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Wil Presentation Et

  1. 1. W elspun India Limited Presentation on Seizing The Emerging Global Textiles Opportunity CONFIDENTIAL DRAFT
  2. 2. Welspun Group Profile <ul><li>US$ 400 million, engaged in </li></ul><ul><li>Terry Towels </li></ul><ul><ul><li>Largest Terry Towel producer in Asia </li></ul></ul><ul><li>Polyester Filament Yarn </li></ul><ul><ul><li>One of the largest Specialty Polyester Filament Yarn producer In India </li></ul></ul><ul><li>Polyester Buttons and Resins </li></ul><ul><ul><li>Largest producer of Polyester Buttons in Asia </li></ul></ul><ul><li>Cotton Yarn </li></ul><ul><ul><li>One of the prominent players in India </li></ul></ul><ul><li>Saw Pipes </li></ul><ul><ul><li>One of the largest capacities of Saw Pipes in Asia, outside Japan. </li></ul></ul>PAGE
  3. 3. WELSPUN INDIA LTD- Overview <ul><li>Asia’s largest and world’s 4 th largest Terry towel producer </li></ul><ul><li>Current Terry towel capacity :10,800 Tons being expanded to 23000 tons </li></ul><ul><li>Becoming a complete home textile player by addition of bed linen </li></ul><ul><li>Plant at Vapi Gujarat and Anjar, coastal Gujarat, India </li></ul><ul><li>Distribution network in 32 countries </li></ul><ul><li>Exports revenue- 94% of total revenue ( 68% to the US market) </li></ul><ul><li>Certification: </li></ul><ul><ul><li>ISO 9002/14001 and SA 8000:2001 by M/S BVQI </li></ul></ul><ul><li>Only Indian company to license life-style brand in Home Textiles </li></ul><ul><ul><li>Nautica for towels in US and Canada </li></ul></ul><ul><ul><li>Tommy Hilfiger for Home Textiles in India </li></ul></ul>PAGE
  4. 4. PAGE Welspun – Journey to become a Global Home textile Player
  5. 5. CIRCA 1994 <ul><li>Polyester yarn manufacturer </li></ul><ul><li>Turnover was Rs 90 Crs, Net Profit of Rs 4 Crs </li></ul><ul><li>Started Towel Business </li></ul><ul><li>Challenges: </li></ul><ul><ul><li>To produce Towel – New Business Line </li></ul></ul><ul><ul><li>To produce Quality Towel </li></ul></ul><ul><ul><li>To Export Quality Towel – EOU status </li></ul></ul><ul><ul><li>To Export Quality Towel to Knowledgeable Matured Market </li></ul></ul>PAGE
  6. 6. CIRCA 1994 – Cont….. <ul><ul><li>Emphasis on Maximum Production </li></ul></ul><ul><ul><ul><li>Quality improvement at each stage of production </li></ul></ul></ul><ul><ul><ul><li>Product Analysis based on Customer feed-back </li></ul></ul></ul><ul><ul><li>Emphasis on Volume Growth </li></ul></ul><ul><ul><ul><li>Focus on Sales from the maximum Outlets </li></ul></ul></ul><ul><ul><ul><li>Started Business through Intermediaries – Exporters, Buying Houses. </li></ul></ul></ul>PAGE
  7. 7. CIRCA 1999 <ul><ul><li>Produced Quality Towels </li></ul></ul><ul><ul><li>Exported Quality Towels </li></ul></ul><ul><ul><li>Expanded Capacities from 2500 Tons to 7800 Tons </li></ul></ul><ul><ul><li>Grew in Volume and Value Terms </li></ul></ul><ul><ul><li>Emerged as largest Exporter of Towels from India </li></ul></ul><ul><ul><li>Turnover – Rs 325 Crs – significant for Towel Co </li></ul></ul><ul><ul><li>Profit after Tax of Rs (31.5 Crs) </li></ul></ul>PAGE
  8. 8. CIRCA 1999 - Cont….. <ul><ul><li>External Dependence- All Business through Intermediaries </li></ul></ul><ul><ul><li>Presence in Generic Products – Yarn and Plain Dyed Towels </li></ul></ul><ul><ul><li>Focus on Sales rather than Marketing </li></ul></ul><ul><ul><li>Limited Designing Efforts </li></ul></ul><ul><ul><li>Limited Processing capabilities – right color/right shade/right mix was a challenge </li></ul></ul><ul><ul><li>Financial Crunch </li></ul></ul><ul><ul><li>In nut shell Innovation was a missing Link </li></ul></ul>PAGE
  9. 9. CIRCA 2000 - Putting heads together for a New Beginning PAGE
  10. 10. Strategy <ul><ul><li>Adopted Vision to become a Truly Global Player and communicate to all our employees </li></ul></ul><ul><ul><li>Breaking the midriff - middle-men/agents from the business cycle – Jettisoning Extra Baggage </li></ul></ul><ul><ul><ul><li>Direct Relationships even at the cost of dip in sales </li></ul></ul></ul><ul><ul><li>Decided to invest in Product Developments and Design Capabilities </li></ul></ul><ul><ul><li>In Essence Adopted Innovation in entire Business Operation - Product, Processes, Practices and People </li></ul></ul>PAGE
  11. 11. Innovation In Products <ul><ul><li>Paradigm shift from USE to COLLECTION range of products </li></ul></ul><ul><ul><li>New Value added product lines – Egyptian Cotton, Embroidery, Supima (American Cotton), Kid Centric Towels. </li></ul></ul><ul><ul><li>Experimented with different inputs like PVA fibers </li></ul></ul><ul><ul><li>New Product development </li></ul></ul><ul><ul><ul><li>Hygro Cotton </li></ul></ul></ul><ul><ul><ul><li>Zero-twist </li></ul></ul></ul><ul><ul><ul><li>Subslistatic Printed </li></ul></ul></ul><ul><ul><ul><li>Blister Pile Towels </li></ul></ul></ul><ul><ul><ul><li>Developed new shades and floral prints that are trendy and inline with the Fashion Industry </li></ul></ul></ul>PAGE
  12. 12. PAGE <ul><li>Process House: Fully Atomized color mixing </li></ul><ul><li>Design Innovation </li></ul><ul><ul><li>Developed new Designs by creating one of the best Home textile designing team </li></ul></ul><ul><ul><li>Design Studios </li></ul></ul><ul><ul><li>Design house in India - 5 people </li></ul></ul><ul><ul><li>2 designers each in US and UK </li></ul></ul><ul><ul><li>Appointed World class Designer from the Industry </li></ul></ul>Innovation In Processes
  13. 13. <ul><ul><li>Innovation in Sales and Marketing Processes </li></ul></ul><ul><ul><li>Selection of Right Business Partners </li></ul></ul><ul><ul><li>Created Marketing Infrastructure </li></ul></ul><ul><ul><ul><li>Sales team in US </li></ul></ul></ul><ul><ul><ul><li>6000 sq. ft. exclusive showroom in New York </li></ul></ul></ul><ul><ul><ul><li>Distribution alliance in the US for distribution and warehousing </li></ul></ul></ul><ul><ul><ul><li>Created Welspun USA - 100% subsidiary to handle customers directly </li></ul></ul></ul>Product Development skills complimented by Global Sales Network Innovation In Processes PAGE
  14. 14. <ul><ul><li>Utilizing IT as Integrator </li></ul></ul><ul><ul><ul><li>EDI & RFID in Welspun USA </li></ul></ul></ul><ul><ul><ul><li>Integration with Customers </li></ul></ul></ul><ul><ul><ul><li>Electronic Coloring and Design Matching which integrates Product Design & Development </li></ul></ul></ul><ul><ul><ul><li>SAP R/3 - Integrates Operations, Marketing and Supply Chain </li></ul></ul></ul><ul><ul><ul><li>Reverse Auction </li></ul></ul></ul>Innovation In Practices PAGE
  15. 15. Innovation In Practices <ul><li>Market Intelligence : Conducted Grid analysis of top retailers with respect to: </li></ul><ul><li>Product range, </li></ul><ul><li>Fast Moving Items best selling SKUs </li></ul><ul><li>Profit margin expectation </li></ul><ul><li>Collection of Samples to understand </li></ul><ul><li>global developments </li></ul>PAGE
  16. 16. People <ul><li>Paradigm shift in Mindset from Manufacturer to Marketer. </li></ul><ul><li>Adequate Training in SAP enabled Production and Operations </li></ul><ul><li>Appointed International Textile consultant to improve skill sets of employees </li></ul><ul><li>Appointed Experienced and result oriented people from the Industry . </li></ul><ul><li>Performance based Reward system </li></ul>PAGE
  17. 17. YEAR 2004 - Revisited PAGE
  18. 18. Product wise sales – in terms of % (based on ex-mill values) The proportion of the value added products has increased PAGE
  19. 19. Time Value Creation ‘ 95 2000 2003 2004 2005 Indirect Export Direct Export Choose & Pick amongst Retailers High end products Branding Marketing & Outsourcing PAGE Progress in Value Chain
  20. 20. <ul><li>Long standing relationship with 12 out of 20 top retailers in the world </li></ul><ul><li>Customer centric Planning and Production mechanism </li></ul>BETTERNWELT MITSUKOSH Customer Relationship PAGE
  21. 21. Value Chain contribution May&Co, Federated, Dillard’s BB&B , LNT , Kohl’s 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% + 13-15% 2x Retail Price Expansion PAGE 2003 2004 2005 8% 2% 0% 32% 33% 15% 22% 12% 15% 1% 5% 10% 3% 4% 10% 8% 12% 15% Indirect Business
  22. 22. Comparison PAGE 32.19% Venture Capital & Mutual Funds 2.66% 24% FII Holdings - 800 Market Cap. 41 295 Net Profit (35) 374 Turnover 325 FY 2005 (Rs. Crs) Particulars FY 1999 (Rs. Crs)
  23. 23. Global Opportunities PAGE
  24. 24. Today’s Global market place <ul><li>Quota phase out – An additional market of $ 1.25 bn in Towel and $ 1.75 bn in bed linen Segment alone </li></ul><ul><li>Shrinking supplier base released </li></ul><ul><ul><li>Pillowtex - bankruptcy - $ 450 mn of towel and $ 220mn of bed linen supply. </li></ul></ul><ul><ul><li>WPS - Chapter 11 – $ 455 mn of towels and $ 580 mn of bed linen supply. </li></ul></ul><ul><li>Lucrative European market of $ 600 mn with shrinkage of supplier base. </li></ul><ul><li>Australian and New Zealand market of $ 50 mn – </li></ul><ul><ul><li>Dropping duties – 25 to 17.5%, rendering there capacities idle </li></ul></ul><ul><li>Increased domestic demand – </li></ul><ul><ul><li>Few organized player in the home arena to cater to the market </li></ul></ul><ul><ul><li>Low interest rates and higher disposable income </li></ul></ul>PAGE
  25. 25. Key Differentiators PAGE
  26. 26. <ul><li>Success Algorithm </li></ul><ul><li>Textiles has been forecasted as another BPO success story, what Y2K did for IT , Y2K5 could do for Textile Industry </li></ul><ul><li>Mantra For Success as followed by Infoys - </li></ul><ul><li>P: Profitability </li></ul><ul><li>S: Scalability </li></ul><ul><li>P: Predictability </li></ul><ul><li>D: Dependability </li></ul>PAGE
  27. 27. Vision 2005 and Beyond PAGE
  28. 28. Innovation in 2005 and beyond <ul><li>Products: Continuous Innovations in Products- Bamboo Filaments, Hollow Yarn, Natural Towels </li></ul><ul><ul><li>New Business Lines like Bed Linen </li></ul></ul><ul><li>Processes: Automatic Recipe matching – Orgatex, Automated Operations like Cut and Sew. </li></ul><ul><li>Practices: Patenting of New products to Create differentiators. </li></ul><ul><li>People: Knowledge Management, Six Sigma and ESOPs </li></ul>PAGE
  29. 29. Vision – This is what we are aiming at……………. <ul><li>Fully integrated textile company 4 Fs - from farming to factory to fashion to foreign retailing </li></ul><ul><li>Organic and inorganic initiatives to target Growth </li></ul><ul><li>Preferred partner in Home Textiles for any global initiative. </li></ul><ul><li>Leader in embracing new technologies, product innovation, market intelligence - to offer competitive end-to-end solutions to our customers. </li></ul><ul><li>Among top three home textile companies in the world. </li></ul><ul><li>Market leader in Indian home textile market. </li></ul>PAGE
  30. 30. <ul><li>RECOGNITIONS </li></ul>National Export Award for outstanding performance from Government of India, for the year 1996-97 Texprocil* gold trophy for outstanding export performance for successive three years (1999-00, 2000-01 & 2001-02) 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
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