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GHCL HOME TEXTILE DIVISION Commercial Meet

GHCL HOME TEXTILE DIVISION Commercial Meet. 20 th & 21 st June 2014. TEXTILE INDUSTRY IN INDIA. 14% of Industrial Production; 4% of Gross Domestic Production [GDP]; [refers to the market value of all final goods & services produced within a country in a given period]

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GHCL HOME TEXTILE DIVISION Commercial Meet

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  1. GHCL HOME TEXTILE DIVISION Commercial Meet 20th & 21st June 2014

  2. TEXTILE INDUSTRY IN INDIA • 14% of Industrial Production; • 4% of Gross Domestic Production [GDP]; • [refers to the market value of all final goods & services produced within a country in a given period] • 11% of India’s Export; • 35 Million employment in India.

  3. BRIEF ABOUT GHCL HOME TEXTILE UNIT • Commenced business in 2006; • Now, 91% export & 9% domestic business; • Major export markets are USA & Europe; • Turnaround of business in Year 2011-12; • Turnover of ` 600 Cr in 2013-14;

  4. Competitors & Production • Our Major Competitors: • Welspun India; • Alok Industries; • Indocount Industries; • The Bombay Dying; • Products: • Weaving capacity - 30,000 meter per day; • Processed Fabrics - 90,000 meter per day; • Madeups capacity - 70,000 meter per day.

  5. HT COST DETAILS Cost %age

  6. Procurement & Service • Yarn & Fabric; • Dyes & Chemicals; • Stores & Spares; • Packing Materials & TRIMS;

  7. Dyes & Chemicals (DC) • For specials DC, we make a long terms price contract and we review with due course of time; • For Regular and bulk chemicals : we do negotiations and placing order according to lowest offer; • Day to Day Procedure: • On the base of order our technical team generating PR • as per production schedule • We check available inventory & urgency of procurement; • Place order accordingly.

  8. Dyes & Chemicals (DC) Rs. in Crores In Nos.

  9. Dyes & Chemicals (DC) Rs. in Crores 52% of procurement from above 7 vendors; Next 26% procurement form next 10 vendors. Balance 22% buying from 48 Nos., which needs our focus for consolidation.

  10. Stores & Spares / CAPEX (SS) • Procurement for: • Machineries Weaving • Machineries Processing & Inspection • Machineries of Cut & Sew • Utility Equipment

  11. Stores & Spares / CAPEX (SS) Rs. in Lacs

  12. Stores & Spares / CAPEX (SS)

  13. Stores & Spares / CAPEX (SS) Generals Activities – Related Rate Contracts: Rate Contract issued for Polycab cable for copper & aluminum armed @69% on MRP and for Flexible@55% on MRP with 75 days payment terms; Fenner Eng Product @30% and belt @55% with 60 days credit Rate Contracts given for Refilling of fire extinguisher(Price attached) We Give ducting rates as per below : (For GI of 24 G- 70 FT2 and for SS -24G@Rs 181/FT2 and for 22G@Rs.205/FT2) L&T- Audco Make valve rate contract finalized with authorized partner on 20% of MRP with 30 days credit; Channel /Collapsible gate price is 275/FT2; We have proposal for 64% discount on MRP for power saver IE2-motors exclusive of excise and VAT for Siemens make; Bearing rate contracts as per our corporate contracts; We are introducing IOCL product against our existing Mobil products , slowly we will start according to our corporate rate contracts; We use format for comparison as per attached:

  14. Stores & Spares / CAPEX (SS)

  15. Thanks

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