Welcome to MARUTI COTEX LTD.

1
Welcome to MARUTI COTEX LTD.

• Indias Only 100,000 Spindles 100 Cotton Yarn
  Spinning Unit under one roof.

2
(No Transcript)
3
(No Transcript)
4
(No Transcript)
5
Location

• Maruti Cotex Ltd. Address-Plot No T 17 Kagal -
  Hatkanangle  5 Star MIDC,             
  Post-Talandgle.Tal-Hatkanangle.Dist-
  Kolhapur.              State - Maharashtra.
  Country- INDIA.  Pin No 416216.
• web site - www.maruticotex.com
•  

6
Project LeoInformation Note

• I. Executive Summary
• Project Leo (Company or Unit) provides an
  excellent opportunity to acquire a
• large size spinning Company in Kolhapur,
  Maharashtra, India. The Company i.e.
• Maruti Cotex Limited is part of Mohite Group and
  operates one of the largest yarn
• manufacturing unit in Western India.
• The Spinning Unit has around 1,00,000 spindles
  with all the required infrastructure in
• place. The Unit is relatively new and was
  established in the year 2009.

7
II. Plant and Machinery

• The Company has around one lacs spindles and all
  the required infrastructure in place
• for running the Unit efficiently. The machines
  are well equipped to product high
• quality yarns primarily in the 50s count range.
• Pls refer to Annexure A for a detailed list of
  plant machinery at the Unit.

8
III. Infrastructure in Place

• 1. Labor The unit currently has 500 temporary
  employees and 30 permanent
• employees to fulfill the statuary requirements.
  However, to operate at full
• capacity the unit would require around 800
  employees.
• There are no labor unions and as well as no
  shortage of labor as the unit is located in the
  textile hub with various textile units surrounded
  in the vicinity. Close proximity to Karnataka
  also ensures that there is no shortage of labor

9
2. Power

• The Unit has dedicated specific lines provided by
  the Government. There
• is uninterrupted power from the state electricity
  board from the Express Feeder.
• Power cost during peak hours (6 a.m. to 10 p.m.)
  is Rs 6.40 per unit ie 10-11 Cents/ Unit (after
• deduction of subsidy) and during off peak hours
  (10 p.m. to 6 a.m.) is Rs 5.70 per
• unit (after deduction of subsidy).

10
3. Water

• Water is availed through MIDC in addition to bore
  well at the unit site, plenty water is available
  to the bore wells .
• The water cost is Rs 13 per 1000 liters.
• 5star MIDC has a facility for Centralized
  Effluent Plant no additional expenditure to incur
  on adding separate ETP. That reduces investment
  on COP.

11
4. Land

• The present Unit is located on 21 acres of land.
  Land is on 99 year lease
• from MIDC.
• Additionally there is around 59 acres of land
  adjacent to the unit which can be
• part package with the transaction in case of
  interest. Construction at the
• additional land of 59 acres is in a semi finished
  state with basic civil work completed for
  additional one more 100,000 Spindles unit in the
  same primises. Currently, construction has been
  put on hold due to lack of funds

12
. Raw Material Procurement Market

• The Company currently manufactures yarn with an
• average count of 50 and raw material i.e. cotton
  is procured from Maharashtra,
• Karnataka and Madhya Pradesh. Cotton growing
  regions of Karnataka are at 300
• km from the unit.
• Market for the Product in domestic is very close
  as unit is well located close to Market place
  good connectivity of NH sea Port for
  transportation.

13
Facilities
14
Facilities
15
Facilities
16
IV. Government Incentives and Benefits

• The present Unit has received Mega Project Status
  for the Maharshtra Government
• and hence is entities to Government incentives
  and benefits. Brief details about the
• benefits are as follows

• Benefits

• 1. Electricity Duty Exception The Unit enjoys
  excise duty exception for a period
• of 7 years from the date of commencement of
  commercial production.

• 2. 100 exemption from payment of stamp duty
• 3. VAT and Sales Tax refunds The unit is
  entitled for VAT and Sales Tax
• reimbursement from the Government. The VAT refund
  is available on filing of
• the annual IPS.

17
Benefits

• 4. Existing TUF benefits

• 5. Accumulated Losses

• The unit has long term debt at an average
  interest rate of
• 12.5 and is entitled to 5 interest
  reimbursement from TUF scheme, resulting
• in an effective payable interest rate of 7.5

• The Company has accumulated losses of Rs 110 Cr
  which
• would may be used as set off from the future
  profits. Around 45 of the above
• carried forward losses are due to depreciation
  and amortization (no time limit for
• set-off).

18
Longest Ring Frame 1440 Spls/ Frame Rieter Make
19
Ring Frames With Auto Doffer
20
V. Key Facilities Production Profile

• Production Capacity

• The Unit at full capacity can produce 8,000 tons
  of yarn perannum.
• However due to financial constrains the Unit has
  been operating at sub optimal levels till date.

21
100,000 Spls Under One Roof
22
Exteriors Unit Snap Shot
23
Factory Building

• The key details of factory building and other
  facilities are as
• follows

• Particulars Ares (Sq Feet) Comments
• Main Factory Building 5,52,881 Excluding Ducts
  Plinth
• Ducts(Area Approx
• 1,40,000Sqft)
• Canteen /Restroom 4,000
• Guest House 5,616
• Total 5,62,497

24
VI. Key Financials

• 1. Profit Loss Account
• The Unit is fully equipped to produce around
  8,000 tons of yarn per annum given
• that it runs at full capacity. Hence an efficient
  utilization can result in a robust
• topline of around Rs200 Rs 220 crores.
  Historically the Unit has
• demonstrated a EBITDA margins of around 16 which
  can be topped up
• further due to the available VAT and Power Duty
  exemptions.

25
The key financial details for the last two years
are as follows

• Going forward Management of the Company believes
  that there can be significant
• improvements in the top line and margins
  primarily due to efficient utilization of
• capacities and the resultant Govt. benefits.

26
Particulars FY 2011Rs Crores

• Sales Accounts 95.71
• Other Income 8.23
• Increase/(Decrease) in Stock 17.18
• Total Income 121.12
• Raw Material Consumed
  75.85
• Direct Expenses
  20.27
• Indirect Expenses
  5.43
• Cost of Finance
  25.91
• Depreciation
  19.59

27
Particulars FY 2011Rs Crores

• Total Expenditure
  147.05
• EBITDA
  1 9.57
• EBITDA Margins
  16.2
• Net Profit /Loss
  (25.93)

28

• Going forward Management of the Company believes
  that there can be significant improvements in the
  top line and margins primarily due to efficient
  utilization of capacities and the resultant Govt.
  benefits.

29
Particulars FY 2012Rs Crores

• Sales Accounts 20.64
• Other Income 6.08
• Increase/(Decrease) in Stock (17.07)
• Total Income 9.65
• Raw Material Consumed
  19.92
• Direct Expenses
  6.67
• Indirect Expenses
  2.93
• Cost of Finance
  17.55
• Depreciation
  20.99

30
Particulars FY 2012Rs Crores

• Total Expenditure
  68.05
• EBITDA
  ( 19.86)
• EBITDA Margins
  NMF
• Net Profit /Loss
  (58.40)

31
Annexure A List of Plant Machinerys Make
32
Annexure A List of Plant Machinerys Make
33
Utilities

• Plant Equipt With Luwa Humidification System
  Advance Uster Lab

34
Utilities
35
Utilities
36
Utilities
37
Utilities
38
Utilities