BRAND PORTFOLIO OF SIYARAM

The company has a portfolio of well-known brands like Siyarams (value for money brand), J Hampstead (premium), and Mistair (high-end value for money). Some of the other fabric brands include Featherz and Zenesis & Moretti. Siyarams is a flagship brand, which accounts for ~75% of the total fabrics sales [Suiting: 76%; Shirting: 22% & Furnishing (curtains & upholstery) 2%]. Mistair accounts for ~18%, while J Hampstead contributes 5%. Zenesis & Moretti and Featherz Contribute the balance 2%. In the RMG segment, the major brands include Oxemberg (Formal), MSD (Monday to Sunday Dressing, Casual) & J Hampstead (formals). Oxemberg (value for money brand) contributes ~80% to the total RMG sales, while the balance ~10%

SSML is predominantly a domestic player, with ~95% of the revenues derived from domestic markets. Further, within India, SSML mainly focuses on Tier II & III cities which along with rural India contributes ~75% of the domestic revenues

Capacity expansions & improvement in utilisation to drive the growth

The company would add 286 looms at Silvassa & Tarapore to the existing capacity of 479 looms in the coming quarters in a phased manner: 78 looms by September 2011, 120 looms by March 2012 and 88 looms by September 2012. With this the companys fabric weaving capacity would increase by 26.4 mn meters from 60 mn meters p.a. to 86.4 mn meters by September 2012 (7.2 mn mts by Sept 2011, 13.2 mn mts by March 2012 & 6 mn mts by September 2012). The company is also in the process of adding 400 stitching machines at Daman to the existing capacity of 645 stitching machines by Dec 2011. The RMG manufacturing capacity is expected to increase by 0.5 mn pieces p.a. from 2.4 mn pieces p.a. to ~2.9 mn pieces p.a. Of the total CAPEX, Rs. 1500 mn would be for the expansion of plant & machinery (for expanding the looms & stitching machines) and the balance Rs. 600 mn would be incurred towards setting up of new office premise, land & building & warehouses.

Strong Distribution network

SSML has a strong distribution network of around 60,000 franchise and retail outlets, 1500 dealers & 500 agents across the nation. This ensures that its brand remains one of the preferred choices of the masses. The company has improved its distribution network significantly over the years with the number of dealers & agents increasing from 550 & 180 respectively since FY05, thus growing at a CAGR of 24% & 23% respectively. This has enabled the company to have a strong foothold in the domestic markets and to cater to the demand of middle and lower income class.