SHIVATEXNSE17 February 2023

Shiva Texyarn Limited has informed the Exchange about Investor Presentation

Shiva Texyarn Limited

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SHIVA TEXYARN LIMITED

Regd. Office: 52, East Bashyakaralu Road, R S.Puram, Coimbatore -641002, Tamilnadu INDIA

Telephone . 0422 -2544955 E-mail: shares@shivatex.co.in

Website : www.shivatex.co.in CIN : L65921TZ1980PLC000945 GSTRN ; 33AABCA6617MIZO

STYL/SEC/131/2022-23 17th February 2023

Dear Sir,

SUB:-lNVESTOR PRESENTATION -REG.

We are attaching herewith the lnvestors' Presentation to be made to the lnvestors

for the quarter / Nine Months ended 31.12.2022 as per Regulation 30(6) of SEBl

(Listing Obligations and Disclosure Requirements), Regulation 2015 read with Part A

of Schedule Ill of the Listing Regulations.

Pursuant to Regulation 46(2)(o) of the Listing Regulations, the aforesaid information

is also available on the website of the Company www.shivatex.in.

Thanking you

Yours faithfully

For Shiva Texyarn Limited

R.ha^N

compahy.£eo:r2e,t2a5Z

Shiva Texyarn Limited Result Update Presentation Q3 & 9M FY23

Focus on Technologically Advanced, Innovative & Eco-friendly products

Disclaimer

This presentation has been prepared by Shiva Texyarn Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.

Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the Company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

Table of Contents

Managing Director’s Message

Financial Highlights

Company Overview

Business Overview

Way Ahead

Managing Director’s Message

Commenting on the results, Dr. S K Sundararaman, Managing Director, Shiva Texyarn Ltd. said:

“The textile industry continues to have one of its most challenging periods ever during this quarter. In the face of market headwinds that have led to significant increases in the price of raw materials particularly in cotton as well as a decreased demand due to geo-political situations. The Company has been able to sustain its markets while facing these challenges and we believe going forward the spinning industry should only become better. The technical textiles portfolio has done reasonably well.

In Q3 FY23 our top line stood at Rs. 94.78 cr. In light of the overall market slowdown, we continued strategic production cuts during this quarter as well. The spinning as well as retail markets are undergoing a slowdown. Moreover, continued rise in cotton prices offset the benefit of higher contribution from technical textiles, leading to contraction in margins. During this quarter, technical textiles accounted for 32.5% of our top line.

During the quarter, we bagged an order from the Ministry of Home Affairs, Government of India, for extreme cold weather clothing systems (suits). The order is worth Rs. 13.14 cr and would be deliverable through January to July 2023. Our relationship with the Government continues to build stronger as their supplier of choice for various products.

In line with our strategy to diversify our technical textiles portfolio, earlier this year, we launched seamless saree shapewear as part of innerwear range of products for the domestic market. We believe seamless garments is a high growth potential market. Meanwhile, our lamination products continue to enjoy a healthy market share, backed by our strong spinning business.

I would like to thank all the stakeholders as well as the entire Shiva Texyarn team, which continues to push the Company forward with great resilience.“

Recent Developments

 Bagged order for extreme cold weather suits from Ministry of Home Affairs, GOI, worth Rs. 13.14 cr

 Recently launched Seamless Saree Shapewear product under innerwear category in India

 Won an order worth Rs. 11.9 cr for Haversack bags from the Ministry of Defence

 Acquired 26% stake in LK Distributors Pvt Ltd, a wind power generation company, for captive use. Shiva

Texyarn may increase stake in LK Distributors to 40%

 Brought several new and innovative products to help fight the pandemic. Company launched many new products aimed at medical and general public use, to prevent spread of virus and bacteria and help improve quality of lives. 1. Protective Coveralls – Started manufacturing protective coveralls for medical use in April 2020, to cater to

surge in demand for such gear by the Government

2. Face Masks – In May 2020, launched new range of face masks under brand name ‘Smiley’. For this product, we partnered with ‘Feed My City’ initiative, wherein Rs. 10 from each mask sold was donated towards feeding under-privileged who were worst affected during that time

3. Anti-viral Fabric – In June 2020, launched an innovative, first-of-its-kind anti-viral fabric, in collaboration

with Swiss company HeiQ Materials AG

Recent Developments contd…

 High quality re-usable face masks under the

brand name ‘Smiley’

 Multi-layer mask with fabric and replaceable filter layers to protect from bacteria and virus

 Salient Features o Soft fabric o Adjustable elastic fasteners for maximum

comfort

o Filters dust and allergens also o Product comes with 2 filters o High air flow for ease of breathing

 Key Benefits

o Filters over 99.35% bacteria (BFE as per ASTM

F2101)

o Particle filtration efficiency of 0.3 micron – (anti-

viral barrier) 98.96% as per ASTM F2299 o Splash resistant – Delta(P) – 21.60 Pa . IS

16829:2014

Financial Highlights

Quarterly Financial Highlights (YoY)

Rs. Cr.

Total Income from operations Raw Material Expenses Employee Expenses Other Expenses Total Expenditure EBITDA EBITDA Margin Other Income Depreciation Interest / Finance Cost Exceptional Item (Gain) / Loss PBT Tax PAT Other Comprehensive Income Net Profit Net Profit Margin Basic EPS in Rs.

Q3 FY23

Q3 FY22

94.78 67.58 10.21 18.67 96.47 (1.69) (1.78%) 0.18 3.68 3.31 0.00 (8.51) 0.85 (9.35) 0.13 (9.23) (9.74%) (7.22)

150.13 96.68 11.72 25.26 133.66 16.47 10.97% 0.15 3.03 4.17 0.00 9.42 3.41 6.01 0.03 6.05 4.03% 4.64

Y-o-Y %

(36.87%)

(110.25%) (1275 bps)

(190.30%)

(255.52%)

(252.64%) (1377 bps) (255.60%)

Q2 FY23

91.14 62.41 10.47 15.39 88.26 2.87 3.15% 0.04 3.89 4.28 0.00 (5.25) (1.04) (4.21) 0.18 (4.04) (4.43%) (3.25)

 Continued production cut due to sluggish demand led to lower sales  Non-Spinning business accounted for 32.5% of revenue in Q3 FY23  Volatility in raw material prices and power costs adversely impacted profit margins

Nine Months Financial Highlights (YoY)

Rs. Cr.

9M FY23

9M FY22

313.43 222.25 32.15 50.59 304.99 8.45 2.70% 0.49 10.48 11.33 0.00 (12.87) 0.08 (12.96) 0.23 (12.72) (4.06%) (10.00)

350.14 204.21 32.82 65.19 302.22 47.92 13.68% 0.71 9.19 11.57 0.00 27.86 8.78 19.08 0.29 19.37 5.53% 14.72

Y-o-Y %

(10.48%)

(82.37%) (1098 bps)

(146.2%)

(167.89%)

(165.68%) (959 bps) (167.93%)

 Lower sales due to production cuts during two quarters driven by overall market slowdown  Non-Spinning businesses contributed 25.5% to revenues  Continued rise in cotton prices offset improvement in operational efficiencies, denting margins

Balance Sheet Highlights

Rs. Cr Equity Equity Share Capital Other Equity Non-Current Liabilities Financial Liabilities

Borrowings

Deferred Tax Liabilities (Net) Lease Liabilities Provisions Current Liabilities Financial Liabilities

Borrowings

Trade Payables: Total o/s dues of micro & small enterprises Trade Payables: Total o/s dues of creditors other than above Lease Liabilities Other Financial Liabilities Other Current Liabilities Provisions Current tax liabilities Total Equities & Liabilities

30th Sep ’22 137.17 12.96 124.20 87.19

31st Mar ’22 142.48 12.96 129.51 71.69

57.18 23.39 5.59 1.04 101.91

70.10

0.09

11.61

0.06 4.97 13.49 0.00 1.59 326.27

46.79 24.15 0.00 0.74 129.40

94.22

0.21

13.38

0.41 4.67 14.40 0.00 2.12 343.56

Rs. Cr Non-current Assets Property, Plant & Equipment Intangible Assets Capital work-in-progress Right of Use Assets Intangible asset under development Investment Property Financial Assets Investments Loans Other Non-Current Assets

Current Assets Inventories Financial Assets

Trade Receivables Cash, Cash Equivalent & Bank Balance Loans Other financial assets

Current Tax Assets Other Current Assets Assets Classified as Held for Sale Total Assets

30th Sep ’22 208.57 191.51 0.15 0.27 5.42 0.00 0.12

31st Mar ’22 194.27 171.75 0.15 10.33 0.24 0.00 0.12

3.32 0.00 7.77 117.69 69.21

24.76

10.37

0.71 0.03 0.00 12.61 0.00 326.27

2.00 0.00 9.68 149.29 98.89

26.15

9.85

0.63 0.34 0.00 13.43 0.00 343.56

Company Overview

Among leading multifaceted Textile companies - strong focus on Technical Textiles

 First Company to introduce Reactive

Polyurethane lamination technology in India (2005)

 Vertically & backward integrated operations  Strong & Dedicated workforce

Diversified Product Portfolio

 Segments - Textiles, Quick Dry, Quick Fit, Q- Club, Paw-Paw Diaper, Defence, Tactical gear, Eco-friendly Flex replacement, Art, etc.

Certifications & Awards

 Oeko-Tex 100 Certification  Five S(Workspace Management System)  ISO 9001:2008  WRAP Certification  Affiliation Certifications  GOTS – Global Organic Textile Standards  Gold Award by Quality Circle Forum of

India(QCFI)

Start of Art manufacturing facilities with advanced Technology in Tamil Nadu  Spinning Division – 52,000 Spindles

Spinning Capacity

 Lamination Division – 2 lines, 6,00,000

meters per month capacity

 Coating Division – 3 coating lines and 1

million meters per month capacity

 58 windmills – 18.15 MW scattered all over

Tamil Nadu

Integrated Business Operations

 Spinning Division  Lamination Division  Coating Division  Processing Division – For Speciality Fabrics  Military & tactical Gear  Garment & Home Textile Division  Bags Division – Backpacks & Rucksacks  Windmill based power generation

Focus on Technologically Advanced, Innovative & Eco-friendly products

Journey So Far

1985-89

2009-14

1985 - Went Public 1989 – Spinning Mill unit I at Dindigul started

2009 – Knitting, Garment & Spinning mills II division started at Karanampettai 2012 – Started Processing division at Sipcot 2012 – Started Technical Textile division at Ganeshpuram 2013 – Coating division started at Ganeshpuram 2014 – Started bag division at Karanampettai

2020-22

2020 – Launched anti-viral fabric in collaboration with Swiss co. HeiQ Materials 2021 – Won two orders worth Rs. 27.28 cr and Rs. 13.62 cr for bags from M.o.D. 2022 – Won Rs. 11.9 cr order from M.o.D. for bags; Acquired 26% stake in wind power co. LK Distributors, for captive use 2022 – Launched Seamless Saree Shapewear in India 2022 – Bagged Rs. 13.14 cr order for cold weather suits from GOI

1994 – Started Windmill division at Munduvelampatti 2002- Finance and Spinning business merged 2006 – Started Lamination division at Karanampettai

1994-2006

2015-20

2015 – Garment Division II (NBC) & III started at Karanampettai 2017 - Scheme of arrangement (Demerger) between Shiva Texyarn Limited & Shiva Mills Limited (Formerly know as STYL Textile Ventures Limited) 2017 – Started supplying specialized Military products to Indian Defence 2019 – Launched Reusable Fabric Diaper – “Paw Paw” – based on patent pending unique Rapisoak Technology 2020 – Won order worth ~ Rs. 10 cr for protective coveralls for medical application for Government; also launched new product line for face masks

Strong & Experienced Management Team

Mr. S V Alagappan – Chairman

 Law graduate and has rich experience in fields of textiles and automobiles for more than three decades

Mr. C Krishnakumar – Chief Financial Officer

 Master of Commerce Graduate  More than 15 years experience in Accounts, Finance & Taxation

 Member of ICAI and ICSI

Mr. S K Sundararaman – Managing Director

 MBA from Cambridge Judge Business

School, UK

 Chairman of Indian Technical Textiles

Association (ITTA)

 Wide experience in field of textile industry

especially technical textiles

Mr. P. Baskar – Vice President

 Diploma in Technical Textile  Over 25 years experience in field of

Modernized Spinning Mills

 Vast experience in Construction of Factories

and building premises

 Expertise skill in Administration

Business Overview

Business Segments

Spinning

Technical Textiles - Value added Products

Business Divisions…(1)

Spinning Division

 More than 25 years of experience in Spinning

Industry

 52,000 Spindles capacity

 Raw material comes from selected ginners of India and International sources in West Africa, Australia and US

 Manufacture Combed, Carded and Compact

Yarns, Sub Yarns and Fancy Yarns

 Maintain & manage captive use windmill based augmentation infrastructure to tap 18.15 MW power from 58 owned and operated wind turbine installations

Makes some of finest cotton yarns

Business Divisions…(2)

Lamination Division

First Company to introduce Reactive Polyurethane Lamination technology in India in 2005

 One of most innovative technologies used in Textile

products

 Only Indian Company with more than decade of

experience

 Two lines can produce approx. 6,00,000 meters per

month

 Applications

 Breathable, Waterproof membrane Lamination,

Fleece to Fleece, Paper to Fabric, Flat Fabric to Raised Fabric Knit to Woven

 Uses

 Outdoor Clothing fabric, Mattress Protectors, Medical Textiles, Industrial Application, Military Application

 Laminated Products –Applications  Quick Dry – Original Dry Sheet  Quick Fit – Mattress Protectors  Q Club – Active player in Baby Products  Smiley – Re-usable Face Masks

Lamination Division… Strong Retail Brand in India

 Market leadership

o Market leader – combined with “Inventor & Innovator” of Dry Sheets in India

o Manufactures more than 100,000 mts/ month; millions in a year

 Wide Retail Distribution Network in

India

o Pan India presence – connecting to 10,000+ Retailers through 200+ Distributors and over 90 on-ground sales force

o Strong Retail Brand created across

India

 Exports to Middle East & South-East

Asia

Lamination Division…First of its kind Reusable Fabric Diaper

Features

 Super Comfort - Feathery touch

fabric

 Highly Absorbent

 

Side Tank System Fully Laminated Layer

 Ergonomically designed - Unique T- Shaped pattern which fits perfectly around baby’s body

 Super Stretch Fit – Fully Elasticated

 Completely safe and won’t harm

baby’s skin

 Awaiting patent

UNIQUE RAPISOAK TECHNOLOGY

Benefits

 Quickest drying time- Baby feels dry

fastest

 Maximum fluid holding  Easy clean  Hygienic  Available in 3 Different Sizes  Small- 3-8 kg  Medium- 7-12 kg  Large- 9-14 kg

 Eco-friendly and can be reused for

many times

 “Pocket-friendly” - Affordable across

all sections of society

Already successful in Tamil Nadu – creating Pan India Presence

Business Divisions…(3)

Military & Tactical Gear

 Military and Tactical Gear : Makes most advanced

military gear like Nuclear Biological Chemical Suits (NBC)

 Extreme cold weather clothing – Protection from 5

degree to minus 20 degree centigrade

 Super high altitude Mountaineering clothing

 Among very few companies making specialised three

layered suits

 Protection in minus 50 degree centigrade

 Specialised Bag packs for mountaineering

Business Divisions…(4)

Processing Division

Coating Division

Bag Division



 Unit started in year of 2012 at SIPOT, Perundurai, Erode Famous for Specialised, performance fabric processing, including high fastness, moisture wicking properties and for delicate fabrics



9 lakh meters material handling capacity per month

 Wide range of applications



Acrylic coated products, PU Coating, Art Canvas & Digital Canvas Products

 Offers various range of finishes



Fire retardant, water repellent, Soil & stain resistant, Anti-microbial, Anti- static, Rubber Finish, Oil resistant



Bag ranging from School bags, exclusive girls range & professional range for camping & photography

100% Polyester and Nylon fabric, stitched with nylon bonded thread

Photography range : Camera bags, Utility bags, Long Lens bags, Tripod bags, Storage Accessories, Messenger bags

Key Strengths

Continual focus on Innovation & New product development



Strong capabilities backed by in – house manufacturing and R&D that enables developing innovative, new & better quality products

Integrated business operations & unique business model  Multifaceted Company with strong focus on value added

 

products Vertically & Backward Integrated operations First Company to introduce Reactive Polyurethane lamination technology to India in 2005

 Well diversified across segments and products

Multi product range with wide range of applications Yarn, Combed, Carded and compact yarns/ Sub / Fancy yarns Laminated Fabric - Quick dry/Quick fit Special garments – Military and Tactical gear & Extreme cold weather clothing Coated Fabric - Canvas Rolls/ Canvas Boards/Stretched Canvas Garments - Home textile / Knitwear/outer wear Bags- Travel bags / Camera bags/ utility bags



 



 

State of art infrastructure facilities 

Advanced Technology with State-of-the-art plant and machinery Substantial self-sufficiency in power needs through green power generation by windmill that reduces energy cost



Strong Retail Brand with pan India presence – Quick Dry & Paw Paw  “Inventor & Innovator” Market leader of Dry Sheets in India Launched one of its kind Reusable fabric diaper with unique Rapisoak Technology



 Wide distribution - 10,000+ retailers

through 200+ distributors with 90 sales team on ground

Dynamic experience leadership Enterprising management team with rich experience in Textile & Technical Textiles Industries Dedicated and skilled employee base



State of Art Manufacturing Facilities

Spinning Unit

Processing Unit

Lamination Unit

Bag Unit

Kodangipalayam Village Karadivavi Road, Paruvai Post Coimbatore District, Tamilnadu

Factory E-16, P-11 SIPCOT Industrial Growth Estate Perundurai, Erode 638 052 Tamilnadu

S.F. No. 371/5, Karadivavi Road Paruvai Post, Karanampet Palladam - 641 658

S.F No. 371/5, Karadivavi Road Paruvai Post, Karanampet, Palladam 641 658

Coating Unit

S.F. No. 371/5, Karadivavi Road Paruvai Post, Karanampet Palladam - 641 658

Garment Division

Windmills – Tamil Nadu

S.F No. 371/5, Karadivavi Road Paruvai Post, Karanampet, Palladam 641 658

 Munduvelampatti Village  Gudimangalam

Athukinathupatti & Uthukuli Villages

 Vagatholubu Kongalnagaram

Certifications

Way Ahead

Quick Dry – Expand Distribution & Consolidate market leadership in Dry sheets 

Target - ‘Quick Dry’ to be largest baby products provider in India



Increase distribution network pan India – plans to reach 30,000+ retailers through 400+ distributors

Increase wallet share of existing customers and add new customers - enhancing product offerings through innovation and technology

Increase in Paw-Paw diaper business  Optimize on existing distribution channel and increase in online-

offline network to have pan-India reach



Continued focus on Innovation to make it more user-friendly and comfortable for babies

Increase in Military & Tactical Gear business  Add new & innovative products and increase product offerings in Defence segment, through innovation combined with integrated facilities & strong R&D capabilities

Strong Opportunity from Non-Flex Banners 

Recent ban on flex banners in Kerala expected to open new opportunities for biodegradable signage material



Poised to capitalize on this opportunity by offering non-flex biodegradable options for banners across Kerala & Bengaluru

Thank You

511108

SHIVATEX

SVTYIN

SHTE.BO

For further information, please contact:

Company :

Investor Relations Advisors :

Shiva Texyarn Ltd.

Adfactors PR

Mr. C Krishna Kumar krishnakumar@shivatex.co.in

http://www.shivatex.in

Ms. Savli Mangle savli.mangle@adfactorspr.com

Mr. Rahul Trivedi rahul.trivedi@adfactorspr.com

www.adfactorspr.com

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