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
31st October, 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
ANAND CHAMPALAL DAGADigitally signed by ANAND CHAMPALAL DAGA Date: 2023.10.31 14:42:57 +05'30' INVESTOR PRESENTATION Q2 & H1 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
Q2 & H1 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 ~12,000 Point of Sales across ~1300 towns
~13000 employees*
*~8000 at Bangladesh
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
and an He experienced industrialist who has pioneered the luggage industry in India. He has an experience of more than 50 years in the luggage industry
Mr. Dilip Piramal Chairman
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.
Ms Radhika Piramal Executive Vice Chairperson
She is a qualified Chartered Accountant and has 25 years of experience across varied industries. At VIP industries, she is responsible to build the organization growth strategy and lead execution across all business verticals & regions globally
He holds Post Graduate Diploma in Dye & Moulding from Central Scientific Instruments Organizations, INDOSWISS Training Centre, Diploma in Instrument Technology and has over 40 years of experience in luggage industry. At VIP Industries, he heads India manufacturing and New projects
Ms Neetu Kashiramka MD Designate & CFO
Mr. Ashish Saha Executive Director
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.
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.
He is a Commerce graduate and a post-graduate in from Business California State University, Northridge. He has over 20 years of experience in security market.
Administration, Marketing
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 holds a Doctorate in Business Administration, is a Fellow Member of ICAI and a law graduate from University of Mumbai. He has established RSM India and under his leadership it has become the largest first-generation home-grown accounting, tax and consulting group in India
Mr. Amit Jatia Independent Director
Ms Nisaba Godrej Independent Director
Mr. Ramesh Damani Independent Director
Mr. Tushar Jani Independent Director
Dr. Suresh Surana Independent Director
Senior Management
Abhinav Kapoor Vice President - Sales 22 years of experience in FMCG industry
Anjan Mohanty Chief Executive Officer – Bangladesh 25 years of experience in apparel industry
Anup Sur Vice President – Supply Chain Management 25 years of experience across varied industries
Ashish Saha Executive Director & Sr. Vice President – India Manufacturing & New Projects 44 years of experience in luggage industry
MVH Sastry Vice President - Procurement & Sourcing 18 years of experience in FMCG industry
Praful Gupta Vice President - Marketing 24 years of experience in FMCG & luggage industry
Suhas Kshirsagar Vice President - Corporate Quality & CRM 29 years of experience in luggage, automotive & FMCG industry
Sunil Kolhe Sr. Vice President – Design & New Product Development 36 years of experience in luggage industry
Sushant Junnarkar Vice President - Ecommerce & Caprese 23 years of experience across industries, and in digital domain for FMCG, fashion & beauty
Vikas Anand Vice President - Human Resources 18 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 H1 FY24
As of FY20
182
278
321
73
8
5
263
479
395
79
8
5
369
499
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
1355
As per 2011 census
Financial Overview
Performance Highlights (Consolidated)
Q2 FY24 Financial Performance Snapshot
• Overall revenue growth at 6% (Volume
Rs. 549 Cr. Revenues
+6%
55.5%* GP %
+7.4%
10.1% EBITDA %
-4.7%
Rs. 19 Cr. PBT# -63%
Over Q2 FY23
H1 FY24 Financial Performance Snapshot
Rs. 1182 Cr. Revenues
+7%
52.3%* GP %
+3.2%
11.7% EBITDA %
-5%
Rs. 97 Cr. PBT# -36%
Over H1 FY23
e g d i r B A D T I B E
EBITDA % - Q2 FY 23
Increase in Gross Margin Increase in Other Expenditure
Increase in Advt & DCA Exp
Increase in Employee Cost
EBITDA % - Q2 FY 24
14.8%
+7.1% -6.3%
-4.5%
-0.9%
10.1%
d n e r t
C G
Quarter Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24
GC % 49.9% 48.1% 49.4% 57.9% 49.5% 55.5%
@ 10%)
• Trade channels (offline and online)
cumulative growth at 13%^
• Ecommerce continues to grow at over
50% YoY^
• CSD revenues, impacted due to a large-
scale range refreshment
• Gross margins bounced back to 55.5%* after being impacted in Q1 on account of hampered production at our Bangladesh facility
• Other Exp include Rs. 6 cr professional fees to BCG for ecommerce project and Rs. 3 cr on a/c of marketplace activations
• Out of 4.5% Advertisement & DCA variance, 4.2% is on account of Ecommerce
^growth calculated on gross revenue *net off other income #after exceptional item
Q2 & H1 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
Quarter ended Jun-23 636 3 639 321 317 49.5% 66 168 234 83 13.0% 21 62 11 52 26 77 20 58
Sep-23 546 3 549 243 306 55.5% 66 184 250 55 10.1% 24 32 12 19 0 19 6 13
Sep-22 515 5 520 267 253 48.1% 58 118 176 77 14.8% 18 59 7 52 0 52 9 43
Six months ended Sep-22 Sep-23 1105 1182 12 5 1118 1187 563 564 555 623 49.1% 52.3% 118 132 250 352 368 484 187 139 16.7% 11.7% 36 45 151 94 13 23 137 71 15 26 152 97 40 26 113 71
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
Revenue 639
549
520
Gross Margin (Excl Other Income)
55.5%
49.5%
48.1%
Sep-23
Jun-23
Sep-22
Sep-23
Jun-23
Sep-22
EBITDA
PBT before Exceptional Item
10%
13%
15%
19
52
52
Sep-23
Jun-23
Sep-22
Sep-23
Jun-23
Sep-22
Key Financial Metrics – Balance Sheet
Net Debt
217
77
Net Current Assets (No of Days)
124
97
91
89
Sep-23
Sep-22
Mar-23
Sep-23
Sep-22
Mar-23
Investments & Cash & Bank
61
59
41
Shareholders’ Funds
716
668
642
Sep-23
Sep-22
Mar-23
Sep-23
Sep-22
Mar-23
Brands & Categories
Revenue Performance : Brands & Categories
Channel-wise Salience
H1 FY23 H1 FY24
General trade
Retail trade
Modern trade
Ecom
CSD CPC
Institutional
International
1
5
6
Brand-wise Salience
Carlton
VIP
Skybags Premium & Mass Premium Aristocrat + Alfa
Caprese
H1 FY23 H1 FY24
5%
24%
31%
60%
36%
4%
5%
20%
31%
56%
39%
4%
Category-wise Salience
Uprights
Hard Luggage
Soft Luggage
Duffel Bags
Backpacks
Ladies Hand Bags
H1 FY23 H1 FY24
76%
49%
27%
7%
12%
4%
75%
50%
25%
7%
13%
4%
23%
11%
26%
15%
12%
7%
5%
22%
10%
27%
21%
9%
6%
4%
2
Trade Channels growth (Online & Offline) at a healthy 15%
Investments in strengthening ECOM business fundamentals show results with 50% YoY growth
3
Backpack new collection has been received very well – making it the fastest growing category
4
Competitive play in the Value Segment through ‘Aristocrat’ continues to be strong; 20% YoY growth
Slower secondary sales in Q1 impacted Q2 performance for primary driven offline trade channels like GT & MT
International business suffered with demand slowdown in middle east and increase in global China supplies
Salience & growth calculated on gross revenue
Brands Strengthening
Product Launches Targeting Key Q2 Consumer Cohorts
Capitalizing on Student travel season
Back to college
Supplementary Campaigns Targeting Key Q2 Consumer Cohorts
Capitalizing on Student travel season
Back to college
#IDTOFAME contest encouraged participant to create their unique campus look with their latest sky bags backpack collection , the contest saw an impressive 4 million views along with high engagement
The #IDTOFAME contest was amplified by leading marco and micro influencers to drive participation and reach.
New Launches Strengthening Categories
Soft Luggage
Backpacks
Launch of Casual Range under Skybags
Strengthening Soft Luggage for Ecom Big Days
Category expansion with Rucksacks
New Launches Strengthening Premiumization Agenda
Skybags’ Mega Actions On Digital To Engage Youth
High exposure digital advertising
Engaging web store with high traffic
Topical & engaging content on social media resulting in 6 lakh+ engaged followers
Skybags Also Ventured In Regional Sales Pivot With Onam Activation
Print Ads in Hindu and Matrubhumi
VIP Ventured Into AI Advertising With Its World Tourism Day Campaign
Caprese Launched ‘Emily In Paris’ With 360 Degree Activations & Media
SOCIAL MEDIA PROMOTION
INFLUENCER COLLABS
CAPRESE FASHION FETE EVENT, SOCIAL AMPLIFICATION, DIGITAL PR
DIGITAL PR
Caprese Launched ‘Tresna’ Collection With 360 Degree Activations & Media
For Further Information Contact:
VIP Industries Limited Ms. Neetu Kashiramka – MD Designate & 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