1#7$00 Market Ca%itali&ation )nter%rise *alue ! "s 2 ,'1 (ac ! "s +7,1' (ac

Snapshot of Drivers of Growth

Portfo(io of stron# brands 1esi#n dri"en "a(ue added products Mar etin# (ed strate#y 3 a stron# distribution networ 6rand e=tensions and Product e=tensions

,randed ,usiness 7cross !ndia and the Midd(e 8ast

-.n "etail ,usiness 1&9 company mana#ed ;tores. 6ein# #rown a##ressi"e(y 3 profitab(y

/esign /ri0en 1nternational ,usiness 'ith (eadin# #(oba( brands and retai(ers

Certica((y inte#rated 4from desi#n to retai(5 3 committed to manufacturin# e=ce((ence, with simu(taneous focus on Dua(ity and producti"ity. 6est practices of )orporate Eo"ernance 3 prudent financia( po(icies Focus on profitabi(ity with pro"en trac record of consistent(y achie"in# stron# cash f(ows. Hi#h(y de-ris ed business mode( G stood the test of time and economic cyc(es repeated(y. 2

Sales Break up
,randed 2 1nternational Sales S%lit 31 1 41+ Channel.ise ,randed Sales S%lit
Independent Retailers 3 !

6randed 49? !nternationa( 51?

"#$pan% $ana&ed st#res 5'! &etail 3hains -4

5eogra%hical Sales S%lit

(iddle )ast 8!

India 49! *#rt+ ,$erica 30! -. 3!

)ur#pe 10!

)m%hasis on aggressi0e gro.th o6 ,randed ,usiness 7 -.n "etail in 1ndia

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ZCCL: Design Driven Philosophy

0ur Mumbai office has an !ta(ian inspired, state of the art 1esi#n ;tudio, with a team of o"er 15 trained desi#ners constant(y networ in# with our internationa( offices and attendin# trade shows o"erseas

'e ha"e our own offices in . fashion capita(s of the wor(d - *ondon, 1uesse(dorf, and New Yor headed and run by (oca( industry professiona(s with considerab(e e=perience in desi#n

Z))* desi#ns its own co((ections in (ine with internationa( fashion trends across the different se#ments of men$s c(othin#, offerin# the consumer for its branded products cuttin# ed#e fashion and its !nternationa( customers possibi(ity to outsource desi#n.

ZCCL: Manufacturing

!cellence

0ur state of the art and modern automated manufacturin# p(ants are (ocated in <arnata a 3 Eu>arat 4!ndia5 and 1ubai 4:785. )apacity to produce o"er H mn shirts per annum. 'e successfu((y manufacture e=treme(y hi#h wor contentI "a(ue added products. Z))* current(y emp(oys appro= 4,&&& peop(e across the company

L#cati#n $angalore 56arnata7a8 $angalore 56arnata7a8 Dist.9alsad 5:u;arat8 Dist.9alsad 5:u;arat8 Du ai 5<%!8

/r#duct /hirts Trousers /hirts /oc7s /hirts

"apacit% 0in $n pcs1 ,.# '.2 '.1.' 2.'

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ZCCL: Marketing Led Strategies: Z"D#$C

8-/1AC G a %remium, classic, men9s .ear :rand, o6 the longest standing in 1ndia

,he brand is positioned for the c(assic yet contemporary ma(e$s wardrobe Z01!7)$s product ran#e has fine woo( 3 pure (inen suits 3 trousers, pure woo( Aodhpuris,
shirts crafted from the finest cotton with wo"en si( ties to match. 7(( accessorised with si( pochettes, ster(in# si("er 3 rhodium finished cuff(in s set with semi precious stones and fine (eather be(ts.

,he brand is retai(ed across more than 1.&& counters in !ndia

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ZCCL: Marketing Led Strategies% Z"D& Clu' (ear

8-/; G a trendy, 6ashiona:le casual .ear :rand launched in 2002$ Positioned as )(ub 'ear and en>oys the first G mo"er ad"anta#e. 'e actua((y created this cate#ory in !ndia. Z012 is tar#eted at socia((y acti"e, youn# ma(es who want to dress trendi(y when they step out in the e"enin#. 0ffers a ran#e of trendy shirts, s inny ties and (eather >ac ets. ,he Z012 *ine hi#h on desi#n content and in tune with fashion trends internationa((y. 7"ai(ab(e across !ndia, the brand is retai(ed thru more than J&& out(ets from Aammu to ,ri"andrum and from 6hu> to ;hi((on# Z012 captures the youn# ma(e$s attention and brin#s him into a Zodiac ;tore. 8"entua((y this consumer wi(( #raduate to forma( shirts or smart casua( wear when 4dependin# on his wor reDuirement5hence wi(( mo"e to Zodiac or Z. 1#

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ZCCL: Marketing Led Strategies% Z) * +ela!ed Lu!ury our recently launched casual .ear :rand
*aunched in 7pri( K&&J >ust before the wor(d wide down turn 3 rea((y #ot a fi((ip in K&1& post the economic re"i"a( in !ndia

'e are now en>oyin# a wide base of users especia((y those that do not wear a crisp, forma( shirt 3 a tie to wor 4;oftware, Media 3 7d"ertisin# e=ecuti"es and se(f-emp(oyed businessmen5

7(( Z. shirts, chinos 3 bo=er shorts are made from K p(y cotton 3 #i"en our L,rademar Cinta#e 'ashM for an incredib(y super-soft hand fee( G which is the :;P of Z.

,he casua(, re(a=ed (oo is achie"ed by a (i#ht(y puc ered co((ar and p(ac ets coup(ed with remo"ab(e co((ar bones

)urrent(y Z. is a"ai(ab(e at a(most J&& counters nationa((y and #rowin# fast 9an ed N % nationa((y by 6usiness ;tandard in a (ist of Most ;uccessfu( 6rand *aunches of K&&J 12

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ZCCL: +etail ,ocus

Z))* opened it$s first store at the ,a> Maha( Hote( in 19H. and this was the be#innin# of a retai( store strate#y to open stores at premium (ocations across !ndia 7##ressi"e sca(in# up of stores at the ri#ht (ocations ensure a (ar#e footfa(( of premium customers despite "o(ati(ity in demand 0ur stores bui(t to 8uropean desi#n, offer a tru(y internationa( shoppin# e=perience. ,oday, we ha"e 1&9 stores across/ <igh street locations/ ,o name a few .. <han Mar et, ;outh 8=t 3 )P in New 1e(hi, *in in# 9oad in Mumbai, <N< 9oad, Nun#amba am in )hennai, )howran#hee in <o( atta 3 ;ector 1H in )handi#arhO Premium <otels/ ,he ,a> Maha(, 0beroi ,rident 3 ,he Erand Hyatt in Mumbai Premium Malls/ Mum:ai!!n 0rbit Ma(ad 3 Cashi, !nfinity, Phoeni= 3 )9K /elhi! 1*F, ;e(ect )ity 'a( 3 :nitech <ydera:ad!EC< 3 !n 0rbit Chennai! )iti )entre, 7mpa Ma((, 8=press Ma(( ,angalore! Forum =olkata! )ity )entre 3 ;outh )ity amon# many others /e%arture >erminals! Mum:ai Air%ort (1nternational 7 /omestic) 7 > at /elhi Air%ort

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-he Branded Bi.

8"S Count 4 City. ise Store S$?o ?orth Count 1 /elhi ?C" 22 2 Cha ndiga rh /ehradun 1 + Aa la ndha r 1 B (udhia na 1 # Amritsa r 1 7 Patia la 1 ' *arana si 1 @ (uckno. 2 Store S$?o )ast Count 1 =olka ta # 2 Siliguri 1 "anchi 1 + ,hu:anesh. ar 1 B Patna 1 Store S$?o Ce st Count 1 Mum:ai 2+ 2 Surat 1 ,aroda 2 + Ahmeda :ad 1 B Aa i%ur 1 # Pune + 7 ?ashik 1 ' ?ag%ur 2 @ 1ndore 2 10 ,ho%al 2 11 "ai%ur 1 12 <ydera:a d B Store S$?o South Count 1 ,angalore ' 2 Che nnai B Coim:atore 1 + =ochi + B Calicut 1 1 C e:store >otal 1 10@

Store (ocations ?o$ 7irports . Hi#h street 4& 5 star Hote(s . Ma((s %K 'ebstore 1 >otal 10@

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ZCCL: +etail ,ocus

5ro.ing Contri:ution o6 -.n "etail to ,randed ,usiness

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,$#nara 2 /une
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)3press (all 2 "+ennai

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In4initi ,nd+eri 2 (u$5ai

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ZCCL: De/ +isking

,he dri"e to de-ris the business has been consistent. 0"er H5? of Z))*$s production is pre-so(d

!nternationa( 0rders bac ed by *) or insured 6randed business orders for M60 3 *F; bac ed with ad"ance cheDues

Mu(ti-se#ment/ 6randed, 0wn 9etai( and 1esi#n 1ri"en !nternationa( business. Mu(ti-product/ Premium ;uits, ;hirts, ,rousers, ,ies, )uff(in s, ;hoes, 6e(ts ;oc s 3 Han ies Mu(ti-brand/ Zodiac, Z012 3 Z.. 8ach caterin# to a separate se#ment of men$s c(othin# Mu(ti-mar et e=posure has insu(ated to a (ar#e e=tent the effect of #(oba( crises G our mar ets are

!ndia North 7merica/ ,he :;7 and )anada ,he 8uropean :nion, the :< and other 'est 8uropean countries *atin 7merica 3 ,he Midd(e 8ast

Mu(ti-channe(/ !ndependent retai(ers, nationa( chains and own stores P (eadin# internationa( brands 3 retai(ers Mu(ti-(ocation manufacturin# faci(ities inc(udin# a faci(ity in the :78 )onser"ati"e approach to financia( (e"era#e !nsurance of internationa( recei"ab(es with a renowned internationa( insurer Fore= po(icy desi#ned by respected !ndustry e=pert 3 contro((ed by ;ub )ommittee of the 6oard which is chaired by an independent director

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Significant

vents: $pr0 * $ug0 123)

= Fa:ric %rices! > ,he depreciation of the !ndian 9upee has impacted the cost of fabrics bein# imported for manufacturin# > Moreo"er the cost of fabric itse(f has #one up = 1n%ut Costs! > ,he cost of furnace oi(, e(ectricity 3 other raw materia(s ha"e #one to historic hi#hs > 0ur ,as Forces formed to dri"e down costs ha"e started de(i"erin# resu(ts on se"era( fronts = >he "u%ee de%reciated shar%ly to circa DS/1$00 ! From "s B+$2' going to a:out "s #'$71 > ,he impact of the "o(ati(ity of the !ndian rupee has been b(unted due to Z))*$s conser"ati"e F098Q po(icy

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Significant

vents: $pr0 * $ug0 123)

= 1ndian )conomy 7 Consumer /emand <as ,een )rratic 7 *olatile >hroughout SS 201 > !nf(ation continues unabated and ne#ati"e sentiment dri"en by news on corruption, po(itica( instabi(ity, (i e(y down#rade of !ndia by ratin# a#encies, poor corporate resu(ts and other #(oomy economic reports (i e (ower E1P, !ndustria( Production etc has impacted impu(se purchasin# > 96! has ta en definite steps to curb (iDuidity due to the "o(ati(ity of the !ndian rupee. 7s a resu(t interest rates ha"e hardened which are a cause of concern to industry > ,he money mar ets, sense= 3 sa(es across "arious sectors has nosedi"ed with automobi(es (eadin# the pac > 'hi(e 7pri( K&1. showed some positi"e trends by mid G May K&1. both independent retai(ers 3 chain stores were seein# consumer off ta e s(ac enin# > )(earance sa(es in ;; 1. were announced one month ear(ier than ;;1K by a(most a(( c(othin# brands 3 retai( chains > Moreo"er a (ate Pu>aI1assera 3 1iwa(i in K&1. wi(( mean that festi"e bi((in# and spi e in sa(es wi(( happen main(y in 0ct. 1. 4 R.5
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ZCCL4s Business
= 8CC(9s design4dri0en 1nternational ,usiness > 0rder boo s were erratic but show a hea(thy position o"era(( = -n >he "etail Front! > Z))* has 1&9 company mana#ed stores as of 7u# K&1. > 4 new stores opened between 7pri( - 7u# K&1. > 0ur focus is on bui(din# this business profitab(y and hence we ruth(ess(y c(ose stores that are not yie(din# bottom (ine resu(ts > 'hi(e we are a##ressi"e on openin# stores, the (ocations 3 renta(s ha"e caution bui(t into e"ery decision = Focus -n >he ,randed ,i&! 1ncreasing ,rand *alue > 0ur conser"ati"e(y a##ressi"e po(icy on bui(din# our brand sa(ience saw us bein# one of the few c(othin# company$s to ad"ertise our brands in ;ummer K&1. whi(e our competition p(ou#hed their money into discountin# to the trade 3 consumers

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-he Branded Business

= -ur E?o /iscountingF %olicy is 6irmly entrenched > 'e do not show #rowth at the cost of erodin# brand "a(ue = >he A%r$ G Aune 1 %eriod H2H > 0wn store sa(es up 4*,*5 by 1&? 3 7(( ;tores by appro= 14?, which, (oo in# at the o"era(( economic and resu(ts of other industries, is notab(e. > 0ur competition has shown more impressi"e #rowth fi#ures, which ha"e, to a (ar#e e=tent, been achie"ed with their po(icy of discountin#Ieasy terms, which our company strict(y desists from > M60s #rew at 1K? despite the o"era(( #(oom in consumer sentiment > *F; #rew at H&? primari(y due to top mana#ement focus on this channe(

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-he Branded Business

= /uring A%r$ G Aug$ 201 8CC( :rought (inen across it9s uniIue looks :rands in

> Z01!7)/ 0"er the past decade Z01!7) has been the on(y premium !ndian brand that does a focused *inen pro#ram. !n ;;1. we brou#ht a co(orfu( ran#e of shirts, trousers, pochettes, >ac ets 3 suits in 1&&? *inen for the contemporary !ndian ma(e > Z. 9e(a=ed *u=ury/ 'e introduced 1&&? *inen shirts for the 1st time, differentiated by #i"in# them a S'ashed Cinta#e *oo M for that re(a=ed, casua( (oo > Z012/ !n ;; 1. we introduced trendy, sty(ed *inens for the youn# !ndian ma(e = 0ur strate#y is to brin# the consumer somethin# different and new to moti"ate him to spend on our brands, rather than run a promotionIdiscount (i e our competition

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#1

Z# 9intage (inens

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Z?D@ Trendy (inen

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,inancial Snapshot 5Consolidated6

Income Statement
(Rs in lacs) Revenue % growth EBITDA % margin Net Income % margin 2011 35,711 9.16% 4,120 12.05 3,318 9.71 Year ended March 31 2012 2013 377,53 35,998 5.7% -4.65% 3,123 12.05 1,774 4.70 3,130 9.14 1,401 4.01 2012 8,129 4,01 4.30 % 1,02 1 32% 3 months ended June 30 2013 Q1-O-Q1 growth 9,201 13.18% 8,99 10.39% 4,71 5.44%

Balance Sheet
(Rs in lacs) Total Debt !"a#e"ol$e#%& E'u(t) *2+ ,a&" - E'u(valent Inve&tment& *1+ Invento#) Debto#& ,A.E/ 0 Invento#) *no o1 $a)& &ale&+ Debto#& *no o1 $a)& &ale&+ R2,E R2N4 Debt E'u(t)
(1) (2)

Year ended March 31 2011 4.310 21,307 2,9 0 1,149 7,333 3,494 3,305 2012 5,508 23,098 2,809 1,241 7,54 3,291 2,050 2013 5,4 0 24,220 3,1 2 3,131 7,530 3,910 1,387 0 78 37 12.893 15.573 0.21 73 32 8.333 .933 0.24 80 42 5.523 5.783 0.23

)ost optimiBation Focus on operationa( efficiency

;trin#ent ris mana#ement processes

1nclude 10 lakh shares o6 Sho%%ers Sto% (td at a holding cost o6 "s '#' lakhs 1ncludes :onus shares issued 1n the ratio o6 1!1 in -cto:er 200B and 1!2 in Aug910 and again in Se%t911$

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Perfor7ance over the last ) years

5Consolidated6
-0erall "e0enue (FH)
38,000 37,500 37,000
49s (a hs5

37,753

36,500 36,000 35,500 35,000 34,500 2011 2012 35,711

35,998

2013

-0erall "e0enue ( M)
10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 8,129 9,201

7,031

49s (a hs5

Q1FY'12

Q1FY'13

Q1FY'14

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Standalone Perfor7ance
Standalone sales (in "s$ lacs)
9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 4Q'FY12 1Q'FY13 2Q'FY13 3Q'FY13 4Q'FY13 1Q'FY14 7,130 6,480 6,330 8,524 7,800 7,470

),1>/A margin (J)

?et Pro6it margin (J)

12% 10% 8% 6% 4% 2% 0% 4Q'FY12 3.8% 7.4%

10.7%

8% 9.6% 8.5% 7.0% 7% 6% 5% 4% 3% 2% 1% 0% 0.4% 4Q'FY12 5.3%

7.6%

4.4% 2.5% 2.5%

2Q'FY13

4Q'FY13

2Q'FY13

4Q'FY13

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Perfor7ance over the last 8 years

5ro.ing Contri:ution o6 ,randed ,usiness (Consolidated)

5ro.ing Contri:ution o6 ,randed ,usiness in 8CC( (Standalone)

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ZCCL:
)orporate Eo"ernance

nhancing Shareholder 9alue

7 distin#uished 6oard of 1irectors that brin#s rich and "aried e=perience. 7ppro= H5? of the 6oard are independent directors since Z))* was (isted 7udit committee headed by 3 inc(udes finance "eterans ensurin# strict financia( discip(ine and contro(s.

Prudent financia( po(icies and fisca( discip(ine ha"e contributed to stron# cash f(ows/ )7P8Q Fundin# of appro= 9s ..5H cr 4R1 S145 funded thru interna( accrua(s *ow 1ebtI8Duity 9atio of &.KJ? 4;tanda(one5 :ninterrupted di"idend payout since (istin#, payout ratio in (ine with best practices across industries

!n"entory mar ed to mar et each financia( Duarter Z))* was the first wo"en #arments company in the wor(d to #et the ;7 J&&& certification. 'e continuous(y conduct socia( audits for customers across manufacturin# p(ants.

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)K%erienced Promoters
Mr$ M$ H$ ?oorani 4 Chairman 7 Founder

/istinguished ,oard o6 /irectors

Founder of Z01!7), )(othin# Manufacturers 7ssociation of !ndia 4and its President for . terms5 0ne of the foundin# fathers of the c(othin# industry in !ndia, has ser"ed on the mana#in# committee of !ndo Eerman )hamber of )ommerce, 6ombay )hamber of )ommerce, !ndo !ta(ian )hamber of )ommerce 3 8.:. )hamber of )ommerce. 9ecipient of the *ifetime 7chie"ement 7wards from )M7!, )!78 3 !F7 *ycra 0bsession with Dua(ity as a Lway of (ifeM at Zodiac.

Mr$ M$ ($ A%te - Former ;heriff of 6ombay, former )hairman of the ,e=ti(es )ommittee, current(y 1irector of *intas !ndia, ,homas )oo 4!ndia5 and Erasim !ndustries Mr$ S$ M$ /atta - Former )hairman of Hindustan *e"er, current(y )hairman of Phi(ips !ndia, )astro( !ndia and !*3F; !n"estment Mana#ers Mr$ ,ernhard Steinrucke - 1irector Eenera( of !ndo Eerman )hamber of )ommerce, former At )80, !ndia of 1eutsche 6an 7E, was Mana#in# Partner on the 6oard of 76) 6an EmbH, 6er(in /r$ <einrich4/ietrich /ieckmann - 7 retired Eerman dip(omat, ser"ed as the Eerman ambassador to AapanI!ndia, former Head of 8conomic 1epartment for Eerman Mission to the :N Mr$ /ee%ak Parekh G Padma 6hushan - )hairman of H1F), !1F), ;iemens *td., E(a=o;mith<(ine Pharmaceutica(s *td., H1F) 7sset Mana#ement )o. *td., H1F) ;tandard *ife !nsurance )o. *td. Mr$ H$ P$ >ri0edi G MP - 9a>ya ;abha. Former President of !ndian Merchants )hamber, ,he )hamber of !ncome ,a= )onsu(tants, current(y Member of the 6oard of 1irectors of 9e(iance !ndustries Mr$ S$ "$ 1yer GFormer M1 of ;tate 6an of !ndia, former Member of the 6oard of 1irectors of Nationa( ;toc 8=chan#e of !ndia, E8 )apita( 6usiness Process M#t ;er"ices P"t. *td., Former )hairman and 1irector of )!6!*.

Mr$ A$ H$ ?oorani 4 *ice Chairman 7 Managing /irector

Aoined Z01!7) in 19%J and has since started the shirt e=port business and a(so sca(ed up the entire operations of the company apart from ta in# it pub(ic ,oday o"ersees the mana#ement of the entire or#aniBation !ndependent 1irector on the 6oard of !ndian 0i( )orporation

Mr$ S$ H$ ?oorani 4 Managing /irector 7 President

6e#an his career with Z01!7) in 19JK and has set up the state of the art manufacturin# faci(ities and the internationa( offices. He (eads a team of dynamic professiona(s and runs the branded and e=port business of the company

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Than7 you

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