Rupa & Company Limited has informed the Exchange about Investor Presentation
Date: May 24, 2023
National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G Block Bandra Kurla Complex, Bandra (E) Mumbai - 400 051
BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street Mumbai - 400 001
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 enclosing herewith Investor Presentation on the financial performance of the Company for the quarter and financial year ended March 31, 2023.
The presentation will also be made available on the Company’s website www.rupa.co.in .
Kindly take the same on record.
Thanking you.
Yours faithfully, For Rupa & Company Limited
Manish Agarwal Company Secretary & Compliance Officer
Q4 & FY23 INVESTOR PRESENTATION
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
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inaccurate.
Certain statements contained in this presentation that are not statements of historical fact constitute “forward-looking statements.” You can generally identify forward-looking
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“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.
Table of contents
Company Overview
Q4 & FY23 Result Highlights
Business Model
Growth Initiatives
ESG & CSR Initiatives
Historical Financials
Company Overview
#1 undisputed knitwear indian brand
Finished goods pieces per day
7,00,000+
1,500+
Finished goods pieces per day
Retail Outlets
1,50,000+
100+
Registration of trademark’s both Nationally & Internationally
SKUs
9,000+
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
• 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
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. Amaresh Banerjee Head – Export
Mr. Arihant Kumar Baid, VP - Finance
Mr. B. K. Singh, GM – Knitting & Processing
Mr. Pronob Mukerji, GM – Marketing, Media
Mr. J. Rajendra Kumar Singh, GM– Production
Mr. Randhir Singh Jolly, GM– Modern Trade
• 28 years of experience,
in International Business Development, Global expansion activities
• Previously worked with CRI, PCBL, Phoenix Yule
• 15 years of experience in Cross Functional areas in Finance
• Member of the Institute
• More than 35 years of expertise in the field of Dyeing and production operations
of Chartered Accountants of India
• 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
Brand to recon with
Step 01
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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
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Step 06
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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 & FY23 Result Highlights
Star Studded Line-up of Brand Ambassadors
Strong brand recall developed through consistent investment in advertising and brand promotion strategies
Brand Development Cost (Rs. In Cr)
86
82
71
78
62
53
2018
2019
2020
2021
2022
2023
Brand development cost in FY23 at Rs 78 cr against Rs 61 cr in FY22. This is attributable to heavy investments in marketing by engaging celebrity brand ambassadors and running national campaigns
Management Commentary
The year in review has been a challenging year for the industry, witnessing steep volatility in raw material prices which were on increasing trend at the start of the year and then gradually declined steeply. This phenomenon led to destocking at distributor level throughout the year. The company also had to decrease net realisation owing to declining trend in raw material prices during the year. Thus, the operating margins suffered due to dual impact of high cost raw material and product supply at higher incentives & schemes to the distribution channel. With the stabilisation of raw material prices currently we anticipate pick up in demand. Active steps are being taken in brand building activities. Recently the company has on boarded celebrities for its premium and its economy segment brands.
Exports stood at Rs. 41 crs and continues to deliver robust yoy growth with 25% uptick over last year. The momentum was also sustained in Modern trade with 32% year-on-year growth, contributing INR 51 crs to our overall revenue. This growth is testament to our ability to capture opportunities in the evolving retail landscape and effectively serve our customers in modern trade channels.
In a challenging environment this year, our efforts were focused on efficient working capital management. The net working capital deployed in the business has reduced from Rs 910 crs to Rs 789 crs. Consequently, we have significantly improved our cash flow operations, from net outgo of Rs 116 crs in FY22 to positive cash inflow of Rs 185 crs. We expect working capital to normalise going forward with expected pickup in demand and stabilisation of raw material prices.
The total count of exclusive brand outlet (EBO) stores stands at 28 stores for the year. We continue to expand our retail presence to reach a broader customer base.
We remain focused on enhancing operational efficiency, expanding our market reach, and capitalizing on emerging opportunities to drive sustainable growth and create long-term value for our stakeholders.
Q4 FY23
FY23
Operating Revenue
Rs. 407 crs
Rs. 1,143 crs
EBITDA
Rs. 27 crs
Rs. 89 crs
Margin at 6.7%
Margin at 7.8%
PAT
Rs. 19 crs
Rs. 54 crs
Margin at 4.6%
Margin at 4.7%
Q4 & FY23 Performance Highlights
FY23 Revenue stands at Rs. 1,143 cr
Exports continue to perform well with 25% yoy growth in FY23, contributing ~4% to overall revenues
Modern trade & e-commerce registered a robust 32% growth and contributed ~5% to overall revenue
Slowdown in demand led to reduced sales and escalated costs have affected margin
Proactive measures to support our trade partners and dealers, offered extended credit period
Higher spend on branding being 7% of revenue vis a vis 4.2% in FY22
Cash Flow from operations stands at Rs. 185 cr vis a vis (Rs. 116 cr)
Net debt stands at Rs. 134 cr in FY23 vis a vis Rs. 231 cr in FY22
Net working capital deployed reduce to 789 cr in FY23 from 910 cr in FY22
Sales mix
Region-wise Revenue split
Gender-wise Revenue split
4%
7%
FY23
46%
13%
25%
5%
East
North East
North
West & Central
South
Overseas
4%
12%
FY23
84%
Men
Women
Kids
Consolidated Profit & Loss
Particulars (Rs. Crs.)
Q4 FY23
Q4 FY22
Revenue from Operations
Total Raw Material
Sub-Contract 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
406.8
258.3
53.4
95.1
23.4%
12.6
55.2
27.3
6.7%
4.8
3.3
28.8
4.8
24.0
5.2
18.8
4.6%
2.4
456.6
209.1
90.8
156.7
34.3%
21.6
61.1
74.0
16.2%
3.6
3.4
74.2
5.9
68.3
18.9
49.4
10.8%
6.2
Y-o-Y
-11%
-63%
-62%
Q3 FY23
236.1
133.8
36.8
65.5
27.7%
13.9
37.3
14.3
6.1%
2.6
3.3
13.6
5.9
7.7
2.0
5.7
2.4%
0.7
Q-o-Q
72%
FY23
1,143.1
FY22
1,475.3
Y-o-Y
-23%
606.2
210.3
326.6
28.6%
58.4
179.2
89.0
7.8%
16.2
13.3
91.9
22.6
69.3
15.5
53.8
4.7%
6.8
633.8
327.4
514.1
34.8%
68.1
178.0
268.0
18.2%
10.8
13.9
264.9
18.2
246.7
54.9
191.8
13.0%
24.1
-67%
-72%
91%
230%
Particulars (Rs. Cr)
ASSETS
Non-current assets
Property, plant and equipment
Right to Use Assets
Capital work-in-progress
Intangible assets
Intangible assets under development
Financial assets
i) Investments
ii) Other financial assets
Non-Current Tax Assets (Net)
Other non-current assets
Total Non-current Assets
Current assets
Inventories
Financial assets
i) Trade receivables
ii) Cash and cash equivalents
iii) Other Bank Balances (other than above)
iv) Loans
v) Other financial assets
Other Current Assets
Income Tax Asset (Net)
Total Current Assets
Total Assets
Balance Sheet
Mar-23
Mar-22
207.9
188.7
20.3
19.7
4.4
1.5
0.0
18.5
0.0
5.7
16.3
26.1
5.0
0.6
0.0
4.1
10.2
7.4
278.0
258.4
486.2
583.0
432.9
6.7
107.3
2.0
4.8
65.6
4.4
547.3
4.3
119.4
2.0
2.0
60.6
0.0
1109.9
1318.6
Particulars (Rs. Cr) EQUITY AND LIABILITIES Equity Equity Share capital Other Equity Total equity
LIABILITIES Non-current liabilities Financial liabilities i) Borrowings ii) Lease Liabilities iii) Other financial 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
- Total outstanding dues of creditors to microenterprises and small enterprises - Total outstanding dues of creditors other than microenterprises and small enterprises iv) Other financial liabilities
Provisions Current Tax Liabilities (Net) Other current liabilities Total Current Liabilities
Total Liabilities
Mar-23
Mar-22
8.0 903.8 911.8
10.2 12.1 0.1 1.9 12.3 1.2 37.8
234.4 1.5
7.4
122.8
65.9 1.6 0.7 4.0 438.3
476.1
8.0 873.8 881.8
15.9 13.5 0.0 0.6 11.7 1.5 43.2
339.0 1.3
9.3
210.6
71.8 2.9 10.3 6.8 652.0
695.2
1387.9
1577.0
Total Equity and Liabilities
1387.9
1577.0
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
23
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
25
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
26
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.
High Volume Capacities
OPERATIONS
IN HOUSE CAPACITY
Strategic Advantages
Fabric Dyeing & Bleaching
25 Tons/Day
Yarn Dyeing & Bleaching
3 Tons/Day
Knitting
25 Tons/Day
Cutting
10 Lacs Pieces/Day
Stitching
1 Lac Pieces/Day
Warehouse Space
8.5 Lacs Sq Ft Approx
• •
•
•
•
•
Streamlined Operations Technologically advanced machineries to support our manufacturing infrastructure Robust control practices in place to ensure consistent quality of our products Improved inventory management, productivity, and overall efficiency Consistent utilization of material, promoting a seamless production flow Supporting our goal of delivering high-quality products at affordable prices.
Enhanced Capabilities with modern infrastructure
Dedicated Export Unit – West Bengal
Cutting Unit – West Bengal
Investment: Rs 18 crore
Investment: Rs 19 crore
Expected Commissioning: FY 2023-24
Expected Commissioning: FY 2023-24
Brand Strategy
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 Innerwear, Sportswear, Leisurewear, 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
Distribution Network
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
Scaling up Athleisure
Focus on high margin business
increase share in premium category
Focus on exports new emerging markets: double current exports and tap new geographies in the next 2 years
Rapid expansion in high potential areas
Medium Term Target
3X - 4 Years
4X - 3 Years
5X - 3 Years
5X - 3 Years
-21%
222
175
+32%
51
39
+25%
41
33
+11%
14
16
X-Factor Areas
Modern Trade
Exports
Govt. Business
West Bengal, Maharashtra [Ex Mumbai Pune], Gujarat, MP, Chattisgarh, Western UP, Uttrakhand, Haryana ,HP , Punjab, Tamil Nadu, Andhra Pradesh & Kerala. Key focus on building complete eco system of retail & team marketing, distribution network
Focus on e-commerce via partnerships with Amazon, Flipkart. Drive direct sales through own website. Select LFS play and focus on EBO expansion
is
International seeing business substantially improved traction, and we expect the momentum to continue with focus on Middle East, Bangladesh, Africa & Russia
CSD & CPC offers great opportunity. Introduction of new product will drive volume
FY22
FY23
Revenue (in Rs cr)
Expanding EBO network
Exclusive Brand outlets
Our maiden flagship store at Camac Street, Kolkata
Current store count : 28 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 35+ stores in FY23
Stores to be added in high footfall areas like airports & railway stations Pan India presence with 150 EBO’s in next 2-3 years
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•
•
•
Investing in modern trade and e-commerce
Current store count: 1400+
Strategy:
Increase Brand Footprints all brands creating special product line more relevant for Modern Trade
across
Modern Retail Trade
Online Apps & portals
Improve on time order serviceability to avoid revenue loss Create a robust, tech driven warehouse infrastructure Recently Jayachandra
Pothy’s,
added
Lulu,
LFS:
Future Plan: To double the store count in Regional Large Format Stores: Sarvana, Chennai Silks
To increase brand presence across 1000+ point of sales in next 2 years
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•
•
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 Recently launched CO BLUE by Rupa with Amazon
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
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•
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
Southeast Asia
FY 23 Revenue: Rs 41 cr
Plan to grow the revenues 5x in 3 years
Disclaimer : Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness
ESG & CSR Initiatives
Why does ESG matter to us?
Sustainability is something that Investors are demanding, Customers are expecting, Shareholders are relying on, & Employees are valuing.
Investors
Shareholders
s r e d l o h e k a t S
Employees
Customers
Government
Communities
Good financial returns, doing business efficiently according to the market best practices, corporate governance
Working with transparency and integrity, formulating and following business code of conduct
Occupational health and safety, providing adequate and compensations
employee
benefits
Product safety and content, high quality of product and services, value for money
Complying with rules and regulations, work and government departments in a transparent manner
co-operate
with
Generating local employment, minimal impact on the surrounding environment, following compliances
Changing concept of Asset Valuation-More dominance of “Intangible Assets”
Need for valuation of “Shared Values” and “Externalities”
Collaboration with EY to implement ESG
ESG maturity assessment & gap analysis against international frameworks, rating indices and benchmark practices
ESG roadmap development including policy development, goal and target setting and strategy development
1
2
3
4
ESG materiality assessment to determine key ESG issues related to Rupa
Disclosure on ESG initiatives using the BRSR/GRI framework
Rupa’s Pillars of Sustainability
Strategic Sustainability Pillars
Environment
Social
Governance
❖
❖
Materials management
Energy and climate change management
❖ Water and effluent management
❖
❖
Emission management
Chemical management
❖ Waste management and Circular
economy
❖
❖
Biodiversity management
Sustainable packaging
❖
❖
❖
❖
❖
Diversity and inclusion
Talent management
Occupational health and safety
Corporate citizenship
Human rights
❖
❖
❖
❖
❖
❖
❖
❖
❖
Corporate governance
Ethics, transparency and accountability
Data privacy and security
Policy advocacy
Risk management
Responsible sourcing
Customer relationships management
Product health and safety
Innovation management
“Weaving a Sustainable Future”
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
0 - 7 years 28%
>12 years 36%
Average Tenure:
13.93 years
7 - 12 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
11
10
12
13
13
14
14
Number of Directors
Committed to Sustainable Growth
CSR Vision : Improving lives in pursuit of collective development and environmental sustainability
Energy and GHG Management
Emissions Management
▪ The steam generated from the boiler
is captured and reused in operations including drying, compaction and heating the incoming boiler water.
▪ Conserved electricity through replacement of traditional lighting systems with LED lighting
▪ Daylight harvesting in plant operations
▪ Indigenous products sourced locally thereby
reducing carbon footprint
Biodiversity Management
▪ Enhancing greenery by planting trees in and
around Company’s sites
▪
Installed bag filters to ensure particulate it within matter permissible limits.
suppression and limit
▪ Undertaking regular air quality emissions assessment by NABL accredited laboratories.
Water and Effluent Management
▪ Stringent periodic maintenance of all water pipes is undertaken to prevent water leakages.
▪ Pilot runs conducted for achieving Zero Liquid
Discharge (ZLD).
Waste Management
Responsible Materials
▪ 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.
▪ Planning of
implementation of the 4R (Reduce, Reuse, Recycle and Recover) principles for effective utilization of waste resources
• Our material suppliers are GOTS approved and have received the Oeko-Tex certification, conforming that all our materials are free of banned substances such as hypochlorite and azo dyes.
• Implementation of SAP S4 (HANA) in fashion raw materials procurement for increased efficiency in supply chain
Care for our People
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 acts.
Creating fulfilling career opportunities
Gender Diversity
Performance Improvement Plan helps our employees Performance Improvement Plan helps our employees through specific reach desired productivity levels through specific reach desired productivity levels project work and close guidance project work and close guidance
Women’s Day celebrations
Imparted Imparted functional training and personality training functional training and personality training
training, training,
product product
behavioural behavioural
training, training,
~ 15 %
Male
Female
Performance based reward system is implemented for Performance based reward system is implemented for incentivizing the best performing employees incentivizing the best performing employees
and international Celebrating days of national and international Celebrating days of national importance like Christmas, Diwali, Bengali New Year, importance like Christmas, Diwali, Bengali New Year, Women’s Day and conducting events focussed on team Women’s Day and conducting events focussed on team building and career guidance building and career guidance
Diwali Celebrations
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
6:
Strengthening our Communities
Our Focus Areas and Expenditures
Project Objective
Amount Invested (in INR)
Eradicating hunger, poverty and malnutrition
17.30 Lakh
Promoting healthcare including preventive healthcare
130.58 Lakh
Education to children
52.52 Lakh
Support towards construction of Medical and Healthcare Facility
Cancer awareness and detection camp in collaboration with Indian Cancer Society
Creating access to safe drinking water
Ecological balance and animal welfare
95.17 Lakh
73.74 Lakh
Protection and promotion of National art and culture heritage
16.55 Lakh
Training and promotion of sporting activities
5 Lakh
CSR Investment (till date)-INR 3.90 Cr
Supporting Education
Animal welfare
CSR Activities
Supporting Education
Blanket Donation
Supporting Education
Historical Performance
Historical P&L Highlights
Revenue (Rs. In Cr)
EBITDA (Rs. In Cr)
PAT (Rs. In Cr)
1,149
H2
661
975
487
1,313
800
H1
488
488
513
1,475
889
586
1,143
643
500
257
155
269
156
102
113
151
H2
91
H1
60
114
54
60
192
112
175
109
66
80
54 25
29
89
41
48
74
36
38
H2
H1
62 24
38
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY 22
FY23
FY19
FY20
FY21
FY22
FY23
EBITDA Margins (%)
PAT Margins (%)
19.6
18.2
13.4
13.0
13.2
11.7
7.8
6.5
6.4
4.7
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
Key Performance Ratios
ROCE (%)
ROE (%)
Debt to Equity (X)
30.8%
28.4%
26.8%
23.8%
20.2%
13.6%
14.2%
11.0%
8.5%
6.0%
0.38
0.30
0.40
0.27
0.19
Mar-19
Mar-20
Mar-21
Mar-22
Mar-23
Mar-19
Mar-20
Mar-21
Mar-22
Mar-23
Mar-19
Mar-20
Mar-21
Mar-22
Mar-23
Working Capital Days
175
121
126
Inventory
Debtors
Creditors
171
157
94
109
101
120
113
47
50
45
47
56
Mar-19
Mar-20
Mar-21
Mar-22
Mar-23
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%
44.9%
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
300
250
200
300
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
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. Bhavya Shah: +91 8082748577 bhavya.shah@linkintime.co.in
Mr. Nachiket Kale +91 9920940808 nachiket.kale@linkintime.co.in