VIPCLOTHNGNSE7 February 2019

VIP Clothing Limited has informed the Exchange regarding Investor Presentation; Investor Presentation �� Q3 �� F.Y. 2018-19

VIP Clothing Limited

February 07, 2019

To,

A ( viP) V

The Listing Department, BSELimited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001.

The Listing Department National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, G Block, Bandra-Kurla Complex Bandra (East), Mumbai-400 051.

Scrip Code : 532613

Trading Symbol: VIPCLOTHNG

Subject:

Investor Presentation - Q3 - F.Y. 2018-19.

Dear Sir/ Madam,

Pursuant to Regulation 30 and any other applicable regulations of SEBI (Listing Obligations a.nd Disclosure Requirements) Regulations, 2015 please find enclosed Investor Presentation for Q3 F.Y. 2018-19, the same has been uploaded on the website of the Company WWW. vipdothing.in.

Requested you to kindly take the same on your record and disseminate the same on your website for the information of the public at large.

Thanking you

Yours faithfully, For VIP Clothing Limited (Formerly known as Maxwell Industries Limited)

eJ ~ ~~"~~,-

Chief Financial Officer & Company Secretary Encl : As above.

VIP ClothingLtd. (Formerly known as Mu well lndustrle, ltd.)

Roalstered Office: C-6, Street No. 22. MIDC, Andheri (E), Mumbai - 400 093. India CIN: LIS101MH1991PLC059804

T· +91 (22) 28257624 /27133 1) F: +9 1 (22) 28371023 Export Div. T· +<II (22) 28256788

F·+QJ(22)2837102~

Investor Presentation February 2019

Safe Harbor

This presentation and the accompanying slides (the “Presentation”), which have been prepared by VIP Clothing Limited. (the “Company”), have been prepared solely for information purposes and do 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 whatsoever. 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.

This presentation contains certain forward looking statements concerning the Company’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company.

Table of Contents

Q3 & 9Months FY19 Financials

Company Overview

Key Strengths

Business Strategy

Industry Overview

Financials Highlights

04 07 23 25 27 30

Q3 & 9Months FY19 Financial Highlights

Q3 & 9Months FY19 Financials

Particulars Revenue from operations Gross Profit GP Margin (%) EBDITA EBDITA Margin (%) Other Income Depreciation and amortization expense Finance costs PBT before Exceptional Item PBT Margin(%) Exceptional items Profit / (Loss) from continuing operations Profit / (Loss) from discontinuing operations

Q3 FY 19

Q2 FY19

Q3 FY 18

9M FY19

9M FY 18

FY 18

₹ millions

495.5 201.9 40.7% 18 3.6% 0.5 8.3 22.6 (12.4) -2.5% 0.0 (11.4) 0.0

466.9 200.1 42.9% (17) -3.7% 11.6 8.3 21.9 (36.1) -7.7% 0.0 (34.8) -

463.1 209.0 45.1% 33 7.1% 1.5 8.3 31.5 (5.3) -1.2% (3.5) (8.3) (0.3)

1,672.3 678.1 40.5% 29 1.7% 14.2 25.0 65.7 (47.9) -2.9% 0.0 (45.2) -

1,667.3 704.3 42.2% 102 6.1% 9.2 25.3 89.9 (4.0) -0.2% (3.5) (5.3) (0.4)

2,223.8 940.4 42.3% 105 4.7% 12.8 33.5 109.3 (25.1) -1.1% (0.2) (29.9) (0.9)

Profit / (Loss) for the year (Total)

(11.4)

(34.82)

(8.6)

(45.2)

(5.7)

(30.7)

Balance Sheet as per Ind AS

Particulars EQUITY AND LIABILITIES Equity Equity Share capital Other equity Non-current liabilities Financial liabilities Borrowings Other financial liabilities Provisions Deferred tax liabilities (net) Current liabilities Financial liabilities Borrowings Trade payables Other financial liabilities(other than specified above) Provisions Other current liabilities

H1FY19

₹ million FY18

165 1,758

165 1,782

3 56 8 539

824 204

25 43 2

3 53 9 540

798 241

21 21 3

TOTAL - EQUITY AND LIABILITIES

3,627

3,636

Particulars ASSETS Non-current assets Property, plant and equipment Intangible assets Financial assets Investments Others Other non-current assets Current assets Inventories Financial assets Trade receivables Cash and cash equivalents Bank balances other than above

Loans

Other Current Tax Assets (Net) Other current assets TOTAL - ASSETS

H1FY19

₹ million FY18

399 1,248

410 1,251

0 12 4

1,121

1,135

648 1 55

0 1 134 3,627

652 0 51

0 1 118 3,636

Company Overview

VIP Clothing Limited was incorporated in the year 1991 to satiate the discerning taste of Indian Consumer.

02 Engaged in Business of

Manufacturing and selling innerwear, the Company went Public in year 1993.

VIP has in-house manufacturing facility located in Gujarat and Tamil Nadu. Accredited with TUV- ISO 9000 certificate that reflects its emphasis on Quality Management System, designing, manufacturing and delivery.

One of India’s leading intimate apparel company providing intimate wear to consumers across various segments under different brands. VIP enrich and expand fashion quotient in multiple trends and style from inner comfort to fashionable garments

The Company possesses one of the widest and largest sales and distribution network for innerwear products

The Company focus is to become an International Symbol of Excellence through continuous customer satisfaction, innovation, manpower development, productivity improvement, quality improvement, cost reduction and time management

Sales & Distribution

Sales Mix

Network

85 %

12%

VIP has Pan India Presence with largest distribution network

 Distributors & Wholesalers - 330  Retailers – 35,000  Sales & Marketing Professionals - 221

 Brand Outlets – 2  Warehouses – 2

The globe is our canvas today. We enjoy long- standing relationships with our customers. We enjoy leadership position in our chosen geographies. Leveraging years of experience, we have developed a keen perception of the markets we operate in. Consequently our varied product profile has always been bolstered by unique strategies that go a long way in forging an indelible market presence.

Significant Milestone

Sale of the processing house situated at SIPCOT, Perun durai, Tamil Nadu.

2016

Change of Company’s Maxwell Clothing Limited

Industries

name from Limited to VIP

2014

Sale of in-operative division situated at MIDC, Navi Mumbai

2011

Sale of spinning division situated at Kollapalur, Tamil Nadu

Equity Shares were listed on NSE

2007

Golden Scale Trophy by CMAI- The brand of the year for men's innerwear

2005

Equity Shares were listed on BSE Limited

1991

Incorporated as a Private Limited Company

Right Issue of ~ ₹ 430 million to augment the working capital base of the Company

2017

Sale of Factory Land and Building situated at Daman

License agreement for manufacturing, marketing, distribution and sale of Eminence Brand products

2015

Awarded the Brand Leadership for Marketing Excellence by Indira Group of Institutes, Pune

2012

Delisting of the Equity Shares from the OTC Exchange of India

2008

Investment of ~ ₹ 451 millions by Reliance Capital Partners

2006

IPO of our Company. First Company to get listed OTCEI

1993

Infrastructure

Manufacturing Facility Umbergaon, Gujarat

Location

Products Manufactured

Facility details

Umbergaon, Unit)

GIDC Gujarat (Garmenting

Briefs, Vests, Trunks for Men & Juniors & ladies Panties, BRA

Garmenting unit; with fabric inspection, cutting, stitching, inspection & packing facilities

ironing,

Capacity

1,60,000 boxes per month

Manufacturing Facility - Thingalur, Tamilnadu

Location

Thingalur, Tamilnadu (Garmenting Unit)

Products Manufactured

Facility details

Briefs, Vests, Trunks for Men & Juniors & ladies Panties, BRA

Garmenting unit; with fabric inspection, cutting, stitching, inspection & packing facilities

ironing,

Capacity

2,20,000 boxes per month

Factory - Facilities

Product & Brand Portfolio

VEST VIP Bonus Premium; Bonus Classic; Bonus Knitshrunk; Nawab; Supreme; Bonus Fab; Bonus Junior; Pro Frenchie Elite; Oxy; Square Leader Basic; Stripe; Royal

BRIEFS VIP Spector; Signor; Gold; Champ; Alpha; Apex; Designer, Regal Frenchie Eurofit; Pro; Envy, Casual Leader Comfort; Latino; Milano; Prime

Trunk VIP Advanta; Ultima; Unique; Punch Print; Punch Plain; Pic Pocket; Sigma; Boxer, Regal Frenchie Pixel; Beat; Neo, casual Leader Pocket; Fine; Delux; Super

R A E W R E N N

Boxer VIP Freakout

T- Shirt VIP Pulse Frenchie Crew

R A E W R E T U O

Socks Frenchie

Muscle tee VIP Blaze

Track Pants VIP Trek Frenchie Jogger

Bermuda VIP Player Frenchie Relax

Product & Brand Portfolio

Fundamental Bra Feelings Criss-cross; Dew; Charm; Cheer- up; Breeze; Pep; Snow; Nursing Bra; Feelings New mom

R A E W R E N N

Camisole Feelings Princess; Elegance, Innocence; Poise; Cute; Shine; Smile

T-Shirt Bra Feelings Beam; Trendy; Glitz; Elle; Cosmo; Ornate Verve; Curve; Flair; Glam; Sparkle

Sports Bra Feelings Ease; Savvy; Rhythm, Evolve; Active; Vital; Edge; Zeal;

Panties Feelings Intimate; Dreamz; Moodz; Passion; Flora; Expression; Ultrasoft; Shy; Amelie Leader Sapney

Track Pants Feelings

R A E W R E T U O

Capri Feelings

T-shirts Feelings

Leggings Feelings

Night Suits Feelings

Brand and Advertising

Category Presence

Super Premium Segment

Premium Segment

Middle Segment

Mass Segment

Unorganized Segment

Brand and Advertising

• Contemporary Classic’ brand catering to sober tastes. • Draw on the 40+years heritage of claiming ‘authority’ on underwear

making.

• Advertised through mass media like TV & Print and high impact hoardings • Use of International Models in order to be distinct from others.

• Young edgy fashion’ brand meant for the fashion conscious. • Draw on the edgy imagery of the brand earlier & make it relevant for the

times.

• Advertised through mass media like TV & Print, high impact media hoardings and also extensive use of Digital media for youth connect. Use of International Models.

• Positioned as ‘Real Contemporary’ brand meant for the modern woman’s

need of ‘everyday essentials.

• Will have modern contemporary classics. • Advertised through mass media like Print / Magazines and rely on ‘sampling’ for inducing product trials and also extensive use of Digital media for youth connect & product range discovery.

Presence in format Stores

Large Format store tie -ups

E-commerce Tie -ups

Presence in format Stores

Key Awards and Achievements

Brand ‘VIP Frenchie’ as Power Brand of the year 2012.

“SUPERBRANDS” –The Economic Times – February 17th, 2012

“BRAND LEADERSHIP AWARD” for pioneering work in innerwear segment in India.

Golden Scale Trophy ( 2007- 2008 ) - The Brand of the year Men's Inner Wear By CMAI

Apex Award 2007 - " The Brand of the year -Women’s Inner wear " by CMAI

Apex Awards – 2006 : The Brand of the year - Men's Inner Wear By CMAI

The Board

Mr. Sunil J. Pathare, Chairman & Managing Director

Mr. Sunil J. Pathare, aged 46 years, is the Promoter and the Chairman & Managing Director of our Company.

 He holds a Bachelor's degree in Commerce.

 He looks after the overall management of the Company.

 He has been awarded the “Entrepreneurship Excellence Award” by the Small and Medium Business Development Chamber

of India in 2007, Indira Group of Institutes award for Marketing excellence in March, 2012, Inside Fashion Brand Award (VIP)

for excellence in Retail.

Mr. Kapil J. Pathare, Whole Time Director

Mr. Kapil J. Pathare, aged 38 years, is the Promoter and the Whole time Director of our Company.

 He holds a Bachelor's degree in Commerce and Masters in Business Administration (Entrepreneurship and

Family Business).

 He looks after the overall production activities of the Company.

Mr. Robin Banerjee, Independent Director

Mr. Robin Banerjee, aged 62 years, is the Non- Executive Independent Director of our Company.

 He holds degree of Chartered Accountant , Cost Accountant and Company Secretary.

 He has over 35 years of professional experience in finance and corporate management, including strategic

planning, mergers and acquisitions, corporate finance and strategic business development.

The Board

Mr. Gopal Sehjpal, Independent Director

Mr. Gopal Sehjpal aged 73 years, is the Non- Executive Independent Director of our Company.

 He holds a Master's Degree in Arts (Philosophy) and a Post Graduate Diploma in Personnel Management.

 He is also a member of the Institute of Management Consultants of India and a Life Member with the Bombay

Management Association, Indian Institute of Quality Management and Consultancy Development Centre (Ministry

of Science and Technology, Government of India).

Mr. Chetan Sheth, Independent Director

Mr. Chetan Sheth, aged 54 years, is the Non- Executive Independent Director of our Company.

 He holds a Diploma in Production Engineering, awarded by the Board of Technical Examinations on behalf of the

Government of Maharashtra on May 22, 1987 and has over 26 years of professional experience in the

manufacturing engineering and corporate management.

Mrs. Meher Castelino, Independent Director

Mrs. Meher Bruno Castelino aged 73 years, is the Non- Executive Independent Director of our Company.

 She has been associated with the Company since 2015.

 She has headed the designing departments of export as well as local fashion houses.

 She is the official writer for Lakmé Fashion Week since 2006 reporting all over the globe.

 She has appeared in over 2000 live fashion shows around the globe, many of which were conceived and directed by her.

Management Team

Mr. Ashish Mandaliya CFO & Company Secretary

Mr. Mandaliya holds the degree of Chartered Accountant, Company Secretary and LLB.

He has an experience of more than 15 years in the field of finance and secretarial compliances.

Mr. Devendra Vyas Chief finance Controller

Mr. Vyas is a Chartered Accountant and holds a degree of Master’s in Business Administration

He has an experience of more than 17 years in variant industries

He has extensive experience in Costing, Accounting, MIS, Internal & Statutory Audit and Taxation

Key Strengths

Key Strength

Brand Recall

Distribution Network

Brand recall value amongst the customer. VIP caters to the aspirational needs of average Indian.

VIP has a large distribution network catering to various geographies domestically as well as overseas.

Experience Team

Experienced Promoters & Professional Management Team Leading its way to higher peaks.

Eye on Quality

VIP fabric quality, styling and packaging has made its consumers feel their graduation to a superior lifestyle.

Product Portfolio

VIP Leader is a reflection of company's commitment to provide practical and well designed products at most reasonable prices. Strong brands across price and customer segments

Infrastructure

State of Art Manufacturing Facilities at Thingalur and Umbergaon

Workmen

Positioning

Pool of over 2,500 skilled and unskilled workmen to cater to the product demands while maintaining quality standards

The brand comfortable. check of all products.

and Internationally accepted Quality, Stringent Quality

positioned

affordable

Business Strategy

Capitalize on Growing Market Opportunities

Focus on Product Design

Expand Product Portfolio

Improving sales network

Focus on product design and development to cater to ever evolving fashion trends with stress on quality and packaging.

Capitalize on the Brand Recall by enhancing our product offering in various segments.

Augmenting the sales force and distribution network to enhance our product reach and availability

Enhance Brand Visibility

Smart Sales Tracking

Promotion through intelligent Marketing & Advertising . Advertisement focussed towards creating a pull for our products

Enhancing our digital footprints to track our sales force performance on real time basis.

Focus on Product Availability

Focus on - On Time In Full Supply. This will help us to better utilise our manufacturing capacities, improve product availability and better our inventory turnover.

Industry Overview

Innerwear Segment Overview

Overview

 Among the core apparel categories, innerwear appears to be a potential growth

category across all segments

 The Indian apparel sector is expected to grow from ₹ 1,709 billion in 2010 to ₹

4,700 billion by 2020E, representing a CAGR of 10.6%.

 Of this, the innerwear market currently valued at ₹ 14,339 crore (in 2011) is expected to grow to ₹43,721 crore by 2020E, growing at a CAGR of 13.2%, outpacing the growth of the overall apparel market.

 Also, the women’s segment that has historically been smaller in size compared to the men’s segment is expected to grow at a faster pace (CAGR of 15% over 2010-2020E as compared to 10% CAGR in the men’s segment). The women’s innerwear segment is likely to touch ₹30,000 crore from the current ₹8,500 crore. On the other hand, the men’s innerwear segment is likely to grow from ₹5,800 crore in 2010 to Improving Indian demographics and increased preference for proper fits, sizes, etc. lend credence to the growth of organised players in the Indian innerwear market

₹13,700 crore in 2020E.

INDIAN INNERWEAR MARKET

50000

40000

30000

20000

10000

Growing at a CAGR of 13.2%

0 5 2 1 1

8 9 6 2 1

9 3 3 4 1

8 2 4 3 2

1 2 7 3 4

India’s Growing apparel Market

5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0

0 1 0 1

0 4 5 1

9 0 7 1

9 8 8 2

0 0 7 4

2005

2009

2010

2015

2020 E

Organised & Unorganised Market

120%

100%

80%

60%

40%

20%

87%

86%

84%

13%

2005

14%

2009

16%

2010

75%

25%

60%

40%

2015

2020 E

2009

2010

2011

2015

2020 E

Organised

Unorganised

Source: ICICIdirect.com Research

Industry Overview

The Men’s Innerwear Market

 The men’s innerwear market, in India, is increasing its base size at

a promising rate.

 the men’s innerwear segment is likely to grow from ₹ 4,790 crore

in 2009 to ₹ 13,666 crore in 2020E.

 On the basis of product pricing, this market is further subdivided into super premium, premium, medium, and economy segments. The economy segment contributes around 55% to the market, while the mid-price segment makes up 36%, the remaining 14% comes from premium and super premium segments. In these segments, the consumer seeks higher fashion orientation and higher comfort, as well as a strong brand name.

The Women’s Innerwear Market  With growing consumption and shift from low-end to high-end products, the women’s innerwear segment is set to outpace the men’s innerwear segment expects the women’s innerwear segment to grow from 6,460 crore in 2009 to 30,054 crore in 2020E.

 When it comes to price-wise segmentation,

the women’s innerwear market is dominated by products of mid-price and economy segment. These segments together contribute 80% of the market, while the remaining 20% comes from the premium and super premium segments. Like men’s innerwear, the mid- price and premium segments are expected to grow more rapidly within women’s innerwear categories.

35000

30000

25000

20000

15000

10000

5000

Women’s segment set to outpace Men’s segment

0 9 7 4

0 6 4 6

9 6 2 5

9 2 4 7

6 9 7 5

3 4 5 8

2 4 9 4 1

6 8 4 8

6 6 6 3 1

4 5 0 0 3

2009

2010

2011

2015

2020 E

Men's Women's

Source: ICICIdirect.com Research

Financial Highlights

Financial Highlights - Profit & Loss Accounts

Profit / (Loss) for the year

Other Comprehensive Income Total Comprehensive Income for the period

FY 18

₹ millions

FY 17

2,224 940 42% 105 5% 13 34 109 (25) -1% (0) (30) (1)

(31)

0 (30)

2,315 906 39% 155 7% 12 34 122 11 0% (72) (57) (16)

(74)

(1) (75)

As per Ind AS

Financial Highlights - Balance Sheet

Particulars EQUITY AND LIABILITIES Equity Equity Share capital Other Equity Non-Current liabilities Financial Liabilities

Borrowings Other Financial Liabilities

Provisions Deferred Tax Liabilities (Net) Current liabilities Financial Liabilities

Borrowings Trade payables Other Financial Liabilities

Provisions Other current liabilities

FY 2018

₹ million FY 2017

165 1,781

132 1,430

3 55 9 540

798 241 19 21 3

4 50 6 543

942 227 47 19 9

Total Equity & Liabilities

3,636

3,410

As per Ind AS

Particulars ASSETS Non-current assets Property Plant & Equipment Intangible Assets Financial Assets Investments Others

Other Non Core Assets Current Assets Inventories Financial Assets

FY 2018

₹ million FY 2017

410 1,250

456 1,255

0 12 4

1,135

1,033

Trade Receivables Cash and cash equivalents Bank Balance other than above Loans Others

Current Tax Assets (Net) Other Current Assets Total Assets

652 0 51 2 0 1 118 3,636

529 0 40 2 0 13 66 3,410

Key Operating Metrics

Debt Equity Ratio

Inventory holding Days

0.70

0.60

0.50

0.40

0.30

0.20

0.10

0.00

120

100

0.61

0.41

190

180

170

160

150

188

163

FY 2018

FY 2017

FY 2018

FY 2017

Debtor Days

Creditor Days

108

41 40 39 38 37 36 35 34 33

FY 2018

FY 2017

FY 2018

FY 2017

For further information, please contact

COMPANY:

INVESTOR RELATIONS ADVISORS:

VIP Clothing Limited CIN: L18101MH1991PLC059804 Mr. Ashish Mandaliya (CFO & Company Secretary) Tel: +91 -22 - 40209000 Email: investor.relations@viporg.com

Marathon Capital Advisory Private Limited CIN: U67190MH2003PTC143425 Mr. Amit Porwal Tel : +91-22-40030610 Email : vip.ir@marathoncapital.in

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VIP Clothing Limited has informed the Exchange regarding Investor Presentation; Investor Presentation �� Q3 �� F.Y. 2018-19

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