IRISDOREME

IRIS CLOTHINGSLTD, 103/24/1, Foreshore Road,Binani Metal Compound, Howrah — 711102 Office: +91 33-2640 4674, 33-2637 3856. C e I m N a : il: L1 a 8 c 1 c 0 o 9 u W n B t 2 s 0 @ 1 i 1 r P i L s C c 1 l 6 o 6 th 8 i 9 n 5 gs.in website : www.irisclothings.in GSTIN :19AACCI6963K1Z0 Date: 1stOctober,2021 To The Listing Department NationalStock ExchangeofIndiaLtd. ExchangePlaza, PlotNo. C/I, G Block, Bandra-KurlaComplex, Bandra(E), Mumbai-400051 NSESymbol-IRISDOREME Sub: SubmissionofInvestorPresentation R Re e f q : uire D m i e s n c t l s o ) su R r e e gu u l n a d t e i r on R s, eg 2 u 0 l 1 a 5 tion 30 of SEBI (Listing Obligations and Disclosure DearSir/Madam, f W o i r t t h he re p f e e r r i e o n d ce en to de a d bo 3 v 0 e % s S u e b p j t e e ct m , be p r l , ea 2 s 0 e 21 f . ind enclosed herewith the Investor Presentation Kindly take thesameonyourrecord. Thankingyou. Yoursfaithfully, ForIrisClothings Limited IRIS CLOTHINGS LIMITED ye DIRECTOR SantoshLadha ManagingDirector (DIN:03585561) Encl.:Asabove Investor Presentation September 2021 About “4d the Company 1 Iris Clothings Limited Company Overview Presence in Ecommerceplatforms Weare a fast-growing kids apparel companythat is engaged in designing, fipstely Flipkart manufacturing, branding andselling 8 garments. Our sustained pursuit of design en ¥ i Ropséotch amazon "a and innovation has madeus a preferred Pp ——— t \2, fashionable kids’ brand. oe ‘% Wehave been growing our presence online by increasing e-commercelistings. BQ a 9 ue soc ”veoos 2 States Units Distributors Pieces Employees of presence Manufacturing (7) manufactured/day Dispatch(2) A" Product Portfolio Iris’ brand DOREMEoffers a wide rangeof apparelsfor Currently infants, toddlers, and junior boys and girls that suit both their . : = Established DOREMEas a reputable and trusted brand. indoor and outdoor requirements. = Has solidified its position in the kids segment mainly throughits top-notch quality and design. Future Outlook = Iris aims to sharpenits existing product mix under the brand DOREMEto meettherising demandfor their products YOR=M=. = Intends to launch a dedicated infant wearvertical with a broad range of products = Tops = Accessories = Foraying into the kids’ undergarments space = T-Shirt = Sweatshirts or . . . = Expanding its productofferings to provide greater choice to = Trousers = Hoodies customers.In line with this intent, we are further amplifying our = Shorts = Polyfil suits acumen beyondkids wear, to craft products for men and women . under the brand Oxcgen. = Dresses = Padded suits = Loungewear = Nightwear ClothingLimited- Investor Presentation History Acquired land at Pachla, Commencedbusiness as a Acquired proprietorship firm Howrah, West Bengal — a major proprietorship firm “M/S IRIS CLOTHINGS”including step towardsincreasing 250 crores ‘M/sIris Clothings’ its brand name DOREME manufacturing capabilities. turnover milestone DOREM= Incorporation of| Launched DOREMEbrand CLOTHINGS PVT LTD asa for Kids Wear private limited concern. under NSE Started sale of produ r l through online e-comme U U channels suchas‘FirstCry IrisClothing Limited Investor Presentation 5 Investor Presentation September 2021 Market Opportunity 1S Iris Clothings Limited Indian Textile & Apparel Industry India’s Domestic Textile and Apparel Market Size (US$ in Bn) India is the second-largest produceroftextiles and ot 190 garmentsin the world oe \\yy dE Contributes 2.3% to the country’s GDP 2/0 B Gc S Employs 45 million workers in the textile sector 2005-06 2010-11 2019-20 2020-21[E] 2025-26[P] Apparel constitutes ~73% share mamApparel mamTechnical Textiles masHomeTextiles ——Total of the Indian T&A market Source:DGCI&Sand WazirAnalysis Despite a 30% drop in 2020-21, the market is expected to recover and grow at 10% CAGRtill 2025-26 Iris Clothing Limited In. Kids Wear - the Fastest to Recover Kids wearis expected to grow at a CAGRof 8.76% between 2021-2026 ~365 million Indians are below the age of 15 years. Hence, a large customerbase Kids wearregistered a 200% growthdespite a 4% drop in overall online fashion order volumesin FY2021 Significantly High replacement cycle within children’s clothing as Party, Evening & Denim Ethnic wear Kids wear Casual wear kids outgrow their clothes faster Occasion Wear Increasing personal disposable income and growing working population are key growth drivers Inner wear Loungewear Investor Presentation September 2021 Our Value System Integrated Operations Iris has a complete in-house integrated infrastructure right from design conceptualisation to manufacturing to branding and selling of finished goods to wholesaler. i) aE Conceptualization of PCa rela. Manufacturing & Sold to Design & Development Procurement Branding* Wholesale rs Therefore, a manufacturing infrastructure that is strongly backward integrated enables us to have better control over quality and be cost-efficient. “Cutting, Printing&Embroidery,Stitching,Mending&Checking, Ironingand BoxPackaging IrisClothing Limited Investor Presentation 10 Manufacturing Prowess Manufacturing excellence has been oneofour biggest strengths. Moreover, our state-of-the-art facilities help us increase our capabilities multifold, achieve economies of scale and provide locational synergies. erere Road, Uluberia, Srijjan Industrial Park, Howrah Howrah Howrah Bombay Road = Has 4 units for stitching and = Set upitsfirst fully modernized Consolidatesall the = Setupits third fully modernized finishing with fully automated stitching and finishing unit with manufacturing activities in a stitching & finishing unit with stitching machines from Japan online processes single location online processes and from a renowned = Locational advantagein terms Installed fully automated = lunit for dispatch indigenous brand ofskilled labour and raw cutting machinery from Italy = lunit for dispatch material availability and printing machinery from US and Poland Fully modernized stitching and finishing unit with online processes 15x manufacturing capacity growthin 16 years IrisClothing Limited Investor Presentation Wide Network sy 1 J Distributor Network Business Update Future Outlook = Iris has 114 distributors = Developing an ecommerce . portal on our website » Has an online presence across various fast-growing e- = Plans to adddistributors in commerce channelslike newer geographies especially FirstCry, Hopscotch among in South India, to deepen others. market penetration and expand reach to markets with = Continuously expanding the higher potential demand. distribution networkto increase brandvisibility = Planned an extensive channel partnerloyalty and = Commenced exports to Africa engagement programmeto under DOREME drive their stickiness and boost morale. = To boost our product reach we have been focusing on expanding our presencein Tier % Contributionto Revenue 42% IL & Ill cities Mumbai Jaipur 39% Guwahati 3.5% Barodra 3.5% Ludhiana 3.2% IrisClothing Limited Investor Presentation 12 Enhancing BrandVisibility DOREME = Iris plans to enhanceits digital marketing and branding initiatives to better mirror the customers’ fast-changing needs. = The Companyplans to undertakeactivities to enhanceits brand recall and customer connect onsocial media channels. This would eventually drive traffic to its exclusive online store. Iris Clothing Limited Investor Presentation Relationship with Suppliers Strong and trust-based relationshipsis of “|have been associated with IRIS Clothingsisreliable “IRISClothingsisa great “Ourassociation with paramount importance IRIS Clothingsasa distributor andaprofessional companywith an DOREMEissinceits inception. since we sourcefabrics forthepast 12years. During company. Itisan amazing experiencedstaffand Wehave theprivilege to and other accessories for this longassociation, |have experience to work with knowledgein the apparel! introduce theirquality garment manufacturing developedastrong trustin the them. business. Theyhavemade productsin Maharashtra and from leading domestic companydueto the qualityof the mostamazingand since then ourjourneyof suppliers. This facilitates itsproductsandits vision. |am uniqueapparels for growth has beenphenomenal effective inventory also veryimpressedbyits work infants, toddlers, boysand forboth ofus. We ethicsandthelevelof girls.” congratulate them and wish management, efficiency. | wish IRIS Clothings them manymoresuccessful continuous supply of allthe verybestandlook years oftogetherness.” quality raw materials at forwardto enjoying thisgood competitive costs and bondthat weshare in the on-time delivery of our future too.” products. ROHIT KHURANA ANKUR CHADA DINESH PAREKH HEMANT & PANKAJ KhuranaClothing’s Pvt. Ltd. ChadhaTrading Co. Nihareeka Marketing PAREKH Jaipur Ambala Guwahati PamposhMarketing Mumbai Iris Clothing Limited Investor Quality Consciousness Iris ensures adherenceto the desired standards of quality and specifications for its products and processes by undertaking adequate and stringent quality checks. This has helped the company in building strong customertrust and securing repeat business. 76% 54% revenue fro m revenue from 5-year 10-year old clients old clients IrisClothing Limited Investor Presentation Sustainability Environmental Social Iris follows a strict ecological policy that comprises of 6 features « Waste Reduction Recycling ‘A No Child Labour Iris made an improvementin its fabric Iris uses printing materials that is quality, which resulted in significant eco-friendly, recyclable and reduction offabric wastage. devoid of lead. éd ie] Provided clothes to 2000+ underprivileged children Tree yy Renewable Plantation (4) Energy & la. Providing sanitary pads to womenworkerssotheir working potential is not Natural Reserve Rain Water compromised Conservation Harvesting ClothingLimited- Investor Presentatio Investor Presentation September 2021 Financials 1 Iris Clothings Limited Financial Highlights 2 in Crores AWA ate} FY19 FY20 A Total Revenue 46.9 53.1 62.2 60.9 88.2 PAT 17 3.3 511 3.9 65 EBITDA 55 9.0 NZ 13.8 171 Net Worth 65 10.1 28.6 321 38.8 Debt 16.6 21.0 20.1 24.6 20.3 IrisClothing Limited Investor Presentation 18 Ratio Analysis EBITDA Margin(in %) Return on Capital Employed (in %) Return on Assets(in %) 22.7 22.9 188 184 20.0 83 8..2 8.6 53 48 FYI7 FYI FYI9 FY20 Fy21 FYI7 FYI8 FYI9 FY20 Fy21 Decreasein the ratio due to significant Recovery in FY21 was mainlydriven by a 45% increase in raw materialcosts. increase in revenues. PAT Margin(in %) Working Capital Days (in days) Debt-to-Equity (in x) 81 2128 FYI7 FYI FYI9 FY20 Fy21 FYI7 FYI8 FYI9 FY20 Fy21 High working capital days in FY20 mainly due to Significant improvementin the ratio due to issue of high days inventoryoutstanding owing to unsold fresh equityshares in FY19. stockdue to the pandemic. IrisClothing Limited Investor Presentation QIFY22 Update Business Update Financial Update = Revenuestook a hit due to the second-wave induced = Total Incomestood at 219.6 crores, up 243% YoY lockdownsas operations ceasedin Iris’ largest markets in India * EBITDA marginis at 22.5% comparedto 16.0% in = Sale volumesare picking up momentum,therefore the impact QIFY21, up by a considerable 642 bps is expected to notpersist in the coming quarters » PAT Margin has beenpositive despite the Covid impact = Capex target for theyear stands at 23 crores, with 21.2 crores already employed = Expects the ecommerceportal to go live bythe end ofthis financial year = Plans to enter the kids’ undergarments space by December 2021 Total Income(2% in Mn) EBITDA(2 in Mn) PAT(3% in Mn) 297 53 21 18 44 196 57 9 QIFY21 Q4FY21 QIFY22 QIFY21 Q4FY21 QIFY22 QIFY21 Q4FY21 QuFY22 IrisClothing Limited Investor Presentation 20 Investor Presentation September 2021 Investment Rationale 1 Iris Clothings Limited Our Differentiating Factors Continuous investments to expand manufacturing capabilities coupled with high return on capital employed indicating efficient use of that capital Vv W With ~15 years of experience, promoters Catering to a large customer @ have a strong expertise in the industry segmentof ~365 million | | Vv Established long standing god Fully integrated and £O3%S} automated operations allows relationships with suppliers ie W Iris to maintain quality Iris Clothings Limited IrisClothing Limited Investor Presentation 2 Safe Harbour Statement This presentation has been prepared by andis the sole responsibility of Iris Clothings Limited (the “Company’). This presentation does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities. This presentation has been prepared by the Company based on the data and information which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoeverof the contents of this presentation. This presentation may not beall inclusive and may not containall of the information that you may considerrelevant. Any liability in respect of the contents of, or any omission from, this presentation is expressly excluded. This presentation may contain certain forward-looking statements concerning the Company's future business prospects and business profitability, which are subject to a numberofrisks 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 notlimited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition, economic growth in our markets, ability to attract and retain highly skilled professionals, our ability to manage our operations, governmentpolicies and actions, interest and otherfiscal costs generally prevailing in the economy. The Company assumes no responsibility to amend or revise any forward- looking statements from time to time based on any subsequent developments, information or events. Thank You For further details please contact: Santosh Ladha DiwakarPingle/Sonia Keswani Iris Clothings Limited Christensen Advisory @: +9133 2979 0289 @;:+91 22 4215 0210 Bx): santosh.ladha@irisclothings.in Bx: dpingle@ christensenir.com Bal: skkeswani@christensenir.com 1S Iris Clothings Limited REGISTERED OFFICE 103/24/1, Foreshore Road, Howrah - 711102 www.irisclothings.in CIN: L18109WB2011PLC166895