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C E L C 6 5 t h

A N N U A L C O N G R E S S

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Linen Club – Live The Linen Life

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•  The Aditya Birla Group

•  Indian Textile & Apparel Market

•  The Linen Story In India

•  ABG’s Linen business –the only integrated player

•  Linen club

•  Linen Club – Best in the Business

•  Linen Club – Exclusive Brand outlets

•  Linen Club Apparels

•  Taking into new orbit

•  Expectation From CELC

Elements

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A global conglomerate: Operating in 40 countries with 1,20,000 employees representing 42 nationalities

•  A US $40 billion corporation, in the League of Fortune 500 •  Ranked 4th in the world & 1st in Asia Pacific in the 'Top Companies for Leaders',

Fortune Magazine and RBL in 2011

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Acrylic fibre businesses in

Egypt and Thailand

World's largest player in the

Viscose Staple Fibre

The largest fashion

(premium branded

apparels) & lifestyle player

in India

Viscose filament yarn

businesses and spinning mills at India

and South East Asia

The largest player of Linen in

India

Presence in textile & apparel business

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•  The Aditya Birla Group

•  Indian Textile & Apparel Market

Elements

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India Total textile + Apparel market Domestic

Textile + Apparels

Exports

USD 32 bn USD 59 bn Apparel USD 40 bn

Home Textile

USD 4 bn

Institutional USD15 bn

Apparel USD 77 bn

Home Textile

USD 7 bn

Institutional USD 27 bn

2014

2021

CAGR 9%

USD 91 bn

USD 111 bn

Indian Textile & apparel market

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About Aditya Birla Group Indian Textile Market The Linen Story In India

Elements

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Yarn (In MT)

Fabric(in million meter)

§ The linen market in India has witnessed strong growth across all parts of value chain and is expected to grow faster than the overall textile industry

2008 2014 2020  E

4,000  

11,500  

30,000  

19%

17%

2008 2014 2020  E

15

29

58

12%

12%

Indian Linen Market

2008 2014 2020 E 2008 2014 2020 E

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•  The Aditya Birla Group

•  Indian Textile Market

•  The Linen Story In India

•  ABG’s Linen business –the only integrated player

Elements

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Yarn (In MT)

Fabric(in million meter)

ABG Linen Business has grown faster than market creating a strong leadership position.

2008 2014 2020  E

2,500  

7,500  

20,000  

20%

18%

2008 2014 2020  E

5

9

20

12%

12%

ABG – Linen Business Volumes

2008 2014 2020 E

2008 2014 2020 E

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ABG – strong in both Yarn and Fabric manufacturing Yarn Fabric

Largest capacity in

India

State of the art technology

•  FY14 – 22,500 Spindles, 3400 MT / annum

•  FY 16 – 42,500 spindles, 6500 MT /

annum

•  Fabric Capacity : 10.1 Mn Metre

• Wide range of counts –  5 Lea to 100 Lea

• Wide range of counts for apparel –  Shirting's: 40 -120 Lea –  Suiting's: 10 - 80 Lea –  Furnishing : 5 – 25 Lea

Wide product range

•  Preparatory – Mackies, Golden eagle

• Ring Frames – Techmash, Russian

• Auto Winding – Savio, Schlafhorst

• Weaving – Sulzer Rapier & Picanol Optimax looms, etc.

•  Processing– Ramisch, Compact Italy, Osthoff Singeing etc.

• High Design Oriented, 25 Designs/Day

•  ~65% •  ~50%

Market share

The business overall has achieved USD 102 mn of top-line in FY14

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Product Superiority

Marketing Superiority

• High quality Flax only from Europe.

• Wide product portfolio in Linen yarn and Linen fabric

• Product innovation, design and development capabilities for fabric

• Premium positioning for Linen Club brand through strong advertisement & promotions.

• Wide distribution channel – EBOs, MBOs, Dealers, RMGs

•  Ability to offer product at affordable prices.

Operational Efficiencies

• High capacity utilization

• Efficient working capital management

•  Continuous Improvements in cost and quality parameters

(1) EBO - Exclusive Brand Outlet (2) MBO- Multi Brand Outlet (3) RMG – Ready Made Garments

These has led to strong customer satisfaction, ability to command premium & sustainable bottom-line performance

Key Growth Drivers

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•  The Aditya Birla Group

•  Indian Textile Market

•  The Linen Story In India

•  ABG’s Linen business –the only integrated player

•  Linen Club - The Brand

Elements

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Pre 2007 2007 -14

• Launched Linen Club brand

• Created multiple distribution channels

Linen Club

• Created a new category of Linen In India • Consolidation of brand Linen Club •  Entry into women’s wear •  Improved availability through network of 4500 Multi-Brand retail outlets, 107 Exclusive stores, 20 distributors across India

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Print Campaign

Investing into branding & promotion

•  CELC has become an integrated partner in all our communication – internal as well as external. E.g. ad campaigns in leading newspapers, magazines, TV campaigns, etc

•  We are really proud of this association and have spent millions of dollars to establish this across media.

CELC logo

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Investing into branding & promotion

0.9

1.3

2.1

2.82.9

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

FY2011 FY2012 FY2013 FY2014 FY2015

Advertisement  Spend  (USD  in  Mn)

We will keep on investing in the brand building

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Current Linen Club Facebook fan base is 537,560 +

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Brand engagement through

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TVC -

Investing into branding & promotion

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YARN Promoting linen yarn in women ethnic wear

Lakme fashion Show

Investing into branding & promotion

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•  The Aditya Birla Group

•  Indian Textile Market

•  The Linen Story In India

•  ABG’s Linen business –the only integrated player

•  Linen Club - The Brand

•  Linen Club – Exclusive Brand outlets

Elements

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Linen Club – The exclusive Brand outlet

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Exclusive Brand outlet -Interiors

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New Retail Identity being developed by leading American design agency JGA

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•  The Aditya Birla Group

•  Indian Textile Market

•  The Linen Story In India

•  ABG’s Linen business –the only integrated player

•  Linen Club - The Brand

•  Linen Club – Exclusive Brand outlets

•  Expectation from CELC

Elements

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The way ahead – Vision 2020

Expanding distribution

• Expanding retail footprint - Opening several new EBOs. Creating a unique retail identity for Linen Club retail.

• Strengthening Linen Club brand in domestic market

• Continuous investment in branding & promotion

Creating new applications

• Entering into Linen blends -Planning to venture into Linen blends.

•  Introduce Women’s Range -To create a separate range targeted exclusively for women.

• Entering into RMG

• Enter into Home Textiles -Planning to venture into Home Textiles.

Alternate distribution

• Entering into e- tailing -Planning to venture into E tailing.

•  Continue to create strong presence on the social media

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•  Technology up gradation in spinning

•  Scientific assessment of Fibre Quality

•  Standardization of quality grades of Fibre

•  R&D to improve fibre to yarn yield

•  Stability in Fiber pricing especially as Brands and retailers would dominate the apparel distribution in times to come.

•  Joint promotion of Linen in India

Expectation From CELC

Thank you !