Rupa & Company Limited has informed the Exchange about Investor Presentation
Ga RU ” A ms RUPA & COMPANY LIMITED "1 Date: August 12, 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 Sub: Disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015- Investor Presentation Dear Sir/ Madam, We are forwarding herewith Investor Presentation on the financial performance of the Company for the quarter ended June 30, 2022. The presentation will also be made available on the website of the Company www.rupa.co.in Kindly take the same on record. Thanking you. Yours faithfully, For Rupa & Company Limited Me iat Aopen waa. Manish Agarwal Company Secretary & Compliance Officer 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 Q1 FY23
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Table of contents
Company Overview
Q1 FY23 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
9,000+ 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
6
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
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
in
• 45+ years of experience in the textile industry, specialization in marketing and distribution
• Guides
the company in strategic
development
• Actively
engaged
in
various
• Actively
engaged
in
various
philanthropic activities
philanthropic activities
Eminent Board of Directors
Mr. Ramesh Agarwal, Whole-time Director
Mr. Mukesh Agarwal, Whole-time Director
• More than 30 years of experience in the
• 30+ years of experience in the
textile industry
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
45
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
of
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
of
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. Sumit Khowala, Chief Financial Officer
Mr. Siddhant Agarwal, Vice President
• Member of the Institute of Chartered Accountants of India and Institute of Company
Secretaries of India
• Associated with the company for over a decade
• Expertise in Finance, Taxation & Banking
• 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, GM – Dyeing
Mr. Pronob Mukerji, GM – Marketing, Media
Mr. J. Rajendra Kumar Singh, GM– Production
Mr. Randhir Singh Jolly, GM– Modern Trade
Mr. Sarvesh Agarwal President - Export
Mr. Arihant Kumar Baid, VP - Finance
• More than 35 years of expertise in the field of Dyeing and production operations
• Previously worked with Suryawansi Dyeing Mills
• More than 17 years of
• 20 years experience in
experience in Marketing & Media
production and operation in textile
• Previously worked with
• Ex-VP/Head Operation –
Page Industries
Manufacturing, Gokaldas Images
• 20 years of experience in the field of textile, Apparels & Innerwear
• Previously worked with Bombay Dyeing and Raymond's
• 18 years of experience,
specialised in the field of techno commercial sales
• 15 years of experience in Cross Functional areas in Finance
• Previously worked with Himatsingka Seide and Trident
• Member of the Institute
of Chartered Accountants of India
Brand to recon with
Step 01
Deploy o Add Text Here o Add Text Here
Step 03
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Step 05
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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
Step 02
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Step 04
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Step 06
Revenue o Add Text Here o Add Text Here
The Worlds Greatest Brand 2015 Asia “Macroman M-Series”
Worldwide achievers(Zee) Business Leadership Awards 2013
First Indian innerwear manufacturer as licensee of SUPIMA
Q1 FY23 Result Highlights
Q1 FY23 Performance Highlights
Revenue
Rs. 214.7 crores
EBITDA
Rs. 18.5 crores
Margin 8.6%
PAT
Rs. 12.5 crores
Margin 5.8%
All figures on Consolidated Basis
Growth in revenues and profitability
Revenue from Operations
EBITDA & EBITDA Margin
PAT & PAT Margin
19.3%
8.6%
13.4%
5.8%
-1.5%
218
215
-56.1%
42
-57.2%
29
19
13
Q1 FY22
Q1 FY23
Q1 FY22
Q1 FY23
Q1 FY22
Q1 FY23
(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
15
Q1 FY 23 : Sales mix
Region-wise Revenue split
Gender-wise Revenue split
6%
8%
19%
40%
25%
2%
East
North East
North
West & Central
South
Overseas
4%
10%
86%
Men
Women
Kids
Consolidated Profit & Loss
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)
Q1 FY23
214.7
64.5
69.9
80.3
37.4%
17.2
44.6
18.5
8.6%
5.6
3.3
20.8
5.8
15.0
2.5
12.5
5.8%
1.7
Q1 FY22
218.0
Y-o-Y
-2%
FY22
1,474.1
74.3
59.3
84.5
38.7%
14.4
27.9
42.1
19.3%
2.0
3.4
40.7
3.2
37.5
8.3
29.2
13.4%
3.7
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
-56%
-57%
Business Model
Consumers are increasingly in pursuit of experiences
Affordability
Scalability
Brand
Distribution
1
2
3
4
✓ 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
21
Consumers are increasingly in pursuit of experiences
Affordability
Scalability
Brand
Distribution
1
2
3
4
✓ 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
23
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
9,000+ SKUs
25 tons/day Fabric Dyeing
24
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
1
2
3
4
✓ 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)
86
82
71
62
53
20
2018
2019
2020
2021
2022
Q1 FY23
Brand development cost in Q1 FY23 were higher at Rs 20 cr against Rs 9 cr in Q1 FY22. This is attributable to heavy investments in marketing by engaging celebrity brand ambassadors and running national campaigns
Consumers are increasingly in pursuit of experiences
Affordability
Scalability
Brand
Distribution
1
2
3
4
✓ 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
5X - 3 Years
FY23 Target
Growth - 45%
Growth - 60%
Growth - 70%
Growth - 55%
Revenue (in Rs cr)
+31%
34
26
+140%
13
5
+122%
11
5
X-Factor Areas
Modern Trade
Exports
Q1 FY22 Q1 FY23
+33%
2
3
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
Our maiden flagship store at Camac Street, Kolkata
Current store count : 23 EBO
Strategy:
Rupa flagship store of 1000 sq ft launched in Kolkata 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 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: 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
UAE | Saudi Arabia | Kuwait | Iraq | Myanmar | Ukraine | Algeria | Indonesia | Nigeria | Congo | USA | Singapore | Russia and many more
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
01
Utilizing the current market presence and customer base to access premium market segments leading to higher top line growth
02
Consolidation of similar premium businesses to execute more efficiently and effectively
Synergies
03
Cost savings in marketing, distribution expenses, benefits of the economies of scale and elimination of duplicate expenses
Management Bandwidth
Capital Allocation
04
Enable specialised focus of management in the entity to achieve higher topline
05
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?
is
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
l
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”
1
2
3
4
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
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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
10
8
10
11
11
12
12
Committed to Sustainable Growth
CSR Vision : improving lives in pursuit of collective development and environmental sustainability
Energy and GHG Management
Responsible Materials
The steam generated from the boiler is captured and reused in operations including drying, compaction and heating the incoming boiler water
Conserved electricity through implementation of LED lighting
Indigenous products sourced locally thereby reducing carbon footprint
Our products are made from 100% viscose fibre and hence biodegradable
Our material suppliers are GOTS approved received and Oeko-Tex have the certification, conforming that all our materials are free of banned substances such as hypochlorite and azo dyes.
Waste Management
Water and Effluent Management
More than 90% of the fabric waste is recycled and 100% of our packaging is recyclable and reusable
100% fly ash produced during combustion of coal is utilized for brick manufacturing.
Stringent periodic maintenance of all water pipes is undertaken to prevent water leakages.
Implementing Zero liquid discharge (ZLD) in all our manufacturing plants.
Emissions Management
Bag filters ensure air pollution due to dust and particulate matter are below threshold limits
Care for our People
Employee Strength
Creating fulfilling career opportunities Creating fulfilling career opportunities
Permanent Employees : 1,152
Contractual Employees: 1,420
Gender Diversity
11.80%
Performance Improvement Plan helps our employees reach desired productivity levels through specific project work and close guidance
Imparted functional training and personality training
training,
product
behavioural
training,
Total training hours: 1,318 hrs
Snapshots from our Leadership Training Programme
Performance based reward system is implemented for incentivizing the best performing employees
Celebrating days of national and international importance like Christmas, Diwali, Bengali New Year, Women’s Day and conducting events focussed on team building and career guidance
Adhering to the highest labour standards
We respect and protect human rights both within and outside the workplace through the implementation of SA 8000 framework.
All workmen on the shop floor are required to undergo workplace safety training to ensure prevention of unsafe Free vaccination camps were organized for acts. employees and family members
Strengthening our Communities
Rupa & Company Limited operates with a strong belief that giving back to the society and contributing towards its sustainable development is every organization’s responsibility. The Company and its people are committed to society, ecology and environment.
Our Focus Areas
Project Objective
Amount Invested (in INR)
Eradicating hunger, poverty and malnutrition
Promoting healthcare including preventive healthcare
14.97 Lakh
135.97 Lakh
Education to children
60.15 Lakh
Creating access to safe drinking water
24.85 Lakh
Disaster relief
9.14 Lakh
Ecological balance and animal welfare
40.72 Lakh
Installed 480+ water kiosks across the streets of Kolkata
Supporting education
CSR Investment (FY 21-22)-INR 3.28 Cr
Arranged vaccinations, oxygen concentrators, hospital beds and food for the needy during the pandemic
Provided relief packages during Amphan
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
H2
698
661
975
487
1,313
800
H1
422
488
488
513
1,474
888
586
155
H2
99
H1
56
151
91
60
114
54
60
257
155
269
156
102
113
192
112
175
109
66
80
86
58
29
H2
H1
74
36
38
62 24
38
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
94
109
101
120
113
54
47
50
45
47
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%
of
to
gratitude
Mark shareholders pandemic: Special Dividend of Rs. 2/- per equity share
during
our the
500
200
275
275
275
300
300
300
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