RUPANSE24 May 2022

Rupa & Company Limited has informed the Exchange about Investor Presentation

Rupa & Company Limited

-E ‘ 5 i RUPA & COMPANY LIMITED _— f Date: 23 May, 2022 National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5‘ Floor, Phiroze Jeejeebhoy Towers, Plot No. C/1, G Block Dalal Street Bandra Kurla Complex, Bandra (E) Mumbai - 400 001 Mumbai - 400 051 Ref: NSE Symbol- RUPA / BSE Scrip Code- 533552 Ref: Disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015- Investors Presentation Dear Sir/ Madam, We are forwarding herewith Investors Presentation on the financial performance of the Company for the quarter and year ended March 31, 2022. Kindly take the same on record. Thanking you. Yours faithfully, For Rupa & Company Limited wae C~AaA~W ak Ase eo Manish Agarwal Encl: As above Metro Tower,1, Ho Chi Minh Sarani, Kolkata 700 071,INDIA Phone: +91 33 4057 3100, Fax: +91 33 2288 1362 Email: connect@rupa.co.in, www.rupa.co.in An ISO 9001:2008 Certified Company CIN No.: L17299WB1985PLC038517 Safe Harbor

This presentation has been prepared by and is the sole responsibility of Rupa & Company Limited (the “Company”). By accessing this presentation, you are agreeing to be

bound by the trailing restrictions.

This presentation does not constitute or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer or recommendation to purchase or

subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or

commitment thereof. In particular, this presentation is not intended to be a prospectus or offer document under the applicable laws of any jurisdiction, including India. No

representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or

opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. There is no obligation to update, modify or

amend this communication or to otherwise notify the recipient if the information, opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes

inaccurate.

Certain statements contained in this presentation that are not statements of historical fact constitute “forward-looking statements.” You can generally identify forward-looking

statements by terminology such as “aim”, “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “objective”, “goal”, “plan”, “potential”, “project”, “pursue”,

“shall”, “should”, “will”, “would”, or other words or phrases of similar import. These forward-looking statements involve known and unknown risks, uncertainties, assumptions

and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements

expressed or implied by such forward-looking statements or other projections. Important factors that could cause actual results, performance or achievements to differ

materially include, among others: (a) our ability to successfully implement our strategy, (b) our growth and expansion plans, (c) changes in regulatory norms applicable to the

Company, (d) technological changes, (e) investment income, (f) cash flow projections, and (g) other risks.

This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. The

Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes.

Our Group Chairman Honoured with Padma Shri Award

Group

Our industrialist Chairman, Mr. Prahlad Rai Agarwala being bestowed the prestigious PADMA SHRI award by the Honourable India, President Shri Ram Nath Kovind on 21st March, 2022 at Rashtrapati Bhavan, New Delhi.

The award recognizes Mr. Agarwala’s accomplishments as a visionary corporate leader, his philanthropy and his immense contribution to trade, industry and society. He is the driving force behind the Rupa Group and has led the Group with a great deal of success and aplomb for over five decades. He has also played a critical role in the growth of the Indian Hosiery Industry.

Table of contents

Company Overview

Q4 & FY22 Result Highlights

Business Model

Growth Initiatives

ESG & CSR Initiatives

Historical Financials

Company Overview

#1 undisputed knitwear indian brand

7,00,000+ Finished goods pieces per day

1,50,000+

Retail Outlets

7,000+ SKUs

1,500+ Dealers

100+ Registration of trademark’s both Nationally & Internationally

18 Sub Brands

Long legacy of delivering excellence

1968

RUPA brand incorporated

1985

1995 - 1996

1997-2000

2003-2008

Rupa & Co. Pvt. Ltd. Established

Took over business of Binod Hosiery

Entered casual wear and thermal wear products

Acquired the brand “Euro”

IPO and listing on Calcutta Stock Exchange and Jaipur Stock Exchange

Started export of products

Set up Dyeing unit at Domjur, West Bengal

2009-2012

2013-2015

2016-2018

2021-2022

Listing of shares at NSE and BSE

Launch of brand, Macrowoman W Series, Torrido Thermal Wear

Launched premium brand Macroman MSeries

Awarded by • •

Limca book of Records Brand excellence in innerwear award by The Economic Times –the “Best Corporate Brand”

Acquired : exclusive license from “FCUK” & Fruit of the Loom Inc

Awarded the “Promising Brands- 2018” by The Economic Times

Achieved highest ever Revenue & PAT since inception

Eminent Board of Directors

Mr. Prahlad Rai Agarwala, Chairman

Mr. Ghanshyam Prasad Agarwala, Vice Chairman

Mr. Kunj Bihari Agarwal, Managing Director

• 50+ years of experience in the textile

• 47+ years of experience in the textile

industry

• Provides strategic direction to the Company and is the driving force behind the establishment and growth of the Company

• Rich

experience

leadership, strategic guidance, risk foresight and operations of the Company

• 45+ years of experience in the textile industry, specialization in marketing and distribution

• Guides

the company in strategic

development

• Actively

engaged

various

• Actively

engaged

various

philanthropic activities

Eminent Board of Directors

Mr. Ramesh Agarwal, Whole-time Director & CFO

Mr. Mukesh Agarwal, Whole-time Director

• More than 30 years of experience in the

• 30+ years of experience in the

textile industry

• Plays a key role in the production planning & distribution of products and completely manages processing house

• Plays a key role in the setting up of systems and process for distribution & production planning

• Brand Director of

Jon, Thermocot,

• Brand Director of Frontline

Torrido and Femmora

Mr. Vikash Agarwal, Whole-time Director

• Graduated from St. Xavier’s College, Kolkata and University of California, USA

• Brand Director of premium brands, ‘Macroman M-Series’ & ‘Macrowoman W-Series’ ‘Softline’ & ‘Footline’.

• Former President of Indian Chamber of Commerce, also associated with Young President Organisation (YPO), acting as the Calcutta a Board Member of Chapter

Eminent Board of Directors

Mr. Dipak Kumar Banerjee, Independent Director

Mr. Vinod Kumar Kothari, Independent Director

Mr. Ashok Bhandari, Independent Director

• Chartered Accountant with

years+ experience

• Started his career with LIC in 1970 joined and thereafter, HUL. In 1992, he became the Commercial Director of Unilever Plantations Group

in 1975,

•

Joined the company as a Board member in 2013

• Vinod

Kothari

internationally is recognized as an author, trainer and financial consultant finance, subjects, derivatives, securitisation, accounting for instruments, structured finance, banking regulations

specialized housing

credit financial

on viz.,

• Engaged in practice of corporate laws for over 30 years through his firm Vinod Kothari and Company is

• Chief Financial Officer and President at Shree Cements Limited for over 25 years

• 40+ years of experience as a key executive negotiating with banks, governments, and JV technology & equipment suppliers

partners,

Eminent Board of Directors

Mr. Sushil Patwari, Independent Director

Mr. Dharam Chand Jain, Independent Director

Mrs. Alka Devi Bangur, Independent Director

Mr. Sunil Chandiramani, Independent Director

• 40+ years of experience in the field of cotton yarn and knitted fabric industry

• Member

Executive Committee of the Federation of Indian Export Organizations.

the

•

Joined the company as a Board member in 2003

• 45+ years of experience in the field of textile and knitted fabric industry

• Chairman of K.D. Sarees Emporium Private the company as a Board member in 2003

Limited.

Joined

• 16+ years of experience

• Managing

Director

Peria

Karmalai Tea & Produce Co. Ltd.

• She is the member of FICCI Ladies Organization (FLO) (Ladies wing of FICCI). She is also the committee member of Bharat chamber of Commerce

• 25 years of experience with Ernst & Young LLP, responsible for leading Largest Advisory Practice and Global Innovation Strategy

• On the Board of several Listed and PE funded organisations: Sapphire Foods, Ganesh Grains, Poonawalla Fincorp, Jammu & Kashmir Bank and MORE Retail Limited

Experienced Management Team

Mr. Niraj Kabra, Executive Director

Mr. Rajnish Agarwal, President

• A commerce graduate from Calcutta University

• New generation industrialist, Master’s in Business Administration in Marketing from

• More than 20 years of rich expertise in the field of Operations and general

administration. He has been serving on the Board of the Company since 2018

University of Cardiff, U.K.

• Brand Director of brands, ‘Bumchums’ & ‘Euro’. He also looks after the branding related

activities in Rupa

Mr. Dinesh Kumar Lodha, Chief Executive Officer

Mr. Siddhant Agarwal, Vice President

• Extensive experience in business leadership – built businesses, scaled-up growth stage businesses, managed complex organizations as the CEO, worked in global matrix organizations with multiple stakeholders

• Member of ICAI and ICSI, he is possessing Black Belt (quality certification) in Lean Six Sigma, GE USA. Graduated from GE Crotonville, USA in Executive & Strategic Leadership (GE MDC) and from ISB Hyderabad in course on Marketing Strategies in Competitive Environment

• New generation young and dynamic industrialist completed M.Sc. from University of Warwick,

U.K.

•

Joined in the year 2016 and was instrumental in bringing two international brands, i.e. French Connection U.K. (‘FCUK’) and Fruit of the Loom (‘FOTL’)

Looks after the business of these two international brands in India along with Modern Trade

Mr. B. K. Singh, General Manager – Dyeing

Mr. Pronob Mukerji, General Manager – Marketing, Media

Mr. J. Rajendra Kumar Singh, General Manager – Production

Mr. Randhir Singh Jolly, General Manager – Modern Trade

• More than 35 years of expertise

• More than 17 years of

in the field of Dyeing and production operations

• Previously worked with Suryawansi Dyeing Mills

experience in Marketing & Media

• 20 years experience in

production and operation in textile

• 20 years of experience in the field of textile, Apparels & Innerwear

• Previously worked with Page

Industries

• Ex-VP/Head Operation –

Manufacturing, Gokaldas Images

• Previously worked with

Bombay Dyeing and Raymond's

Brand to recon with

Step 01

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Step 03

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Most Promising Brand 2018 The Economic Times

Indywood Excellence Award 2017 Govt. of Telangana

Best Corporate Brand 2016 The Economic Times

Step 07

Achievement o Add Text Here o Add Text Here

Indian Power Brand 2011-12

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The Worlds Greatest Brand 2015 Asia “Macroman M-Series”

Worldwide achievers(Zee) Business Leadership Awards 2013

First Indian innerwear manufacturer as licensee of SUPIMA

Q4 & FY22 Result Highlights

Strong Q4 & FY22 Performance*

Q4 FY22

FY22

Revenue

Highest ever quarterly revenue

Revenue

Highest ever full year revenue

Rs. 455 crores

Rs. 1,474 crores

EBITDA

Rs. 74 crores

Margin 16.3%

Rs. 269 crores

Margin 18.2%

PAT

Rs. 49 crores

Margin 10.8%

Rs. 192 crores

Margin 13.0%

* On Consolidated Basis

Robust Balance Sheet as on March-22

28.4%

Return on Capital Employed (RoCE)

23.8%

Return on Equity (RoE)

186 days

Working Capital Days

Rs. 231 crores Net Debt

0.26x

Net Debt to Equity

* On Consolidated Basis

Growth in revenues and profitability

Revenue from Operations

EBITDA & EBITDA Margin

PAT & PAT Margin

20.0%

16.3%

19.6%

18.2%

14.5%

10.8%

13.4%

13.0%

12.3%

1474

1313

4.4%

257

269

9.5%

192

175

+0.3%

454

455

-18.1%

-25.2%

Q4FY21

Q4FY22

FY21

FY22

Q4FY21

Q4FY22

FY21

FY22

Q4FY21

Q4FY22

FY21

FY22

(Rs. in Cr)

* c o n s o l i d a t e d f i n a n c i a l s

FY 22 : Sales mix

Region-wise Revenue split

Gender-wise Revenue split

8% 2%

17%

42%

28%

East

North East

North

West & Central

South

Overseas

12%

84%

Men

Women

Kids

Particulars (Rs. Crs.)

Total Revenue

Total Raw Material

Subcontracting Expenses

Gross Profit

Gross Profit Margin (%)

Employee Expenses

Other Expenses

EBITDA

EBITDA Margin (%)

Other Income

Depreciation

EBIT

Finance Cost

Profit before Tax

Tax

Profit After Tax

PAT Margin (%)

EPS (Rs)

Consolidated Profit & Loss

Q4 FY22

Q4 FY21

455.5

208.0

90.8

156.6

34.4%

21.6

60.8

74.2

16.3%

3.6

3.4

74.4

6.2

68.2

18.9

49.3

10.8%

6.2

454.0

214.0

77.7

162.3

35.7%

17.8

53.9

90.6

20.0%

3.2

2.7

91.1

2.8

88.3

22.4

65.9

14.5%

7.3

Y-o-Y

0.3%

-3.5%

-18.1%

-18.3%

-22.7%

-25.2%

FY22

1,474.1

FY21

1,312.7

632.7

327.4

514.0

34.9%

68.1

177.4

268.5

18.2%

10.8

13.9

265.4

18.7

246.7

54.9

191.8

13.0%

24.1

611.4

241.9

459.4

35.0%

52.7

149.3

257.3

19.6%

7.3

13.8

250.8

13.4

237.4

62.1

175.3

13.4%

22.0

Y-o-Y

12.3%

11.9%

4.4%

5.8%

3.9%

9.5%

Consolidated Balance Sheet

ASSETS (Rs. Crs.)

Non ‐ Current Assets

Property, plant and equipment

Right of Use Assets

Capital work‐in‐progress

Intangible Assets

Intangible Assets under development

Financial Assets

(i) Investments

(ii) Other Financial Assets

Deferred Tax Assets

Non ‐ Current Tax Assets

Other Non‐Current Assets

Total Non ‐ Current Assets

Current Assets

Inventories

Financial Assets

(i) Trade receivables

(ii) Cash and cash equivalents

(iii) Bank balances other than (ii) above

(iv) Loans

(v) Other Financial Assets

Other Current Assets

Total Current Assets

Total Assets

Mar-22

Mar-21

188.7

16.3

26.1

5.0

0.6

0.002

4.1

0.0

10.2

7.4

258.4

583.0

547.3

4.3

119.4

2.0

60.7

1,318.8

1,577.1

168.9

18.1

19.4

6.0

0.0

0.002

2.7

11.6

10.3

8.5

245.5

390.6

364.4

3.2

115.2

2.0

2.9

42.7

921.0

1,166.4

Borrowings

EQUITY & LIABILITIES(Rs. Crs.) Equity Equity Share Capital Other Equity Total Equity Liabilities Non ‐ Current Liabilities Financial Liabilities (i) (ii) Lease Liabilities Provisions Deferred Tax Liabilities, (net) Other Non Current Liabilities Total Non ‐ Current Liabilities Current Liabilities Financial Liabilities (i) Borrowings (ii) Lease Liabilities (iii) Trade Payables

(a) total outstanding dues of micro enterprises and small enterprises

9.3

(b) total outstanding dues of creditors other than micro enterprises and small enterprises (iv) Other Financial Liabilities Provisions Current Tax Liabilities (net) Other Current Liabilities Total Current Liabilities Total Equity and Liabilities

210.6

71.8 2.9 10.3 6.8 652.1 1,577.1

Mar-22

Mar-21

8.0 873.8 881.8

15.9 13.5 0.6 11.7 1.5 43.2

339.0 1.3

8.0 721.6 729.5

13.5 14.7 0.4 10.5 1.7 40.9

131.9 1.3

11.6

151.0

71.5 3.4 19.5 5.8 396.0 1,166.4

Business Model

Consumers are increasingly in pursuit of experiences

Affordability

Scalability

Brand

Distribution

✓ Broad & unparalleled product

portfolio

✓ An integrated & efficient manufacturing process

✓ Accelerating the launch of

aspirational brands

✓ Brands across a wide price

✓ State of Art Manufacturing

✓ Premiumisation to drive

range

✓ Preferred choice of

consumers

facilities

margins

✓ Unwavering focus on R&D

✓ Consistent investments to

✓ Quality implemented at each

stage

expand

✓ Expanding retail footprint

✓ Adopting digital transformation

Broad & unparalleled product portfolio

Bermudas

T-shirts

Athleisure

Leggings & Causal Wear

Socks

Vests/ Upper

Thermal Wear

Lowers

Brief / Drawer

Lingerie

Vest / Upper

Lowers

Innerwear

"Rupa overhauls its portfolio periodically to the fast-changing requirements, evolving the market in line with changing times."

Brands across a wide price range

Diversified, targeted product offering across demographics, categories and price segments

Super Premium Segment

Premium Segment

Mid-Premium Segment

Economy Segment

Brand for Men

Brand across all Users (Men + Women + Kids)

Brands for Women

Bouquet of Brands across Price Segments

Gamut of products from innerwear to casual and athleisure wear

(Inner wear + Thermal wear + Active wear)

Strategically making presence in Mid-premium to Super premium brands

Licensing of International Brands

Consumers are increasingly in pursuit of experiences

Affordability

Scalability

Brand

Distribution

✓ Broad & unparalleled product

portfolio

✓An integrated & efficient manufacturing process

✓ Accelerating the launch of

aspirational brands

✓ Brands across a wide price

range

✓ Preferred choice of consumers

✓State of Art Manufacturing

facilities

✓Unwavering focus on R&D

✓Stringent Quality control

✓ Premiumisation to drive

margins

✓ Consistent investments to

expand

✓ Expanding retail footprint

✓ Adopting digital transformation

An integrated & efficient manufacturing process

Product Design & Development

Manufacturing Process

Logistics & Distribution

Manufacturing Process

Logistics & Distribution

Knitting

Processing / Dyeing & Bleaching

Stitching

Warehousing

Distribution

Cutting

Critical Processes done in-house

Invest extensively in manufacturing integration and scale

Up-gradation and replacement of old machines as and when required

Critical Processes done in-house

Outsourcing labour intensive processes helps keep our asset base and employee base light

» Automate sourcing, inventory management & order improving costs & efficiency

» Dedicated team of product designers to track & create products in-line with global fashion trends

» Helps maintain high quality of output

State of art manufacturing facilities

Continous investment in R&D to produce environment-friendly clothes and minimize carbon footprints

Domjur (West Bengal)

Tirupur (Tamil Nadu)

Bengaluru (Karnataka)

Ghaziabad (NCR)

» Knitting: State of the Art Knitting process done at our manufacturing plants

» Dyeing: Best in class technology for dyeing and bleaching to maintain competitive quality standards

» Cutting: CNC and CAD technology is adopted to have accuracy in design and consistency in quality and quantity with minimum use of labour

» Stitching: Specification and technical know-how support provided to all vendors to have consistency in quality

7,00,000+ Finished Goods per day

3 tons/day Yarn Dyeing

7,000+ SKUs

25 tons/day Fabric Dyeing

Unwavering focus on R&D

•

Harnessing the power of technology enables conforming to international standards

• Majority of our fabrics are biodegradable

•

Innerwear, thermals and hosiery products are made from superior and natural fibers that are grown in sustainable farming methods

Each Rupa’s of Colorfast guarantee

product

proudly

flaunts

the

• We make soft, breathable, lush and comfy knitted wear that

also replenish the environment in every way we can

• Up-to-date, high-performance equipment and matching software is used to aid perfect colour formulation and colour correction, as well as testing for colour-fastness, and effects

Quality implemented at each stage

Quality is our lodestar at Rupa. Since inception, we have never compromised on quality. We believe, if you follow quality, everything else will follow automatically.

Understanding the value of research, the ultra- modern laboratory at Rupa’s Dyeing and Processing Plant gives advanced developmental support to the daily operations

The Dyeing unit is supported by an advanced in- house R & D unit, which continually strives to bring cutting-edge technology and know-how to production processes.

Consumers are increasingly in pursuit of experiences

Affordability

Scalability

Brand

Distribution

✓ Broad & unparalleled product

portfolio

✓ Brands across a wide price

range

✓ An integrated & efficient manufacturing process

✓ State of art manufacturing

facilities

✓ Preferred choice of consumers

✓ Unwavering focus on R&D

✓ Quality implemented at each

stage

✓Reinforcing high growth

✓ Expanding retail footprint

segments

✓Scaling high margin revenue streams

✓Strategic & consistent

investments in branding

✓ Adopting digital transformation

Reinforcing high growth : Women’s Wear

Pioneering Premium Leggings, Lingerie and Outerwear brand with a huge range of wardrobe essentials ho seek ease with a fashionable edge

Softline aims to make ‘comfortable’ the new fashion statement. ‘Softline’ has always pushed the envelope in terms of innovation, variety and comfort

Brands mantra ‘Effortless You’, communicates exactly to reach out to the primary consumer base, i.e. young women, fulfilling their need for comfortable yet stylish Lingerie, Leggings and Casual wear

Available in 250+ colours for all sizes

Reinforcing high growth : Athleisure

There’s a fun side to everyone!

Bumchums range of T-shirts, Bermudas, Tracks and Muscle Tees is designed for those who hate seriousness

High Growth Potential in health and lifestyle focused Active wear segment. Industry has grown by ~13% CAGR since 2011

Reinforcing high growth : Thermal Wear

Plan to cross Rs. 200 crores of Thermal wear revenue in next 2 years

✓ Ideal companion during winter

months. Now, you can stay warm and

stylish in winters

✓ Thermocot fabric is knitted on

hi-tech machines with a perfect

blend of Cotton and Polyster to give a

perfect and warm fit even in the

lowest temperatures

✓ Exquisite range of thermal wear, knitted on hi- tech machines to give a perfect and warm fit

✓ Available in exciting colours, trendy styles, it is

ideal for every member of the family

✓ So stylish yet thin - step out in Torrido for morning jogs or even wear it under a shirt for a business meeting

Scaling high margin revenue streams

One of the Largest Premium Brand of Sportswear, Leisurewear, Innerwear, Activewear & Athleisure, for Men & Women

Macroman M-Series and Macrowoman W-Series have top notch fabrics, are styled by cutting edge designers & available in a variety of colors and pattern

Strategic & Consistent investments in Branding

Strong brand recall developed through consistent investment in advertising and brand promotion strategies

Over Rs. 1,000 crores spent on brand development in the last decade

Brand Development Cost (Rs. In Cr)

2018

2019

2020

2021

2022

2023 E

( Lower in 2021 due to CoVID, no brand expense done in FY21)

Consumers are increasingly in pursuit of experiences

Affordability

Scalability

Brand

Distribution

✓ Broad & unparalleled product

portfolio

✓ An integrated & efficient manufacturing process

✓ Reinforcing high growth

segments

✓ Brands across a wide price

✓ State of art manufacturing

✓ Scaling high margin revenue

range

facilities

streams

✓Expanding retail footprint

✓Adopting digital transformation

✓ Preferred choice of consumers

✓ Unwavering focus on R&D

✓ Quality implemented at each

stage

✓ Strategic & consistent

investments in branding

Expanding retail footprint

1,50,000+ Retail Outlets

1,500+ Dealers

Strategy: Foray in newer markets by appointing new distributors and building experienced team while offering products as per consumer preferences

Strong position in Eastern India. Gaining significant presence in the North followed by the West, establishing a Pan- India presence

Disclaimer : Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness

Increasing footprints in South India, expanding to improve market share

Focused Markets

Growing Markets

Seeding Markets

Digitisation & Information Technology

Digital Transformation

Core Enterprise solution with SAP F&VB S4

HANA Implementation

Upgrade Channels

Revamp of B2C Sales Channel Rupa Online

Store

Revamps Sales System

Dealer Management System (DMS) & Mobile

Sales Force Automation to increase secondary

sales.

Analytics

Digital Transformation Areas

Upgraded Channels

Manual Costing Derivation

Details flow from Auto PR worth Pricing

Article Price variance from Cost Sheet Price

Cost Sheet in SAP limits the price variance in Sales Order

Lack of budget control in procurement of materials

Management Approval of cost sheet through SAP integrated Purchase Order

Implementation of SAP Analytics on S4 HANA

to help decision making

No adherance to price after cost sheet approval

Approved Price cannot be changed in purchase Order

Implementation of SAP S4 (HANA) in Fashion Procurement will lead to increased efficiency in supply chain

Growth Initiatives

Recent Strategic Initiatives

Expanding EBO network

roll out 150 more EBOs in the next 2 years

Rapid expansion in high potential areas

Investing in modern trade & e-commerce

Re-organising the distribution channel

Scaling up Athleisure

Focus on high margin business

increase share in premium + super premium category

Focus on exports new emerging markets: double current exports and tap new geographies in the next 2 years

Demerger of Oban Fashions (FCUK & Fruit of The Loom)

Rapid expansion in high potential areas

Medium Term Target

3X - 4 Years

4X - 3 Years

5X - 3 Years

FY23 Target

Growth - 45%

Growth - 60%

Growth - 70%

Growth - 55%

26%

222

176

Revenue (in Rs cr)

+30%

+57%

FY21 FY22

+56%

X-Factor Areas

Modern Trade

Exports

Govt. Business

Pune],

Bengal, Maharashtra

[Ex West Gujarat, MP, Mumbai Chattisgarh, Western UP, Uttrakhand, Haryana ,HP , Punjab, Tamil Nadu, Andhra Pradesh & Kerala. Key focus on building complete eco system of team marketing, retail & distribution network

e-commerce

via Focus on Amazon, partnerships with Flipkart. Drive sales through own website. Select LFS play and focus on EBO expansion

direct

International business is seeing substantially improved traction, and we expect the momentum to continue with focus on Middle East, Bangladesh, Africa & Russia

CSD & CPC opportunity. new product will drive volume

offers Introduction

great of

Expanding EBO network

Exclusive Brand outlets

Current store count : 20 EBO

Strategy:

Create small to mid sized Franchisee Store Model with best-in-class SOPs Build and nurture, competent Franchisee Management Organisation Capabilities Establish Franchise model within Top 50 Cities Invest in Key enablers like Store design, Branding, IT, CRM, SCM, CS, Marketing & Training / Development

Future Plan: Adding 50+ stores in FY23 Launch of Rupa flagship store Pan India presence with 150 EBO’s in next 2-3 years

›

• • •

Investing in modern trade and e-commerce

Current store count: 150+

Strategy:

across

Increase Brand Footprints all brands creating special product line more relevant for Modern Trade Improve on time order serviceability to avoid revenue loss Create a robust, tech driven warehouse infrastructure

Future Plan: To double the store count in Regional Large Format Stores: Pothy’s, Lulu, Sarvana, Jayachandra, Chennai Silks To increase brand presence across 1000+ point of sales in next 2 years

›

•

Modern Retail Trade

Online Apps & portals

Presence on all e-commerce sites

Strategy:

E-commerce Industry is poised to grow at 13% CAGR (Nielsen survey) Develop tech-based warehouse robust a infrastructure to support Pure Play Market Place business Model Develop packs /Combos based on requirements

Future Plan:

Co brand for Amazon Exclusive. To launch Rupa in the global online market of UAE via Amazon. ROI driven AD campaigns & content marketing on ecommerce portals Brand launch on e-commerce b2b through Ajio

›

• •

•

Focus on exports and new markets

USA

Russia

Middle East Countries

India

Strategy is to foray in newer markets by appointing and building experienced team and further penetrate in the existing markets

new distributors

Africa

South East Asia

FY 22 Revenue: Rs 33 cr

Plan to grow the revenues 5x by FY24

Disclaimer : Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness

Re-organising the distribution channel

Retailers

Semi Wholesalers

Retailers

WHOLESALE CHANNEL

DIRECT CHANNEL

Strategic move towards Direct Distribution channel for premium & super premium product categories

Advantages

Better control on prices with well-defined margins for distributors and retailers

inventory Better management with mapping of primary and secondary sales

Improving turnover with support distributors interaction with retailers

inventory to direct

and

Raw Materials

Distributors

Product Engineer

Retailers

Company’s Sales Representatives

sales presence

through Increase increasing and availability at retail counters of all the SKUs

Demerger of Licensed Brands

Market Presence

Consolidation

Utilizing the current market presence and customer base to access premium market segments leading to higher top line growth

Consolidation of similar premium businesses to execute more efficiently and effectively

Synergies

Cost savings in marketing, distribution expenses, benefits of the economies of scale and elimination of duplicate expenses

Management Bandwidth

Capital Allocation

Enable specialised focus of management in the entity to achieve higher topline

Demerger enables managing the different funding requirements in terms of type of funds and amount of infusion required

ESG & CSR Initiatives

Why does ESG matter to us?

Sustainability are demanding, Customers are expecting, Shareholders are relying on, & Employees are valuing.

something

Investors

that

Collaboration with EY to implement ESG

ESG maturity assessment & gap analysis against international frameworks, rating indices and benchmark practices

financial

Good business returns, efficiently according to the market best practices, corporate governance

doing

Working with transparency and integrity, formulating and following business code of conduct

Occupational health and safety, providing and adequate compensations

employee

benefits

Product safety and content, high quality of product and services, value for money

Complying with rules and regulations, work and co-operate with government departments in a transparent manner

Generating local employment, minimal impact on the surrounding environment, following compliances

ESG roadmap development including policy development, goal and target setting and strategy development

Investors

Shareholders

s r e d o h e k a t S

Employees

Customers

Government

Communities

Changing concept of Asset Valuation-More dominance of “Intangible Assets”

Need for valuation of “Shared Values” and “Externalities”

ESG materiality assessment to determine key ESG issues related to Rupa

Disclosure on ESG initiatives using the BRSR/GRI framework

Strong Board Oversight on ESG

Responsible Governance

Active oversight from Board of Directors and dedicated Board level CSR committee for overseeing ESG risks

Corporate social responsibility embedded in our Values

Fosters a culture of honesty, integrity and accountability

Zero tolerance for corruption & bribery

The Board comprises of five sub committees

50% of the directors on the Board are Independent Directors

Average age of Board is 64 years

Majority independence in the Audit Committee and all members of the Nomination and Renumeration Committee are Independent

Business strategy is based on the principles of stakeholder inclusion and sustainability context

Endeavor to leverage human and capital resources to translate opportunities into reality, create awareness of corporate vision and spark entrepreneurship at all levels

Committed towards enhanced transparency in ESG disclosure

•

Board Tenure

36%

28%

Average Tenure: 13 years

36%

Board Experience

s t e s l l i k S

Risk and compliane oversight

Corporate governance

Market understanding

Financial understanding

Critical and innovative thoughts

Strategy and strategic planning

Understanding of business/industry

Number of Directors

0-7 years

7-12 years

> 12 years

Committed to Sustainable Growth

CSR Vision : improving lives in pursuit of collective development and environmental sustainability

ISO

Established (Environment Management System) and adhere to policies in alignment with the principles under Non- Voluntary Guidelines

14001

Utilized paddy husk as an alternative and clean source of fuel for power generation

More than 90% of the fabric waste is recycled and 100% of our packaging is recyclable and reusable

Our products are made from 100% viscose fibre and hence biodegradable

Installation of heat recycling system whereby heat from the discharged effluent is trapped and re-used for heating water

locations are illuminated with LED

Plant lighting

Indigenous products sourced locally thereby reducing carbon footprint

imparts training to employees to enrich their knowledge, skill and competency to perform their job effectively and efficiently.

Workplace safety training is provided to workmen to enhance the knowledge and skills, they need to protect equipment, facilities and unintentional physical injuries.

CSR Highlights – FY22

Society

Promoting education & vocational skills

Eradicating hunger, poverty and malnutrition

Setting up old age homes

Health and Safety

Environment

Promoting health care

Ensuring Animal Welfare

Disaster management relief & rehabilitation

Facilitate availability of drinking water

FY22 Budget: Rs 329 Lakhs

Budgeted Amount Spent Entirely

CSR Activities

Education & vocational training for the underprivileged students

Women’s Day Celebration

Supporting Education

We operate with a strong belief that giving back to the society and contributing towards its sustainable development is every organizations responsibility.

CSR Activities

Ambulance Donation

Blanket Distribution

Upliftment of Tribal society

Historical Performance

Historical P&L Highlights

Revenue (Rs. In Cr)

EBITDA (Rs. In Cr)

PAT (Rs. In Cr)

1,120

1,149

698

661

975

487

1,313

800

422

488

513

1,474

888

586

155

151

114

257

155

269

156

102

113

192

112

175

109

62 24

FY18

FY19

FY20

FY21

FY22

FY18

FY19

FY20

FY21

FY 22

FY18

FY19

FY20

FY21

FY22

EBITDA Margins (%)

19.6

18.2

PAT Margins (%)

13.4

13.0

13.9

13.2

11.7

7.7

6.5

6.4

FY18

FY19

FY20

FY21

FY22

FY18

FY19

FY20

FY21

FY22

Key Performance Ratios

ROCE (%)

25.1%

20.2%

13.6%

30.8%

28.4%

ROE (%)

18.4%

14.2%

11.0%

Debt to Equity (X)

26.8%

23.8%

0.38

0.30

0.40

0.23

0.19

Mar-18

Mar-19

Mar-20

Mar-21

Mar-22

Mar-18

Mar-19

Mar-20

Mar-21

Mar-22

Mar-18

Mar-19

Mar-20

Mar-21

Mar-22

Working Capital Days

Inventory

Debtors

Creditors

175

108

114

121

126

109

101

120

113

Mar-18

Mar-19

Mar-20

Mar-21

Mar-22

Sharing profits consistently

Payout as a % of Profits

24.5%

30.1%

32.1%

33.2%

30.3%

27.7%

32.2%

38.6%

22.7%

12.5%

gratitude

Mark shareholders pandemic: Special Dividend of Rs. 2/- per equity share

during

our the

500

200

275

300

250

200

300

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

Consistently sharing the profits in the form Dividend

Key Takeaways

Huge Industry Potential

Men’s Innerwear Market

Women’s Innerwear Market

6% CAGR

12% CAGR

4,300

2010

8,500

2015

17,894

2027E

Key Growth Triggers

7,000 2010

14,500

2015

56,364

2027E

Emergence of purpose-specific innerwear (sporty, casual, fashionable) widening the Market

Increasing income levels and high spending power

Growth in penetration of organized retail

Changing Fashion Trends

Increasing penetration of electronic media leading to branded products

Rupa & Co. – Key Takeaways

#1 undisputed knitwear Indian brand

Diversifies product offering across demographics & price segments

Wide bouquet of brands with strong brand recall developed through consistent investment in ad spends

Efficient business model with key focus on value addition, quality control & product differentiation

Extensive distribution network with an unparalleled nationwide network

Focused approach on growth & margin improvement to generate value

Consistent Dividend track record

Thank You

CIN: L17299WB1985PLC038517

Mr. Sumit Khowala sumit.khowala@rupa.co.in

Mr. Rajesh Agrawal +91 9967491495 rajesh.agrawal@linkintime.co.in

Mr. Nachiket Kale +91 9920940808 nachiket.kale@linkintime.co.in

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