Investor PresentationJuly 2010

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SKNL - a story of Growth

Over the years, SKNL has evolved to a

577451-001

A customer led, design-centric player with focused brands for each market segment

Global reach with brands and businesses in India, USA, Canada, UK and Italy

Rapidly growing in Ready to wear and Branded Fabrics markets

Vertically and laterally integrated business conglomerate

Seamless supply chain

Multi-locational with manufacturing units in India, Italy, UK, USA, and Canada

Led and managed by industry experts

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SKNL is a Multinational Clothing Major with estimated revenues in excess of US$ 1 billion**

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SKNL Indian OperationsSKNL European Operations*SKNL North American Operations*

HMX, USA Coppley,Canada SKNL UK Leggiuno, Italy SKNL & RTIL

Revenues: Rs.1169 Crs – 28 % Revenues: US$ 42 mn – 5% Revenues: US$ 699 mn– 81 %

Export Markets

* Only for a part of the year ** Annualised for CY 2010

SKNL North American Operations*

Revenues: US$ 117 mn– 14%

RTIL

26%

SKNL

55%

Overseas

19%

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The SKNL Value Creation Chain577451-001

Garmenting

Retail

Wholesale

5

Corporate Structure577451-001

Consumer Textiles

Luxury Textiles

HVFCPremium

Ready-to-wear garments

Ready-to-wear

garments

Future SBUs

74.4%

SKNLInternational Operations

Leggiuno

ItalySKNL (UK)

HMX

USA

100 %

Home Textiles

SKNLListed on Indian Stock Exchanges

Reid & Taylor (India) Limited

GIC

25.6%

Note: GIC acquired 25.6% stake in Reid & Taylor (India) Limited for INR 9,000mm

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Strategic Growth577451-001

Achieved a consistent revenue growth of 35% (CAGR) for the last 3 years in the

domestic businesses

Global acquisitions provided 37 brands

across premium and super-premium segments of the apparel market

with distribution network of large departmental and specialty stores

Additionally, gained access to brands in the luxury segment enabling supply of fabrics

These acquisitions are based on the ‘back-end, front-end’ synergy model that leverages

key strengths

These acquisitions facilitate transfer of technical know-how for High Value shirting

and Garmenting

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Present in all Product Categories - 1

Brands catering to different Socio- Economic Segments2

Not Dependent on any one single raw-material3

Key Own Manufacturing Units with cost effective out-sourcing4

Fabrics Apparels Home Textiles

De-risked Strong Business Structure

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Segment Initiative Status

Leggiuno Italy

One of the top three Shirt Fabric manufacturers in the world.

Produces dyed yarn, piece dyed and digitally printed linen fabrics for high end shirt brands

Completed

HMX, USA US Premier tailored clothing manufacturer Completed

Baruche SuperFine Cotton (BSFC)

Setting up capacity to cater to the international as well as domestic markets Commissioned

Home Textiles Capacity expansion to cater to high demand in the post quota regime Under installation

Luxury Textiles

Weaving & Spinning capacity expansion along with balancing equipment to cater to the domestic and international markets

Under implementation

Consumer Textiles Increased value addition by scaling up premium blended suitings and adding

capacity for spinning, weaving and processing of premium blended fabrics

Under implementation

Ready-to-Wear

Introducing new brands to increase market share in the segment

Casual premium brand

Mass brand

Luxury brand

Setting up a suits factory at Bangalore

Setting up a Shirtsfactory in Gujarat

Under implementation

BSFC– spinning unit Setting up cotton spinning capacity – backward integration of BSFC Under implementation

Growth Initiatives Across Different Segments

Growth Initiatives – Building Scale & Creating Synergy Organically and Inorganically

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Roll out of 160 additional EBOs

Expansion of franchisee EBO networks

Deeper penetration in MBO channels

Setting up suits factory (300,000 pcs / annum)

Setting up shirts factory ( 3 million pcs/ annum)

Scaling up capacity utilisation at HVFC

Capacity expansion in luxury and mid-premium textiles

Growth Drivers

Capturing more value from direct retailing

Backward & forward integration in HVFC and Belmonte

Increased share of RTW in revenue composition from 11% to 25% (Target 40% in coming 2 years)

Scaling up the value chain in all brands

Expansion of Topline Enhancement of Margins

Drivers of Growth

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Pillars of Strength for SKNL577451-001

1

Mirroring the India consumption growth story

Strong portfolio of domestic and international brands

2 Diversified business with product offering across the market segments

3 Multi-format distribution network

4Fully-integrated production facilities

5 Experienced management team

6 Strong financial growth trajectory

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Brands577451-001

1

The only Indian company to operate 45

globally well established textile brands

Diversified portfolio of well recognized brands

Strengthened through celebrity

endorsements

Advertising campaign across India using

different media in several languages

Brand Products Achievements

Worsted fabrics Ready-to-wear

One of the leading players in Luxury Suitings

Blended fabrics Workwear Ready-to-wear School Uniform

One of the leading player in uniforms

Bed Linen & Bath Linen Table & Kitchen Linen

Development of home textiles as strategic business unit

Ready-to-wear for men and women

A brand with British heritage for India

A total wardrobe in terms of Shirts/Trousers/ T-shirts/Denims/ Accessories

Strong value proposition.

Soft Launch in 3 states in southern India. Pan India Launch toward year end.

Fashion inclined casual

clothing for Out Of Office Wear (OOOW)

To be launched

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Brands577451-001

1

Men’s tailored clothing, furnishings and Sportswear

Men’s tailored clothing, furnishings and sportswear

Knitwear

Career apparel and sportswear

Denim and sportswear

Sportswear and golfwear

Men’s tailored clothing and furnishings

Men’s denim and sportswear

Denim and sportswear

Men’s tailored clothing sold exclusively at Kohl’s

High Fashion shirt fabric brand preferred by

Luxury brands

Internationally renowned brand

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Strong Brand Visibility - India577451-001

1

Contemporary in design and customer friendly stores

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Strong Brand Visibility - Internationally577451-001

1

Pan-USA wholesale distribution to all leading US department stores and speciality stores

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Company Overview – Strength Through Diversity577451-001

* to be launched this year

The only company in India to operate across all 3 segments of the industry - Fabrics - Apparels - Home Textiles Branded presence in all socio-economic segments Operates in all fibre segments

(1) Only includes revenue of HMX from August 7, 2009 onward

(2) After Minority Interest

(3) Figures above have been rounded to nearest whole number.

(4) 1 US $ = INR 45, consolidated figures may be subject to some rounding errors

Luxury Textiles Consumer Textiles HVFC Home Textiles (THE)

Sales: US$ 170 mn

EBITDA: US$ 62 mn

EBITDA Margin: 36.7%

Contribution

Sales: 20%

Sales: US$ 352

EBITDA : US$ 73 mn

EBITDA Margin: 20.8 %

Contribution

Sales: 41%

Sales: US$ 3 mn*

EBITDA : US$ 0.1 mn

EBITDA Margin: 3.3 %

Contribution

Sales: 0 %

Sales: US$ 86 mn

EBITDA: US$ 15 mn

EBITDA Margin: 17.9%

Contribution

Sales: 10%

Sales: US$ 88 mn

EBITDA: Rs. 19Crs

EBITDA Margin: 21.1 %

Contribution

Sales: 11 %

2009–10

Reid & TaylorLuxury Suitings

Reid & TaylorPremium NaturalFiber Suitings

High Value Fine Cotton & 100% Natural Fiber Shirtings

“Baruche”

Carmichael HousePremium

International

Sales(1): US$ 159 mn

EBITDA: US$ 2 mn

EBITDA Margin: 1.4 %

Contribution

Sales: 18%

Leggiuno, Italy HMX SKNL (UK)

CONSOLIDATED

Sales US $ 858 mn, PBIDT US$171 mn, PBIDT Margin 20 %PAT2 US$ 51 mn, ROACE 20.3 % D/NW 1.16

BelmonteDaily Wear

Uniformity Uniform Fabrics

Medium Value Cotton Fabrics

S. KumarsWork Wear

Ready to Wear (TWS)

Stephens BrothersSuper Premium

Reid & TaylorPremium

KRUGER*Casual Premium

BelmonteMid-Premium

World PlayerEconomy

2

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Present in all Product and Fibre Categories577451-001

SKNL Product Segments

Only Textile Major in All Fiber and Product categories

Market Leader in Uniforms with 30% market share

# 2 in Worsted Suitings

Largest Institutional Supplier of Textiles

 

 

Natural

Fibers

Blended

Fibers

Man Made

Fibers

Wool Poly-Wool Polyester

Cotton Poly-Viscose Viscose

Linen Wool-Linen Nylon

PREMIUM

MID PREMIUM

ECONOMY

SUITING , APPAREL & HOME TEXTILES

SUITINGS, APPAREL & HOME TEXTILES

SUITINGS, APPAREL & HOME TEXTILES

SUPER PREMIUMLUXURY APPAREL & SUITINGS

75mn people

160mn people

250mn people

25mn people

Un-branded 450mn people

Market Position

Caters to all socio-economic segments of the Indian society

Well placed to capitalize on the growth in consumption pattern of the Indian middle class

Launching a Pan-India brand in the economy segment – the largest section of the society

Luxury Textiles

24%

Apparel 25%

Consumer Textiles

41%

Home Textiles

10%

2

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Presence in All Branded Socio-Economic Segments577451-001

MID-PRICEBelmonte

ECONOMYS.Kumars

PREMIUMReid & Taylor / Baruche

FABRIC

Not Catered to by SKNL UNBRANDED

SUPER PREMIUMStephens Brothers

LUXURY

PREMIUMReid & Taylor/ KRUGER

MID-PRICE Belmonte

READY TO WEAR

Not Catered to by SKNL UNBRANDED

ECONOMYWorld Player

PREMIUMCarmichael House

ECONOMY

LUXURY

HOME TEXTILES

UNBRANDEDNot Catered to by SKNL

Present across diverse categories and in different socio-economic segments

2

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Revenue Composition577451-001

On account of the acquisitions which are largely in ready to wear; extension of fabric brands into

garments and launch of new garment brands, the share of RTW in total revenues will increase to

30% this year.

212

646

448

56

2008-09 2009-10

Fabrics Garments

Garment Fabric Mix

89%

11%

US

$ M

n 75%

25%

2

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Multi-format Pan-India Distribution Network577451-001

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Deep distribution model penetrating all addressable markets for SKNL products

Luxury Textiles Consumer Textiles HVFC Home Textiles Ready to Wear (TWS)

Reid & TaylorLuxury Suitings

Reid & TaylorPremium NaturalFibre Suitings

S.KumarsWork Wear

BelmonteDaily Wear

UniformityUniform fabrics

100% Natural Fibre Shirtings

Super Premium

Carmichael HousePremium

New Brand (To be launched)Mid-Premium

Stephens BrothersSuper Premium

Reid & TaylorPremium

Kruger (to be launched)Casual Premium

BelmonteMid-Premium

Multi Brand Outlets 60%

Large Format Stores

6%

Institutional Sales15%

Export Sales3%

Exclusive Brand Outlets

16%

60+

Agents

400+

Wholesale Dealers

30,000+

Retailers

FranchiseeModel

Company Operated

Note: Distr ibut ion channel cont r ibut ion as on March 2010

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Multi-format Global Distribution Network577451-001

3

Large network of agents, resellers, wholesaler and retailers

Specialty Stores Department Stores Wholesale Distribution Exclusive Brand Outlets

GolfCustom Clothing

OwnFranchised

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Manufacturing577451-001

4

Sno Major Plants Location Products Manufactured

1. Reid & Taylor Worsted Suiting Unit

Mysore, Karnataka Worsted Suiting, Premium P/V Blended Suiting

2. S.Kumars Suiting Unit Dewas,Madhya Pradesh Uniforms, Work Wear Fabrics, Polyester and Polyester-Viscose Blended Suitings

3. Home Textile Chamunda Standard Mills

Dewas, Madhya Pradesh Polyester Blended Yarn, Grey Fabrics (PV, PC, 100% Cotton), Medium Value Cotton

4. Total Wardrobe Solutions Bengaluru, Karnataka Shirts, Trousers, Blazers, Suits and Other Accessories

5. Home Textiles (Under -Implementation)

Jhagadia,Gujarat Home Textiles

6. HVFC Jhagadia,Gujarat High Value Fine Cotton Shirting

7. Leggiuno Italy,& UK Luxury Cotton Shirting & Woolen Fabrics

8. HMX Illinois, USA Tailored Products

9. HMX New York, USA Tailored Products

10. Coppley Hamilton, Canada Tailored Products

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Human Capital577451-001

5

Anil Channa

Dy. Managing Director & COO

STRATEGIC BUSINESS UNITS (SBUs)

Board of Directors

Nitin Kasliwal

Vice Chairman & Managing Director

Col. S. K. RajeGroup Admin & HRD

Janak Dave

COO – Reid & Taylor

BarucheSuperfine

Cottons

Anupam Dikshit

COO

Luxury Suitings

Arvind Gupta

COO

Home Textiles

Dinesh Sharma

COO

Vijay Bakshi

President

Exports Business

D.D. AvariDirector – Corp. Affairs

J. S. ShettyPresident- Finance & CFO

Anees FazalbhoyGroup Director

Corporate

Functions

Nimesh ShahCompany Secretary

ConsumerTextiles

Rajan K. Garg

COO

Seasoned professionals acknowledged as leaders with great relationships and domain expertise

Pradeep Mukim

COO - Belmonte

Johnny John

COO – World Player

Paolo Ingegnoli

CEO

Leggiuno

Doug Williams

CEO

HMX

Michael Morris

President

SKNL (UK)Ready-to-

Wear (TWS)

Ashesh Amin

President –

Apparel

& Retail

Nitin Chabbra

Brand Head – Reid & Taylor

Quateel AhmadSVP - Advertising

Ashley Potter

Director

SKNLInternational

Salil BawaSVP – Investor Relations

Paritosh Jain

COO Retail Ops.

Surjit Singh

COO – Retail Dev.

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Revenues PBIDT Margin

Consolidated Financials

858

391

275

506

2006-07 2007-08 2008-09 2009-10

172

90

56

108

20.2%

23.0%

20.0%

21.4%

0

20

40

60

80

100

120

140

160

180

200

2006-07 2007-08 2008-09 2009-10

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

CAGR 46%

US

$ M

n

PBIDT marginPBIDT

6

24

Net Profit after minority interest ROACE & EPS(in Rs.)

Consolidated Financials (contd)

51

46

24

39

2006-07 2007-08 2008-09 2009-10

20.3%21.1%

16.3%

20.1%

7.4

9.710.2

8.1

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2006-07 2007-08 2008-09 2009-10

0.0

2.0

4.0

6.0

8.0

10.0

12.0

CAGR 29%

US

$ M

n

EPS (Basic)ROACE%

ROACE excludes investment in new projects

6

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SKNL has a healthy Total Debt to Networth Ratio in the Region of 1:1

Top 10 textile companies’ average D/Nw ratio is 2.63

Weighted Average Cost of Debt is 10 %

Technology Upgradation Funds @ 7–8 %

Debt in overseas companies @ 5–6 %

Healthy Total Debt to NW Ratio

544

630

387 384

1.16

1.01

0

100

200

300

400

500

600

700

2008-09 2009-10

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

Total Debt Networth D/E

6

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SKNL does not follow bill discounting/factoring model prevalent in the industry

Current Asset Levels have reduced despite a 35% CAGR in Domestic Sales

Exports account for a meager 3% of Total Sales

Avoidance of discount Sale of Fabrics

Delcredere Agents / Distribution Network has a long association with the Group

Negligible Bad Debts History

3.5

5.95.5

5.9

4.54.0

4.95.1

4.0

6.6

2005-06 2006-07 2007-08 2008-09 2009-10

Inventory Level (No. of months of sales) Debtors Level (No. of months of sales)

Current Asset Levels6

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Capex Plans

670

426

2007-08 2008-09

Capital Expenditure

Completed On-Going

Luxury Textiles Weaving Capacity Expansion

(4.8 mn mts to 8.4 mn mts)

HVFC Setting up Capacity

Home Textiles* Capacity Expansion * Under Installation

Luxury Textiles Weaving & Spinning Capacity Expansion

(8.4 mn mts to 10.2 mn mts)

Belmonte Fabrics Weaving, Spinning, Processing

Ready-To-Wear New Brand Launches, Suits Factory, Shirts Stitching Unit

HVFC Cotton Spinning Unit

INR

Cr

6

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Advantage SKNL

SKNL is a diversified, brands-led, multi-fibre, multi-product company operating in different

consumer segments across the globe, through multi-locational manufacturing which mitigates risk

SKNL’s business model leverages robust domestic growth

Captures value at each stage in the chain

Strategic overseas acquisitions

Provide access to premium/ luxury retailers in the North America & Western Europe

Back-end, front-end synergy

A win-win situation with telescopic margins

Management teams at the helm of each business are seasoned professionals

Leaders with great relationships and domain expertise

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Overseas businesses to provide front-end back-end Synergy

Enable capturing of Telescopic Margins

HVFC Luxury Textiles RTW Brands

RTW Brands and Stitching Units International Businesses

Focus on High Margin Businesses2

Focus on Lean Working Capital Businesses3

Focus on Huge Value Addition Capturing4

Wool to ready Suits at Best Retail Counters around the world Cotton to Ready Shirts Capture Retail Sales

Successful Overseas Acquisitions 5

Revenue Growth - CAGR 35%, EPS poised to double by 20126

Leverage on Low cost of Debt7

Considering Unlocking the Reid & Taylor value through an IPO1

Measures for Shareholder Value Accretion

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STRICTLY PRIVATE AND CONFIDENTIAL

Important Notice

By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations:

The information in this document has been prepared by S.Kumars Nationwide Limited (“SKNL") solely for use at a presentation. This document and its contents are confidential and may not be distributed, published, reproduced (in whole or in part) by any medium or in any form, or disclosed or made available by recipients, to any other person.

Nothing in this presentation constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient.

No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, or opinions contained herein. Neither SKNL, its investment manager, nor any of SKNL's advisors or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially.

This document does not constitute or form part of, and should not be construed as, an offer, invitation or inducement to purchase or subscribe for any securities nor shall it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. Any decision to purchase securities should not made on the basis of the information contained in this document. This document does not constitute a recommendation regarding the securities of SKNL.

The information communicated in this document contains certain statements that are or may be forward looking. These statements typically contain words such as "expects" and "anticipates" and words of similar import. By their nature forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. z

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Thank you