VIP Industries Limited has informed the Exchange about Investor Presentation
BSE Limited Phiroze Jeejeebhoy Towers, Dalal St, Kala Ghoda, Fort, Mumbai – 400001
Code No. 507880
9th May, 2023
National Stock Exchange of India Ltd. Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051. Code – VIPIND
Subject: Presentations made/being made to analysts / institutional investors
Dear Sir/Madam,
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015, please find enclosed herewith presentation being made by the Company to the analysts/ institutional
investors.
Kindly take the same on record.
Thanking you,
Yours faithfully,
For V.I.P. Industries Limited
Anand Daga Company Secretary & Head – Legal
Encl. As above
INVESTOR PRESENTATION Q4 & FY23
Disclaimer
Some of the statements in this communication may be forward looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially from those expressed or implied. Important developments that could affect the Company’s operations include changes in the industry structure, significant changes in political and economic environment in India and overseas, tax laws, import duties, litigation and labour relations.
The information contained herein has been prepared to assist prospective investors in making their own evaluation of the Company and does not purport to be all-inclusive or to contain all of the information a prospective or existing investor may desire. In all cases, interested parties should conduct their own research/investigation and analysis of the Company and the data set forth in this information. The Company makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) regarding information contained in, or for any omissions from, this information or any other written or oral communications transmitted to the recipient in the course of its evaluation of the Company.
While we have made every attempt to ensure that the information contained in this presentation has been obtained from reliable source, the Company is not responsible for any errors or omissions, or for the results from the use of this information. All information in this presentation is provided on "as is" basis with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information and without warranty of any kind, express or implies including but not limited to warranties of performance for a particular purpose. In no event will the Company its Directors, legal representatives, agents or employees thereof be liable to anyone for any decision made or action taken by relying on data/information in this Presentation.
Index
Company Overview
Q4 & FY23 Financial Performance
Brands, Channels & Categories
Q1 Sneak Preview
Company Overview
Undisputed leader in an Oligopolistic Indian Luggage Industry
Established in 1968
#1 In the organized luggage space
Present in multiple luggage categories across price points
10 Own Manufacturing Facilities in India & Bangladesh
Servicing customers through ~11,000 Point of Sales across ~1200 towns
~9000 employees
Milestones
Leveraging our rich heritage & strong legacy
Revenue Journey (Rs. In Cr.)
Aristocrat Acquisition
Caprese Launch
Skybags Launch
Aristocrat Restage
Bangladesh Operations
Strategic Shift from China Sourcing To Own Mfg
2082
1785
1714
1416
1283
1234
1290
1064
988
868
854
745
619
Carlton Acq China Ofc
Aristo Plast Pvt Ltd
297
287
305
296
321
331
8 6 9 1
567
521
614
439
00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23
Board Of Directors
is
graduate
a Commerce
He and an experienced industrialist who has pioneered the luggage industry in India. He has an experience of more than 50 years in the luggage industry
She a graduate from Oxford University and has done an MBA from the Harvard Business School. She has over 10 years of experience in managing and strategizing the business of luggage, bags and other travel accessories.
holds
a MBA in Marketing
He and International Business and has 25 years of leadership experience in the FMCG industry across business verticals and categories. He is responsible to build the organization growth strategy and lead execution across all business verticals & regions globally
She has completed B.Sc. from The Wharton School and an MBA from Harvard Business School. She is the Executive Chairperson of Godrej Consumer Products and Director of Godrej Agrovet and Teach For India.
Mr. Dilip Piramal Chairman
Ms Radhika Piramal Executive Vice Chairperson
Mr. Anindya Dutta Managing Director
Ms Nisaba Godrej Independent Director
Mr. Amit Jatia Independent Director
Mr. Tushar Jani Independent Director
Mr. Ramesh Damani Independent Director
Ms Neetu Kashiramka Executive Director & CFO
He has a degree in Business Administration from the Marshall School of Business, Los Angeles. He has attended several sessions of the YPO / Harvard President’s Program at HBS. He has over 26 years of experience in the QSR industry.
He is a Science graduate. He is a founder of Blue Dart Courier Services, Blue Dart Express Limited, Blue Dart Aviation Limited and Express Industry Council of India. He has over 40 years of experience in the Shipping and Transport Industry. He has pioneered inland logistics of sea freight containers.
He is a Commerce graduate and a post-graduate in Business from California State University, Northridge. He has over 20 years of experience in security market.
Administration, Marketing
along with
She is a qualified Chartered Accountant and has 25 years of experience across varied industries. At VIP industries, Financial Controller & business partner, she is responsible for Relationship, Legal, Information Commercial functions.
Technology
Secretarial,
Investor
being
and
the
Senior Management
Abhinav Kapoor Vice President Sales Over 20 years of experience in FMCG industry
Anjan Mohanty Chief Executive Officer – Bangladesh 23 years of experience in apparel industry
Anup Sur Head - Supply Chain & Logistics 24 years of experience across varied industries
Ashish Saha Sr. Vice President – India Manufacturing & New Projects 42 years of experience in luggage industry
MVH Sastry Head Procurement & Sourcing 20 years of experience in FMCG industry
Praful Gupta Head Marketing 22 years of experience in FMCG & luggage industry
Suhas Kshirsagar Head - Corporate Quality & After Sales Service 27 years of experience in luggage, automotive & FMCG industry
Sunil Kolhe Sr. Vice President – Design & Product Development 34 years of experience in luggage industry
Vikas Anand Vice President - Human Resources 17 years of experience across varied industries
VIP Power Brands : High Equity, targeted at distinctive opportunity spaces
Proposition
Innovative & Caring partner that makes every trip comfortable, safe and enjoyable
Trendy , colorful luggage brand that helps you get noticed
Partner every young middle Indian in this journey with products that are built to outperform and outlast
Hello Holidays
Move in Style
Unpack Your Dreams
Brand Print
BRANDS FROM THE HOUSE OF VIP INDUSTRIES
VIP Power Brands : High Equity, targeted at distinctive opportunity spaces
Proposition
Luggage Partner For Young Visionaries & Leaders
Avant-garde range of handbags & accessories for every woman who wishes to announce her arrival in life
The New Face Of Business
All That A Girl Can Be
Brand Print
BRANDS FROM THE HOUSE OF VIP INDUSTRIES
Diversified Product Portfolio
HARD LUGGAGE
DUFFLE BAGS
SOFT LUGGAGE
LADIES HANDBAGS
BACKPACKS
Healthy geographical presence – Driving Deeper Penetration
RETAIL TRADE
MODERN TRADE
GENERAL TRADE
ECOM
CSD CPC
INSTITUTIONAL
4 Regions 20 Branches
Pop Strata
30K – 50K
50K - 1 Lakh
1 - 5 Lakhs
5 -20 Lakhs
20 - 50 Lakhs
50 Lakhs+
VIP Presence (No. of towns)
FY20
FY23
182
278
321
73
8
5
263
471
387
79
8
5
Branch locations
Total
867
1213
High Impact Investment In Own Manufacturing ! Rs 100 CRORES IN FY23 !
Pre-pandemic FY20
3p Sourcing, 13%
China, 34%
Controlled Mfg - India, 12%
Own Manufacturing Capacity Expansion Initiated Volumes pm (‘000)*
2150
Post-pandemic
FY23 3p Sourcing, 3%
China, 7%
Own Manufacturing, 42%
600
1400
1025
Controlled Mfg - India, 20%
FY20
FY22
FY23
FY24
Own Manufacturing, 70%
Planned Capex For FY24 Is Rs. 200 Crores !
*Includes HL, SL, DFT & Backpacks
Financial Overview
Performance Highlights (Consolidated)
Q4 FY23 Operational Highlights
• Q4 revenue reported an all-round growth at 27% YoY
(volume 27%) and 45% over base (volume 40%) • Gross margins* reported sequential improvement of
8.4% and YoY improvement of 4.6%, mainly on account of operational efficiencies combined with favorable raw material prices & ocean freight
• Q4 overall expense is at Rs. 196 cr as compared Rs. 157 cr last year in line with increased operations • Other expenses include provision for doubtful debt of
Rs. 12 crore
•
EBITDA without impact of provision for doubtful debt would be 17.8%
EBITDA % - Q4 FY 22 Increase in Gross Margin (incl. other income) Better absorption of Employee Cost Advt. exp Other exp EBITDA % - Q4 FY 23
10.6% 4.3% 2.6% -1.4% -1% 15.1%
Q4 FY22
Q1 FY23
Q2 FY23
Q3 FY23
Q4 FY23
Revenue (Rs. cr)
YoY Growth (%)
356
46%
591
515
186%
56%
526
32%
451
27%
Q4-FY23 Consolidated Financial Performance
Rs. 451 Cr. Revenues
57.9%* GP %
15.1% EBITDA %
Rs. 41 Cr. PBT#
+27%
+4.6%
+4.5%
+154%
Over Q4 FY22
FY23 Consolidated Financial Performance
Rs. 2081 Cr. Revenues
51.1%* GP %
15.8% EBITDA %
Rs. 229 Cr. PBT#
Rs. 152Cr. PAT##
+61%
+1.1%
+2.1%
+165%
+128%
*net off other income #Before exceptional item
##net-off Rs. 47.2 cr exceptional loss
15
Over FY22
Q4 & FY23 Financial Performance - Consolidated
Particulars Revenue from Operations Other Income Total Revenue COGS Gross Contribution GC Margin (without Other Income) Employee Benefits expenses Other Expenses Total Expenses EBIDTA EBIDTA Margin Depreciation EBIT Finance Cost Profit before Exceptional items Exceptional items Expense / (Income) Profit before Tax Tax Profit After Tax
Mar-23 451 5 455 190 265 57.9% 58 138 196 69 15.1% 20 49 8 41 47 -6 -2 -4
Quarter ended Dec-22 526 2 529 266 263 49.4% 59 128 187 76 14.3% 18 57 7 51 0 51 7 44
Mar-22 356 6 362 166 195 53.3% 56 101 157 38 10.6% 17 21 5 16 0 16 4 12
Year ended
Mar-23 2082 17 2099 1019 1081 51.1% 236 514 750 331 15.8% 74 257 28 229 32 197 44 152
Mar-22 1290 36 1326 645 681 50.0% 189 311 500 181 13.6% 70 111 25 86 0 86 19 67
FY23 Key Financial Metrics – P&L
Total Revenue (Rs. cr)
2,099
1,326
Gross Margin (%)
51.5%
51.4%
Mar-23
Mar-22
Mar-23
Mar-22
EBITDA (%)
15.8%
PBT before Exceptional Item (Rs. cr)
229
13.6%
86
Mar-23
Mar-22
Mar-23
Mar-22
FY23 Key Financial Metrics – Balance Sheet
Net Debt (Rs. cr)
Working Capital (No of Days)
122
61
89
126
Mar-23
Mar-22
Mar-23
Mar-22
Investments & Cash & Bank (Rs. cr)
59
61
Shareholders’ Funds (Rs. cr)
642
560
Mar-23
Mar-22
Mar-23
Mar-22
Brands, Channels & Categories
Revenue Performance : Channels
Channel-wise revenue Salience (%)
Q4 FY20
Q4 FY22
Q4 FY23
YoY % Growth
Channel-wise revenue Salience (%)
FY20
FY22
FY23
General trade
Retail trade
Modern trade
Ecom
CSD CPC
Institutional
International
26%
15%
31%
4%
15%
5%
3%
22%
12%
25%
11%
20%
7%
3%
22%
11%
29%
11%
16%
6%
4%
28%
23%
45%
32%
General trade
Retail trade
Modern trade
Ecom
1%
CSD CPC
16%
54%
Institutional
International
23%
14%
31%
9%
14%
6%
3%
20%
10%
28%
16%
17%
6%
3%
23%
11%
28%
14%
12%
7%
4%
YoY % Growth
85%
81%
60%
39%
19%
80%
173%
GT
GT distribution present in over 1200 towns across India
EBO
Retail store count @ 500 for FY23 Planned exit @ 800 for FY24
MT
Future group loss mitigated within other chains
ECOM
Continued growth trajectory; Accelerator program planned for FY24
IB
Enhanced extraction from existing high potential markets
Revenue Performance : Brands
Brand-wise revenue Salience (%)
VIP
SKYBAGS
CARLTON
Premium & Mass Premium
ARISTROCRAT+ ALFA
CAPRESE
Q4 FY20
27%
36%
4%
68%
27%
5%
Q4 FY22
23%
33%
5%
62%
36%
2%
Q4 FY23
YoY % Growth
Brand-wise revenue Salience (%)
FY20
FY22
FY23
23%
33%
6%
62%
35%
4%
23%
VIP
26%
SKYBAGS
53%
CARLTON
27%
Premium & Mass Premium
22%
ARISTROCRAT+ ALFA
90%
CAPRESE
27%
37%
5%
69%
25%
6%
23%
33%
5%
61%
36%
4%
23%
31%
6%
60%
36%
4%
YoY % Growth
65%
50%
84%
58%
65%
71%
New launches & Brand Activations
Revenue Performance : Categories
Category-wise revenue Salience (%)
Q4 FY20
Q4 FY22
Q4 FY23
YoY % Growth
Category-wise revenue Salience (%)
FY20
FY22
FY23
YoY % Growth
UPRIGHTS
HARD LUGGAGE - UPRIGHT
SOFT LUGGAGE - UPRIGHT
DUFFEL BAGS
BACKPACKS
LADIES HAND BANGS
36%
29%
10%
20%
5%
49%
29%
9%
10%
2%
49%
25%
7%
15%
4%
UPRIGHTS
26%
HARD LUGGAGE - UPRIGHT
9%
0%
SOFT LUGGAGE - UPRIGHT
DUFFEL BAGS
98%
BACKPACKS
89%
LADIES HAND BANGS
32%
33%
10%
18%
6%
46%
30%
9%
10%
4%
49%
26%
8%
13%
4%
69%
41%
33%
115%
71%
New launches & Brand Activations
Q1 Sneak Preview
Starting The Year With Our Game Face On !
Stand Out With Our Clutter Breaking Designs!
With A Differentiated Shape & Pop Colors Of The Season – You Are Sure To Make Heads Turn !
Assemble In Style With Launch Of Our Official Marvel Luggage Collection !
Youthful & striking designs !
The Red bag represents the iconic ‘Marvel Red’
“Wakanda Forever” is inspired by the beloved character Black Panther
Perfect range for all Marvel enthusiasts!
Hop on the trend @
https://youtu.be/7vKwR7QasEg
Make an Impression With This Piece Of Perfection !
Sophisticated & stylish design available in two bold colors !
Take off on your next adventure for free with VIP !
Explore With Confidence !
https://youtu.be/RRC8BmsjKPQ
Introducing A Bag Full Of Magic !
Sleek and stylish Disney inspired Caprese bags designed to add a touch of magic to everyday lives of women !
https://youtu.be/NEutf_yO3kU
For Further Information Contact:
VIP Industries Limited Ms. Neetu Kashiramka – Executive Director & Chief Financial Officer Email: neetu.kashiramka@vipbags.com
Adfactors PR Pvt. Ltd.
Snighter Albuquerque/ Rushabh Shah Email: snighter.a@adfactorspr.com/ rushabh.shah@adfactorspr.com Mobile: 9819123804 / 8082180182
5th Floor, DGP House, 88-C, Old Prabhadevi Road, Mumbai – 400025
Thank you