INVESTOR MEET

3rd June 2016

Disclaimer
The particulars of this presentation contain statements related but not limited to revenues, financial results and
supplemental financial information which has been compiled by the management, not to be construed as being
provided under any legal or regulatory requirement and are not intended to invite any investment in the
Company. The information contained in this presentation has not been subjected to review by any auditors or by
the Board of Directors of the Company. Commentary in the presentation describes the reporting quarter
performance versus the same quarter of the corresponding previous year, unless specified otherwise. The figures
for the previous periods in this presentation have been regrouped/ reclassified, wherever necessary. Company
assumes no responsibility and does not provide any warranty to the accuracy or comprehensiveness of the
information contained in this presentation.
This presentation is not intended to be a prospectus (as defined under the Companies Act, 2013 and the
relevant provisions of rule, the Companies (Prospectus and Allotment of Securities) Rules, 2014). This is for
information purposes only and does not constitute or form part of, and should not be considered as any offer for
sale or subscription of or solicitation or invitation of any offer to buy or subscription for securities in any
jurisdiction. No part of this presentation and the information contained herein 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.
Statements in this presentation describing the Companys objectives, projections, estimates, expectations or
predictions may constitute forward looking statements. Such statements are based on the current expectations
and certain assumptions of the Company's management, and are, therefore, subject to risks and uncertainties.
Actual results may differ materially from those expressed or implied. The Company neither intends, nor assumes
any obligation to amend, modify, revise or update these forward looking statements, on the basis of any
subsequent developments which differ from those anticipated.

Agenda

MACRO ENVIRONMENT

PERFORMANCE UPDATE

CHALLENGES AND OPPORTUNITIES

STRATEGIC DIRECTION

MACRO ENVIRONMENT

PERFORMANCE UPDATE

CHALLENGES & OPPRTUNITIES

STRATEGIC DIRECTION

Global Environment
China Rebalancing Economy
Moving towards Consumption &
Service

US Monetary Policy
Global Economy

Tightening will lead

appreciation of USD

Growth Revised @ 3.2%

by 0.2%

Oil & Commodity price

Japan & EU

Down Affecting Producers

Interest rate reduced for growth

Domestic Environment
Government Focus

Repo Rate cut @6.5%

Make in India

by 0.25%

Infrastructure
Fiscal
Target

Forex Reserves $360 bn

All time high

Growth @7.6%

Additional taxes Introduced

Krishi Kalyan Cess, Clean
energy Cess, Excise duty on
readymade garments

Factors to influence
Inflation & Growth

Weaker
Global
Growth

Currency
Depreciation

Increase in
Oil Price

Implementation
of the award

MACRO ENVIRONMENT

PERFORMANCE UPDATE

CHALLENGES & OPPRTUNITIES

STRATEGIC DIRECTION

Financials (1/3)
REVENUE

EBITDA
CAGR
7%

CAGR
11%

5428

5702

553

4621

522

545

445

4143

FY 13

Rs Cr

FY 14

FY 15

FY 16

FY 13

FY 14

FY 15

FY 16

Sustained investments in product innovation, portfolio sharpening, retail expansion &

renovation and brand building

Financials (2/3)
Rs Cr

RoCE

PBT (before exc items)

CAGR
44%

160

197
10.8%

160

10.4%

10.5%

8.1%

66

FY 13

FY 14

FY 15

FY 16

FY 13

FY 14

FY 15

FY 16

Financials (3/3)
Sources of Funds

Application of Funds
Others,
15%

Equity,
45%
55%

45%
Gross
Debt,
55%

Net debt/ Equity

Capital employed- Mar 16

Rs 3755 Cr

NWC % to Sales

0.99

NWC,
44%

Cash flow from

Operations Rs Cr
380

0.92

Mar 15

29.2%
27.4%

Mar 16

Mar 15

325

Mar 16

Fixed
Assets,
42%

Mar 15

Mar 16

MACRO ENVIRONMENT

PERFORMANCE UPDATE

CHALLENGES AND OPPORTUNITIES

STRATEGIC DIRECTION

Challenges
4% drop in Export Sales
Extended EOSS period
across industry

Rising cost of doing

business in India
PROFIT
STATUTORY
COSTS

Opportunities
Capacity additions

Growth
31% sales
growth in B2C
Shirting

Raymond flagship
store operationally
profitable within 1st
quarter of launch

18% sales growth

in Apparel

22% sales growth

in renovated
stores

Garmenting Unit
acquisition
(1.2mn pcs pa)

18mn mtr added in

B2B Shirting & Denim

Efficiency
Forging unit
hived off

Cost reduction
initiatives in
Engineering business

Rewards & Recognition

Raymond features as one of Indias Most
Respected companies as per Business
World Survey

Raymond RTW wins

Best Store design
award at Global
event in Las Vegas

SSAL awarded Gold

Certificate of Merit in
Indian Manufacturing
excellence awards 2015

Raymond bags
Most Trusted
Brand Award in
Retail Category

3 plants
awarded for
Excellence in
Energy
Conversation &
Management

Park Avenue wins

Shoppers Stop
Pinnacle Award
2015 Best Brand
Mens Classic

Denim plant won

16th Annual
Green-tech
Environment
Award 2015

MACRO ENVIRONMENT

PERFORMANCE UPDATE

CHALLENGES & OPPRTUNITIES

STRATEGIC DIRECTION

Strategic Direction
Shareholders
Value Creation

Value
Creation

Earnings per Share

Higher Operating
margins

Turnover Growth

Strategic
Enablers

Operating
Metrics

Brands & Innovation

Disruptive
Product
growth in
Innovation

Retail Network

MTM portfolio Best in

expansion
class Stores

Disruptive
Tailoring
growth in brands initiatives
Customer
Centric

Cash Generation

Stores
renovation

Capital
efficiency
Market Growth

Efficiencies

Grow
profitable
export
business

Unified
Loyalty
Program

Organisation
Transformation

Cost

Omni
Channel

Channel
expansion

Working
Capital
Unlock
Values

Strategic Direction
Shareholders
Value Creation

Value
Creation

Earnings per Share

Higher Operating
margins

Turnover Growth

Strategic
Enablers

Operating
Metrics

Brands & Innovation

Disruptive
Product
growth in
Innovation

Retail Network

MTM portfolio Best in

expansion
class Stores

Disruptive
Tailoring
growth in brands initiatives
Customer
Centric

Cash Generation

Stores
renovation

Capital
efficiency
Market Growth

Efficiencies

Grow
profitable
export
business

Unified
Loyalty
Program

Organisation
Transformation

Cost

Omni
Channel

Channel
expansion

Working
Capital
Unlock
Values

Innovative & Futuristic Products

Shackets

MTM aspires to provide complete wardrobe solution

Current Portfolio

Suits

Trouser

Shirts

Accessories

Recent Launches

Made to Fit

Shoes

Bags

Lithography

MTM grew by 45% in FY16; Double-digit L2L growth of 18%

Future Plans

Denim

MTM Woman

Disruptive growth in Brands i.e. 1.5x-2x of Market

SALES (Rs cr)
CAGR
17.4%

191

118

FY13

FY16

CAGR
16.4%

509

323

FY13

FY16

Among TOP 5
Formal
Apparel
Brands by
2020

Repositioning Fabrics through Tailoring Initiatives

Compromised fits

Customized fits

Sell Cloth

Sell Looks

Tailoring: barrier

Tailoring: value add

Expand Tailors base (Masters) by 20x to 100,000

Customer Centric Approach

Strategic Direction
Shareholders
Value Creation

Value
Creation

Earnings per Share

Higher Operating
margins

Turnover Growth

Strategic
Enablers

Operating
Metrics

Brands & Innovation

Disruptive
Product
growth in
Innovation

Retail Network

MTM portfolio Best in

expansion
class Stores

Disruptive
Tailoring
growth in brands initiatives
Customer
Centric

Cash Generation

Stores
renovation

Capital
efficiency
Market Growth

Efficiencies

Grow
profitable
export
business

Unified
Loyalty
Program

Organisation
Transformation

Cost

Omni
Channel

Channel
expansion

Working
Capital
Unlock
Values

Best in Class Stores to enhance Consumer experience

Raymond Ready to Wear flagship store in Indiranagar

Aggressive stores renovation 7x sales growth

Old Look

New Design

Stores renovated

85

12

16

L2L Growth %

22%

8%

6%

Renovation is a key strategic theme to continue forward

Loyalty Program to contribute 50% of Retail network sales in FY17

EARLIER

NOW

Premium Circle
Color Plus Spectrum

CONNECT

Park Avenue Loyalty

Parx Loyalty

The Raymond Rewards program to provide holistic engagement with 1Mn+ customer

Digital Immersion in Raymond

Digital
Vision

Create a holistic digital ecosystem to deliver superior Omni Channel customer experience

Provide single view of Customer, Inventory and Omni Channel capabilities

Raymond
Digital
Customer
Centre

Roadmap

Analytics
Digital
Customer
Centre
E-Commerce

CRM (Loyalty)

Launch

Phase 1

Phase 2

Phase 3

Chief Digital Officer &

Unified Loyalty

Re launch of

Trigger Omni

One Digital Team

Program

E-commerce Site

Channel

Strategic Direction
Shareholders
Value Creation

Value
Creation

Earnings per Share

Higher Operating
margins

Turnover Growth

Strategic
Enablers

Operating
Metrics

Brands & Innovation

Disruptive
Product
growth in
Innovation

Retail Network

MTM portfolio Best in

expansion
class Stores

Disruptive
Tailoring
growth in brands initiatives
Customer
Centric

Cash Generation

Stores
renovation

Capital
efficiency
Market Growth

Efficiencies

Grow
profitable
export
business

Unified
Loyalty
Program

Organisation
Transformation

Cost

Omni
Channel

Channel
expansion

Working
Capital
Unlock
Values

Driving profitable export business in key markets

EUROPE
USA

Garmenting Unit in
Ethiopia

Denim Plant
at Yavatmal

Marketing office
in Dubai & London

Network & Channel expansion

APPAREL

B2C Shirting

Expansion through EBO network

Growth through Retail &

wholesale channels
2.5x EBOs in 4 years

Increased LFS presence

2.5x counters in 4
years

3x LFS presence in 4 years

Strategic Direction
Shareholders
Value Creation

Value
Creation

Earnings per Share

Higher Operating
margins

Turnover Growth

Strategic
Enablers

Operating
Metrics

Brands & Innovation

Disruptive
Product
growth in
Innovation

Retail Network

MTM portfolio Best in

expansion
class Stores

Disruptive
Tailoring
growth in brands initiatives
Customer
Centric

Cash Generation

Stores
renovation

Capital
efficiency
Market Growth

Efficiencies

Grow
profitable
export
business

Unified
Loyalty
Program

Organisation
Transformation

Cost

Omni
Channel

Channel
expansion

Working
Capital
Unlock
Values

Transformation

Transparency

Personal
Accountability

Bias for Action

Meritocracy

Collaboration

5 Cultural Pivots Defined All Org processes and Policies re-validated /

impacted

Cost Optimization
Vendor Consolidation

Leverage technology for

Material procurement

Enhance yield

Cost control

Working Capital efficiencies

Working Capital Days

Improve Working Capital cycle

Net Working Capital

113
107
100
Inventory

88
79

83

Debtors

68

68
63

Channel financing
Re-engineer supply chain
SKUs rationalisation

FY 14

FY 15

FY 16

Better payment terms with

vendors

Unlock Value (1/3)

Thane Land
125 acres land

Real Estate team in place

Various options being evaluated

Sale of land
Development
Strategic partnership

Unlock Value (2/3)

Tools & Hardware

Challenging environment
Slowdown in industrial activities in key markets
especially Latin America
Currency devaluation of African countries

Initiatives
Scaling up power
tool business & its
accessories

Market & category

expansion

Optimization of
manufacturing Assets

Unlock Value (3/3)

Tier 1
Customers

Tier 2
Customers

Business Focus
GROW FLEXPLATES
Grow capacity
in existing
plant
Strengthen
Technical
Expertise

Continue FOCUS
on Ring Gears

REENGINEER
BEARING BIZ

Pursue LEAN
Philosophy
Develop
ANCHOR
Customers

Arrest
decline in
profitability
Focus on
OEM
customer