INFORMATION MEMORANDUM

Prepared by Ruby Consulting

Sample Document I Not For Circulation Strictly Private & Confidential

 DISCLAIMER
This Information Memorandum Sample (“Sample Document”) is being delivered with the intention to assist the
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 CONTENTS
EXECUTIVE SUMMARY 4
COMPANY OVERVIEW
Business Overview & Evolution 7
PURE’s Product Matrix 9
Product Portfolio (Detailed) 10
Manufacturing Capabilities 19
Shareholding History & Strategic Partnerships 22
Key Relationships & Client Relationships 23
Key Differentiators of PURE 26
Organization Structure 27
Management Bios 28
INDUSTRY OVERVIEW
Technical Textiles : Industry Overview (Global & India) 30
Nonwoven Products: Manufacturing Process 32
Nonwovens: Industry Overview 36
Nonwovens: Key Growth Drivers 37
BUSINESS STRATEGY
Business Strategy 39
Capex Plan 41
Revenue Visibility & Order Book 42
SWOT Analysis 43
FINANCIAL HIGHLIGHTS
Historical Financials 45
Financial Projections 47
ANNEXURES 50

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 EXECUTIVE SUMMARY

GROWTH OPPORTUNITIES IN NON-WOVEN INDUSTRY ABOUT PURE FILTERS PRIVATE LIMITED (PURE)
• Global consumption of Technical Textiles, which are • PURE, founded in 2002, is a leading company in non-
used for their functional properties, than their woven products. It manufactures non-woven fabrics
aesthetic traits, has grown with development and and value-added products using multiple
industrialization. In 2010 it was estimated to be technologies, sells to domestic & global customers.
~23.8 mn tonnes and growing at 4% p.a. Technical
• PURE is led by a polymer engineer & first generation
textiles could be woven (73%) , nonwoven (20%),
entrepreneur, Mr. XXXX XXXX, and backed by an
knitted and other (7%) etc.
expert management team with over 100 years of
• While USA, Western Europe consume with over 23% cumulative work experience.
and 22% of global technical textiles produced
• PURE started with manufacturing of filtration
respectively, China consumes ~13%. The importance
products, and has now produces a range of
of emerging markets (BRICS countries, Middle East,
nonwoven products for filtration (air & liquid),
South East Asia, Africa, Latin America) is rising due to
cleaning & oil absorbents, automotive & in-house
continued industrialization and increasing income.
décor, healthcare & medical, fashion, apparel &
• The Indian Technical Textiles industry has grown to accessories and packaging applications.
Rs. 63,000 crore (USD 11 bn) in 2011-12 from Rs.
• PURE has two manufacturing facilities near Pune in
41,000 crore (USD 8.2 bn) in 2007-08 at 11 % growth
the state of Maharashtra, which is an automobile
p.a. It is expected to grow to Rs. 1,58,000 crore (USD
manufacturing hub in India.
29.3 bn) by 2017, with a projected CAGR of ~20%.
• PURE’s clientele includes reputed names such as
• In India, woven technical textiles are more common,
Grupo Antolin, 3M, Visteon, Fleetguard Filters,
with nonwovens amounting to a small 5% of the
Pusula, amongst others. It has entered in long term
overall Technical textiles market (Vis-à-vis global
supply contracts / agreements with many such
average of 20%), this represents low penetration.
clients for their specialty product needs. This
Indian nonwovens market size is estimated to be
provides PURE with significant competitive
about USD 550 mn (1,400 mn sq. m) in 2012.
advantage over its peers in the nonwovens space.
• Strong governmental support, a growing middle
• Significantly, till 2011, combined revenues of
class and a large textile infrastructure already in
company’s client base was about USD 9-10 mn. Over
place provide India with a natural advantage as its
a period of last 2 years, there has been phenomenal
nonwoven industry develops. The industry in India is
shift in the Company’s growth strategy and a
growing in terms of both production and
combined topline of its customer base now totals up
consumption (at 13% p.a.). Yet apart from the large
to USD 900-1,000 mn. This indicates a huge target
MNCs, many foreign nonwoven producers have yet
market for its products.
to establish themselves in India.
• In 2007, the company joined hands with I- Ventures,
• Amongst durable and disposable nonwovens
a growth capital fund, seeking funds for growth &
consumption in India, durables account for >80%,
expansion. ABC provides inputs to PURE to secure
and are likely to constitute significant percentage in
key strategic, banking relationships and financing
the near term.
arrangements.
• PURE achieved a revenue CAGR of ~20% from FY10
to FY13, with 25% EBITDA margin and about 9% net
margin for FY13.

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 EXECUTIVE SUMMARY

MANUFACTURING OF NON-WOVENS INDIA • PURE has strong in-house R&D capabilities,

extensive domain knowledge of non-wovens and
• A global company has to understand local culture,
high-end technology has enabled PURE to
invest time and incur costs for development of the
continuously deliver on innovation. Company’s focus
local market through education and awareness
is to provide innovative products to manufacture
campaigns and design products accordingly. Few
specialty, high-margin products and differentiating
global multinationals are present in India.
itself.
• On the other hand, Supreme Nonwovens, Obetee
• In 2012, PURE entered into a licensing agreement
Textiles, Pacific Nonwoven, Vardhman, Unitex, Alpha
with BASF SE for a unique patented product called
Foam are large nonwovens players in India. Supreme
STERON® to manufacture artificial leather with
group dominates the production by domestic
improved properties such as moisture permeability
players with a turnover of ~USD 40 mn in FY 2010.
(breathability). This is expected to open up some
• In India, nonwovens are mainly manufactured marquee business relationships with manufactures
through Spun-Bonding. It has adequate (about 50) of luxury cars, high-street fashion and accessories.
manufacturers of roll goods, but not of high quality.
• While there is an immediate need for the converting PURE’S GROWTH STRATEGY
sector in India, it is a highly capital intensive sector • PURE is now exploring a strategic partnership with
with need for continuous innovation. The margins Fiberweb Plc, a leading global nonwoven player to
are dependent upon novelty of product and its access global market knowledge and technical
quality, which is driven by the production line. knowhow and also address the funding constraints
• The industry at present is reluctant to invest in high- for R&D, conversion lines and market development.
end machinery as the domestic market is not fully Over long term, PURE targets to emerge as a
established. In addition to continued knowledge of preferred partner for Fiberweb to convert and
end-customers’ usage pattern and market export their products from PURE’s low cost
understanding, Know-how on converting roll -goods manufacturing base in India and exploring the Indian
to finished products is needed. This also includes market’s growing appetite for its products.
knowledge on finishing and formulation. • In the near term, PURE will focus on Automotive
(Filtration, Insulation, Interiors), Filtration (Air &
PURE’S FOCUS ON SPECIALTY NONWOVEN PRODUCTS Liquid), Medical technology (Respiratory , Infection
control), Oil absorption, Vacuum cleaner,
• For an Indian company to successfully foray in
Interlinings (Full products) and products from the
products, options such as exporting to global B2B
STERON® line. This will be achieved through more
clients or supplying to Indian arms of global
product approvals from domestic and international
nonwoven companies (B2B) could be explored.
customers. In the domestic market, PURE plans to
However, this requires a long time and efforts for
focus on the durable nonwovens in the near term.
approval of products by the multinational clientele.
This is where PURE is positioning itself. Approval of • PURE plans to align its focus to the customer-end of
PURE’s products by global clients has built high entry the value chain. It plans to focus on conversion,
barriers for competition to follow. This builds a case which results in more asset efficiency, higher value
for PURE to invest in high-end conversion lines. addition and higher margins.
• PURE pioneered the Bi-Component melt-blown • PURE has a near term capex plan to invest Rs. 39
technology in nonwoven product manufacturing in crore (USD 7.2 mn) over 2 years i.e. FY 2013 – 2014
India and installed India’s 1st Bi-Co Melt-blown Line. which includes a new single-roof integrated
manufacturing facility near Pune and adding key
conversion lines and improving its testing facilities.
PURE targets to achieve revenue of USD 20 mn by
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 1 . CO M PA N Y OV E RV I E W

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 C O M PA N Y O V E R V I E W

BUSINESS OVERVIEW
PURE Filters manufactures synthetic nonwoven fabrics This facility, with an installed capacity of 1,000 tonnes
and value-added products. These have specific provides PURE with deep product innovation
functional properties and are used in varied sectors. The capabilities that allow it offer customized solutions to its
foundation of PURE’s business was laid a decade back, in clientele.
year 2002 by Mr. XXXX XXXX, a Polymer Engineer who
In addition to Pimple Jagtap, PURE has set up one more
after working with Reifenhauser, a leading German
facility at Koregaon Bhima, 30 km from Pune for various
nonwoven technology company.
nonwoven converting machines. The Company has a
XXXX started the business of manufacturing team of 55 people, including engineers, managers and
intermediate filter components used in air filtration and skilled workers. The Company is now planning to
HVAC systems. PURE imported nonwoven fabrics, consolidate the manufacturing facilities into one state-
finished them and exported the finished products. The of-the-art facility and targets to have an installed
user industries catered by PURE were Hospitals, capacity of 2,500 tonnes by December, 2013. It has also
Pharmaceuticals, Organized Retail (shopping malls). qualified for Technology Upgradation Fund Scheme
PURE later integrated backwards in the filtration space, (TUFS) scheme of the Govt. of India.
to produce filter fabrics. The business firm was later
In addition to filtration products, it forayed in more
converted to a private limited company in 2008.
nonwoven products with applications for wider set of
The size of Indian Technical Textiles industry was sectors. Aim has expanded to several areas of business
estimated to be Rs. 63,000 crore(USD 11 bn) in 2011-12 apart from filtration like oil spill control, sound
and is slated to grow at a CAGR of ~20% over next 5 Insulation for automotive and diesel engine filtration,
years. Though, the manufacturing of technical textiles in face masks, respirators for healthcare applications. It
India is commoditized. Many nonwoven products are also manufactures filtration products including bags for
imported and there is dearth of indigenous innovation. the bag filters, pleat insert for panel filters, media for air
filtration and air filters.
More recently, PURE has aligned its focus to become a
leading nonwoven products company. Its focus is on PURE’s caters to multitude of industries including
conversion of commodities into innovative products, Automotive, Fashion accessories, Hospitals,
than manufacturing the commodities. In line with this Pharmaceuticals, Retail, offices etc. It exports about
vision, it set-up a Bi-Component melt-blown technology 60% of its products to UK, USA, Australia, Malaysia,
plant in FY 2009 at Pimple Jagtap, near Pune Middle East & Europe. Company’s Net Revenue for FY12
(Maharashtra), first such plant in India. It can was USD 2.67 million at a 10.3% net profit margin. The
manufacture fibers that range from 1 to 15 microns and Company has grown at a compounded annual growth
5 to 500 GSM. rate of 24% since FY10.

PURE’S MISSION STATEMENT

“To deliver greater value to our customers by providing
complete competitive solutions through technological
leadership and manufacturing excellence that are
responsive to dynamic market needs”.

PURE’S VISION
“To develop as a premier company in the nonwovens
industry with a focus on producing state of the art
nonwovens using novel technologies and emerge as
India’s premier nonwoven company”. Impurity is a passé, we only look forward to purity

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 BUSINESS EVOLUTION

• Inception of business by Mr. XXXX XXXX, with Rs.5,000 (USD 100) as capital,
FY 2003 with an aim to provide quality nonwoven fabrics to industries in filtration for
domestic as well as international markets

FY 2005 • First company in India to start manual converting for filtration products

FY 2006 • Set-up their own building and manufacturing facility for fabrics

• Set-up India’s first automated facility to convert nonwoven fabrics into filter
FY 2007
pockets

• Conversion into a private limited company (Incorporation of PURE Filters

FY 2008 Private Limited)
• Equity investment by I-Ventures

FY 2009 • Installed India’s First Bi-Component Melt-blown Line installed and commercial
production started

FY 2010 • Achieved a turnover of USD 1 million

FY 2011 • Development of key client relationships started (Fleetguard and 3M)

FY 2012 • Acquisition of land and building at Vadhu Budruk, Koregaon Bhima

• New plant set up including Thermal-Bonding and Needle Felt capacity

FY 2013 • PURE and BASF started partnership for STERON® technology.
• Won the Entrepreneurship award in India.
• 3M customer approval

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 P U R E ’ S P R O D U C T M AT R I X
UTILITY ACROSS SECTORS

PURE’s manufactures nonwoven fabrics and products While filter media and oil absorbents make up around
using multiple technologies. These products have 80% of PURE’s net sales (40% each). Other products
applications across various industries as identified in including face masks, respirators contribute the
the Product Matrix below. balance.

NON-WOVEN CONVERTED
ENGINEERED MEDIAS GOODS (PRODUCTS)

Air Filter Medias Pocket Filters

Vacuum Cleaner Bag Medias Pleats, Please inserts &
Pleated Packs
Carbon Air Filter Media
Thermal Bonded Medias
Welded rolls FILTRATION
Impulse Sealed Pockets (AIR & LIQUID)
Needle Punched Medias
Activated carbon
Spun Cartridges
(Products & Coatings)
Oil / Fuel Filter Media
Liquid Filter bags

Melt-blown Oil Sorbents

Pillow & Sweep CLEANING,
Fine fiber Sorbents
Industrial Wipes OIL
Sonic Bonded Sorbents
Booms & Sock ABSORBENTS
Laminated Sorbents

Thermal insulation Medias Acoustic panels(Auto

Interiors) AUTOMOTIVE
Acoustic Medias (INTERIORS),
Headliner carpets,
Needle Punched Medias Trunk-liners IN-HOUSE
STERON ® STERON ® Coated Materials DÉCOR

Surgical Face Mask Medias HEALTHCARE /

Respirator Medias MEDICAL

Thermal Insulation materials

STERON ® Coated Materials FASHION,
Thermal Bonded Medias APPAREL,
Chemical Bonded Medias ACCESSORIES
STERON ® PACKAGING

SMS (Spun-Bond, Melt- PERSONAL

Blown, Spun-Bond) HYGIENE
Existing Products Future (Planned) Products

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 PRODUCT PORTFOLIO
A I R & L I Q U I D F I LT E R M E D I A

1. FINE DUST POCKET FILTER MEDIA

These products are manufactured from polypropylene
using the melt-blown process. These could be Bags
(Pockets) and Welded Rolls. Its multi-layer structure
guarantees very high separation efficiency throughout the
life of the filter. They have low pressure drop & particularly
high dust holding capacity. They are also environment
friendly and easily disposable.

2. PLEAT INSERTS FOR PANEL FILTERS

These are in the form of laminated rolls and pleats. Filter
Medias are generally used with metal mesh backings and /
or plastic mesh for production of Panel filters.

3. SELF SUPPORT PLEATS FOR PANEL FILTERS

They are designed to do away with wire mesh backings.
These are innovative products that PURE manufactures

4. MINIPLEATS FOR V-CELL FILTERS

These are used for high flow rates and a long durability.
They are available in various sizes

5. AUTOMOTIVE FILTRATION (AIR)

They are available in Polypropylene (PP). They are used in
Cabin Air Filter and Engine Air Filters etc.
PURE’s Advantages
• PURE products consist of a melt-blown (fine) fibers and
electrostatic charge that increase sub micron particle
retention with reduced pressure drop.
• This material has superior fractional efficiency, good
processability, and stable performance in high
temperature and humidity. This increases protection for
drivers and passengers.

6. VACUUM CLEANER BAG MEDIA

They are used for filtration in Vacuum Cleaning machines
from Course, Fine levels to Hepa level.

7. ACCOMPLISHED MEDIAS
PURE has developed synthetic medias as per new EN 779-
2012 standards

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 PRODUCT PORTFOLIO
L I Q U I D F I LT R AT I O N – P R O D U C T D E TA I L S

1. SPUN CARTRIDGES
Aquasorb is the latest development in nominal rated
meltblown filter cartridge design. It is produced with 100%
pure FDA complaint polypropylene with continuous grade
density. Meltblown manufacturing method is used for
improvement of mechanical strength and steady
maintenance of filtering accuracy by 3D polymeric fibrous
structures

Advantages
• High flow rate, low pressure drop and longer life service
• Self bonded with no chemical binder
• Applications – Food and beverage industry, chemical
industry, RO plants, pharmaceutical, etc.

2. LIQUID FILTER BAGS

It’s an economical filtration solution for a wide range of
applications. Highly controlled manufacturing procedures
ensure consistent quality and no contamination. The
unique bag designs provide added strength and avoid risk
of bypass. Our filter bags will fit all industry standard bag
housings.

Advantages
• The outer layers of the fiber provide a highly uniform
barrier for final particle filtration
• This construction results in very high dirt loading
capacity, even at a high flow rates
• There are no sewn seams used any of the filtering
layers, thus allowing high filtration efficiencies for fine
particles

3. AUTOMOTIVE FILTRATION (LIQUID)

PURE produces composite Medias using Polybutylene
Terephthalate (PBT) and cellulose paper for fuel water
separation, oil filtration. Use of this media ensures removal
of moisture from fuel and improves life of engine.

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 PRODUCT PORTFOLIO
L I Q U I D F I LT R AT I O N – P R O D U C T D E TA I L S

4. ACTIVATED CARBON PRODUCTS (PROPOSED)

• Laminated Activated Carbon medias are made with
a combination of activated carbon granules (GAC),
power and /or rayon fiber which is laminated to
Spun-Bonded, melt-blown or other carriers that can
be pleated, having permeable structure. These
products can be thermally bonded or needle
punched to prevent fiber or carbon shedding.

• Activated Carbon Fabric (ACF) is made from a rayon

precursor by a high temperature carbonization and
activation process under controlled conditions. It is
highly micro porous in nature and lends itself to air Utility (Application)
phase adsorption applications as well as some water • Pre-treatment of process water, filtering of liquid
phase applications to improve the taste of water. It effluents
is available in various specifications. • Reclamation of metals and elements
• Filtering environmentally hazardous elements from
Properties of ACF industrial wastes
• Absorption of organic and non-organic gases • Pharmaceutical industries, oil and petrochemical
• Quick adsorption kinetics (2x-3x GAC) industry, foundries, water treatment plants, effluent
• Easily regenerated with low temperatures treatment plants and chemical refineries
• Acid and alkali proof
• Good electrical conductivity, chemical stability

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 PRODUCT PORTFOLIO
OIL ABSORBENTS & WIPES

1. OIL ABOSORBENTS:FINE FIBER ABSORBENTS

These products are used to contain and absorb splashes
and spills under and around machinery.

PURE’s Advantages & Specifications

• The outer layers of sorbents are made from small
diameter densely woven PP fibers. These layers are
then ultrasonically bonded to a high loft melt-blown
core. These are premium grade fine fibers of Melt-
blown and have high loft and highest absorbency.
The smooth fine fiber surface adds the strength Utility
needed for high traffic areas. Using small diameter • While pads are economical, easy to apply, and easily
strands of fiber increases surface area, which picked up after spills, rolls are best used for large
enables to grip surfaces securely. spills and high traffic areas.

2. SONIC BONDED ABSORBENTS

These sorbents are the mainstay of the melt-blown
sorbent industry. They are constructed from single layer
of high-quality uniform PP fibers.

PURE’s Advantages & Specifications

• These fibers are then sonically bonded together for
added strength, durability and reduced linting.
• This process creates a higher surface area and along Utility
with low-linting property that offers better and • They are mainly used for absorbing oil leakages in
quick absorbency at good value. industrial indoor locations as well as splashes, drips
• These pads or rolls are perforated for easy and exact and overspray in working areas like under or around
use. Available in heavy, medium and light weights machines for improved safety at the workplace.

3. LAMINATED ABSORBENTS
• These sorbents are non-linting, tough and durable.
They offer extreme softness and drapability. These
are used where soft and drapable Melt-Blown
sorbents are required. They have higher durability
which in turn reduces cost. These are best used for
rough and/or irregular surfaces. These pads or rolls
are perforated for easy and exact use. Available in
heavy and medium weights.

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 PRODUCT PORTFOLIO
OIL ABSORBENTS & WIPES

4. MELT BLOWN ABSORBENTS

• These are best in oil-spill clean up whether the oil
spill is large or small, on land or on water. They
have fastest absorbing capacity, highly versatile
and have good oil retention.
• These are most cost-effective sorbents made
from a single layer of strong uniform PP fibers.
Hydrocarbon fluids stick to these fibers where as
these fibers are hydrophobic (water repellant).
• They feature high loft and fast wicking action.
They are ideal for large marine oil-spill clean up as
they don’t mildew and they will float indefinitely.

5. HAZARDOUS MATS
• Hazmats are ideal for responding to spills with
unknown liquids. These pads and rolls will absorb
virtually all acid and base liquids. These products are
quickly deployed and recovered in hazardous spill
applications. They are available in Fine Fiber and
Sonic Bonded formats. These pads or rolls are
perforated for easy and exact use. Available in
heavy, medium and light weights.

6. BOOMS & SOCK

• Booms and Socks are for spill containment on water
and land, or around drains and equipment. These
can be used on the water to clean large surfaces like
rivers, canals, wharfs and harbors or on the floor at
the base or around of the machinery

7. PILLOWS AND SWEEP

• Pillows are used to absorb or block spills in confined
areas or in a hole like pipes or in tanks. Due to
higher surface areas they absorb more oil and faster
clean up time. They absorb spills which are too large
for a pad.
• Sweeps are double layer sorbents composed of
heavy layer of Meltblown polypropylene that is
ultrasonically welded to a layer of Spun-Bond fabric.
They are ideal for removing oil from water surface
and to be used together with booms.

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 PRODUCT PORTFOLIO
OIL ABSORBENTS & WIPES

WIPES: MELT-BLOWN WIPES

• Melt-blown wipes are made with extremely fine
fibers of highly advanced technology. It has excellent
moisture absorbency, superior cleaning power and
quick drying property. Due to fine fiber structure it
rapidly absorbs water and has high absorbency than
general cotton products. We can also offer anti-
microbial and anti-bacterial wipes as per the
requirement.

Characteristics Utility
• Excellent absorbency and quick drying property due • Pharmaceutical Industry (Class IV)
to fine fiber structure • Electronics Industry
• Melt-blown wipes quickly absorb large quantity of • Chemical Industry
moisture rapidly because of capillary action resulting • Cleaning of optical products such as eye glasses,
from fine pores inside the product. Besides, their glass, mirror, camera etc.
fast drying speed enables convenience in use. It also • For removing contamination of accessories such as
has superior cleaning power. gem, precious stones
• We can offer these wipes in sheet and rolls form. • For removing pollutants of computer, monitor,
Perforation and Slitting service is also available. telephone, mobile phones

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 PRODUCT PORTFOLIO
AUTOMOTIVE INTERIORS & IN-HOUSE DÉCOR

1. NVH APPLICATIONS: SOUND ABSORPTION AND THERMAL INSULATION

• These materials are made for thermal insulation and PURE’s Advantages & Specifications
sound absorption (NVH) applications like inner • The materials are lightweight, water repellant and
linings for carpets, roof liners, door trims, A/B/C has effective sound absorption properties due to
pillars, wheel wells, Lining for IP console etc. fine fiber structure
• Uses of these materials make car quieter, lighter and • It also has low flammability, high loft Doesn’t
fuel efficient. contain any carcinogenic/restricted substances
• The product finds application in Automotive • Meets conductance index as per ASTM C518-2004
Interiors, Engine Guards and Sound proof partitions

2. NEEDLE PUNCHED NON-WOVEN FABRICS

• PURE has state-of-the-art line to produce needle-
punched fabrics for applications like automotive
carpets, headliners, exhibition carpets, trunk-liners
etc.
• Capability to produce materials in 2.4 m width and
80 to 500 gsm in white as well as various other Utility
colors as per client’s requirement. The basic fibers • Automotive Interiors: Needle punched fabrics are
used in the process range from PET, PP and low melt used to make auto headliners and carpets for the
fibers. automotive industry

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 PRODUCT PORTFOLIO
H E A LT H C A R E

1. FACE MASKS, RESPIRATOR MEDIAS (MEDICAL)

• In the recent times of swine flu, avian flue and other
such pandemics, the need for high efficiency filter
media was realized. Filter medias are typically used
in both flat as well as molded masks.

PURE’s Advantages & Specifications

• PURE’s media’s adhere to the highest US and
European respiratory standards. The media is Utility
characterized by exceptional uniformity and high • Respirators can be used for protection from most air
bacterial and particle filtration efficiency (BFE & PFE) contaminants. by doctors, patients in hospitals.
which enables the user to prepare respirators and • They can also be used for protection against non-
masks of highest quality. toxic particles and nuisance dusts, such as
• PURE’s respirator media exhibits excellent workshop, cleaning, pollen, sweeping, gardening,
efficiencies and penetration values for NaCl, DOP farm work, construction work
and paraffin oil. It provides low breathing resistance
measurements for easy breathability and excellent
mask comfort. It offers exceptional product
uniformity and is economic and cost effective.
• Respirators are lightweight, water repellant,
disposable, relatively comfortable, and inexpensive.

2. MEDIAS FOR BLOOD FILTRATION (PROPOSED)

As the world’s concern for pure blood increases, PURE has
developed capacity to supply melt-blown blood filter
medias

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 PRODUCT PORTFOLIO
GARMENTS

1. THERMAL INSULATION MATERIALS FOR TEXTILES

• PURE produces melt-blown materials which has
superfine fibers. These materials are produced using
Polypropylene and Polyester materials.

Advantages
• Light weight hence reducing overall weight of the
product by 40 to 50% against traditional felt
materials to achieve the same warmth
• Water repellant & Non-Allergic
• Extremely soft and has excellent draping quality Utility
• Highly insulating • They are used as thermal insulating materials in
• Breathable hence doesn’t produce sweat-like feeling jackets, sleeping bags, hand gloves, shoes, and quilts
• Can be machine washed @ 40 degrees Celsius as interlining materials.

2. THERMAL BONDED NONWOVENS

• PURE has a state-of-the-art line to produce Thermo-
bonded nonwovens. The line is capable of producing
materials using low melt fibers.

Utility
• Thicker materials for furniture industry as well as
quilt manufacturing
• Silica gel packing materials
• Backing layer for various applications
• Used along with scatter coating as fusible materials

3. CHEMICAL BONDED MATERIALS

• PURE’s chemical bonded nonwoven fabrics are
widely used in collars, plackets, cuffs, flaps and belt
linings for trousers.
• Theses are also used as alternate linings in leather
and cotton garments.
• This material can be porous or dense, hard or soft, Utility
absorbent or water repellant depending on • Garment Interlining – Fabrics are used as fusible
requirements. materials (scatter coated) or non-fusible materials

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 M A N U F A C U T R I N G C A PA B I L I T I E S
P U R E ’ S L O C AT I O N : P U N E

PURE Filters is located at one of the largest and well- Recently, the Chakan - Talegaon belt has emerged as a
developed manufacturing hubs in India. The state of major auto hub with Mahindra & Mahindra,
Maharashtra is highly industrialized state in India with Volkswagen, General Motors, JCB, Bharat Forge,
highest installed electricity generation capacity, largest Hyundai Construction Equipment setting plant here.
number of airports and highest number of Special The Chakan – Talegaon belt has close proximity to Pune
Economic Zones (SEZs) in the country. The state is the city as well as the Pune-Mumbai Expressway.
leading producer of passenger cars, heavy and
The city is long known for its educational facilities and
commercial vehicles in the country. It accounts for
offers highly skilled workforce for various industries. It
approximately 38% of the country’s output of
has also emerged as a preferred destination for global
automobiles by value and Major automobile clusters in
IT companies. Over last decade, many IT clusters have
the state are Pune, Nashik, Aurangabad and Nagpur.
developed around Pune and as a result, real estate &
Pune, is the 7th largest metropolis in India, the construction have witnessed high growth.
2ndlargest in the state after Mumbai. It is located at
around 200 km from Mumbai and is well-
connected(both rail and road) to nearest port,
Jawaharlal Nehru Port Trust (JNPT). Regions around
Pune i.e. Pimpri, Chinchwad, Ranjangaon have evolved
as automotive clusters since early 1990s with leading
automobile players including Tata Motors, Bajaj Auto, PUNE
Force Motors, Fiat, Mercedes Benz, Cummins, Premier
Motors setting up their plants. In addition, several large
auto-component manufacturers and ancillary units are
also present here. MAHARASHTRA
AUTOMOTIVE HUBS AROUND PUNE
Chakan

Talegaon

Ranjangaon

Pimpri Company’s Current

Chinchwad facilities

Shirwal

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 M A N U F A C U T R I N G C A PA B I L I T I E S
P U R E ’ S FA C I L I T I E S

PURE’s presence in this hub of industrial activity

provides it ready access to infrastructure, suppliers and
global clients including export markets
PURE is equipped with high class manufacturing
facilities, first of their kind in India. Their facilities are
located at around 30-40 km from Pune, on the Pune-
Ahmednagar Highway.

Pimple Jagtap Facility

This facility was set up in financial year 2009 for the Bi-
Component Melt-Blown line of the company. It has an
area of about 15,000 sq. ft. and is set-up on a site
leased by the Company. This facility is located at around
40 km from Pune at: Gat No. 55/2 and 56/3, Chakan
Shikrapur Road, Pimple Jagtap, Shirur, Pune – 412 208,
Maharashtra

Koregaon Bhima Facility

This new site was recently acquired and is owned by the
Company. In line with its vision of converting Non-
Woven media into value-added products, PURE has set
up Chemical bonding, Thermo bonding and Needle Felt
lines here. It is located at around 30 km from Pune at:
Gat No. 1264, Grampanchayat Property No. 921, 921A-
B, Vadhu Budruk – Koregaon Bhima, Shirur, Pune – 412
216, Maharashtra. It has an area of 55,000 sq. ft.. and
scheduled to commence full-scale operations in April,
2013.
The Company has global leading nonwoven players and
automotive component players as its clients. PURE
typically supplies to the Indian units of these clients. In
order to integrate its operations and to cater to these
clients seamlessly, PURE is contemplating a single large
manufacturing site around Pune.
The corporate and administrative office is in a rented
premise in Pune. PURE is planning to lease a larger
corporate office on Pune – Ahmednagar Highway for
better coordination between the manufacturing
facilities and the corporate office. The new office will
also be closer the Pune airport.

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 M A N U F A C U T R I N G C A PA B I L I T I E S
P U R E ’ S FA C I L I T I E S

Melt-blown Line in Operation Converting Lines

Company’s focus is to provide innovative melt-blown 1. Scatter Coating Line
products to create a niche, high-margin category for 2. Impregnation Line
itself and set itself apart from competition. As a result, 3. Ultrasonic Bonding Line
in FY 2009, PURE installed India’s First Bi-Component 4. Thermal Embossing and Perforation Line
Melt-blown Line at its facility in Pimple Jagtap. The 5. Hot Melt Lamination Line – 2 No's
state-of-the-art line has a width of 1.6 meters. The 6. Pleating Line – 2 No's
Company has ability to spin various types of fiber from 7. Auto Sheet Cutting Line
PP/PE/PBT/NYLON/TPE.
8. Ultrasonic Lace Machine – 4 No’s
It has sourced technology from Hills Inc, USA. The
benefit of buying the Hills Technology is that it gives
feasibility to do research and development on various Testing Equipment
different types of melt-blown products that could be PURE’s in-house testing facilities ensures stringent
possible for the future. It has the ability to produce checks and high quality products, leading to repeat
finest fiber possible for the best filtration performance business from its clients and new business volume.
in terms of uniformity and consistency. Testing equipment include state-of-the-art German
equipment for nonwovens.
1. PALAS Flat Sheet Test Rig – MFP2000
2. GSM Tester as per ASTM D:3776
3. Ashrae 52.5 / EN779 Test Rig for Air Filter Media
4. Optical Microscope
5. Air Permeability Tester as per IS 11056:84
6. Tensile Tester as per ASTM D:5035
7. Thickness Tester as per ASTM D:1777
8. Opacity Tester as per IS 11056:84

Converting Lines
The Company has a range of in-house nonwoven
converting equipment. These allow it to offer value
added customized products to its customers. PURE will
soon commission thermo-bonding and needle-punch
technology at its new facility at Koregaon Bhima. It has
also established scattered coating line, impregnation
line which are essential key converting technologies for
products such as Activated Carbon Medias.

Welded Rolls (above)

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 SHAREHOLDING HISTORY
& S T R AT E G I C PA R T N E R S H I P S

Inception The current shareholding structure is as follows:

The business was started with a modest seed capital of
Rs. 5,000 ($100) in year 2002 by Mr. XXXX XXXX. The
firm was converted into a private limited company,
PURE Filters Private Limited in year 2008. CURRENT SHAREHOLDING PATTERN

Strategic Partnership with I-Ventures XXXX

XXXX,
In year 2007, in line with the need for growth capital of
41.5%
the business, the company joined hands with I-Ventures
Others,
(IV).IV is a growth capital fund sponsored by first
51.0%
generation entrepreneur, Mr. CC. Mr. C is the promoter
& chairman of ABC Ltd, a renowned engineering group
xxxxx,
with revenues of ~USD 150 million.
7.5%
ABC is a multiproduct company catering to applications
in diverse sectors such as automobile, boiler & heat Proposed Strategic Partnership with Fiberweb Plc
exchangers, energy, oil and general engineering. It
As it takes this giant leap to completely focus on
specializes in processing various types of steel and
converting of nonwovens into products, PURE is now
engineering faster development cycles, flexible
looking for a leading global nonwoven player as a
production systems, effective supply chain solutions.
strategic partner. PURE needs continued access to
global market knowledge and technical knowhow,
which are necessary for innovation. Further, it also
looks to address the funding constraints for R&D
initiatives, high-end conversion lines and marketing
spend.
The common characteristic between Ventiure group
and PURE is that both organizations are driven by Partnership with a leading international player like
innovation in product applications. I-Ventures acquired Fiberweb Plc will bring in operational and management
a significant minority stake in the Company and best practices to PURE, and may also provide it with
provided critical funds and support for PURE’s growth flexibility in sourcing of raw materials, sourcing of low-
strategies. cost funds.
The funds invested by IV have been deployed by PURE The equity funds raised through this means shall be
to set up the Melt-blown line at Pimple Jagtap and also utilized for putting up the STERON ® line, land and
acquire and set-up facility at Koregaon Bhima. building for the new integrated facility, new Needle
punch line, and repaying a portion of the debt.
I-Venture helps the company to secure key banking
relationships, strategic financing arrangements and
provides necessary strategic inputs, time to time. Win-Win for all Stakeholders
Over long term, PURE targets to emerge as a preferred
partner for Fiberweb to convert and export Fiberweb’s
products from India and seek the benefits of local lower
manufacturing cost. PURE could also be a partner for
Fiberweb for exploring the Indian market’s growing
appetite for Fiberweb’s products.

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 K E Y R E L AT I O N S H I P S

BASF SE
Licensing Agreement Business Expectations
In 2012, PURE entered into a licensing arrangement PURE will supply fabrics and intermediate converted
with BASF, the world’s leader company in chemicals, for products using STERON ® to clients that will be jointly
a unique patented product called STERON®. STERON ® acquired by PURE and BASF. PURE has accordingly
is useful for manufacturing artificial leather with decided to invest ~Rs. 13.5 crore (USD 2.5 mn) in
improved properties such as moisture permeability Coating Line with a capacity of 1,000,000 sq. meter p.a.
(breathability).
In the near future, at peak capacity, this could go up to
Artificial leather finds application in footwear, Rs. 56 crore (USD 10.5 mn) in terms of potential annual
automobile seats, upholstery, furnishings, sports, order.
apparel, women bags, and a host of fashion accessories
The domestic market size is estimated to be about Rs.
and it is used as a substitute for natural leather. The
3,000 - 4,000 crore (USD 550 to 750 mn) for artificial
products are customized for various applications. It is
leather. Mayur Uniquoters is a leading company with a
available in a very wide price range depending on
capacity of 1.8 million meters and estimated revenue of
application, inputs that goes into it, order size etc.
USD 65 mn in FY 2013. There are other companies like
The Company intends to manufacture coated synthetic Rishabh Velveleen, Vasanti Textiles, Manish Vinyl.
materials like artificial leather by using the STERON®
Potential Customers
technology of BASF. Under the licensing agreement, the
royalty to be paid for coated material is €3 per sq. Automotive
meter. PURE will also pay a lump sum license fee of €
35,000 p.a. to BASF. This agreement is valid for 7 years

About STERON®
STERON® is a new patented transfer coating Fashion
technology. Leather coated with STERON® remains
permeable to air. Practically all natural and synthetic
surfaces can be created on a wide range of materials
with the same permanent color effects i.e. perfect
interpretations of leather surfaces with impressive look
and feel. Intricate designs and quick motif changes are
just as possible as visible and invisible branding. POTENTIAL BUSINESS ANALYSIS (USD mn)
STERON® offers a new dimension of design freedom,
coupled with ecological and economic advantages in
the production for materials used in the automotive
industry for car interior, fashion and accessories 650
industry, upholstery, and high end packaging industry.
10.5
Process of Transfer Coating
Potential Market
6.5
Potential Annual Order
Structuring Coating Laminating Steron®
(Structured (STERON ® (Carrier) Product Initial Minimum Annual
Mould) Coating) Order

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 K E Y C L I E N T R E L AT I O N S H I P S

FLEETGUARD FILTERS PRIVATE LIMITED (FLEETGUARD)

About Fleetguard relationship. Fleetguard has committed to a initial order
quantity that will result in a revenue of USD 1.3 mn for
Established in 1987, it is India’s leading manufacturer of
PURE. PURE targets a potential near term business of
filtration systems / products for industrial applications.
USD 3 mn from Fleetguard, as a result of strengthening
It manufactures heavy duty air, fuel, lube and hydraulic
of trust & relationship as well as new product
filters, air intake systems, coolants, chemical products
innovations at PURE
for highway applications.
Fleetguard is a Cummins group company with a
turnover of over USD 103 mn. It is an OEM (Original POTENTIAL BUSINESS ANALYSIS (USD mn)
Equipment Manufacturer) for renowned automotive Other Potential Clients
and industrial engine and equipment manufacturers.
Fleetguard has its manufacturing facility at Hosur, 15
Jamshedpur, Pune and Sitarganj (Uttarakhand).
3
Business with PURE
PURE has entered into a business agreement with Potential Market
1.3
Fleetguard for long term supply Fuel Water Separator
Media and Oil Filtration Medias. PURE has invested Potential Near Term
~USD 75,000 in Embossing Machine for supply to Business (Fleetguard)
Fleetguard, thereby establishing a direct vendor Initial Order Value

GRUPO ANTOLIN
About Grupo Antolin As per the agreement, Grupo Antolin will order a initial
quantity of 1,000 tons, resulting in a revenue of ~USD
Based in Burgos (Spain) is a full service supplier and
5.5 mn for PURE. PURE targets a potential business of
leading company in design, development and
USD 9-10 mn in near future.
manufacture of multi-technological solutions for
modular automobile interior parts. It focuses on 4 main
functions: Overhead, Door, Seat, Lighting. POTENTIAL BUSINESS ANALYSIS (USD mn)
It ranks 55th amongst the most important suppliers in
the automotive industry worldwide, and has more than Other Potential Clients
100 plants and 22 technical-commercial offices in 25
450
countries. Directly or indirectly, Grupo Antolin products
feature in practically every car in the world.
9.5
Business with PURE
Potential Market
PURE has entered into a 2-year business agreement 5.5
with Grupo Antolin to supply fabrics for headliners. Potential Near Term
PURE has accordingly decided to invest ~USD 750,00 in Business (Grupo)
Needle Punching Line.
Initial Order Value

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 K E Y C L I E N T R E L AT I O N S H I P S

COACH, INC
About Coach
Coach, Inc. is a marketer of fine accessories and gifts for PURE also targets a potential business of over USD 2.4
women and men. Its product offerings include women’s mn from Coach India, in the near term.
and men’s bags, accessories, footwear, jewelry,
watches and fragrance. It sells its products through
~1,000 department and outlet stores (in US and over 20 POTENTIAL BUSINESS ANALYSIS (USD mn)
other countries), catalogs, and its website. It also runs
more than 830 retail and factory outlet stores in North Other Potential
America, Japan, and China. Its revenues for 2012 were (Fashion) Clients
over USD 4.7 billion. 650
Business with PURE
Coach will source breathable leather fabrics and 2.4
intermediate converted products using STERON® for its Potential Market
Bags, wallets. PURE plans to invest ~USD 2.5 mn in a 0.8
Coating Line with a capacity of 1,000,000 sq. meter p.a. Potential Near Term
PURE expects initial business of USD 0.8 mn from Coach Business (Coach India)
India with an order quantity of around 65,000 sq. meter
Initial Order Value

3M COMPANY (3M)
About 3M PURE estimates 3M will place product orders for 350
tons initially, resulting in a revenue of USD 1.8 mn for
Based in Minnesota in US, 3M is global innovation
PURE. PURE targets a potential annual order of USD 9.3
company that has operations in more than 70
mn from 3M India.
countries, with its products sold in nearly 200 countries.
It employs 88,000 people globally.
It produces over 55,000 products, including adhesives,
POTENTIAL BUSINESS ANALYSIS (USD mn)
abrasives, laminates, passive fire protection, dental
products, electronic circuits & electronic materials, Other Potential Clients
medical products, car care products (such as sun films, Corona Bus
polish, wax, car shampoo, exterior treatment, interior 90
and under chassis rust protection), and optical films.
9.3
Business with PURE
Potential Market
PURE has entered into a 4-year business agreement 2.8
with 3M India to supply various nonwoven products for Potential Near Term
automotive. PURE is investing ~USD 1.3 mn in new Business (3M)
Melt-blown (Staple Fiber insertion) Line for supply of
the products to 3M. Initial Order Value

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 K E Y D I F F E R E N T I AT O R S
O P E R AT I O N A L A D VA N TA G E S & I N N O VAT I O N S

ISO – 9001
Over last 5 years, PURE has transformed from a small 2008
converting shop into a focused Non-woven Products Certified
company with approvals from key global names and a fully
integrated high-end manufacturing line in place. This Star Export Ashrae 52-2
provides PURE with significant operational advantage vis- House Status – American
à-vis competition. It usually takes a few years to develop (in process) Standard
markets and receive approvals from large MNC clients.
Over next few years, PURE plans to evolve its product CERTIFICATIONS
/ AWARDS
matrix and diversity its customer base across industries. It
plans to move from a pure filtration products company to CRISIL SME
supply to automotive and hygiene industries and in the Rating : EU779-
long run, even to apparel and fashion players. Above Eurovent
Average for standards
The global nonwovens sector is extremely competitive 2011-12
and requires continuous innovation to survive. Companies Gold Trophy,
Entrepreneur
with superior R&D capabilities, market knowledge and -ship from
high-end technology that quickly offer high quality, novel PlastIndia
products are able to maintain their margins. PURE has Foundation
consistently demonstrated its innovation capabilities with
a capable management team and technological set up

The Company is planning a major thrust on developing

Certain Firsts for PURE
and implementing world-class policies in Quality
PURE Filters is the first company in India to have: Control, Employee Health & Safety Systems (EHSS) and
regulatory compliance.
• Set up state-of-the-art Bi-Component melt-blowing
technology for Filtration It is slated to implement ISO/TS 16949 and 5S Quality
• Received SME funding from Exim bank of USA Management Systems. It is also scheduled to
• Produced HVAC filter medias in India implement ‘Safety First’ EHSS norms.
• Developed Acoustic materials for cars
• Developed Engine shield insulation materials in PURE’s innovative products (recent & pipeline) include
association with 3M worldwide
• Melt-blown needle-felt composites which can be
• Produced PBT fuel filter media for diesel separation in
ultrasonically sealed
Euro 4 cars and oil filter medias
• PBT and PP Bi-Component Melt-blowns (MB)
• Been approved to set-up commercial production line
• Nano fibers production using melt-blowing
for BASF’s STERON® Technology (PURE is first company
• Blood filter medias and components
to be approved by BASF in India as well as the World)
• MB from PET bottle waste (sustainable filtration)
• Acquisition and distribution layers for hygiene
markets

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 O R G A N I S AT I O N S T R U C T U R E

PURE has a staff strength of ~55 people. KA (COO) and average age of [---] and drives its product customization
PP (Director, Marketing & Product Development) report and product innovation. In line with its growth strategy,
directly into Mr. XXXX XXXX. Cumulative experience of PURE is planning to strengthen the Research &
management along with Dr. NV (Advisor) and Mr. CC Development (R&D), Quality Assurance, Project
(Strategic investor) is ~100 years. Management Finance & Accounts teams further.
PURE’s management team is relatively younger with

Mr. XXXX XXXX

Managing Director
Mr. XXXXX • Converting Line: 12
General Manager • Needle Punching: 7
• Maintenance: 2
Mr. XXXXX
Chief Operating Officer
Mr. XXXXX
Process Engineer • Melt-blown Line: 7
• Quality: 2

Mr. XXXXX
Human Resource
• Admin Officer: 1

Store Manager

Mr. XXXXX
Bus. Dev. Manager
(Needle-Punching) • Sales Coordinator: 1
Mr. XXXXX
Director(Products, Marketing)
Marketing Manager
(Gen. Products)

Purchase Manager

Mr. XXXXX Mr. XXXXX

Accounts & Finance Commercial Manager
• Accountants: 2

Mr. XXXXX
Company Secretary

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 MANAGEMENT BIOS
KEY MANAGERIAL PERSONNEL

MR. XXXX XXXX MR. XXXXX

Promoter & Managing Director Chief Operating Officer

He has a Bachelors degree in Engineering in Polymer He is a highly experienced and qualified executive
Science from Maharashtra Institute of Technology, manager with over 3 decades of experience at various
University of Pune. He has over 13 years of rich work management levels in manufacturing Industry, of which
experience in marketing of filtration products at local over 20 years are spent in leadership roles
and international levels.. In 1998, XXXX joined German
company Reifenhauser, which is engaged in He has proven capabilities of turning around, non-
manufacturing of nonwoven filter products. XXXX, a profitable businesses. He has excellent management
first generation entrepreneur, started the business of skills and experience in identifying and eliminating the
manufacturing and promoting intermediate filter obstacles in organic growth by team building,
components used in air filtration and HVAC systems in leadership and excellence. His professional experience
2002 which later became PURE Filters. spans across marquee corporates like TELCO (now Tata
Motors), Alfa Laval India Ltd., Indo Schottle Auto Parts
It is XXXX’s vision, passion for polymer products and Pvt. Ltd. and Bran Engineering Private Ltd.
customer-oriented approach that has taken PURE to
new heights. He has been instrumental in forging new He holds a Bachelors degree in Mechanical Engineering
partnerships, bringing latest technologies for the from University of Nagpur, and has also completed
Company and building a global client pool. He drives the Management Development Program from IIM-
strategic decisions at PURE and steers the company in Ahmedabad. He also holds a Green Belt in Six Sigma
the capacity of Managing Director Lean Management from Crane University

MR. XXXXX MR. XXXXX

Director – Marketing & Product Development Advisor & Consultant

He has a Bachelors degree in Engineering in Polymers Dr. AB is a world class professional in the field of fiber
from University of Pune. He also holds a Masters in sciences with over 35 years of experience in research.
Plastics Engineering from University of Massachusetts, He is a PhD. from University of Delaware in material
Lowell (UMass, Lowell), USA sciences, Master in Chemicals Engineering from
University of Delaware. He is a Graduate from UDCT,
He has 14 years of experience, including 6 years in USA Mumbai University. Currently he is an advisor and
in packaging, disposable medical devices, and specialty mentor to Aim and helps Aim in establishing and
applications such as insulation tapes for sub-sea oil developing new technologies. He has served various
drilling. He developed three products for sub-sea companies like Reliance, Du Pont and others in senior
application at various depths. Earlier, he also led the positions.
exports project team at Tata Auto Plastics Systems
Limited. He has handled projects for customers like
Ford – Germany, John Deere. Since 2008, he has been In addition, PURE receives continuous strategic
leading the Marketing & Product Development team at inputs from the founders and management I-
PURE. Ventures

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 T EC H N I C A L T E X T I L ES &
N O N - WOV E N I N D U ST RY

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 TECHNICAL TEXTILES: OVERVIEW
GLOBAL CONSUMPTION TRENDS

Consumption Trends Application of Technical Textiles

Technical textiles are defined as textile materials and Technical textiles have been slowly gaining user
products used primarily for their technical performance preference owing to one or more of their
and functional properties than their aesthetic traits. characteristics such as functional requirement, health &
safety, cost-effectiveness, durability, high strength; light
The application of Technical Textiles is in multiple
weight, versatility, customization, user friendliness,
sectors from agriculture, healthcare and filtration to
logistical convenience etc
personal hygiene, construction and aerospace. It is the
end use that drives selection of fiber, method of Technical textiles are used either individually, or as a
processing, new product development. Over years, component/part of another product. They are used
their global consumption has grown with development individually for specific functions such as fire retardant
and industrialization. In 2010 it was estimated to be fabric for uniforms of firemen or coated fabric to be
~23.8 mn tonnes and had been growing at 4% p.a. used as awnings. As a component of another product,
they are used to enhance the strength, performance or
While developed countries i.e. USA, Western Europe
other functional properties of that product E.g. tyre
consume with over 23% and 22% of global technical
cord fabrics in tyres, interlining in shirt collars.
textiles produced, China consumes around 13%.
Depending on the product characteristics, functional
REGION WISE CONSUMPTION requirements and end-use applications, these have
been grouped into 12 segments 1
Western China, Japan,
Europe, 13% 7% Segments of Technical Textiles (Application wise):
22% India, 3% 1. Agrotech - Agriculture, Horticulture and Forestry
Rest of 2. Buildtech - Building and Construction
USA,
World, 3. Clothtech - Shoes and Clothing
23%
32% 4. Geotech - Geotextiles, Civil Engineering
5. Hometech - Furniture, Upholstery, Interior
Furnishing, Household Textiles, Floor Covering
Processes Used 6. Indutech - Filtration, Cleaning, other industrial uses
7. Medtech - Medical, Healthcare and Hygiene
Technical textiles in their end-use form such as fabric /
sheets, are manufactured using alternative processes 8. Mobiltech - Automobiles, Shipping, Rail, Aerospace
i.e. either conventional weaving or composite layers or 9. Oekotech - Environmental Protection
nonwoven fabrics. Significantly, Non-woven and 10. Packtech - Packaging
composite production have considerable market share.
11. Protech - Person and Property Protection
12. Sporttech - Sport and Leisure
PROCESS USED TO MANUFACTURE
Woven, Non- A simple segmentation is also prevalent in the
73% Woven, industry i.e. based on application of nonwovens in
20% disposable products or durable products.
Knitted,
5%
Others,
2%

Source: ICRA study sponsored by Government of India

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 TECHNICAL TEXTILES: OVERVIEW
INDIAN MARKET

India vs. World, the Need for Product Manufacturers India Growth Outlook and Needs of the Sector
In many developed countries (e.g. USA and Japan) The Indian Technical Textiles industry has grown to Rs.
technical textiles account for over 35% of the textile 63,000 crore (USD 11 billion) in 2011-12 from Rs.
industry’s output as against 19 % for China and 5 % for 41,000 crore (USD 8.2 billion) in 2007-08 at 11 %
India. growth p.a. 1. It is expected to grow so fast as to be
worth Rs. 1,58,000 crore (USD 29.3 billion) by 2017,
In India, owing to overall increase in income-levels and
with a projected growth rate of ~20%.
corresponding rise in living-standards, the domestic
consumption is growing. However, unlike the At the same time, India also has competitive advantage
conventional textile industry in India, the technical to be developed as an export oriented supply
textile industry is an import intensive industry. Though (production) base, with availability of low cost skilled
consumption is high, many products like sanitary labour.
napkins, diapers, wipes, protective clothing, webbings
for seat belts are imported to a very large extent. Regulatory Government Policy
Hence, the need for low-cost domestic manufacturing
of these consumer products is increasing exponentially. Government of India has allowed 100% Foreign direct
investment (FDI) in the textiles sector through the
Indian technical textile players are primarily active in automatic route.
the clothtech, packtech and sporttech sectors and
limited to commodities. They have very little presence Additionally, Government has taken various initiatives
in high-tech, R&D intensive segments. These segments to promote the growth of this industry including
include downstream conversion industries, use of Technology Upgradation Fund Scheme (TUFS), Scheme
commodities to manufacture of value-added products. for Integrated Textile Park (SITP) and Integrated Skill
Development Scheme (ISDS). Further, Export Oriented
Units (EOUs) that are set-up in Special Economic Zones
Players in Domestic Market
(SEZs) can avail additional tax exemptions
Over years, a few large multinational companies like
A major support scheme has been the launching of the
Ahlstrom, Johnson & Johnson, Du Pont, Procter &
National Technology Mission for Technical Textiles by
Gamble, 3M, SKAPs, Kimberly Clark have set up their
the Honorable Prime Minister of India, to be
units in India. There are some domestic players like SRF,
implemented during the 11th5-year plan to promote the
Entremonde Polycoaters, Kusumgarh Corporates,
development of the technical textile industry base in
Garware Wall Ropes, Century Enka, Techfab India, on
India with a budget of USD 170 million.
the woven and knitted side. On the other hand,
Supreme Nonwovens, Obetee Textiles, Pacific Non In order to develop the nonwoven technical textiles
Woven, Vardhman, Unitex, Alpha Foam are large (NWTT) sector, Government has also allocated funds for
players on the nonwoven side. development of four Centers of Excellence(CoEs) in
Technical Textiles. The upcoming CoEs and those
Currently, this segment is highly unorganized , and the
established very recently, are for
size of units that manufacture ‘products’ varies to a
large extent. There is significant number of small scale 1. Non-wovens & Medical(Ichalkaranji, Maharashtra)
units manufacturing products. Although there are 2. Sports (Mumbai, Maharashtra)
various large players present, the production of certain 3. Composites (Ahmedabad, Gujarat)
goods is still concentrated in the small scale segment
4. Industrial Applications (Coimbatore, Tamil Nadu)
like canvas tarpaulin, carpet backing, woven sacks, soft
luggage, zip fasteners, stuffed toys, fabrication of
awnings, canopies and blinds etc.
Source: Ministry of Textiles, India and FICCI-Wazir Advisors-Ernst &
Young Knowledge joint paper

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 NONWOVEN PRODUCTS
M A N U FA C T U R I N G P R O C E S S

Basic concept of making a nonwoven fabric is to convert in case of felt), with an adhesive, or by interlocking
fiber directly to high performance fabric without using them with serrated needles such that the inter‐fiber
conventional processes i.e. spinning, weaving, friction results in a strong fabric. Nonwovens can be
processing. Fabric is manufactured by putting small single use (disposable) products or durables.
fibers together in the form of a sheet and then binding
This diagram represents Supply chain of Non-wovens
them either through thermal bonding, mechanically (as

Raw Materials (Fibers / WEB MAKING PROCESS

Fibrids)
Polymer
Dry Process Wet Process
Extrusion

Garnetting Wet Laid Flash Frozen

(Paper Making)

Air Laid Spun-Bonded

Carding Melt-Blown
Raw Materials (Filaments /
Films) SMS
Parallel Laid Cross Laid

WEB BONDING PROCESS

Chemical Mechanical Thermal

Web Making Process

Web Bonding Process Sonic Bonding

Needle Punch
Calender
Finishing Process
Hydro
Entanglement Embossing
Non-woven
Hot Air
Fabrics & Finished Stitch Bonding
Goods Radiant Heat

Coating, Crimping, Laminating,

Impregnating, Shrinking,
Corrugating, Texturing
Processes where PURE is present / plans to build presence

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 N O N W O V E N S M A N U FA C T U R I N G
M E LT - B L O W N P R O C E S S

Overview Web Characteristics & Properties

Melt blowing (MB) is a process for producing fibrous 1. Random fiber orientation.
webs or articles directly from polymers or resins using 2. Lower to moderate web strength, deriving strength
high-velocity air or another appropriate force to from mechanical entanglement, frictional forces.
attenuate the filaments. The MB process is one of the 3. Generally high opacity (having a high cover factor)
newer and least developed nonwoven processes. This
4. Fiber diameter ranges from 0.5 to 30 m, but
process is unique because it is used almost exclusively
typically from 2-7 m.
to produce microfibers rather than fibers the size of
normal textile fibers. Differences between MB 5. Basis weight ranges from 8-350 g/m2, but typically
nonwoven fabrics and other nonwoven fabrics, such as 20-200 g/m2.
degree of softness, cover or opacity, and porosity can 6. Microfibers provide a high surface area for good
generally be traced to differences in filament size insulation and filtration characteristics.
7. Fibers have a smooth surface texture and are
Processing circular in cross-section.
8. Most melt-blown webs are layered / shingled in
The most commonly accepted and current definition for
structure, layers increases with basis weight.
the MB process is: a one-step process in which high-
velocity air blows a molten thermoplastic resin from an
Applications
extruder die tip onto a conveyor or take-up screen to
form a fine fibrous and self-bonding web. Filtration media: The best known application is surgical
face mask filter media. The applications include both
The MB process is similar to the Spun-Bond (SB) process
liquid filtration and gaseous filtration. Some of them are
which converts resins to nonwoven fabrics in a single
found in cartridge filters, clean room filters and others.
integrated process. The schematic of the process is
shown MB in figure 1. A typical MB process consists of Medical fabrics: Major segments are disposable gown
the following elements: extruder, metering pumps, die & drape market and sterilization wraps.
assembly, web formation, and winding
Sanitary products like feminine sanitary napkin, Spun-
Bond-MB diaper top sheet, and disposable adult
incontinence absorbent products.
Oil adsorbents: To pick up oily materials like sorbents to
pick up oil from the surface of water, such as
encountered in an accidental oil spill and for mats in
machine shops and in industrial plants.
Apparel applications fall into three market segments:
thermal insulation, disposable industrial apparel and
substrate for synthetic leather.
Hot-melt adhesives
Electronic specialties: As the liner fabric in computer
floppy disks and also as battery separators and as
Web Characteristics & Properties
insulation in capacitors.
The uniformity of the web is controlled by two
Miscellaneous: Tents and Elastomeric nonwoven fabrics
important parameters: uniform distribution of fiber in
which have the same appearance as continuous
the air stream and proper adjustment of the vacuum
filament Spun-Bonded products.
level under the forming wire or belt.

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 N O N W O V E N S M A N U FA C T U R I N G
NEEDLE-PUNCHED PROCESS

Overview Web Characteristics & Properties

The nonwoven manufacturing process consists of web 1. Longer fiber lengths result in higher strength,
laying and web bonding. Among the web bonding higher felt density and less air permeability.
methods, needle punching is a very exciting and diverse 2. Finer fibers lead to smaller felt thickness and to
trade involving technology for natural, synthetic fibers lower air permeability. Needling of finer fibers
and their blends. Needle-punching is a physical method requires inevitably also the use of finer needles to
of mechanically interlocking fiber webs by using barbed achieve sufficient strength characteristics.
needles to reposition some of the fibers from a
3. Higher crimp results in a higher tear resistance and
horizontal to a vertical orientation. Thousands of
elongation and a better dimensional stability of the
needles interlock fibers in a web.
needle felts.
4. Machine oriented web results in a high strength in
Raw Materials Used
the longitudinal direction and predominantly cross
1. Natural: Cotton, Wool, Sesal, Jute, Hemp, Others oriented webs result in a high strength in cross
2. Synthetic: Polyester, Polypropylene, Nylon, Other direction.
Synthetic Fibers for Specialty End Uses
5. The web area mass has a great influence on air
3. Recycled Fiber: Recycled clothing, fiber waste
permeability.
4. Others: Acrylic, Aramids, Flame retardant fibers

Manufacturing Processing Applications

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 N O N W O V E N S M A N U FA C T U R I N G
THERMO BONDING PROCESS

Overview Advantages and Energy Comparison

There are three major bonding types: chemical Compared to other bonding processes, thermal bonding
bonding, thermal bonding & mechanical bonding. Share and the products thus obtained offer a number of
of thermally bonded webs is growing steadily over past advantages :
few years.
1. Quality of product is soft and textile-like.
The first thermally bonded nonwovens were produced
2. High economic efficiency as compared to chemical
in 1940s. Initial products used rayon as the carrier fiber
bonding with binder agents because no water
and plasticized cellulose acetate (PCA) or vinyl chloride
evaporation is required, i.e., considerable energy
(PVC) as the binder fiber. The viability of the thermal
saving results. In comparison with chemical
bonding process is rooted in the price advantage
bonding, thermal bonding only has a heat energy
obtained by lower energy costs. However, the thermal
requirement of 1/4 to 1/6 (also in this respect
bonding process also addresses the demanding quality
ecologically beneficial).
requirements of the market place. The development of
new raw materials, better web formation technologies 3. Less expensive machinery. The capital expenditure,
and higher production speeds have made thermal maintenance and operating costs are often lower
bonding a viable process for the manufacture of both because no binder preparation station and no
durable and disposable nonwovens. binder application units are required.
4. It is possible to bond even thicker webs uniformly
and thoroughly to the core that cannot be achieved
Binders
by spraying. While a regular bonding effect across
The materials that can be used as a binder for thermally the web cross- section can be achieved for a web
bonded nonwovens are: with a homogeneous distribution of the binding
fibers, spraying only produces a bonding effect in
• Binding fibers
the outer layers of the web.
• Binding powder
5. No binder agents are required and no curing
• Binding web
process is needed. Hence, there is no exhaust air or
The following are the essential characteristics of the wastewater problem. Objections against certain
binder polymer: chemicals can be dropped. Thus, thermal bonding
• Efficient melt flow is non-polluting.
• Good adhesion to the carrier fiber 6. As pure polymer fibers or blends can be used for
• Lower melting point than the carrier fiber thermal bonding processes, recyclability is 100% in
practice.
• Desired stiffness or elasticity
7. Fiber properties can be influenced in an ideal
manner (e.g. flame-retardence, nonwovens with
Main Methods of Thermal Bonding high bulk and excellent resilience owing to fiber
1. Hot calendering crimping, heat-insulating characteristics due to
hollow fiber, etc.)
2. Belt calendering
3. Through-air thermal bonding
4. Ultrasonic bonding
5. Radiant-heat bonding

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 NONWOVENS: OVERVIEW
GLOBAL & INDIAN TRENDS

Global Markets India as Market for Non-wovens

Globally, the Non-woven fabric and products industry is It is estimated to be about USD 550 mn (1,400 mn sq.
estimated to be USD 26.7 billion (2010) registered a m) in 2012. In India, woven technical textiles are more
CAGR of around 6% over 2005-10 1. The traditional common, with nonwovens amounting to a small 5% of
markets, Europe and North America constitute over the overall Technical textiles market (Vis-à-vis global
53% of the global market with high consumption per average of 20%), this represents low penetration.
capita. However, over last 5-7 years, these markets
According to estimates by INDA and EDANA, the current
have been growing at < 4%p.a. owing to issues ranging
per capita consumption of nonwovens in India is less
from saturated demand and slowing population growth
than the meager amount of 100 grams, whereas the
to reduced infrastructure investment.
per capita consumption of nonwovens in developed
However, there is growing importance of emerging markets such as US and Western Europe is around 3-3.5
markets (BRICS countries, Middle East, South East Asia, kilograms.
Africa, Latin America) to global manufacturers, owing to
India’s nonwoven fabrics industry is growing much
continued industrialization and increasing income.
faster (at 13%) than its GDP growth, almost 1.5 times.
The global market is dominated by 7 players with
On a significant note, in any economy, the durable
annual turnover of USD 650 million to 1.4 billion
technical textiles market develops first and is much
• Fruedenberg USD 1.4 billion larger that the disposable market. Consumer spending
• Du Pont USD 1.3 billion on disposables commences to grow once the per capita
• Kimberly Clark Corp USD 1.2 billion income reaches a critical level. The reason is obvious as
income rises and people are working, disposable
• Ahlstorm USD 1.1 billion
products like baby diapers and wipes become
• Polymer Group Inc USD 1.0 billion affordable. Durable nonwovens account for more than
• Fiberweb LLC USD 0.9 billion 80% of the consumption in India currently and are likely
• Johns Manville USD 0.7 billion to constitute significant percentage of the overall
nonwovens in the near term. This is exactly reverse in a
Further, there are >30 players (USD 100-250 million). mature market.
Rapid growth in demand in emerging markets is driving
nonwovens investment in the entire nonwoven supply Amongst the existing domestic non-wovens,
chain: Raw materials, roll goods and end products.
Major durables consumed: Major durables durable
markets are interlinings, bedding and upholstered
Key nonwoven technologies such as spun-bond PP, furnishings, automotive, geotextiles, building
spun-laced and needle-punched are expected to lead construction, agriculture and landscape, carpet
the way in this growth. These technologies supply the components and coated/laminated substrates.
growing markets of diapers, feminine hygiene, wet and
dry wipes, medical and automotive. Major disposables consumed: absorbent hygiene
products, pre-moistened wipes and medical / surgical
products
Niche Markets (Disposables): Air filtration, liquid
filtration, protective apparel, fabric softener, sorbents,
envelopes and packaging materials and table top items
made of air-laid pulp nonwovens
Source:
1. Nonwovens Industry Magazine
2. ICRA Research
3. INDA Report on Outlook & prospects for nonwovens in India

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 NONWOVENS: OVERVIEW
INDIAN TRENDS & KEY GROWTH DRIVERS

Nonwovens Consumption in India by Technology Few global nonwoven multinationals are present in
India. While Supreme Nonwovens, Obetee Textiles,
Growth Pacific Non Woven, Vardhman, Unitex, Alpha Foam are
Technology (Tonnes)
(07-12) large nonwovens players in India, Supreme group
Carded Thermal/Resin Bonded 10,540 5.9 dominates the production by domestic players with a
Needle-punched 38,000 10.5 turnover of ~USD 40 mn in FY 2010.
Spun-laid (incl. Spun-bond PP, In India, nonwovens are mainly manufactured through
23,200 15.9 Spun-Bonding. It has adequate (~50) manufacturers of
PE & Melt-Blown)
roll goods, but not of high quality, with predominantly
Spun-laced 9,300 High
Chinese, Korean, Taiwanese machinery.
Air-laid Pulp 4,100 High
Wet Laid/Other 507 10.5 Real Opportunity: Conversion in Products
Total 85,647 12.7
While there is an immediate need for the converting
sector in India, it is a highly capital intensive sector with
Following are products that use these technologies need for continuous innovation. The margins are
dependent upon novelty of the fabric and its quality,
Carded Thermal: Interlining, pre-moistened wipes and
which in turn is driven by the production line.
core materials used in baby diapers, adult incontinence
products The industry at present is reluctant to invest in high-end
machinery as the domestic market is not fully
Needle-punched : Automotive interior, carpeting,
established. In addition to continued knowledge of end-
roofing and geotextiles
customers’ usage pattern and market understanding,
Spun Laid: Absorbent hygiene, bedding, upholstered Know-how on converting roll -goods to finished
furnishings, agriculture and medical products is needed. This also includes knowledge on
chemical finishing and formulation developments.
Spun-laced: Medical, pre-moistened wipes and
coated/laminated substrate In the products segment, players need to have novelty
and high quality in their products. Further, owing to its
Air Laid: pulp wipes and absorbent cores in feminine
dependence on high-technology capital intensive
care products and adult incontinence products
assets, high operating efficiency, continuous innovation,
machinery upgrades are extremely critical for survival.
Manufacturing in India
Strong governmental support, a growing middle class PURE’s Positioning
and a large textile infrastructure already in place
For an Indian company to successfully foray in products,
provide India with a natural advantage as its nonwoven
options such as exporting to global B2B clients or
industry develops. The industry in India is growing in
supplying to Indian arms of global nonwoven companies
terms of both production and consumption. Yet apart
(B2B) could be explored. However, this requires a long
from the large MNCs, many foreign nonwoven
time and efforts for approval of products by the
producers have yet to establish themselves in India.
multinational clientele. This is where PURE is
A global company has to understand local culture, offer positioning itself. PURE’s products have been approved
long term commitment, investment for development of by clients like Grupo Antolin, 3M, KCC, BASF. This has
the local market through education and awareness built high entry barriers for competition to follow. This
campaigns and design products accordingly. builds a case for PURE to invest in high-end conversion
lines.
In the domestic market, PURE plans to focus on the
durable nonwovens in the near term.

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 B U S I N ES S ST R AT EGY

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 B U S I N E S S S T R AT E G Y

STATE OF NON-WOVENS IN INDIA & PURE’S FOCUS AREAS

EMBRYONIC GROWTH MATURITY AGING

Interlinings
Carpet
REVENUES

Backing
Automotive
Durables
Artificial PU Leather
Filters
Industrial
Healthcare
Personal care PURE’s Near Term focus
Wipes
PURE’s Long Term focus

TIME

In the near term, PURE will focus on the following Strategic Customer Tie-ups
industries.
Leveraging its existing client relations to develop new
• Automotive (Filtration, Insulation, Interiors). products for them, will be a priority for PURE.
• Filtration (Air & Liquid) PURE plans to align its focus to the customer-end of the
• Medical technology (Respiratory , Infection control) value chain. This results in more asset efficiency, higher
• Oil absorption, Vacuum cleaner, Interlinings (Full value addition and higher margins. In addition, it plans
products) to establish strategic, long-term tie-ups with both i.e.
global MNCs and large domestic buyers of Non-woven
• Products from the STERON® line
products in these sectors.
It is significant to note that, in addition to filtration,
enhancing focus on the automobile industry, the target Domestic Market Strategy
client list for PURE increases by over 10 times.
In the domestic market, the Company plans to
PURE may remain more export driven in the near term. concentrate on nonwoven durables in line with the
However, it targets to achieve a balanced revenue mix consumption trend in India.
in the long run.
The domestic market for disposable products is still
taking off and may see exponential growth after 5-7
years. Till that time, PURE plans to understand the local
market more closely, enhance its innovation capabilities
and build a foundation for entry in disposables at
appropriate time.
.

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 B U S I N E S S S T R AT E G Y

Focus on Conversion & More Asset Productivity PURE’s perceived evolution in the Value Chain
PURE plans to focus on value-added, high quality,
specialty nonwoven products by using high-end
technology oriented conversion. It already has a Synthetic
macro-economic advantage of lower labour costs. It Hepa,
PBT MB,
plans to filter-out supply chain & operational Substrate coatings
inefficiencies.
Converting, trading, services
This business model is significantly different from for Fiberweb products
other Indian / Chinese players, whose margins are
based on higher scale or capacity utilization, Rolled & converted goods for HVAC,
sometimes, at the cost of quality. This will create more Sound absorption
scope for higher value addition and automatically lead
to improve return on assets. Commodity medias for vacuum bags,
oil absorbents and hygiene

Become research oriented, Continue to innovate for

new product applications
Premium Pricing
Value Addition /

PURE plans to develop new fabrics and novel

applications through continuous innovation and remain
relevant in the market place, command healthy margins.

As the commercial acceptance of output from the Bi-

Component Melt-Blown technology gains strength,
consistent research & testing of output from this line
Break even Capacity Utilization could lead PURE to develop product solutions for new
applications for various industries including healthcare,
Accordingly, PURE is acquiring more conversion lines filtration, hygiene:
and testing machinery. • Specialty fibers required in surgeries
• Anti-microbial fabrics for gowns and drapes
Integrate the value chain, Move closer to clients with • Possibility of manufacturing of commercial Nano
complementary products & services fibers
Considering PURE’s experience with filter medias, the • Filtration of only specific contaminants. Fine fiber
focus now is to move closer to the end customers by composites can remove smoke, biological pathogens
higher value addition in conversion. This will also and even odor
enable PURE to improve its profit margin by capturing • Improved raw-material efficiency in hygiene sector
part of the value chain from intermediate to the
• Improved performance properties in textile
finished products.
lamination
This includes value-addition to various medias in
filtration, oil absorbents, automotive filters and PURE plans to incur majority of capex on upgrading its
interiors and healthcare segments to products such as testing facilities and acquiring more high-end lines
liquid filter bags, Pleated packs, pillow and sweep, including the BASA STERON® line, which provide it an
acoustic panels, face masks etc. ability to consistently innovate new applications. This
will provide it with significant competitive advantages
over peers.

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 CAPEX PLAN

PURE has a near term capex plan to invest Rs. 39 crore plans to install.
(USD 7.2 mn) over 2 years i.e. FY 2013 - 2014. This
Key Milestones planned for FY 2014
includes capital expenditure towards construction of a
new consolidated facility (land and building), new BASF
STERON® Coating Line (Capacity of 1 million sq. meter Closure of financial year with
Q4 FY 2013 revenues of USD 3.5 million
p.a.), new Staple fiber insertion line (Capacity 1,000
tonnes p.a.), needle punch line (1,000 tonnes).
Purchase new land, Execution
Over 5 years from FY 2014 to FY 2019, it estimates a
of strategic partnership with
further capex of about Rs. 5 crore (USD 0.9 mn) p.a. Q1 FY 2014
Fiberweb Plc, Commissioning of
towards installing various converting lines and
Embossing line
upgrading them. Part of this capex will also go to
significantly augment PURE’s in-house testing facilities. Commissioning of Staple Fiber
PURE’s existing and planned converting lines Q2 FY 2014 Insertion line, BASF STERON ®
specifically include: Ultra Sonic Embossing machine, Line, Mini Pleat Converting Line
Non Woven Cutting Punching Machine For Car Parts,
Mini Pleating And Testing Machinery, Slitting &
Rewinding Ultrasonic, Thermal Bonded pocket Line, Commissioning of Needle-
Q3 FY 2014 Punch Line
Stretch Wrap Packaging Machine, Water Jet Cutting
Lines, Chemical Bonding Lines, Coating lines for
Aluminum and Acrylic coatings, Fluoride Coating and
Activated Carbon Lines Closure of financial year with
Q4 FY 2014
revenues of USD 8 million
Following charts represent the estimated capacity
utilization for some the key lines that the Company

Melt-Blown Lines STERON® Line NW Needle-felt Thermal Bonding

94%
39%
82%
34% 27%
24%
19%
62% 27%
2,000 2,000 5,000 5,000
1,000 1,000 1,000

1,000
2,000

FY13 FY14E FY16E FY13 FY14E FY16E FY13 FY14E FY16E

Capacity (Tons) Capacity (‘000 Sq. Meter) Capacity (Tons)
% Utilization % Utilization % Utilization

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 R E V E N U E V I S I B I L I T Y: O R D E R B O O K

PURE’S EXISTING & TARGET MARKETS

Scandinavia & East
Europe
United
Kingdom Russia

Canada Western
Europe
USA
China
Middle East India

Thailand

Malaysia

Current export markets South Australia

America
New export markets South Africa

TOP CLIENTS BY ESTIMATED ORDER VALUE

(USD Mn)
PURE has deep product innovation capabilities that
1.1 allow it offer customized solutions to its clientele. PURE
caters to multitude of industries including Automobile,
0.9 Fashion accessories, Hospitals, Pharmaceuticals, Retail.

0.8 Currently, PURE exports ~60% of its products to UK,

USA, Australia, Russia, Malaysia, Middle East & Europe.
0.6 With its foray into new product segments and owing to
approval of its products from large multinational clients
like 3M, BASF, Grupo Antolin, PURE estimates to
0.4
increase the reach of its products to more regions like
South America, Scandinavia and East Europe, Canada.
0.3
Significantly, till 2011, combined revenues of company’s
0.3 client base was about USD 9-10 mn. Over a period of
last 2 years, there has been phenomenal shift in the
0.2 Company’s growth strategy and a combined topline of
its customer base now totals up to USD 900-1,000 mn.
0.2 This indicates a huge target market for its products.
For FY 2014, top 5 customers i.e. Fleetguard, Grupo
0.2 Antolin, Coach, 3M and KT International are expected to
contribute almost 50% of PURE’s revenues.
0.2
This indicates immense possibilities for PURE to explore
innovation and value-addition by leveraging on the
0.2
macro-economic and specific advantages available to it.
In addition to continuously acquiring new customers,
0.2
PURE can count on these customers to foray into
Note: Based on Order Book for FY 2014 (Orders > USD 200,000)
converted and complementary products for these
Figures are based on Existing business, LOIs or Agreements customers.

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 S W O T A N A LY S I S

In view of virgin Indian (consumption) market for approvals from large nonwoven MNCs. Its existing fully-
nonwoven products and reluctance of existing Indian integrated facilities and future capex is aligned to cater
manufacturers to enter into the high-end conversion to this clientele as well as offer more value-added
space, PURE has an advantageous position. It has products in near future. Further, it can also explore the
developed the export market for its products with domestic market for nonwoven durables.

STRENGTHS WEAKNESSES
• Fully Integrated facilities with fabric • Funding constraints for setting-up and
manufacturing and converting capacity, upgrading high-end product lines, R&D
complete control over value-chain initiatives and marketing: High cost of funding
• High entry barriers with manufacturing vis-à-vis multinational players
technology, high-end set up in place and • High customer concentration foreseen as
products approved by top global names Grupo Antolin & 3M may account for a large
• Balanced mix: Global & domestic clientele percentage of total revenue
• In-house R&D set up, capable team to drive • Limited access to continued knowledge of the
innovation. Proven innovation capability, as global market (necessary for innovation)
required in the sector • Management bandwidth could be limited in
• Top management has cumulative work view of high operating efficiencies, continuous
experience of over 100 years innovation required to survive in this sector
• Strong profitability, as reflected by operating
margins

OPPORTUNITIES THREATS
• Commoditized nature of Indian Non-Woven • Competition from domestic and large
Technical Textile(NWTT) sector with little international (including Chinese) corporate
presence of domestic players in conversion with deep pocket, who can enter into the
segment (high-tech, R&D intensive) space by acquiring technology: This can
• Value added nonwoven products for large negatively impact capacity utilization and
global clients: PURE can utilize the low margins
manpower cost arbitrage available to an Indian • Impact from price fluctuations in prices of raw
manufacturing base materials
• Tapping the SMS Composites (hygiene) • Scale up Risk: Possible lapses in product quality
segment which is a fast growing in India / continuous innovation leading to lower
• Capitalize on the first mover advantage as utilization of high-end lines
there is no local player to deliver high quality
SMS products

Sample Document I Not For Circulation Strictly Private & Confidential |page 43
 F I N A N C I A L A N A LYS I S

Sample Document I Not For Circulation Strictly Private & Confidential |page 44
 HISTORICAL FINANCIALS
HIGHLIGHTS OF THE P&L ACCOUNT

Particulars FY10 FY11 FY12

Net Revenue 9.31 10.06 14.40
Growth % 8.1% 43.1%
Gross Profit 3.84 4.13 4.77
Margin % 41.3% 41.1% 33.1%
EBITDA 2.43 2.77 3.60
Margin % 26.1% 27.5% 25.0%
EBIT (Operating Profit) 2.02 2.28 2.38
Margin % 21.7% 22.7% 16.5%
Profit Before Tax 1.97 1.85 1.82
Margin % 21.1% 18.4% 12.6%
Profit After Tax 1.33 1.66 1.47
Margin % 14.3% 16.5% 10.2%

COMMENTARY
Revenue EBITDA
Revenue CAGR of PFPL is ~24% over past two years. However, the company managed to cut the drop in
Company achieved an impressive 43.1% revenue EBITDA margin. It only declined by 2.5% from 27.5% in
growth in FY12. Company also added increased list of its FY11 to 25% in FY12, due to lower operating expenses
esteemed clients during the year, leading to reducing
client concentration which is one of the focus areas for PAT
the company. Company net margin has reduced in line with the gross
margin reduction. As the company is currently under
Gross Profit growth mode, depreciation & interest expenses are
The company’s gross profit margin declined from 41.1% relatively higher and as a result a drag on the net
in FY11 to 33.1% primarily due to change in the product margins.
mix.

Sample Document I Not For Circulation Strictly Private & Confidential |page 45
 HISTORICAL FINANCIALS
HIGHLIGHTS OF THE BALANCE SHEET

SUMMARY BALANCE SHEET (LAST 3 YEARS)

Particulars FY10 FY11 FY12
Net worth (Shareholders Funds) 3.25 5.00 9.05
Growth % 54.1% 81.0%
Total Debt (Loan Funds) 8.30 10.09 13.28
Debt to Equity Ratio 2.56 2.02 1.47
Fixed Assets (Net Block) 8.96 9.36 15.73
Growth % 4.4% 68.1%
Net Current Assets 2.88 6.29 5.63

KEY FINANCIAL RATIOS

Particulars FY10 FY11 FY12
Debt to Equity Ratio 2.56 2.02 1.47
Return on Equity 41.0% 33.3% 16.3%
Return on Capital Employed (Pre-Tax) 17.5% 15.1% 10.7%
Current Ratio 2.48 3.32 1.91

COMMENTARY
Share Capital
The company’s nominal share capital increased by
USD135,000 in FY12 due to fund infusion, resulting in
an increase in securities premium & overall net worth.
Also as a result of this, there is a sharp drop in the RoE
% for FY12. The RoE reduced from 33.3% in FY11 to
16.3% in FY12. Also the debt to equity ratio dipped to
1.5x in FY12 from 2.0x in FY11.

Loan Funds
As the company is an expansionary phase, it has levered
its balance sheet to meet part of the planned capex.
Also company has borrowed funds to meet its long
term working capital requirements.

Sample Document I Not For Circulation Strictly Private & Confidential |page 46
 FINANCIAL PROJECTIONS
PROFIT & LOSS TRENDS

REVENUE (USD MILLION)

25.7
23.0
20.2
17.5
15.5

8.0

2.7 3.0
1.7 1.9

FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19

EBITDA (USD MILLION) & EBITDA MARGINS (%)

7.0 27.5% 27.2% 26.7% 30%
26.1% 25.0% 25.7% 23.6%
24.7% 24.9% 24.7%
6.0 5.2 25%
4.7
5.0 4.2 5.7
6.1 20%
4.0
15%
3.0
2.0
10%
2.0
0.5 0.7 0.7
1.0 0.4 5%

0.0 0%
FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19

Sample Document I Not For Circulation Strictly Private & Confidential |page 47
 FINANCIAL PROJECTIONS
PROFIT & LOSS TRENDS

EBIT (USD MILLION) & EBIT MARGINS (%)

6.0 30%
4.9
5.0 23% 4.6 25%
22% 22% 21%
3.8 4.2 20%
18% 19%
4.0 3.4 20%
17% 16% 21%
3.0 15%

2.0 1.5 10%

1.0 0.4 0.4 0.4 0.5 5%

0.0 0%
FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19

PAT (USD MILLION) & PAT MARGINS (%)

4.0 3.6 30%
3.3
3.5 3.0 25%
3.0 2.6
2.2 20%
2.5 17%
14% 15% 15% 15% 14%
2.0 12% 15%
10% 14%
1.5 8% 1.0 10%
1.0
0.2 0.3 0.3 0.2 5%
0.5
0.0 0%
FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19

Sample Document I Not For Circulation Strictly Private & Confidential |page 48
 FINANCIAL PROJECTIONS
B A L A N C E S H E E T & R AT I O S T R E N D S

DEBT TO EQUITY RATIO (x)

2.6

2.0
1.7
1.5
1.1
0.8
0.6
0.4
0.3 0.2

FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19

RETURN ON CAPITAL EMPLOYED POST TAX (ROCE) %

15.8% 15.6% 15.2% 14.5%

13.3%
12.2%
10.6%
8.5%
7.5%
6.4%

FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19

RETURN ON EQUITY (ROE) %

41.0%

33.3%
27.5%
24.0%
21.7%
19.7%
16.2% 16.3% 17.6%
12.7%

FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19

Sample Document I Not For Circulation Strictly Private & Confidential |page 49
 A N N E X U R ES

Sample Document I Not For Circulation Strictly Private & Confidential |page 50
 1: GLOSSARY OF TERMS
LIST OF ACRONYMS USED

ACF Activated Carbon Fabric

PFPL PURE Filters Private Limited
PURE PURE Filters Private Limited
ASTM American Society for Testing and Material
BFE Bacterial Filtration Efficiency
BRICS Brazil, Russia, India, China, South Africa
CAGR Compound Annual Growth Rate
CoEs Centers of Excellence
DOP Dioctyl Phthalate
EDANA Europe based International Association for nonwovens, related industries
EHSS Employee Health & Safety Systems
EN Standards European Standard
EOUs Export Oriented Units
FDA Food and Drug Administration
FDI Foreign Direct Investment
GAC Granular Activated Carbon
GDP Gross Domestic Product
GSM Gram per Square Meter
HVAC systems Heating, Ventilation and Air Conditioning systems
INDA A global association of the nonwoven fabrics industry
ISDS Integrated Skill Development Scheme
IV I-Ventures
JNPT Jawaharlal Nehru Port Trust
KCC Kimberly Clark Corporation
MB Melt-Blown
MD Managing Director
MNC Multi National Companies
NaCl Sodium chloride
NVH Noise, Vibration & Harshness
NWTT Non-woven Technical Textiles
OEM Original Equipment Manufacturer
PBT Polybutylene Terephthalate
PCA Plasticized Cellulose Acetate
PE Polyester
PET Polyethylene Terephthalate
PFE Particle Filtration Efficiency
P&G Proctor &Gamble
PP Polypropylene
PVC Polyvinyl Chloride
R&D Research & Development
RO plants Reverse Osmosis plants
SB Spun-Bond
SEZ Special Economic Zone
SITP Scheme for Integrated Textile Park
SMS Spun-bond, Melt-Blown, Spun-bond
TUFS Technology Upgradation Fund Scheme
UDCT University Department of Chemical Technology

Sample Document I Not For Circulation Strictly Private & Confidential |page 51
 2: HISTORICAL P&L ACCOUNT
D E TA I L E D

USD Million
Particulars FY10 FY11 FY12
Net Revenue [A] 1.72 1.86 2.67
Raw Material & Consumable 0.72 0.77 1.38
Power & Fuel 0.08 0.09 0.07
Other Manufacturing Cost 0.21 0.23 0.33
Total Manufacturing Expenses [B] 1.01 1.10 1.78
Gross Profit [C = A – B] 0.71 0.76 0.88

Personnel Expenses 0.13 0.11 0.12

Administrative Expenses 0.13 0.14 0.10
Total Operating Expenses [D] 0.26 0.25 0.22
EBITDA [E = C – D] 0.45 0.51 0.67

Depreciation [F] 0.08 0.09 0.23

EBIT (Operating Profit) [G = E – f] 0.37 0.42 0.44

Interest Expense 0.10 0.12 0.17

Interest Income 0.09 0.04 0.06
Net Interest Expense [H] 0.01 0.08 0.10
Profit Before Tax [I = G – H] 0.36 0.34 0.34

Income Tax (Current Tax / MAT) [J] 0.12 0.03 0.06

Profit After Tax [K = I – J] 0.25 0.31 0.27

Sample Document I Not For Circulation Strictly Private & Confidential |page 52
 3: HISTORICAL BALANCE SHEET
D E TA I L E D

USD Million
Particulars FY10 FY11 FY12
Share Capital 0.05 0.05 0.19
Reserves & Surplus 0.55 0.87 1.49
Shareholders Funds 0.60 0.93 1.68
Term Loan 0.56 0.49 0.99
Working Capital Loan 0.31 0.47 0.53
Unsecured Loans 0.66 0.91 0.63
Loan Funds 1.54 1.87 2.15
Deferred Tax Liability 0.06 0.11 0.13
Total Liabilities 2.19 2.90 3.96

Fixed Assets: Gross Block 1.74 1.90 3.31

Less: Accumulated Depreciation 0.08 0.16 0.39
Fixed Assets: Net Block 1.66 1.73 2.91

Inventories 0.33 0.37 1.00

Sundry debtors 0.31 0.52 0.70
Cash and bank 0.01 0.52 0.13
Loans and advances 0.11 0.22 0.30
Other Current Assets 0.13 0.04 0.05
Total Current Assets 0.89 1.67 2.19
Sundry Creditors 0.26 0.40 0.71
Other Current liabilities 0.02 0.02 0.05
Current maturities of long term borrowings - - 0.31
Provisions 0.07 0.08 0.08
Total Current Liabilities 0.36 0.50 1.14
Net Current Assets 0.53 1.16 1.04
Total Assets 2.19 2.90 3.96

Sample Document I Not For Circulation Strictly Private & Confidential |page 53
 4: FINANCIAL PROJECTIONS
D E TA I L E D P & L S TAT E M E N T

AIM FILTERTECH PRIVATE LIMITED USD Mn

Financial Year Ended 31 March Historicals
PROFIT & LOSS ACCOUNT Mar-11 A Mar-12 A Mar-13 E Mar-14 E Mar-15 E Mar-16 E Mar-17 E Mar-18 E Mar-19 E

Sales 1.86 2.67 2.99 8.04 15.50 17.53 20.16 22.98 25.73

Net Revenue 1.86 2.67 2.99 8.04 15.50 17.53 20.16 22.98 25.73
Growth 8% 43% 12% 169% 93% 13% 15% 14% 12%

Cost of Sales
Raw Matrial (Incl. wastage) 0.77 1.38 1.56 4.22 8.26 9.33 10.79 12.36 13.93
Increase in Stock - - -
Materials Consumed (A) 0.77 1.38 1.56 4.22 8.26 9.33 10.79 12.36 13.93

Power & Fuel 0.09 0.07 0.09 0.31 0.57 0.65 0.77 0.90 1.03
Labour Cost (Manpower) 0.14 0.25 0.29 0.35 0.42 0.50
Packaging Cost 0.06 0.12 0.14 0.18 0.23 0.28
Other Manufacturing Cost 0.23 0.33 0.38 0.64 1.32 1.58 1.91 2.30 2.70
Total Direct Expenses (B) 0.32 0.40 0.47 1.16 2.26 2.66 3.22 3.85 4.52

Cost of Goods Sold (A+B) 1.10 1.78 2.03 5.38 10.52 11.98 14.00 16.21 18.44

Gross Profit 0.76 0.88 0.96 2.66 4.97 5.54 6.15 6.76 7.29
Margin 41.1% 33.1% 32.3% 33.1% 32.1% 31.6% 30.5% 29.4% 28.3%

Personal Expense 0.12 0.12 0.13 0.36 0.41 0.47 0.54 0.62 0.72
Administrative Expenses 0.14 0.10 0.10 0.30 0.35 0.39 0.42 0.46 0.50

Total Operating Expenses 0.25 0.22 0.23 0.65 0.76 0.86 0.97 1.08 1.21

EBITDA 0.51 0.67 0.74 2.00 4.21 4.68 5.19 5.68 6.08
Margin 27.5% 25.0% 24.7% 24.9% 27.2% 26.7% 25.7% 24.7% 23.6%

Depreciation 0.09 0.23 0.26 0.52 0.84 0.93 1.02 1.11 1.21

EBIT (Operating Profit) 0.42 0.44 0.48 1.48 3.37 3.75 4.17 4.57 4.87
Margin 23% 17% 16% 18% 22% 21% 21% 20% 19%

Interest Expense 0.12 0.17 0.16 0.28 0.59 0.56 0.47 0.39 0.35
Interest Income (0.04) (0.06) -

Profit Before Tax 0.34 0.34 0.32 1.20 2.78 3.20 3.70 4.17 4.52
Margin 18% 13% 11% 15% 18% 18% 18% 18% 18%

Income Tax (Current Tax /MAT) 0.03 0.06 0.08 0.24 0.56 0.64 0.74 0.83 0.90

Profit After Tax 0.31 0.27 0.24 0.96 2.23 2.56 2.96 3.34 3.61
Margin 17% 10.2% 8.2% 11.9% 14.4% 14.6% 14.7% 14.5% 14.0%

Sample Document I Not For Circulation Strictly Private & Confidential |page 54
 4: FINANCIAL PROJECTIONS
D E TA I L E D B A L A N C E S H E E T

AIM FILTERTECH PRIVATE LIMITED USD Mn

Financial Year Ended 31 March Historicals
BALANCE SHEET Mar-11 A Mar-12 A Mar-13 E Mar-14 E Mar-15 E Mar-16 E Mar-17 E Mar-18 E Mar-19 E
SOURCES OF FUNDS

Shareholders' Funds
Share capital 0.05 0.19 0.19 3.19 3.19 3.19 3.19 3.19 3.19
Reserves & surplus 0.87 1.49 1.74 2.69 4.92 7.48 10.44 13.78 17.39

Shareholders Funds 0.93 1.68 1.92 5.88 8.11 10.67 13.63 16.96 20.58

Loan Funds
Term loan 0.49 0.99 1.98 4.08 3.11 2.15 1.20 0.85 0.85
Working capital loan 0.47 0.53 0.56 1.23 2.35 2.66 3.06 3.50 3.92
Unsecured Loans 0.91 0.63 0.49 0.35 0.35 0.35 0.35 0.35 0.35

Loan Funds 1.87 2.15 3.03 5.66 5.81 5.16 4.61 4.70 5.12

Deferred tax liability 0.10 0.13 0.13 0.13 0.13 0.13 0.13 0.13 0.13

TOTAL SOURCES OF FUNDS 2.90 3.96 5.08 11.67 14.05 15.95 18.36 21.79 25.83

APPLICATIONS OF FUNDS

Fixed assets
Gross block 1.90 3.31 4.18 11.53 12.45 13.38 14.30 15.23 16.16
Less: Accumulated depreciation 0.17 0.39 0.65 1.17 2.01 2.94 3.96 5.08 6.29
Net block 1.73 2.91 3.53 10.35 10.44 10.43 10.34 10.15 9.87
Capital WIP - - - - - - -

Investments 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Current assets, loans & advances

Inventories 0.37 1.00 1.10 0.79 1.54 1.75 2.04 2.35 2.66
Sundry debtors 0.52 0.70 0.77 1.32 2.55 2.88 3.31 3.78 4.23
Cash and bank 0.52 0.13 0.45 0.27 1.51 3.01 4.99 7.43 10.82
Loans and advances 0.22 0.30 0.33 0.05 0.06 0.06 0.07 0.08 0.09
Other Current Assets 0.04 0.05 0.06 0.06 0.06 0.06 0.06 0.06 0.06
Sub total 1.67 2.18 2.71 2.49 5.71 7.77 10.47 13.69 17.86

Less: Current liabilities and provisions

Sundry Creditors 0.40 0.71 0.75 0.27 0.53 0.60 0.71 0.82 0.94
Other Current liabilities 0.02 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05
Current maturities of LT borrowings - 0.31 0.28 0.61 0.97 0.96 0.96 0.34 -
Provisions 0.08 0.08 0.08 0.24 0.56 0.64 0.74 0.83 0.90
Sub total 0.50 1.14 1.16 1.17 2.11 2.25 2.46 2.05 1.90

Net current assets 1.17 1.04 1.55 1.32 3.61 5.52 8.02 11.64 15.96

Misc Expenses ( not w.off) 0.00 0.00 0.00 - - - - - -

TOTAL APPLICATIONS OF FUNDS 2.90 3.96 5.08 11.67 14.05 15.95 18.36 21.79 25.83

Sample Document I Not For Circulation Strictly Private & Confidential |page 55
 4: FINANCIAL PROJECTIONS
D E TA I L E D C A S H F L O W S TAT E M E N T

AIM FILTERTECH PRIVATE LIMITED USD Mn

Financial Year Ended 31 March Historicals
CASH FLOW STATEMENT Mar-11 A Mar-12 A Mar-13 E Mar-14 E Mar-15 E Mar-16 E Mar-17 E Mar-18 E Mar-19 E

CASH FLOW FROM OPERATING ACTIVITIES

Net Profit 0.24 0.96 2.23 2.56 2.96 3.34 3.61
Add: Depreciation 0.26 0.52 0.84 0.93 1.02 1.11 1.21
Add: Interest Expense 0.16 0.28 0.59 0.56 0.47 0.39 0.35
Less: Changes in Working Capital
(Increase)/Decrease in Inventory (0.10) 0.31 (0.75) (0.21) (0.29) (0.31) (0.31)
(Increase)/Decrease in Sundry Debtors (0.07) (0.55) (1.23) (0.33) (0.43) (0.46) (0.45)
(Increase)/Decrease in Loans & Advances (0.03) 0.28 (0.01) (0.01) (0.01) (0.01) (0.01)
(Increase)/Decrease in Other Current Assets (0.01) - - - - - -
Increase/(Decrease) in Sundry Creditors 0.04 (0.48) 0.26 0.08 0.11 0.12 0.12
Increase/(Decrease) in Other Current Liabilities 0.00 - - - - - -
Increase/(Decrease) in Provisions 0.01 0.15 0.32 0.08 0.10 0.09 0.07
(0.15) (0.29) (1.42) (0.39) (0.52) (0.57) (0.59)

CASH FROM OPERATING ACTIVITIES 0.51 1.48 2.24 3.66 3.93 4.27 4.59

CASH FLOW FROM INVESTING ACTIVITIES

Capex (0.88) (7.34) (0.93) (0.93) (0.93) (0.93) (0.93)
Investments - - - - - - -

CASH FLOW FROM INVESTING ACTIVITIES (0.88) (7.34) (0.93) (0.93) (0.93) (0.93) (0.93)

CASH FLOW FROM FINANCING ACTIVITIES

Loans Taken / (Repaid) 0.83 2.30 (0.61) (0.97) (0.96) (0.96) (0.34)
Interest Expense (0.16) (0.28) (0.59) (0.56) (0.47) (0.39) (0.35)
Changes in Working Capital Loan 0.02 0.67 1.13 0.31 0.40 0.43 0.43
New Equity Raised - 3.00 - - - - -

CASH FLOW FROM FINANCING ACTIVITIES 0.69 5.69 (0.08) (1.22) (1.02) (0.92) (0.27)

NET CASH GENERATED 0.32 (0.18) 1.23 1.51 1.98 2.43 3.39

OPENING CASH BALANCE 0.13 0.45 0.27 1.51 3.01 4.99 7.43

CLOSING CASH BALANCE 0.45 0.27 1.51 3.01 4.99 7.43 10.82

Sample Document I Not For Circulation Strictly Private & Confidential |page 56
 5: COMPETITIVE LANDSCAPE
NON WOVENS INCLUDING NEEDLE PUNCHED

SUPREME GROUP
• Founded in 1987, it is the largest and most • Their production of Synthetic Floor Covering was~
diversified nonwovens group in India. It operates 520,000 sq. meter in 2010
through group companies, Supreme Non Woven • Client base is mainly dominated by automobile
Industries Private Limited (SNIPL) (Erstwhile Bhilad giants like Maruti Suzuki, Toyota Motors, Tata
Textile Industries Pvt Ltd (BTI)) and Supreme Treaves Motors, Hyundai, General Motors, Mahindra. FY
Private Limited (STPL). The group is promoted by 2010 revenues were estimated to be USD 2.4 mn
Mr. Mohan Kavrie, who is a 1st generation
entrepreneur and a technocrat (B. Tech from IIT,
Mumbai an M.S. from USA) OBEETEE TEXTILES
• STPL is a Joint Venture of Supreme Group (51%) with • Established in 1998, it is focused on Non Woven
Establissement Treves SA, France (49%). It is a Fabrics and Technical Textiles. It has capacity to
leading Automotive Tier-1 supplier of interior trims produce more than 25 million square meters of non
and NVH solutions. STPL is focusing on innovative woven textile products p.a.
uses of reclaimed and recycled materials to develop
• It manufactures floor coverings, automotive felts,
eco-friendly and cost-effective components.
industrial filters and geo textiles.
• It provides offers products (including carpets,
insulation (noise & heat), door linings for automobile USD Mn Mar ’10 Mar ‘11 Mar ‘12
and industrial filters, garment interlining, geo- Sales 10.50 13.39 N/A
textiles. The Group’s revenues for FY 2010 were EBITDA 2.72 3.28 N/A
estimated to be USD 40 mn EBIT 1.76 2.17 N/A
EBIT Margin 16.80% 16.20% N/A
BAJAJ NON WOVENS Net Profit/(Loss) 0.33 0.54 N/A
Net Margin 3.20% 4.00% N/A
• Bajaj Carpet Industries Ltd a closely held public
limited company formed in the year 1985. It
manufactures various carpets including nonwoven,
UNIPRODUCTS INDIA LTD (UNITEX)
machine tufted, machine tufted graphic loop pile,
printing loop pile, printed cut pile, wall to wall, etc. • Is a leader in the Indian carpets market and is a
favored supplier of most domestic carpet retailers.
• In 1994, it installed a Tufting unit which was only 2nd
Tufting unit in India to cater to the growing demand • Mr. Ashwan Kapoor (MD), started the production of
from corporates, hotels and multinational crowded carpets in 1986 and later forayed into
companies. The company is located close to the chemical connection coverings. Innovation and
northern automobile manufacturing hub. technological advancements in the manufacturing
techniques have given it a leadership position. Its
• Its major OEM customers include Maruti Suzuki,
products includes carpet tiles, cut pile carpets,
Tata Motors, Hindustan Motors, Hyundai Motors
modular carpets, loop pile carpets, molded carpets
and trimmings, automotive carpets.
HITKARI HITECH FIBRES LTD • Revenues in FY 2009 estimated to be USD 22 mn
• Founded in the year 1985. Their products include • Apart from carpet dealers, client in automotive
Leading manufacturer and supplier of automotive industry include Maruti Suzuki, Honda, Fiat,
carpets, insulation felts to major automobile Renault, Nissan, Tata Motors, Mahindra, Ford,
manufacturers as well as nonwoven fabrics such as Toyota, Ashok Leyland.
blankets, carpets, upholstery, floor coverings, etc.

Sample Document I Not For Circulation Strictly Private & Confidential |page 57
 5: COMPETITIVE LANDSCAPE
A R T I F I C I A L L E AT H E R ( B A S F S T E R O N ® L I N E )

MAYUR UNIQUOTERS
• It is a listed company, incorporated in 1994, • In the FY 2012, its synthetic leather segment
manufactures artificial leather (PVC Vinyl). It has a revenue was USD 11.6 mn as compared to USD 12.1
market cap of USD 84 mn. Its products are mainly mn in the previous year. The segment EBIT was USD
used in automotive, footwear’s, garments, luggage, 0.6 mn in FY 2012 vs. USD 0.7 mn in FY 2011.
sports goods, upholstery.
• The company possesses fully equipped physical,
FENOPLAST LTD
chemical and product development laboratories
capable of testing nearly all the properties of • It is a public listed company (Market Cap USD 2.4
artificial leather for different segments and mn) incorporated in 1975 and is mainly engaged in
applications. The company’s existing capacity is 1.90 the manufacturing of PVC leather cloth and PVC
million linear meters p.m. It plans a capex of ~USD 9 Films. It has 2 transfer coating lines from Stork
mn, to increase its capacity to 2.50 million linear (Holland) and RCM (Italy), for manufacturing coated
meters p.m. by FY 2014. PVC leather. It also has a calendar line imported
from Batten field Extrusiontechnik (Germany), for
• Mr. Suresh Kumar Poddar, Managing Director, is
manufacturing PVC Films. Nearly 30 % of its volumes
widely recognized for his pioneering triumph in the
produced are exported to ~28 countries.
synthetic leather industry India.
• It is an approved supplier for automobile majors like
• Mayur’s clients include names like Ford, Chrysler,
Suzuki India, Hyundai Motors, Mahindra &
Suzuki India, Honda Motorcycles & Scooters, Bata,
Mahindra, Daimler Benz, Toyota Motors and also
Liberty, Paragon etc. It is also on verge of adding
other clients like Bata, Titan Industries, Pfizer, Merck
global auto majors like BMW & Mercedes and
General Motors • Historical Financials:
• Historical Financials: USD Mn Mar ’10 Mar ‘11 Mar ‘12
USD Mn Mar ‘10 Mar ‘11 Mar ’12 Sales 26.69 32.65 36.35
Sales 30.59 46.19 59.11 Operating Profit 2.70 2.67 3.28
Operating profit 4.94 7.43 9.87 Operating Margin 10.10% 10.00% 12.30%
Operating Margin 16.20% 16.10% 16.70% EBIT 2.50 2.57 2.94
EBIT 4.65 7.11 9.48 Net Profit / (Loss) 0.41 0.46 0.50
Net Profit / (Loss) 2.72 4.46 6.19 Net Margin 1.50% 1.70% 1.90%
Net Margin 8.90% 9.70% 10.50%

JASCH INDUSTRIES
• It is a listed company, incorporated in 1985, and has
division that manufactures PU/PVC coated fabric /
synthetic leather products (Market cap USD 2.6 mn).
• Almost 75% of its products are used mostly by the
footwear industry. Their client list includes names
like Bata, Liberty, Reebok, Lakhani and Nike. The
company is also making effort to increase its product
usage in industries such as automobiles and general
purpose upholstery, sports goods and garments.
Note: Market Cap based on trading data as on February 25, 2013

Sample Document I Not For Circulation Strictly Private & Confidential |page 58
 5: COMPETITIVE LANDSCAPE
A R T I F I C I A L L E AT H E R ( B A S F S T E R O N ® L I N E )

RISHABH VELVELEEN MANISH VINYL

• The company, established in 1988, is one of the • The company manufactures PVC leather cloth in a
biggest producers of PU Leather, PVC Leather, Wet wide variety and for different uses like upholstery
PU Leather, Dry Leather, Flocked Velvets, Suede (automotive and furniture), footwear (shoes,
Velvets, Woven Velvets & Knitted Velvets. It uses sandals, linings), belts, luggage, accessories with a
German technology and has a manufacturing manufacturing capacity of over 900,000 meter p.m.
capacity to produce 1 million meter p.m.
• Their clientele includes names like Action Group of
• Its products are exported to Indian Subcontinent, Industries, Liberty, Lakhani, Escorts Group. The
North America, North Africa, East & North Europe, company is also a registered supplier to State
East Asia, Middle East. Transports (ASRTU), Railways & Defense supplies.
• Rishabh Jain (MD), has studied Textile Engineer from • Its annual revenue is ~USD 17 mn and it exports 80%
Bolton University, England and MBA (Fin) from of its production to US, UK, Europe and Africa
Kogod School of Business, Washington DC. U. C. Jain, (Source: Economic Times, India)
Chairman, is first generation entrepreneur with over
35 years experience of. He is also is the member,
executive committee of the American and European POLYNOVA INDUSTRIES
Flock Association, Associate Chamber of Commerce
and Industry. • It started operations in 1988 and is part of Lupin
Group. It manufacturers of PU/PVC coated fabrics &
• Revenues is estimated to be between USD 9 to 13 synthetic rubber coated products. It supplies its
mn. products to automotive, tarpaulin and footwear
industry. It has an installed capacity to manufacture
coated fabrics of 1 million meter per month.
VASANTI TEXTILES
• Exports about 60% of its production to UK, France,
• Established in 1960, manufacturing and trading of Germany and USA. Annual Sales are estimated to be
knitted fabrics, artificial leather cloth, laminated around USD 1.8 mn
fabrics. Mainly domestic business with exports
forming<10% of overall revenue.
• Revenues are estimated to be approximately USD
2.2 mn.

Note: Market Cap based on trading data as on February 25, 2013

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 5: COMPETITIVE LANDSCAPE
S M S H Y G I E N E , M E LT B L O W N & S P U N B O N D

ALPHA FOAM INDIA papers are used in a many day-to-day products, such
as filters, wipes, flooring, labels, and tapes. Based
• It was incorporated in 1991 and manufactures non- upon its unique fiber expertise and innovative
wovens, spun-bond, spun-lace and SMS products. It approach, the company has a strong market position
is involved in plastic products ranging from PU, in several business areas in which it operates. Main
automobile sheets, plastic sheets, vacuum form geographic markets in terms of net sales are Europe
parts, PE foam and its products. It has developed a (62%), North America (23%), Asia Pacific (7%), South
unique, first-of-its-kind process to make PE foam by America (6%) and the rest of the world (2%).
using carbon dioxide instead of LPG as the blowing
agent. The foam made by this process is of a • Its products find applications in industries such as
superior quality compared to other Indian products. Building & Utilities, Food & Retail, Household &
Consumer, Medical & Healthcare, etc.
• The company is led by Mr. Rajiv Rankav (MD), who
has vast experience of 20 years and has held very
senior positions in the leading Automobile and
FIBERWEB INDIA
Chemical industries.
• Established in 1985, as PVD Plast Mould Industries
Ltd. Its manufacturing activities include mono layer
KT INTERNATIONAL and multiplayer films, garbage bags, carrier bags.
• Established in 1995, it manufactures products like The Company has also established its flagship unit
tarpaulins and has diversified into PP/PE spun bond for Spun Bond Nonwoven Fabrics, being the first of
nonwoven, PP woven sacks / sheets, woven PP its kind in India. It has three manufacturing units
fabric, burlaps, FIBC, PE extruded nets, etc. They including two 100% EOUs.
have introduced PP needle punched geotextiles • Products include
made on state-of-the-art FEHRER Line from
Germany with 6 meters width. Also recently the • Hygiene usage: Cover stock for baby diapers,
company has introduced a new line for making PET sanitary products
Spun-bond Continuous Filament Needle-punch • Agriculture: crop covers, ground covers
Nonwoven on the latest ORV Line from Italy having a
maximum width of 5.6 meters. • Medical: Made-ups, bed linen

• Its current capacity is ~14,000 tons of Fibers and • Others: Filtration media, industrial work clothing,
~6,000 tons geotextiles p.a. head covers, disposable table wipes and mats

• Its products include geotextiles, ground covers, • It has been pioneer of spun bond non-woven fabric
nonwovens, crop protection fabric, weed control production in India. Market Cap is USD 1.67 mn.
fabric, micropure products and adult diapers. They
sell geotextiles in USA, UK, Europe and India. USD Mn Mar ‘10 Mar ‘11 Mar ‘12
Sales 5.59 8.33 8.15
Operating Profit 0.44 0.52 0.54
AHLSTROM FIBERCOMPOSITES INDIA PVT LTD Operating Margin 8.00% 6.30% 6.70%
• Finland based Ahlstrom is one of the world´s leading EBIT 0.11 0.22 0.46
producers of nonwovens. In India, it has its Net Profit/(Loss) 0.07 0.24 0.46
manufacturing facility in Mundra, Kutch (Gujarat) Net Margin 1.40% 2.90% 5.60%
and sales office in Delhi. Its nonwovens and specialty

Note: Market Cap based on trading data as on February 25, 2013

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 6 : P R O D U C T I O N C A PA C I T Y C H A R T

EXISTING MACHINES
Production Capacity
Sr. No. Asset No. of M/C
Per Hour Per Month Unit of Material
1 Melt-blown Line 1 150 90,000 Kg
2 Needle-punching Line 1 50 30,000 Kg
3 Chemical Bonding Line 1 50 30,000 Kg
4 Water filter Line 1 10 6,000 Kg
5 Welded Roll Line 1 25 15,000 Kg
6 Pleating + Lamination 2 40 24,000 Kg
7 Scatter Coating Line 1 50 30,000 Kg
8 Exact Machine 1 17 10,200 Kg
9 Aglo Machine 1 17 10,200 Kg
10 Shredder Machine 1 17 10,200 Kg

NEW MACHINES
Production Capacity
Sr. No. Asset No. of M/C
Per Hour Per Month Unit of Material
1 PU Coating For Textiles 1 120 72,000 SQM
2 Spun-Bond Line 1 500 300,000 KGS
3 Staple Fiber Insertion Line 1 120 72,000 KGS
4 Needle Punch Line 1 250 150,000 KGS
5 Ultra Sonic Embossing 1 60 36,000 KGS
Non Woven Cutting Punching Machine For
6 1 10 6,000 KGS
Car Parts
7 Mini Pleating And Testing Machine 1 20 12,000 KGS

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 7: THE SPUNBOND OPTION
THE SPUNBOND PROCESS

Overview Web Characteristics & Properties

Spun-bond fabrics are produced by depositing 1. Random fibrous structure
extruded, spun filaments onto a collecting belt in a 2. Web is white with high opacity per unit area
uniform random manner followed by bonding the
fibers. The fibers are separated during the web laying 3. Most spunbond webs are layered or shingled
process by air jets or electrostatic charges. The structure, the number of layers increases with
collecting surface is usually perforated to prevent the increasing basis weight
air stream from deflecting and carrying the fibers in an 4. High strength-to-weight ratios compared to other
uncontrolled manner. Bonding imparts strength and nonwoven, woven, and knitted structures
integrity to the web by applying heated rolls or hot 5. High tear strength (for area bonded webs only)
needles to partially melt the polymer and fuse the
fibers together. Since molecular orientation increases 6. Planar isotropic properties due to random lay-
the melting point, fibers that are not highly drawn can down of the fibers
be used as thermal binding fibers. Polyethylene or 7. Good fray and crease resistance
random ethylene-propylene copolymers are used as 8. High liquid retention capacity due to high void
low melting bonding sites. Spun-bond products are content
employed in carpet backing, geotextiles, and disposable
medical/hygiene products. Since the fabric production 9. High in-plane shear resistance, and low
is combined with fiber production, the process is drapeability.
generally more economical than when using staple fiber
to make nonwoven fabrics Applications
i) Automotive: As a backing for tufted automobile floor
Spun-bonding Process: carpets, for trim parts, trunkliners, interior door panel,
and seat covers.
ii) Civil Engineering: The largest single market spunbond
webs, constituting over 25% of the total. Used for
erosion control, revestment protection, railroad beds
stabilization, canal and reservoir lining protection,
highway and airfield black top cracking prevention,
roofing, etc.
iii) Sanitary and medical: As a coverstock for diapers and
incontinence devices. Medical applications include:
disposable operating room gowns, shoe covers and
sterilizable packaging.
iv) Packaging: Examples include: metal-core wrap,
medical sterile packaging, floppy disk liners, high
performance envelopes and stationery products.

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 7: THE SPUNBOND OPTION
P U R E ’ S S T R AT E G Y F O R S P U N B O N D

Domestic Market for Spunbond Revenue Visibility

Aim proposes to set up new line from Hills Inc. or PURE currently has a 1,500 tons order visibility for
similar other marquee company to support a new hygiene fabrics from Kimberly Clark Corp (KCC). To
Spunbond line, subject to agreement on this strategy utilize the capacity on the packaging side, PURE plans
with strategic investors. to focus on the rice packaging market for the base
demand for such products, where PURE’s key target
In India, the primary demand for such lines comes from
will be to supply good quality and consistent products.
hygiene products as well as packaging applications,
The line’s better quality and consistent throughput will
which may be a mono component. PURE needs to have
provide the product with the initial advantage.
Bi-component capabilities to start developing markets
for Spunbonds. PURE will then add substrates, backing and polyesters
as alternatives. A flexible line with good capabilities is
PURE’s Strategy
what PURE is targeting.
Accordingly, PURE initially plans to set up a line that can
The final decision whether to set up the Spunbond line
do SMS for Hygiene products and then gradually move
in the next year (FY 2014) will be taken subject to
towards specialty Spunbond. It will set up a 3,500 ton
further research and after a consensus with the
line with advanced capabilities of a Bi-component
strategic partners.
specialty. This will be a 1.6 meter of 3.2 meter SMS line
with an initial capex of ~USD 4 mn.

KEY CLIENT RELATIONSHIP - KIMBERLY-CLARK WORLDWIDE INC. (KCC)

About Kimberly-Clark
Headquartered in Dallas (Texas) with ~58,000 employees
worldwide, KCC is a global leader in personal care &
hygiene products. With brands like Kleenex, Scott,
POTENTIAL BUSINESS ANALYSIS (RS. CRORE)
Huggies, Pull-Ups, Kotex, Poise and Depend, KCC holds
Other Potential Clients
the No. 1 or 2 brand share in over 80 countries.

Business with PURE 800

PURE is discussions with Kimberly-Clark (KCC) to supply

Spun-Bond products for the hygiene segment. PURE is 60
contemplating investment in the Spun-bond Lines for Potential Market
supply to KCC. 19
PURE expects initial business of ~Rs. 19 crore from KCC Potential Annual Order
with a initial minimum order quantity of 1,500 tons p.a.
PURE targets a potential annual order of Rs. 60 crore. Initial Minimum Annual
Order

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 7: THE SPUN-BOND OPTION
F I N A N C I A L I M PA C T

The absolute profitability is higher in case of running • Average estimated EBITDA margins are 0.3% lower
the business with Spunbond line. However, there is a than 25.5% under the without Spunbond option
slight drop in margins in the Spunbond option,
• Average estimated PAT margins are 0.5% lower than
14% under the without Spunbond option
PROJECTED REVENUES (USD mn)

With Spun-bond
35.8
32.0
28.1 Without Spun-bond
24.4
18.7
25.7
23.0
8.0 20.2
15.5 17.5

8.0
FY 14 FY 15 FY 16 FY 17 FY 18 FY 19

EBITDA (USD mn)

8.5
7.9
7.3
6.6

4.6
5.7 6.1
5.2
2.0 4.7
4.2

2.0

FY 14 FY 15 FY 16 FY 17 FY 18 FY 19

PAT (USD mn)

5.0
4.6
4.0
3.4

2.3 3.6
3.3
3.0
1.0 2.6
2.2

1.0
FY 14 FY 15 FY 16 FY 17 FY 18 FY 19

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 7: THE SPUN-BOND OPTION
F I N A N C I A L I M PA C T

While the Spunbond option has slightly higher leverage, The Return on Capital Employed (RoCE) and Return on
the impact is minimal in the long run. Equity (RoE) improve by around 2% in case of including
the Spunbond option

DEBT TO EQUITY RATIO (x)

1.2
1.1
With Spun-bond
0.8
1.1 Without Spun-bond
0.5
0.8
0.4
0.3
0.6
0.4
0.3 0.2
FY 14 FY 15 FY 16 FY 17 FY 18 FY 19

RETURN ON CAPITAL EMPLOYED POST TAX (ROCE) %

17.5% 17.0% 16.2%
15.8% 14.8%

15.6% 15.2%
13.8% 14.5%
13.3%

8.5%

FY 14 FY 15 FY 16 FY 17 FY 18 FY 19

RETURN ON EQUITY (ROE) %

28.2% 29.5%
25.7%
22.7%
27.5% 19.9%
24.0%
21.7%
19.7%
16.3% 17.6%

FY 14 FY 15 FY 16 FY 17 FY 18 FY 19

Sample Document I Not For Circulation Strictly Private & Confidential |page 65
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