Pioneer Embroideries Limited

PIONEER EMBROIDERIES LTD - CMP: 63.70 (BSE: 514300, NSE: PIONEEREMB)

Pioneer Embroideries Ltd (“PEL”), incorporated in 1991, was promoted by Mr. Raj Kumar Sekhani, and is today an established name in the Embroidery, Laces and the Yarn business. The company is headquartered in Mumbai and has manufacturing and processing facilities across the country.

BUSINESS & REVENUE (%) MIX
• Dope Dyed Polyester Yarn (78%) –
The company manufactures a wide range of Yarn, like fully drawn yarn, single twisted, doubled yarns, multiplied yarns and air texturized yarn, from deniers as fine as 30 to as coarse as 600. The Yarn marketed under the brand name of SILKOLITE is suitable for many applications such as Carpets, Bath Mats, Upholstery fabrics, Curtains, Furnishings, Embroidery, Narrow Fabrics, Knitting, Labels etc.

• Embroidery & Lace (22%) –
The company manufactures a range of embroidery products and Laces. Pioneer maintains its premium position by leveraging its strength in product development, superior quality control and the company’s brand “HAKOBA”, which is a synonym to Embroidery.

CONSOLIDATED FINANCIALS
• Total Income – INR 3,036 Mn
• EBITDA – INR 368 Mn
• PAT – INR 110 Mn

DEBT RESOLUTION - Between 2013 and 2015, the Company opted for debt resolution with lenders individually. The Company has already paid off all FCCBs, domestic lenders, ICDs and corporate loans.
• Debt resolution was primarily funded through operational and non-operational cash flows and strict cost controls
• The company’s debt now stands reduced from Rs 3220 mn in FY09 to Rs 750 mn in FY16

FUTURE STRATEGY
• Moving towards direct retail supply with value added products
• Strengthen the presence into E-commerce
• Entry in to direct apparel exports of niche products