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
3rd August, 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 Q1 FY24
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
Q1 FY24 Financial Performance
Brands, Channels & Categories
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
VIP Presence (No. of towns) As of FY23
As of Q1 FY24
As of FY20
182
278
321
73
8
5
263
479
395
79
8
5
320
491
395
79
8
5
Pop Strata
30K – 50K
50K - 1 Lakh
1 - 5 Lakhs
5 -20 Lakhs
20 - 50 Lakhs
50 Lakhs+
Branch locations
Total
867
1229
1298
As per 2011 census
Financial Overview
Performance Highlights (Consolidated)
Revenue Construct
13% Offline Channel (GT/RT/MT)
40% Online (Ecommerce)
16%
Total Trade channels
-3%
CSD
-35%
-3%
Institutional
Exports
Overall growth @ 8%
Q1 FY24 Financial Performance Snapshot
Rs. 636 Cr. Revenues
+8%
49.5%* GP %
-0.4%
13.0% EBITDA %
Rs. 77 Cr. (12.1%) PBT#
-5.3%
-4.6%
Over Q1 FY23
e g d i r B A D T I B E
EBITDA % - Q1 FY 23 Increased invst. in brand & channel strengthening Decrease in Gross Margin Increase in Employee Cost Other expenses EBITDA % - Q1 FY 24
18.3%
-2.6%
-0.8% -0.3% -1.6% 13.0%
d n e r t
C G
Quarter
Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24
GC %
49.9% 48.1% 49.4% 57.9% 49.5%
• Overall revenue growth at 8%, however
underlying revenue growth, excluding a one- time Institutional order in the base Qtr (Q1FY23) is 12%
• The offline and online (trade channels) cumulative growth is at a healthy 17%
• CSD revenues, impacted exceptionally in the Qtr. due to a large scale range refreshment driven by CSD, expected to bounce back strongly going forward
• Volume growth stood at 10.5%
• Maintained YoY Gross margins at 49.5%*
• Gross margins impacted sequentially mainly on
account of hampered production at our Bangladesh facility and unfavorable brand & channel mix
• Q1 overall expense is at Rs. 234 cr as compared Rs. 192 cr last year on account of increased operations and higher brand & channel investments
*net off other income #after exceptional item
Q1 FY24 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
Jun-23 636 3 639 321 317 49.5% 66 168 234 83 13.0% 21 62 11 52 26 77 20 58
Quarter ended Mar-23 451 5 455 190 265 57.9% 58 138 196 69 15.1% 20 49 8 41 -47 -6 -2 -4
Jun-22 591 7 598 296 302 49.9% 60 132 192 110 18.3% 18 92 7 85 15 100 31 69
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
Key Financial Metrics – P&L
Total Revenue
639
598
455
Gross Margin (Excl Other Income)
49.5%
49.9%
57.9%
Jun-23
Mar-23
Jun-22
Jun-23
Mar-23
Jun-22
EBITDA
PBT
13%
15%
18%
77
100
Jun-23
Mar-23
Jun-22
Jun-23
-6 Mar-23
Jun-22
Brands & Categories
Revenue Performance : Brands & Categories
Q1 FY23
Q4 FY23
Q1 FY24
Brand-wise Salience
Channel-wise Salience
General trade
Retail trade
Modern trade
Ecom
CSD CPC
Institutional
International
1
28%
11%
26%
10%
11%
9%
5%
22%
11%
29%
11%
16%
6%
4%
27%
9%
30%
13%
10%
6%
5%
2
Carlton
VIP
Skybags Premium & Mass Premium Aristocrat + Alfa
Q1 FY23
5%
25%
30%
Q4 FY23
6%
23%
33%
Q1 FY24
6%
20%
29%
Category-wise Salience
Uprights
Hard Luggage
Soft Luggage
61%
62%
56%
Duffel Bags
Q1 FY23
Q4 FY23
Q1 FY24
77%
48%
28%
7%
74%
49%
25%
7%
74%
48%
25%
7%
35%
35%
40%
Backpacks
12%
15%
15%
Caprese
4%
4%
4%
Ladies Hand Bags
4%
4%
4%
GTM strengths in the offline channel continues to deliver healthy growth
Investments in strengthening ECOM business fundamentals starting to show results
3
4
Backpack new collection launched in Apr’23 has been received very well, resulted in 40% Gr YoY
Competitive play in the Value Segment through ‘Aristocrat’ continues to be strong; 26% YoY growth
5
6
Loss of the Bangladesh Facility in Feb’23 and subsequent alternate sourcing could not meet the peak demand fully in first half of the Qtr. resulting in loss of revenue in Soft luggage uprights, especially in VIP & Skybags ranges
Significantly subdued marriage season, the dominant demand cohort in Q1, also led to lower traction in the mass premium segment
Salience & growth calculated on gross revenue
Brands & Channels Strengthening
VIP Premium Product Launches During The Quarter
Maestro NXT Strong & Durable IML construction.
Arlington UNI Spacious with Packing Aids
Havelock Secured Packing
Hyperloop Sharp design Lines. Formal.
VIP Set Offerings
Pixelite Understated design. Functional & convenient
Quad Striking design. Durable & Functional
Manama Practical, Value for Money Offer
Protega Premium look & feel for those who want MORE for less
Exciting Skybags Launches During The Quarter
Skybags Sets Offerings
Cityscape The Gaming Collection
Marvel Range The Official Marvel Collection
Beat Pro
Jerry Can Differentiated design in colors of the season
New Kids Range
Vertex
Openskies New Print Addition
High Impact Awareness Campaign Across Print, Outdoor And Digital
Extensive outdoor hoardings in Top Metros
Front page print ads in Top Metros
Strong promotions on digital 12 million+ reach
GT distribution is currently present in 942 towns across India
Enhanced extraction from existing high potential markets
High Impact Awareness Campaign Across Print, Outdoor And Digital
Mega Print Campaign
Biggest Outdoors Plan
Mega Print Ad across top dailies in top cities pan India with most impactful properties in print.
Biggest outdoor campaign with more than 100 strategic outdoor locations across top cities.
Digital Hoarding Innovation
Strengthening Value Play with Aristocrat Launches During The Quarter
#1 New HL range in PP
#2 SL rejuvenation –
#3 New Set offerings
All our new offerings are Bigger Better & Stronger
First in the industry Set fo 6 !
7 Year Warranty Campaign & Offers During Q1
Our bags boast a remarkable 7-year warranty, solidifying our commitment to durability and setting us apart from competitors offering warranties of 3 or 5 years. Experience unmatched security and peace of mind, knowing that our highly durable bags are built to last and outshine the rest.
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/ Pratik Patil Email: snighter.a@adfactorspr.com/ pratik.patil@adfactorspr.com
Mobile: 9819123804 / 8291510324
5th Floor, DGP House, 88-C, Old Prabhadevi Road, Mumbai – 400025
Thank you