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Trident Ltd — AGM Information 2021
Aug 27, 2021
59305_rns_2021-08-27_35c69148-453c-40dc-a297-065797ae3793.pdf
AGM Information
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TRIDENT/CS/2021
August 27, 2021
The Manager The Manager Listing Department Listing Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot No. C/1, G Block Phiroze Jeejeebhoy Towers Bandra Kurla Complex, Bandra (E) Dalal Street Mumbai – 400 051 Mumbai – 400 001 Scrip Code:- TRIDENT Scrip Code:- 521064
Dear Sir/ Madam
Sub: Submission of “Questions/Queries received from Members on the 31[st] Annual General Meeting of the Company”
Pursuant to Regulation 30 and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith the Questions/Queries, answered & responded, in the 31[st] Annual General Meeting of the Company which was held on Friday, August 27, 2021 at 11:00 AM IST through Video Conferencing [VC]/Other Audio Visual Means[OAVM].
This is for your information & records please.
Thanking you, Yours sincerely, For Trident Limited
RAMAND Digitally signed by RAMANDEEP KAUR EEP KAUR Date: 2021.08.27 15:56:36 +05'30'
(Ramandeep Kaur) Company Secretary ICSI Membership No.: F9160
Encl: As above
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27/08/2021
TL/2021/013351
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Questions Received from the Members on 31[st] Annual General Meeting of the Company
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Safe Harbour
This presentation has been prepared by Trident Limited (the “ Company ”) for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person and does not constitute any recommendation or form part of any offer or invitation, directly or indirectly, in any manner, or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment therefor. This presentation does not solicit any action based on the material contained herein. Nothing in this presentation is intended by the Company to be construed as legal, accounting or tax advice.
This presentation has been prepared by the Company based upon information available in the public domain. This presentation has not been approved and will not or may not be reviewed or approved by any statutory or regulatory authority in India or by any Stock Exchange in India. This presentation may include statements which may constitute forward-looking statements. The actual results could differ materially from those projected in any such forward-looking statements because of various factors. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise.
This presentation contains certain forward-looking statements relating to the business, financial performance, strategy and results of the Company and/ or the industry in which it operates. Forward-looking statements are statements concerning future circumstances and results, and any other statements that are not historical facts, sometimes identified by the words including, without limitation "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements, including those cited from third party sources, contained in this presentation are based on numerous assumptions and are uncertain and subject to risks. A multitude of factors including, but not limited to, changes in demand, competition and technology, can cause actual events, performance or results to differ significantly from any anticipated development. Neither the Company nor its affiliates or advisors or representatives nor any of its or their parent or subsidiary undertakings or any such person's officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does either accept any responsibility for the future accuracy of the forward-looking statements contained in this presentation or the actual occurrence of the forecasted developments. Forward-looking statements speak only as of the date of this presentation and are not guarantees of future performance. As a result, the Company expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements in this presentation as a result of any change in expectations or any change in events, conditions, assumptions or circumstances on which these forward looking statements are based. Given these uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements.
The information contained in these materials has not been independently verified. None of the Company, its directors, promoter or affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability whatsoever, whether arising in tort, contract or otherwise, for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this presentation or its contents or otherwise in connection with this presentation, and makes no representation or warranty, express or implied, for the contents of this presentation including its accuracy, fairness, completeness or verification or for any other statement made or purported to be made by any of them, or on behalf of them, and nothing in this presentation or at this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. Past performance is not a guide for future performance. The information contained in this presentation is current, and if not stated otherwise, made as of the date of this presentation. The Company undertakes no obligation to update or revise any information in this presentation as a result of new information, future events or otherwise. Any person/ party intending to provide finance/ invest in the shares/ businesses of the Company shall do so after seeking their own professional advice and after carrying out their own due diligence procedure to ensure that they are making an informed decision.
This presentation is not a prospectus, a statement in lieu of a prospectus, an offering circular, an advertisement or an offer document under the Companies Act, 2013, as amended, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended, or any other applicable law in India.
This presentation is strictly confidential and may not be copied or disseminated, in whole or in part, and in any manner or for any purpose. No person is authorized to give any information or to make any representation not contained in or inconsistent with this presentation and if given or made, such information or representation must not be relied upon as having been authorized by any person. Failure to comply with this restriction may constitute a violation of the applicable securities laws. Neither this document nor any part or copy of it may be distributed, directly or indirectly, in the United States. The distribution of this document in certain jurisdictions may be restricted by law and persons in to whose possession this presentation comes should inform themselves about and observe any such restrictions. By reviewing this presentation, you agree to be bound by the foregoing limitations. You further represent and agree that you are located outside the United States and you are permitted under the laws of your jurisdiction to receive this presentation.
This presentation is not an offer to sell or a solicitation of any offer to buy the securities of the Company in the United States or in any other jurisdiction where such offer or sale would be unlawful. Securities may not be offered, sold, resold, pledged, delivered, distributed or transferred, directly or indirectly, in to or within the United States absent registration under the Securities Act, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. The Company’s securities have not been and will not be registered under the United States Securities Act of 1933, as amended.
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Q How is the business leveraging digitization to grow the business?
A The market dynamics are rapidly changing with Industry 4.0; accordingly, the following initiatives are being taken:
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Industrial IOT- Integration of machines to get automated data on real time basis
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Business Intelligent Dashboards- focusing on real time display of data
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Development of online design product portfolio that showcases our products
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AI powered chatbot for employee engagement
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A futuristic website that connects all Trident stakeholders together
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Q Currently towel utilization levels are around 60%, can this be ramped up to 80-90% levels in coming times?
A
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We expect capacity utilization to increase in coming times due to various demand-pull factors such as
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Increased awareness on health, hygiene, and people working from home across the world with focus on home décor
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Pakistan GSP+ status under review
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US ban on Xinjiang cotton
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Favorable government support in the form of RoSCTL continuation
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FTA discussions with EU and other nations
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Q What could be the possible impact of suspension of Pakistan’s GSP+ status by EU for Indian Home Textile players?
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A • Currently, India enjoys GSP beneficiary status whereas Pakistan has been awarded GSP+ status. As a result, products from the Pakistan enjoy comparative advantage due to differential import tariffs.
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The Pakistan’s status was due to be reviewed in 2022, however, due to abuse of blasphemy laws, the European Parliament is said to withdraw the GSP+ status. This will provide enormous potential for Indian home textile players and offer level playing field for Indian products.
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Q US has banned import of cotton from China’s Xinjiang region. What does it mean for India’s textile industry?
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A • US Senate in July 2021, passed a bill to ban imports of all products that uses cotton from China’s Xinjiang region, due to issues of forced labor. Xinjiang is world’s largest cotton producing region supplying around 20% of the world cotton.
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This ban will have favorable impact for Indian textile players, as demand will shift from China to India and other players.
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Q How will share of value added products increase from current mix?
We are one of the few vertical integrated organisation having end-to-end operations right from A the cotton to the made-ups, coupled with deep research and innovation capabilities. Following are the key initiatives being taken to increase the revenue from value added products.
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We are one of the largest supplier of Beach towels (Yarn Dyed Jacquard) globally
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We have explored various Anti Microbial finish based on different technologies
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Periodic Market Surveys to understand the consumer behaviour
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We have registered 11 Patents and 302 Trademarks worldwide as on 31st March 2021
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Q What has been the company’s effort to promote own brands growth via e- commerce?
A The company has undertaken following activities to promote own brands growth-
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Launch of Own e-Commerce Websites in India and US
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Increased presence in new Geographies like US and Middle East
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Started own warehouse operation to increase market penetration in India
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Use of Machine Learning and AI Analytics to optimize costs and add sustainable profits
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What has been the company’s efforts to reduce its debt commitments and become Q net debt free in future?
A
The has undertaken several initiatives over the to reduce its debt company years commitments. Net Debt has reduced by around Rs.1900 mn and prepayment of term loans amounting more than Rs. 6500 mn has been done in the financial year 2020-21.
Particulars (INR Million) 31[st] March 2021 31[st] March 2020 Gross Debt 15,355.1 19,518.1 Term Loans 3,019.0 10,509.3 Working Capital 12,336.1 9,008.8 Net Debt 14,231.9 16,144.6
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A
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Q What is the forex position of the company as on the year ended March 2021?
Derivative Financial Instruments (INR Million)
31 March 2021
Foreign Exchange forwards Contracts (at forward rate) -USD 12,289.0 Foreign Exchange Option Contracts (at closing spot rate) -USD 73.1
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Q What is the geographical distribution of Revenue in FY21?
A
Revenue (INR Million) FY 2021 FY 2020 India 14,599.0 20,682.9 USA 19,625.1 14,234.5 Rest of the World 10,968.8 12,077.2 Total 45,192.9 46,994.6
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Q
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Comment on the Rebate of State and Central taxes and Levies (RoSCTL) extension announced by the Government of India? Also, what is the update on Rebate of Duties and Taxes on Exported Products (RoDTEP) scheme?
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The government has issued a notification for continuation of RoSCTL, applicable retrospectively from 1st January 2021, till 31st March 2024 on export of bed sheets and towels @ 8.2%. This move is expected to provide stability and ensure competitiveness of Indian products in the foreign markets.
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Also, yarn and paper, shall be eligible to get benefits under RoDTEP scheme, at rates
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3.8% and 1.1% respectively.
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Q What is the installed capacity of new spinning unit at Budhni? Will the % share captive yarn consumption go down in the coming year?
A
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To strengthen position in the textile sector, a new spinning unit with state of art manufacturing facilities having capacity of 61,440 spindles and 480 rotors has begun commercial operations on 27th July 2021.
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The would be sold in the market as well as utilized for yarn produced captive consumption
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in the form of raw material for manufacturing bath and bed linen. Depending upon the market scenario, the company has flexibility to increase/decrease the captive consumption.
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Q What is the dividend pay-out for the financial year 2020-21?
A
The to reward its shareholders dividend The company envisage through regular payouts. Board, in its meeting held on May 15, 2021, have recommended a final dividend of 36% (INR 0.36 per Equity Share of Re. 1/- each) for the financial year 2020-21 subject to the approval of shareholders. This translates into a dividend payout of 53% for FY 21.
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Q What is the strategy for capex implementation, is it demand driven or vice-versa, that is capacity first and then going for orders? A In the initial phase of growth, the company focused on the capex-first strategy, that is project was implemented first and demand followed subsequently.
However, the current market dynamics are such that there is a robust demand for home textile products, therefore, in contemporary times, the strategy for capex implementation could be said to be demand driven.
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Q What is the strategy going forward to achieve the ambitious VISION 2025?
A
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VISION 2025 comprises of the following 3 BHAG (BIG, HAIRY, AUDACIOUS GOALS) 1. Achieving Revenue of INR 250,000 million by 2025 with 12% bottom line
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Making Trident a National Brand
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Digital Trident- By completing the journey of Industry 4.0
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The aims to achieve the same a two-fold company by following strategy. Firstly, through of and diversification into new
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expansion existing production capacities secondly, through businesses. The same is under discussion with reputed consulting organization.
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Q What is the purpose of raising the funds through QIP and NCD?
A
The company shall utilize the proceeds for business purposes, including but not limited to augmenting financial resources for organic/ inorganic growth opportunities, meeting and satisfaction of working capital requirements, repayment of existing borrowings, general corporate purposes and financing investment opportunities.
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THANK YOU
www.tridentindia.com
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