VIPCLOTHNGNSE28 January 2020

VIP Clothing Limited has informed the Exchange regarding Investor Presentation

VIP Clothing Limited

January 28, 2020

To,

A ( viP) V

The Listing Department, BSE Limited 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. 2019·20.

Dear Sir/Madam,

Pursuant to Regulation 30 and any other applicable regulations of SEB! (Listing Obligations and Disclosure Requirements) Regulations, 2015 please find enclosed Investor Presentation for Q3 F.Y. 2019-20, the same has been uploaded on the website of the Company v..,ww. vipclothing.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 Cloth.ins Limited

a~ Cv1Q~j~-

Chief Financial Officer & Company Secretary Encl : As above.

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Investor Presentation January 2020

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 & 9MFY20 Financials

Company Overview

Key Strengths

Business Strategy

Industry Overview

Financials Highlights

04 07 23 25 27 30

Q3 & 9MFY20 Financial Highlights

Q3 & 9MFY20 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 FY20

Q2 FY20

Q3 FY19

9M FY20

9M FY19

351.4 103.8 29.5% (93) -26.4% 1.7 8.3 24.4 (123.9) -35.3% 0.0 (120.42) 0.0

496.8 154.3 31.1% (60) -12.0% 14.5 8.2 24.5 (77.9) -15.7% 0.0 94.77 0.0

495.5 201.9 40.7% 18 3.6% 0.5 8.3 22.6 (12.4) -2.5% 0.0 (11.41) -

1,422.2 481.2 33.8% (122) -8.6% 22.6 24.6 72.2 (196.7) -13.8% 0.0 (19.38) 0.0

1,672.3 678.1 40.5% 29 1.7% 14.2 25.0 65.7 (47.9) -2.9% 0.0 (45.17) -

(₹ in Million) FY19 2,074.6 863.0 41.6% 36 1.8% 19.7 33.1 88.1 (65.1) -3.1% 0.0 (61.93) 0.0

Profit / (Loss) for the year (Total)

(120.4)

94.8

(11.4)

(19.4)

(45.2)

(61.9)

Other Comprehensive Income

Total Comprehensive Income for the period

0.3 (120.1)

(1.2) 93.6

(2.8) (14.2)

(1.3) (20.7)

(3.3) (48.5)

(2.2) (64.1)

The full format of the Standalone Unaudited Financial Results for the Quarter and Nine Months ended December 31, 2019 is available on the Stock Exchange website. the Company at www.vipclothing.in

(www.nseindia.com and www.bseindia.com ) and also on the website of

Balance Sheet

Particulars

H1 FY19

FY19

ASSETS Non-current assets Property, plant and equipment Intangible assets Financial assets Investments Other Other non-current assets Sub-total - 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 Sub-total - Current Assets TOTAL - ASSETS

Particulars EQUITY AND LIABILITIES Equity Equity Share capital

386.50 1246.07 Other equity

0.12 Non-current liabilities 10.01 3.66 1,646.34

374.39 1243.81

0.03 9.73 3.64 1,631.59

Sub-total - Shareholders' funds

Financial liabilities Borrowings Other financial liabilities Provisions Deferred tax liabilities (net) Sub-total - Non-current liabilities Current liabilities Financial liabilities Borrowings Trade payables Other financial liabilities(other than specified above) Provisions Other current liabilities Sub-total - Current liabilities TOTAL - EQUITY AND LIABILITIES

989.54

1,116.95

679.74 2.52 59.51 3.42

0.08

1.45 151.37 1,887.62 3,519.20

604.42 0.16 57.06 2.87

0.08

1.34 142.07 1,924.94 3,571.29

(₹ in Million)

H1 FY19

FY19

165.19 1,813.51 1,978.70

165.19 1,714.03 1,879.23

1.84 60.44 10.62 307.54 380.44

885.28 209.86

27.04

36.03 1.86 1,160.06 3,519.20

2.17 58.24 11.68 536.07 608.17

824.61 207.53

25.64

21.98 4.13 1,083.89 3,571.29

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%

VIP has Pan India Presence with one of the largest distribution network

12%

Retailers – ~35,000

Warehouses – 2

Sales & Marketing Professionals - 215

Brand Outlets – 2

Distributors & Wholesalers - ~400

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.

Milestone

IPO of our Company. First company to get listed OTCEI

Incorporated as a Private Limited Company

Equity Shares were listed on BSE Limited

Investment of ~ ₹ 451 millions by Reliance Capital Partners

Listing on NSE

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

Delisting of the Equity Shares from the OTC Exchange of India

Sale of spinning division situated at Kollapalur, Tamil Nadu

1991

1993

2005

2006

2007

2008

2011

2012

2014

2015

2016

2017

2018

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

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

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

Launch of Premium Segment – VIP Regal and Frenchie Casuals

Sale of Factory Land and Building situated at Daman

Sale in-operative division situated at MIDC, Navi Mumbai

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

Change of Company’s name from Maxwell Industries Limited to VIP Clothing Limited

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

INNERWEAR

VEST VIP Bonus Premium; Bonus Classic; Bonus Knitshrunk; Nawab; Supreme ; Bonus Fab; Bonus Junior; Pro; Fresh; Drycool Frenchie Elite; Oxy; Square; Neo; Flex; Ribs; Enticer, Gym wear

BRIEFS VIP Spector; Signor; Gold; Champ; Alpha; Apex; Designer; Fresh, Drycool Frenchie Eurofit; Pro; Envy; Groove; Lows

Trunk VIP Advanta; Ultima; Unique; Punch Print; Punch Plain; Pic Pocket; Sigma; Boxer Frenchie Pixel; Beat; Neo

Boxer VIP Freakout

OUTERWEAR

T- Shirt VIP Pulse Frenchie Crew

Muscle tee VIP Blaze

Track Pants VIP Trek Frenchie Jogger; Runner

Bermuda VIP Player Frenchie Relax

Socks Frenchie

Product & Brand Portfolio

INNERWEAR

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

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

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

OUTERWEAR

Track Pants Feelings

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

• 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 International youth Models.`

connect. Use

• Contemporary Classic’ brand catering to

sober tastes.

• Draw on the 40+years heritage of underwear

‘authority’

claiming making.

• Advertised through mass media like TV &

Print and high impact hoardings

• Use of International Models in order to

be distinct from others.

• 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 48 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 40 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 64 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 75 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 56 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 75 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 20 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 18 years in variant industries

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

Key Strengths

Key Strength

Brand Recall the Brand recall value amongst to customer. VIP the aspirational average Indian.

caters of

needs

Distribution Network

large

a catering

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

Experience Team

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

Promoters

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 at most reasonable prices. Strong brands across price and customer segments .

designed

products

Infrastructure State of Facilities Umbergaon .

Art Manufacturing and

Thingalur

Key Strength

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

Positioning The brand is positioned to be affordable and comfortable. Internationally accepted Quality, Stringent Quality check of all products..

Business Strategy

Capitalize on Growing Market Opportunities

Focus on Product Design

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

Improving sales network

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

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.

Expand Product Portfolio

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

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

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 (Total) PAT Margin %

FY17

FY18

(₹ in Million) FY19

2,315 906 39.12% 155 7% 12 34 122 11 0.48% -72

(74) -3%

2,224 940 42.29% 105 5% 13 34 109 -25 -1.13% -0.2

(31) -1%

2,075 863 41.60% 36 2% 20 33 88 -65 -3.14% -

(62) -3%

Financial Highlights – Balance Sheet

Particulars

FY19

FY18

Other

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

386.50 1246.07

410.13 1,250.20

0.12 10.01 3.66 1,646.34

0.12 12.42 3.70 1,676.56

1,116.95

1,134.89

604.42 0.16 57.06 2.87

0.08

1.34 142.07 1,924.94 3,571.29

651.65 0.07 51.02 2.39

0.10

0.70 118.44 1,959.25 3,635.81

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

(₹ in Million)

FY19

FY18

165.19 1,714.03 1,879.23

165.19 1,781.18 1,946.37

2.17 58.24 11.68 536.07 608.17

824.61 207.53

25.64

21.98 4.13 1,083.89 3,571.29

3.14 52.30 9.02 540.33 604.79

797.95 240.85

21.45

21.22 3.19 1,084.66 3,635.81

Key Operating Metrics

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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