FASHION WITH A PURPOSE STRENGTHENING OUR CORE, EXPLORING HORIZONS SETTING FASHION TRENDS WITH GLOBAL BRANDS TOUCHING LIVES ACROSS GEOGRAPHIES

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1 FASHION WITH A PURPOSE STRENGTHENING OUR CORE, EXPLORING HORIZONS SETTING FASHION TRENDS WITH GLOBAL BRANDS TOUCHING LIVES ACROSS GEOGRAPHIES Mandhana Industries Limited, Corporate Presentation

2 SAFE HARBOUR This presentation may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures, and financial results, are forward looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The company cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements. The company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise. While every effort is made to ensure that this presentation conforms with all applicable legal requirements, the company does not warrant that it is complete, comprehensive or accurate, or commit to its being updated. No part of the information provided herein is to be construed as a solicitation to make any financial investment and is provided for information only. Any person/ party intending to provide finance / invest in the shares/businesses of the Company shall do so after seeking their own professional advice and after carrying out their own due diligence procedure to ensure that they are making an informed decision. In no event shall the company be liable for any damages whatsoever, whether direct incidental, indirect, consequential or special damages of any kind or including, without limitation, those resulting from loss of profit, loss of contracts, goodwill, data, information, Income, expected savings or business relationships arising out of or in connection with the use of this presentation.

3 What s ahead? Corporate Overview MIL s Vigour Future Endeavours Financial Performance Industry Overview Operations & Welfare

4 Section 1 CORPORATE OVERVIEW

5 Corporate Overview 5 MANDHANA INDUSTRIES LIMITED (MIL) at a glance Multi-divisional, Multi-geographical textile company Presence across India and more than 25 other countries Strong top line growth at a 5-year CAGR of 24.80% Net Turnover (in ` Cr.) PAT (in ` Cr.) Manufacturing of Textile and Garments with state-of-the-art infrastructure Activities include Designing, Yarn Dyeing, Weaving, Processing, Printing, Garment Manufacturing and Retail Phenomenal Growth since inception due to our ability to delight customers through consistent innovation Focus on gaining greater visibility and traction on enhanced branding, retailing and social outreach programmes through Exclusive tie-ups Employee Strength of around 6,000

6 Corporate Overview 6 MIL DIVISIONS 20% Textiles Segment (80%* of Revenues) 80% Garments (20%* of Revenues) *As per FY audited financials 1,119.8 Textiles Segment Revenue growth: 9 % Products: Greige and finished fabrics, including cotton textiles, yarn dyed fabrics, embroidered, embellished and blended cotton fabrics, including cotton blends with nylon, lycra, viscose, mélange and others. Garments Segment Revenue growth: 22 % Products: Readymade woven garments including shirts, ladies tops, dresses, skirts, kids wear and sportswear, both for third-party brands as well as flagship brand Being Human Textiles Garments Exports: We export fabrics also. Exports: 65% garments are exported to more than 25 countries Textile Turnover (in ` Cr.) Garments Turnover (in ` Cr.) CAGR: 25.40% CAGR: 22.96%

7 Corporate Overview 7 OUR PRESENCE ACROSS THE VALUE CHAIN Yarn Weaving Processing Activity Dyeing (Process) Greige Fabric Printing Processing Activity Surface Ornamentation Finished Fabrics Embellishments & Washing Stitching (Activity) Embellishments & Washing Finished Garment

8 Corporate Overview 8 THE MIL STORY OF EVOLUTION Incorporation of Mandhana Industries Limited Began the processing unit with a capacity of 1,000,000 mtrs p.m Commenced garment exports Set up weaving unit at Tarapur with a capacity of 500,000 mtrs p.m. Established a garment unit at Bengaluru to produce 120,000 garments p.m Augmented weaving capacities and processing capacities at Tarapur adding 200,000 mtrs p.m. and 700,000 mtrs p.m. respectively Set up Mandhana Europe- liaison office in Paris. Set up a new yarn dyeing plant and weaving plant at Tarapur with capacities of 150,000 kgs p.m. and 800,000 mtrs p.m., respectively Established new garment units at Bengaluru and Mumbai to manufacture additional 130,000 pieces p.m. Set up one more garment unit at Bengaluru to roll out additional 50,000 pieces p.m Floated an IPO to raise ` Cr Tied up with Being Human a retail brand owned by Salman Khan Doubled the weaving capacity to 32,50,000 mtrs p.m. Installed an additional capacity of 110,000 kgs per month in the Yarn Dyeing unit Being Human Apparels launched in the Middle East through strategic tie-up with Landmark Group. Enhanced Processing capacity at Tarapur by 1,300,000 mtrs p.m Commenced CDR/CBR processing with printing - 3,000,000 mtrs p.m. Installed an additional capacity of 100,000 kgs per month in the Yarn Dyeing unit Launched Being Human Apparels in India Set up garment unit at Tarapur with a capacity of 2,000,000 pcs p.a Setting up garment unit at Baramati with a capacity of 2,000,000 pcs p.a Enhanced CDR capacity at Tarapur by 250,000 mtrs p.m

9 Corporate Overview 9 MIL s EXPORT Italy, 2.Czech Republic, 3.France, 4.Switzerland, 5.The Netherlands, 6.The United Kingdom, 7.Greece, 8.Spain, 9.Finland, 10.Hungary, 11.Turkey, 12.Russia, 13.Poland, 14.Germany, 15.Malaysia, 16.Mexico, 17.USA, 18.Australia, 19.Saudi Arabia, 20.Israel, 21.Singapore, 22.Indonesia, 23.Romania, 24.Chile, 25.Hong Kong.

10 Corporate Overview 10 DIVERSIFIED CUSTOMER BASE Domestic Clientele- Textile Allen Solly, Louis Phillipe, Van Heusen, Pantaloons, Indian Terrain, Pepe Jeans, Wills, Shoppers Stop, Raymonds, Spykar, Lee, Wrangler, Arrow, Flying Machine International Clientele- Textile Hilfiger denim, American Eagle, Gap, J.C.Penny, A & F, Marks & Spencer, Tommy Hilfiger, Express, S.Oliver, Marc-o-Polo, H & M, Esprit, Levi s, Gerry Webber International Clientele- Garment Jeans and High-Street Wear U-club, Colin s, Desigual, Mango, River Island, Mossimo, Basement, Americanino, New Look, U.S.Polo, Lee Cooper Sports and Surf Wear Roxy, Caterpillar, Oxbow Retailers New Yorker, Auchan, Hema, Splash, Kaufland Corporate Brands Switcher

11 Section 2 MIL s VIGOUR

12 MIL s Vigour 12 STRENGTHS Vertically integrated operations and proven execution capabilities Focus on value-added products through cuttingedge designs Superior technological and marketing capabilities A sustainable business model through effective mix of domestic and export revenues A unique, powerful, popular and well-positioned retail brand in the form of Being Human Quickest turnaround time Diversified domestic and international customer base having strong relationships with global retailers and top fashion brands Wide product basket A blend of youth & experienced personnel Excellent financial track record with highest realisations, higher operating margins, optimum capacity utilisations and lower leverage as compared to peers In-house style lab and textile studio

13 MIL s Vigour 13 QUALITY ASSURANCE ISO 9001 (Management ET System) Oeko - Tex (Using environment- friendly chemicals) Flo - Cert (Fair Trade) Gots (Organic cotton production) Control Union (Eco-friendly products) Globally benchmarked superior quality assurance using Statistical Quality Control (SQC) techniques Industrial engineering through skill evaluation, time management, planning and execution Quality Control through process flow, functions, controls, traceability, testing and auditing Quality Assurance through 2.5 AQL System, management of people, defining roles, process planning, product information

14 MIL s Vigour 14 EXPERIENCED MANAGEMENT TEAM Mr. Purushottam C. Mandhana, Chairman & Managing Director Founder of MIL A visionary and an entrepreneur with proficiency in every sphere of textiles An administrator par excellence with more than three decades of industry experience Mr. Biharilal C. Mandhana, Executive Director Co-founder of MIL Insight into human resources and logistics Exhaustive sourcing capabilities and ability to perceive opportunities and threats More than three decades of industry experience Mr. Manish B. Mandhana, Jt. Managing Director Driving constant modernisation and progress Close to two decades of industry experience Perfectionist and an aggressive marketer

15 MIL s Vigour 15 EXPERIENCED MANAGEMENT TEAM Mr. Ghyanendra Nath Bajpai Non-Executive and Independent Director Ex-Chairman of SEBI and LIC Ex-Non-Executive Chairman of NSE, SHCIL, LIC Housing Finance Co. Limited Ex-Director of GIC, ICICI, UTI, India International Insurance Ltd Visiting Professor at Middlesex University, London Conferred the Outstanding Contribution to Development of Finance Award by the Honourable Prime Minister Shri Manmohan Singh Mr. Khurshid M. Thanawala Non-Executive and Independent Director Responsible for the establishment and management of textile mills in Kenya and Indonesia in the capacity of Managing Director, Director of Textile Consultancy, Management and agency companies in East Africa, Switzerland, Singapore and India, Managing Director, Barmag India Pvt. Ltd., Sales and Service of Textile Machinery for the chemical and natural fibre, Mr. Dilip Karnik Non-Executive and Independent Director Ex-Mumbai High Court Judge and Ex-Director of United Western Bank Astute commercial and corporate skills Mr. Sanjay Asher Non-Executive Director Solicitor and Partner in Crawford Bayley & Co. Invitee by the Government of India in the committee formed by the Department of Disinvestment Committee Member for Indo US Financial Institutions Reforms & Expansion Projects Managing Director, Oerlikon Textile India Pvt. Ltd.

16 Section 3 FUTURE ENDEAVOURS

17 MIL s Vigour 16 ACHIEVEMENTS Tarapur and Baramati projects conferred with MEGA PROJECT status in June 2011 Received the Outstanding Exporter of the Year award for at the International Trade Awards Awarded the NIRYAT SHREE Gold Trophy by the Federation of Indian Exporters Organisation (FIEO) for remarkable growth in exports for FY Awarded the NIRYAT SHREE certificate of excellence for remarkable growth in exports for FY and FY Conferred the UDYOG RATNA award for excellence in productivity, quality, innovation and management by the Institute of Economic Studies, Delhi (IES)-2007 Obtained the SA 8000 Certification for Social Accountability in Business Practice-2006 Runner up at the International Textile Awards Nominated as one of the top three contenders in the textile and apparel category of the Emerging India Awards 2007

18 Future Endeavours 18 FUTURE ROADMAP Post-expansion Capacities Yarn Dyeing 4.3 Mnkgs. p.a. Weaving 39 Mnmtrsp.a. Fabric Processing 73 Mnmtrsp.a. Garmenting 8.1 Mn. pieces p.a. Expanding the reach as well as the product range for Being Human Launch of Being Human Kid s wear collections Kick-off of Online Sales on Being Human Clothing Planning 650 Sales Points for Being Human by March 2015 Over USD 30 Mn investment plan underway for Expansion Projects Projecting a turnover of 2,000 Cr. by FY 2016 Dress Shirt manufacturing unit at Baramati under Scheme for Integrated Textile Park (SITP) by the Ministry of Textiles

19 Future Endeavours 19 FOCUSING ON SCALE We have emerged as a niche player in India s Textile industry through vertical integration. Expansion of the Weaving facility Location: Plot No. C2, MIDC, Tarapur, Maharashtra Capacity: Expanded the capacities from 18 Mn mtrs p.a. to 36 Mn mtrs p.a. Stage: Commenced commercial operations on 22 nd March, 2011 Setting up Garment Manufacturing Plant 1 2 Location: Plot No. E-132, MIDC, Tarapur, Maharashtra Capacity: Expand to 6.1 Mn pieces p.a. from 3.6 Mn pieces p.a. Stage: Commenced commercial operations from March, 2013 Location: Baramati Hi-tech Textile Park Features: Project under SITP Total Capital Expenditure estimated at ` 95 Cr. Proposed Capacity: 2 Mn pieces p.a. Status: Land Acquisition completed Factory building construction near completion Machinery selection and procurement under process Expected to begin commercial operation by September, 2014

20 Future Endeavours 20 WIDENING THE HUMAN ANGLE A tentative capital investment of around 150 Cr. Deal for 18 years Deal focus on the branding, retailing and various promotional activities Plans to roll-out total 650 selling points over next two years through a mix of flagship stores, Store-in-stores (SIS) and franchise formats and Distributor based model Positioning Fashion with a Heart Target Customers Households with an income of ` 10 Lacs + Consumers will be in the age group of years in SEC (Socio-Economic Class) A 1 & 2 categories Geographic Focus 2-4 Exclusive Brand Outlets (EBOs) COCO (Company-owned Company-operated), each in Mumbai, Bengaluru and Delhi 1-2 EBO s (COCO) in the rest of top cities in India Company to foresee opportunities at Tier-2 and Tier-3 cities via Franchising Price Mix Premium pricing range

21 Future Endeavours 21 PRODUCT MIX Casual Clothing with primary focus on tees and denims with casual shirts, casual bottoms and accessories A slightly higher concentration on men s wear, as the market is bigger and less complicated than women s wear Men s wear to make up 60% of product portfolio, majorly due to the market constituting a major part of organized apparel chain Women s wear initially start with 40% product profile, which is higher than most competitors

22 Future Endeavours 22 PRODUCT CATEGORIES BREAK-UP 50-60% Core range, another 20-25% Fashion and rest Festive and Occasion based collections 10% 10% 20% 20% 45% 50% 25% 15% Tees Shirts Denim Trousers Tees Tops and Dresses Denims Trousers and Capris Men s Product mix Women s Product mix

23 Future Endeavours ENHANCING CONSUMER BRAND EXPERIENCE Stage I Pre-Launch Creating brand awareness and consumer involvement Stage II Launch Generate footfalls and conversions from an active consideration for the product to regular consumption Stage III Build Brand recall and repeat visits through relationship building and spreading awareness through word-of-mouth

24 Future Endeavours 24 MARKET ACTIVITIES ACROSS DIFFERENT STAGES Social media marketing Offline PR activities involving Salman Khan for fund raising (fashion, films and sports) Outdoor hoardings and print campaign Radio ads Viral marketing and other below-the-line activities along with the Being Human Foundation In-store communication, promotions and offers, and gift vouchers Brand development through traditional media Co-promotion activities with other like-minded organizations, like CRY and Smile Foundation help gain a fan following Product placement in movies

25 Future Endeavours 25 BUSINESS STRATEGY Geographic expansion Enhance garment manufacturing capacity to tap overseas market Reap maximum benefit from government incentives, such as Technological Upgradation Fund Scheme (TUFS), increase in duty drawback/duty Entitlement Pass Book Scheme (DEPB) and reduction in interest cost by strategizing a proper mix of Working Capital loan. Diversification into women s wear segment in a planned manner Expand geographic reach Explore opportunities in countries where there is demand for value-added textile products Tap domestic opportunities, sub-geographic penetration and product/ market diversification to mitigate market risk and widen growth prospects Strengthening apparel design and product development processes Innovating designs and samples for fabrics and garments supported by in-house design studio cum sampling unit Constant upgradation of design studios - human resources and technology Explore and tap the high-end, readymade garment segment, which will help maintain higher sales realisation Improve operational efficiency Identify separate cost centres to monitor major costs Control raw material costs through bulk purchases and negotiations with suppliers Control consumption and wastage through effective supervision on the shop floor

26 Future Endeavours 26 BEING HUMAN Launch

27 Section 4 FINANCIAL PERFORMANCE

28 Financial performance EBITDA Margins (%) % Y-o-Y Growth in Domestic Sales 45% Y-o-Y Growth in Exports (E) Estimated 1, , MIL Corporate Presentation FINANCIAL PERFORMANCE & KEY HIGHLIGHTS Net Turnover (in ` Cr.) EBITDA (in ` Cr.) ( Strong top line growth due to higher productivity, aggressive marketing and also higher realisations on both finished fabrics and garments ) CAGR 24.80% Net Profit Margins (%) CAGR 15.62% Textiles Garments PAT (in ` Cr.)

29 Financial performance FINANCIAL PERFORMANCE & KEY HIGHLIGHTS (E) (E) Fina ncial perfo rman ce times Net Worth increased from Cr. To Cr % Return on Net Worth (RONW) Debt Equity Ratio % Return on Capital Employed (ROCE) EPS* (`) (Diluted) *On fully diluted equity of ` 33.1 Cr. Average Realisation per piece (in `Rs) Fixed Assets (in ` Cr.) CAGR for Fixed Assets 14.02% Garment Fabric

30 Financial performance 30 SHIFT OF BUSINESS BIAS TOWARDS GARMENTING Q Q Crs Garment Revenue In FY 2014 Fina ncial perfo rman ce 18% 82% 26% 74% Textiles Garments Change in Revenue Share Q Q % Share of Garment EBIT in Total EBIT in Q % 71% 40% 60% Textile Garment Change in EBIT Share

31 Financial performance 30 BEING HUMAN IMPROVED SHARE 131crs Total Sale of Being Human In FY 2014 Fina ncial perfo rman ce Q Q % Growth of Being Human Sales in FY 2014 vs FY % 18% 56% 44% Being Human Others 27% Being Human Share in Garment Revenue Share Being Human EBITDA for FY 2014

32 Section 5 INDUSTRY OVERVIEW

33 Industry overview 32 Textile Industry Indian textile industry 14% of the industrial production 4% of the country s GDP 12% of total exports 17% of export earnings 35 Mn people directly employed in the industry Indian textile and apparel industry Surged from USD 46 Bn in 2005 to USD 70 Bn in 2009 Slated to reach USD 134 Bn by 2015 and USD 220 Bn by Global textile and apparel industry Surged from USD 355 Bn in 2000 to USD 612 Bn in 2008; USD 662 Bn in 2011 Slated to reach USD 840 Bn by 2016 and USD 1,060 Bn by nd largest employer after the primary agriculture industry CAGR ( ) 530 Apparel 3% Fabric 4% 70 Yarn 3% (E) 2020 (E) (E) 2020(E) (E) 2020(E) Fiber 1% Others 6% Total 5% Domestic Exports Total CAGR 11% (E) Estimated 2011E 2016P 2021P

34 Industry overview 33 SCOT ANALYSIS OF THE TEXTILE AND APPARELS INDUSTRY Strengths Abundance of natural and man-made fibres India is one of its largest producers of fibres Low-cost labour Challenges Fashion-sensitive market High indirect costs Opportunities New product developments Increased brand consciousness Gradual shift to ready-to-wear garments Government impetus for the industry Threats Fairly competitive market Presence of many unorganised players

35 Section 6 OPERATIONS AND WELFARE

36 Operations and welfare 35 OFFICES AND FACILITIES OFFICES Mumbai, Tarapur, Bengaluru, Chennai, Delhi FACILITIES Four textile manufacturing facilities at MIDC, Tarapur for yarn dyeing, weaving and fabric processing, one garment manufacturing facility at MIDC, Tarapur Five garment manufacturing facilities at Bengaluru

37 Future Endeavours 36 Employee value creation Social Accountability Health and safety compliance Grievance committee Opportunities for the disabled Free canteen facilities Crèche facilities Performance-driven incentive schemes Committee for prevention of sexual abuse Recreation facilities Skill up gradation through ongoing training Switzerland-based NGO ISCOM has certified us for Social Code of Conduct Women empowerment Effluent treatment of plants in all our facilities Creating unbiased employment opportunities Product DNA traceability Close association with social organization's working for the under privileged and people affected by natural calamities Promoting organic cotton products Commitment to Corporate Governance

38 Thank you Corporate Office Mandhana Industries Limited , Peninsula Centre, Dr. S.S.Rao Road, Mumbai India.