Shiva Texyarn Limited has informed the Exchange about Investor Presentation

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/SE/60/2023-24 14th August 2023

To

Dear Sir,

SUB:-lNVESTOR PRESENTATION -REG.

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

for the quarter ended 30.06.2023 as per Regulation 30 read with Part A of Schedule

111 of SEBl (Listing Obligations and Disclosure Requirements), Regulation 2015.

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

is also available on the website of the Company

www.sh

Thanking you

Yours faithfully

For Shiva Texyarn Limitecl

hL--.

R . S R I N I Vf\ S A N CompanySc`crc.tary M.No.21254

Innovation & Technology Driven Textile Products

Shiva Texyarn Limited

Result Update Presentation Q1 FY24

Disclaimer

This presentation has been prepared by Shiva Texyarn Limited (the “Company”) solely for information purposes and does not constitute any offer, recommen dation 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 commi tment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed informatio n 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

About Us

Lamination

2 Lines, 6 lacs metres/ month capacity

Pan-India Distribution 200+ Distributors; 10,000+ Retailers

Coating

3 Line, 1 million metr es/month capacity

90

Strong Sales Team on ground

Spinning

Over 52,000 spindles

Rs. 410.9 Cr

FY2023 Top Line

Captive Wind Energy

55 windmills with 13.195 MW Total Capacity

Rs. 200.7 Cr

Market Capitalization (as on 9th Aug 2023)

Among Leading Multifaceted Textile companies – Strong Focus on Technical Textiles

 Vertically & backward integrated op

erations

 Technical Textiles business with rob

ust Spinning backbone

 First Company to introduce Reactive Polyurethane lamination technolog y in India

Diverse Product Portfolio

 Technical textile products caterin

g to multiple applications

 Textiles, Child-Care fabrics, Diape

rs, Healthcare, Defence, Tactical g

ear, Eco-friendly Flex

replacement, Art, etc.

State of Art Manufacturing Facili ties with Advanced Technology

 Technical Textiles:

 Lamination – 2 lines, 6 lacs meters

per month capacity

 Coating – 3 coating lines and 1 mil lion meters per month capacity

 Spinning: Over 52,000 Spindles

Spinning Capacity

Diverse & Innovative Business Lines  Lamination, Coating, Garment &

Home Textile Divisions

 Processing Division – Speciality

Fabrics

 Military & tactical Gear  Bags – Backpacks & Rucksacks  Innovations like Reactive Polyurethan

lamination & Rapi-Soak

e technology

 58 windmills – 18.15 MW across

 Renewable energy based power

Tamil Nadu

generation

Strong & Experienced Management Team

Mr. S V Alagappan

Mr. S K Sundararaman

Mr. C Krishnakumar

Mr. P. Baskar

Chairman

Managing Director

Chief Financial Officer

Vice President

 Law graduate and has rich

 MBA from Cambridge Judge

 Master of Commerce Graduate

experience in fields of

Business School, UK

 More than 15 years experience

textiles and automobiles

 Ex - Chairman of Indian Technical

in Accounts, Finance & Taxation

for more than three

Textiles Association (ITTA)

 Member of ICAI and ICSI

decades

 Wide experience in field of textile

industry especially technical textiles

 Diploma in Textile Technology  Over 25 years experience in fi eld of Modernized Spinning Mil ls

 Vast experience in Constructio n of Factories and building pre mises

 Expertise skill in Administration

Journey Towards Technical Textiles

2015 – Garment Divisions (NBC) started at K

2005 – Introduced Reactive Polyurethane

aranampettai

2022 – Won Rs. 11.9 cr order from M.o.D. for

lamination technology in India

2017 – Started supplying specialized Militar

bags; Acquired stake in wind power co. LK

2006 – Started Lamination division at

y products to Indian Defence

Distributors, for captive use

Karanampettai

2019 – Launched Reusable Fabric Diaper –

2022 – Launched Seamless Saree Shapewear

2009 – Knitting, Garment division started

“Paw Paw” – based on unique Rapisoak

2023 – Bagged Rs. 13.14 cr order for cold

at Karanampettai

Technology

weather suits from GOI

1985-94

2005-09

2012-14

2015-2019

2020 - 21

2022- 23

1985 - Went Public

2012 – Started Processing division at Sipcot &

2020 – Won order worth ~ Rs. 10 cr for protective medical coveralls

1989 – Spinning Mill unit I at

Technical Textile division at Ganeshpuram

for Government; also launched new product line for face masks

Dindigul started

1994 – Started Windmill

2013 – Coating division started at

2020 – Launched anti-viral fabric in collaboration with Swiss co.

Ganeshpuram

HeiQ Materials

division at Munduvelampatti

2014 – Started bag division at Karanampettai

2021 – Won two orders worth Rs. 27.28 cr and Rs. 13.62 cr for bags

from M.o.D.

Company evolving from traditional textiles to value-added technical textile products portfolio

Our Strengths

Continual Focus on Innovation & New Product Development

 Strong capabilities with in–house manufa cturing and R&D that enables developing innovative, new, better quality & higher- margin products

Long Standing Association with Indian Defence

 Trusted and preferred supplier for high-p erformance products for the military  Consistently meet high-quality standards

of DRDO

 Increasing products portfolio for army – NBC suits, cold weather suits, rucksack/h aversack bags

State of Art Infrastructure with Captive Power Supply  Advanced Technology with State-of-the-art

plant and machinery

 Substantial self-sufficiency in power needs

through green power generation by windmills that reduces energy cost

Integrated Business Operations & Multi- Product Range

 Mix of high volume and high margin products  Multifaceted business with focus on value added products  Well diversified across segments and products  Multiple types of yarn, laminated fabric, special garments,

coated fabrics, bags etc.

Strong Retail Brand with pan India Presence – Quick Dry

 “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 Experienced Leadership

 Enterprising management team with rich e xperience in Textile & Technical Textiles Ind ustries

 Dedicated and skilled employee base

Business Divisions

Shiva Texyarn

Spinning

 Traditional business of spinning

cotton into yarn

 Strong capacities of >52,000

spindles

 Steady stream of revenue backed by healthy demand

 Strong hold on domestic supply

chain

Technical Textile

Lamination

Processing

Coating

Bags

 Technology-based

products for specific applications

 Flagship brands –

Quick Dry, Quick Fit, Q-Club, Smiley

 Value added performance fabric processing

 Specialized coated products in various finishes for diverse applications

 Catering to multiple

sectors such as school bags, camping, photography & military grade bags

Key Focus Areas – Higher Margin Products

Lamination Division…First of its kind Reusable Fabric Diaper

Spinning Division

 Over 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 augmen

tation infrastructure to tap 13.195 MW power from 55

owned and operated wind turbine installations

Makes some of finest cotton yarns

Business Divisions…(2)

 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

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

Lamination Division… Strong Retail Brand in India

 Market leadership

 Market leader – combined with

“Inventor

& Innovator” of Dry Sheets in India

 Manufactures more than 1,00,000 mts/ month; mil

lions in a year

 Wide Retail Distribution Network in India

 Pan India presence – connecting to 10,000+ R

etailers through 200+

Distributors and over

90 on-ground

sales force

 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 fabr

ic

 Highly Absorbent

 

Side Tank System Fully Laminated Layer

 Ergonomically designed - Unique T-S haped pattern which fits perfectly ar ound baby’s body

 Super Stretch Fit – Fully Elasticated

 Completely safe and won’t harm ba

by’s skin

 Awaiting patent

UNIQUE RAPISOAK T ECHNOLOGY

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 m

any 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 Nu

clear Biological Chemical Suits (NBC)

 Extreme cold weather clothing – Protection from 5 degree to minus 2

0 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



Famous for Specialised, performance fabric processing, including high fastn

 Unit started in year of 2012 at SIPOT, Perundurai, Erode

ess, moisture wicking properties and for delicate fabrics

Coating Division

Bag Division

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







Bags 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

State of Art Manufacturing Facilities

Spinning Unit

Processing Unit

Lamination Unit

Bag Unit

Coating Unit

Garment Division

Windmills – Tamil Nadu

Managing Director’s Message

“The textile industry continued to be under pressure during this quarter. The last fiscal year witness ed headwinds in the form of macro-economic slowdown and geo-political tensions which led to the textile industry having one of its most challenging periods ever. Despite easing out of cotton prices, the demand has been sluggish. However, Shiva Texyarn has been resilient through this period, and we believe the industry should get better through this year.

In Q1 FY24, our top line stood at Rs. 90.16 cr. The decline in cotton prices was offset by lower realiz ations and increase in power and manufacturing costs, hampering profit margins. The spinning as well as retail markets were relatively muted. Technical textiles accounted for 23.3% of our top line during this quarter.

In a volatile market scenario, our diversified product portfolio helps sustain sales. While we expect spinning segment to improve going forward, recovery in our QuickDry and other brands should hel p further improve sales.

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

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

Quarterly Financial Highlights

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.

Q1 FY24 90.16 60.92 12.15 17.34 90.41 (0.26) (0.28%) 0.42 3.71 2.91 0.00 (6.45) (0.46) (5.99) 0.01 (5.98) (6.63%) (4.62)

Q1 FY23 127.52 92.26 11.48 16.52 120.26 7.26 5.69% 0.26 2.90 3.74 0.00 0.88 0.28 0.61 (0.07) 0.54 0.42% 0.47

Y-o-Y % (29%)

(104%) (597 bps)

(705 bps)

Q4 FY23 97.44 67.10 10.34 20.08 97.52 (0.08) (0.08%) 15.52 3.63 2.49 0.00 9.33 3.01 6.32 (0.14) 6.17 6.34% 4.87

 Muted demand in overall markets led to lower sales  Non-Spinning business accounted for 23.3% of revenue in Q1 FY24  Higher power costs offset the decline in cotton prices, denting profit margins

Yearly Financial Highlights

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.

FY23 410.87 289.35 42.49 70.66 402.50 8.37 2.04% 16.01 14.11 13.81 0.00 (3.54) 3.10 (6.64) 0.09 (6.55) (1.59%) (5.12)

FY22 477.07 297.03 43.86 81.09 421.98 55.09 11.55% 1.37 12.66 13.81 0.00 30.01 9.99 20.01 0.40 20.41 4.28% 15.44

Y-o-Y % (13.88%)

(84.81%) (951 bps)

(133.18%)

(132.09%) (587 bps) (133.16%)

 Lower sales due to production cuts during two quarters driven by overall market slowdown  Non-Spinning businesses contributed 26.06% to revenues  Continued rise in cotton prices offset improvement in operational efficiencies, hampering margins

Balance Sheet

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

31st Mar ’22 142.48 12.96 129.51 71.69

31st Mar ’23 134.11 12.96 121.15 79.57

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

42.65 28.30 7.99 0.63 94.59

51.80

0.71

23.45

1.83 14.78 2.02 0.00 0.00 308.28

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

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

31st Mar ’23 209.39 183.05 4.72 1.12 9.34 0.00 0.03

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

3.21 0.00 7.93 98.88 57.81

22.63 7.59 0.53 0.81 0.00 9.52 0.00 308.28

Technical Textiles – Industry Opportunities Industry Highlights

Diverse End Applications

 Agrotech – nets, covers, fabrics etc.  Construction Textiles – Tarpaulines, covers, nets, hoarding, signage etc.  Clothing – Threads, laces, fasteners etc.  Home Textiles – carpets, blinds, linen, upholstery etc.  Industrial – conveyor belts, ribbons, coated abrasives, ropes, brushes, composites etc.  Medical Textiles – surgical disposables, diapers, dressing material, sanitary napkins, etc.

Key Growth Drivers

 Presence of world class infrastructure  Increased consumer focus on technical textiles  Abundance of raw material and availability of skilled manpower  Presence of entire value chain and large and growing domestic market  Competitive manufacturing costs and organized retail & e-Commerce  Rising per capita income, disposable incomes and preferences for brands

Domestic Textile & Apparel Sector ($ Bn)

190

 India is the 5th largest producer of technical textiles globally  Market size estimated at about $22 billion – projected to reach $300 billion by 2047  Textiles & Apparel exports were highest at $44.4 billion in FY22, a 41% rise over FY21 an

d 26% rise over FY20

 Readymade garment exports to grow at a CAGR of 12-13%, surpassing $30 billion by 20

27

 Government launched Production Linked Incentive (PLI) Scheme with approved outlay o f Rs. 10,683 cr to promote production of MMF Apparel, MMF Fabrics and Products of Te chnical Textiles in India to increase size, scale & competitiveness in Textiles Industry

Market Size ($ Bn)

22

2022

300

2027

Textile & Apparel Exports ($ Bn)

65

44

90

100

106

75

37

36

34

30

Source : IBEF

FY18

FY19

FY20

FY21

FY26F

FY18

FY19

FY20

FY21

FY22

FY26F

Way Ahead…

Increase in Military & Tactical Gear business

 Add new & innovative products & increase prod uct offerings in Defence segment, through inno vation coupled with integrated facilities & R&D capabilities

Strong Opportunity from Non-Flex Banners

 Expected ban on flex banners likely to open ne w opportunities for biodegradable signage mat erial

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

Expand Distribution & Consolidate market leadership in Dry sheets

 Target - ‘Quick Dry’ to be largest baby products brand in India  Grow distribution network pan India – aim to reach 30,000+

retailers through 400+ distributors

 Increase wallet share of existing customers & add new customers

– enhance offerings through innovation & technology

Explore & Grow Seamless Garments Segment

 High opportunity category based on rising demand  Leverage existing technological expertise to offer various t

ypes of high quality seamless garments

 Recently launches saree shapewear (innerwear)

… to emerge as one of leading Technical Textiles player in India

Thank You

Company :

Investor Relations Advisors :

Shiva Texyarn Ltd.

Adfactors PR

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

Ms. Savli Mangle savli.mangle@adfactorspr.com

Mr. Rahul Trivedi rahul.trivedi@adfactorspr.com

http://www.shivatex.in

www.adfactorspr.com