Rupa & Company Limited has informed the Exchange about Investor Presentation

C RUPA 5g 4 RUPA & COMPANY LIMITED x ~ Date: 29/01/2021 To, The Listing Department The Department of Corporate Services National Stock Exchange of India Ltd BSE Ltd Exchange Plaza, Plot no. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex Dalal Street, Bandra (E), Mumbai - 400 051 Mumbai- 400 001 NSE Symbol: RUPA Scrip Code: 533552 Respected Ma’am/ Sir, " Please find enclosed herewith Investor Release and Result Presentation in relation to Unaudited Financial Results of the Company for the quarter and nine-months ended December 31, 2020. This is for your information and record please. Thanking you. Yours faithfully, Kundan Kumar Jha — Company Secretary & Compliance Officer ACS 17612 4 Encl: As above 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 !SO 9001:2008 Certified Company CIN No.: L17299WB1985PLC038517  Investor Release Rupa & Company reports Robust Performance for Q3 FY21 ✓ Revenue at Rs. 346 crores, growth of 12% ✓ EBITDA growth of 40% ✓ PAT growth of 52% Kolkata, 29th January, 2021 – Rupa & Company Limited, one of the leading and largest knitwear brand in India, engaged in the manufacturing, marketing, selling and distribution of men's and women's innerwear, thermal wear and fashion wear announced its Unaudited Financial Results for the Quarter and nine months ended 31st December 2020. Key Financial Highlights are as follows: Particulars (Rs. Crs.)* Q3 FY21 Q3 FY20 Y-o-Y 9M FY21 9M FY20 Y-o-Y Revenues 345.6 307.6 12% 858.7 795.3 8% EBITDA 64.3 45.8 40% 166.7 105.9 57% EBITDA Margins (%) 18.6% 14.9% 19.4% 13.3% Profit After Tax 43.4 28.5 52% 109.4 66.2 65% PAT Margins (%) 12.6% 9.3% 12.7% 8.3% * On Consolidated Basis Commenting on the Results, Mr. Dinesh Kumar Lodha, CEO said, “We are pleased with the overall performance and profitability of the Company despite the current pandemic situation. The performance is an indication of the Company’s effort in building a resilient business capable of performing even in the most adverse conditions. Our Revenues grew by 12% on back of increased volumes during the festive season. We also saw good traction in the winter wear sales. EBITDA and PAT grew 40% and 52% respectively due to change in product mix, improved operating efficiencies and cost reduction strategies. During the year gone by, the Company has spent ~4-5% on brand development. The Company’s focus is to increase share in premium and super premium category, improve focus on women, casual, and thermal wear, and foray in newer markets with higher penetration in the existing markets. The Company has been continually adopting measures to reduce its inventories and debtor cycle. Our focus is to bring efficiencies in our working capital cycle. We have an unwavering approach to quality at Rupa. Quality is implemented at all levels, from Project Planning, Design and Documentation, to Execution and Supervision. With focus on innovation and research, continuous upgrading of machinery and technology at all levels, stringent quality control measures, and international-standard production norms gives Rupa’s products the leading edge. Rupa has a strong PAN India presence. Our strategy is to foray in newer markets by appointing new distributors and building experienced team and further penetrate in the existing markets. This would lead to increased investments in brand development across new geographies.”  Update on Scheme of Arrangement During the quarter gone by, the Board has approved the Scheme of Arrangement between Oban Fashions Private Limited (Demerged Undertaking), and Rupa & Company Limited (Resulting Company) subject to requisite approvals and permissions. The proposed demerger would help in • Utilizing the current market presence and customer base of the Resulting Company • Streamlining the operational structure of the Demerged Undertaking • Synergies expected to bring in cost savings in the marketing, selling and distribution expenses as well as give benefits of the economies of scale of the Company • Would enable consolidation of similar premium businesses and carry on the same more efficiently and effectively About Rupa & Company Limited Rupa, today is one of the leading knitwear brand in India, covering the entire range of knitted garments from innerwear to casual wear. Rupa has a broad & unparalleled product portfolio of innerwear, thermal wear, and casual and athleisure wear. The Company has a bouquet of brands across all price segments – economy, mid-premium, premium as well as the super-premium across men, women, and kids. The Company has 4 state of the art manufacturing facilities in Domjur (West Bengal), Tirupur (Tamil Nadu), Bengaluru (Karnataka) and Ghaziabad (NCR) with a capacity of 7,00,000 finished goods per day. The Company has PAN India presence with over 1,200 dealers and over 1,25,000 retail touchpoints. Safe Harbor Statement Any forward-looking statements about expected future events, financial and operating results of the Company are based on certain assumptions which the Company does not guarantee the fulfilment of. These statements are subject to risks and uncertainties. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the Company’s operations include a downtrend in the industry, global or domestic or both, significant changes in political and economic environment in India or key markets abroad, tax laws, litigation, labour relations, exchange rate fluctuations, technological changes, investment and business income, cash flow projections, interest, and other costs. The Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof. Contact Details Company: Rupa & Company Investor Relations: Orient Capital Name: Mr. Sumit Khowala Mr. Deven Dhruva deven.dhruva@linkintime.co.in +91 9833373300 Email: sumit.khowala@rupa.co.in CIN: L17299WB1985PLC038517 Mr. Sagar Shroff sagar.shroff@linkintime.co.in +91 9820519303 www.rupa.co.in INVESTOR PRESENTATIONJanuary 2021Safe Harbor2ThispresentationhasbeenpreparedbyandisthesoleresponsibilityofRupa&CompanyLimited(the“Company”).Byaccessingthispresentation,youareagreeingtobeboundbythetrailingrestrictions.Thispresentationdoesnotconstituteorformpartofanyofferorinvitationorinducementtosellorissue,oranysolicitationofanyofferorrecommendationtopurchaseorsubscribefor,anysecuritiesoftheCompany,norshallitoranypartofitorthefactofitsdistributionformthebasisof,orbereliedoninconnectionwith,anycontractorcommitmentthereof.Inparticular,thispresentationisnotintendedtobeaprospectusorofferdocumentundertheapplicablelawsofanyjurisdiction,includingIndia.Norepresentationorwarranty,expressorimplied,ismadeasto,andnorelianceshouldbeplacedon,thefairness,accuracy,completenessorcorrectnessoftheinformationoropinionscontainedinthispresentation.Suchinformationandopinionsareinalleventsnotcurrentafterthedateofthispresentation.Thereisnoobligationtoupdate,modifyoramendthiscommunicationortootherwisenotifytherecipientiftheinformation,opinion,projection,forecastorestimatesetforthherein,changesorsubsequentlybecomesinaccurate.Certainstatementscontainedinthispresentationthatarenotstatementsofhistoricalfactconstitute“forward-lookingstatements.”Youcangenerallyidentifyforward-lookingstatementsbyterminologysuchas“aim”,“anticipate”,“believe”,“continue”,“could”,“estimate”,“expect”,“intend”,“may”,“objective”,“goal”,“plan”,“potential”,“project”,“pursue”,“shall”,“should”,“will”,“would”,orotherwordsorphrasesofsimilarimport.Theseforward-lookingstatementsinvolveknownandunknownrisks,uncertainties,assumptionsandotherfactorsthatmaycausetheCompany’sactualresults,performanceorachievementstobemateriallydifferentfromanyfutureresults,performanceorachievementsexpressedorimpliedbysuchforward-lookingstatementsorotherprojections.Importantfactorsthatcouldcauseactualresults,performanceorachievementstodiffermateriallyinclude,amongothers:(a)ourabilitytosuccessfullyimplementourstrategy,(b)ourgrowthandexpansionplans,(c)changesinregulatorynormsapplicabletotheCompany,(d)technologicalchanges,(e)investmentincome,(f)cashflowprojections,and(g)otherrisks.Thispresentationisforgeneralinformationpurposesonly,withoutregardtoanyspecificobjectives,financialsituationsorinformationalneedsofanyparticularperson.TheCompanymayalter,modifyorotherwisechangeinanymannerthecontentofthispresentation,withoutobligationtonotifyanypersonofsuchchangeorchanges.Q3 & 9M FY21FINANCIAL HIGHLIGHTSStrong Q3 FY21 Performance*4Revenue from OperationsRs. 346 croresGrowth+12%EBITDARs. 64 croresGrowth+40%Margins 18.6%Profit After TaxRs. 43 croresGrowth+52%Margins 12.6%EBITDA MarginPAT MarginQ3 FY20Q3 FY2118.6%14.9%+370 bpsQ3 FY20Q3 FY2112.6%9.3%+330 bps* On Consolidated BasisStrong 9M FY21 Performance*5Revenue from OperationsRs. 859 croresGrowth+8%EBITDARs. 167 croresGrowth+57%Margins 19.4%Profit After TaxRs. 109 croresGrowth+65%Margins 12.7%EBITDA MarginPAT Margin9M FY209M FY2119.4%13.3%+610 bps9M FY209M FY218.3%12.7%+440 bps* On Consolidated BasisQ3 & 9M FY21 Performance Highlights -Consolidated6Profit & Loss Statement (Rs. Crs.)Q3 FY21Q3FY20Y-o-Y9M FY219M FY20Y-o-YRevenue from Operations345.6307.612%858.7795.38%Total Raw Materials162.4148.2397.4333.4Employee Benefits Expense12.516.534.949.2Sub-contracting/Jobbing Expenses63.955.4164.2178.3Other Expenses42.541.795.4128.5EBITDA64.345.840%166.7105.957%EBITDA %18.6%14.9%+370 bps19.4%13.3%+610 bpsOther Income1.72.14.05.6Depreciation and Amortisation Expense3.55.011.114.5EBIT62.543.0159.797.0Finance Costs3.65.110.614.4PBT58.837.955%149.182.680%Total Tax Expense15.59.439.716.4Profit for the year43.428.552%109.466.265%PAT %12.6%9.3%+330 bps12.7%8.3%+440 bpsEPS5.43.613.88.3ABOUT THE COMPANY#1Undisputed knitwear Indian brand…8Presence across major E-commerce platforms7,00,000+ Finished goods pieces per dayOne of the leading and largest knitwear brandin India, engaged in the manufacturing, marketing, selling and distribution of men's and women's innerwear, thermal wear and fashion wearSKUsSub Brands7,000+181,25,000+Retail Outlets1,200+Dealers100+Registration of Trademark'sNationally & Internationally… with long legacy of delivering excellence9RUPA brand incorporated1968Rupa & Co. Pvt. Ltd. Established19851995199619972000200320092010201120122013201520162018Took over the business of Binod Hosiery and converted into public limited CompanyIPO and listing of equity shares on Calcutta Stock Exchange and Jaipur Stock ExchangeStarted manufacturing casual wearStarted export of productsSet up Dyeing unit at Domjur, West BengalStarted manufacturing thermal wear products –ThermocotAcquired the brand “Euro”Launched premium brand Macroman MSeriesListing of shares at NSE and BSELaunched apparel for Kids under the brand “Imoogi”Forayed into the manufacturing of leggings under the brand “Femmora”Launch of brand, Macrowoman W Series, Torrido Thermal WearAwarded by “Limca book of Records”Also received Brand excellence in innerwear award by many renowned agenciesAwarded by The Economic Times –the “Best Corporate Brand”Acquired exclusive license from “FCUK”Acquired exclusive license from Fruit of the Loom, IncAwarded the “Promising Brands-2018” by The Economic Times50 Years of Creating Fashion……under the leadership and experienced advisory board10Mr. Prahlad Rai Agarwala, Chairman•Morethan50yearsofexperienceinthetextileindustry•ProvidesstrategicdirectiontotheCompanyandisthedrivingforcebehindtheestablishmentandgrowthoftheCompanyMr. Ghanshyam Prasad Agarwala, ViceChairman•More than 45 years of experience in the textile industry•Instrumental in the development of the CompanyMr. Kunj Bihari Agarwal, Managing Director•Morethan45yearsofexperienceinthetextileindustry,specializationinmarketinganddistribution•GuidesthecompanyandthemanagementatallthestagesofitsdevelopmentandstrategicdecisionsMr. Ramesh Agarwal, Whole-time Director & CFO•Morethan30yearsofexperienceinthetextileindustry•Playsakeyroleintheproductionplanning&distributionofproductsandcompletelymanageprocessinghouse•BrandDirectorofJon,Thermocot,TorridoandFemmoraMr. Mukesh Agarwal, Whole-time Director•Morethan25yearsofexperienceinthetextileindustry•Playsakeyroleinthesettingupofsystemsandprocessfordistribution&productionplanning•BrandDirectorofFrontlineMr. Niraj Kabra, Executive Director•AcommercegraduatefromCalcuttaUniversity•Morethan15yearsofrichexpertiseinthefieldofOperationsandgeneraladministration.HehasbeenservingontheBoardoftheCompanysince2018Mr. Dipak Kumar Banerjee, Independent Director•ACharteredAccountantwithexperienceover45years•HestartedhiscareerwithLICin1970andthereafter,in1975,joinedHUL.In1992,hebecametheCommercialDirectorofUnileverPlantationsGroup•JoinedthecompanyasaBoardmemberin2013Mr. Sushil Patwari, Independent Director•40+yearsofexperienceinthefieldofcottonyarnandknittedfabricindustry•MemberoftheExecutiveCommitteeoftheFederationofIndianExportOrganizations.•JoinedthecompanyasaBoardmemberin2003Mrs. Alka Devi Bangur, Independent Director•Shehasover16yearsofexperience•ManagingDirectorofPeriaKarmalaiTea&ProduceCo.Ltd.•SheisthememberofFICCILadiesOrganization(FLO)(LadieswingofFICCI).SheisalsothecommitteememberofBharatchamberofCommerceMr. Dharam Chand Jain, Independent Director•45+yearsofexperienceinthefieldoftextileandknittedfabricindustry•ChairmanofK.D.SareesEmporiumPrivateLimited.JoinedthecompanyasaBoardmemberin2003Mr. Ashok Bhandari, Independent DirectorMr. Vinod Kumar Kothari, Independent Director•CharteredAccountantsandCompanySecretary•FormerchairmanoftheInstituteofCompanySecretariesofIndia.Heisanauthor,trainerandexpertonspecializedareasinfinance•ChiefFinancialOfficerandPresidentatShreeCementsLimitedforover25years•40+yearsofexperienceasakeyexecutivenegotiatingwithbanks,governments,JVpartners,andtechnology&equipmentsuppliers…and a highly experienced management team11Mr. Dinesh Kumar Lodha, Chief Executive Officer •Extensiveexperienceinbusinessleadership–builtbusinesses,scaled-upgrowthstagebusinesses,managedcomplexorganizationsastheCEO,workedinglobalmatrixorganizationswithmultiplestakeholders•MemberofICAIandICSI,heispossessingBlackBelt(qualitycertification)inLeanSixSigma,GEUSA.GraduatedfromGECrotonville,USAinExecutive&StrategicLeadership(GEMDC)andfromISBHyderabadincourseonMarketingStrategiesinCompetitiveEnvironmentMr. J. Rajendra Kumar Singh,General Manager –Production•20 years experience in production and operation in textile•Ex-VP/Head Operation –Manufacturing, Gokaldas ImagesMr. Randhir Singh Jolly,General Manager –Modern Trade•15 years of experience in the field of textile, Apparels & Innerwear•Previously worked with Bombay Dyeing and Raymond'sMr. B. K. Singh, General Manager –Dyeing•More than 35 years of expertise in the field of Dyeing and production operations•Previously worked with Suryawansi Dyeing MillsMr. Vikash Agarwal, PresidentMr. Rajnish Agarwal, PresidentMr. Siddhant Agarwal, Vice President•Newgenerationindustrialist,Master’sinBusinessAdministrationinMarketingfromUniversityofCardiff,U.K.•BrandDirectorofbrands,‘Bumchums’&‘Euro’.HealsolooksafterthebrandingrelatedactivitiesinRupa•Newgenerationindustrialist,graduatedfromSt.Xavier’sCollege,KolkataandcompletedDiplomainMarketingfromtheUniversityofCalifornia,USA•BrandDirectorofpremiumbrands,‘MacromanM-Series’&‘MacrowomanW-Series’alongwiththeotherbrands,‘Softline’&‘Footline’•PresidentofIndianChamberofCommerceandalsoassociatedwithYoungPresidentOrganisation(YPO),actingasaBoardMemberoftheCalcuttaChapter•NewgenerationyounganddynamicindustrialistcompletedM.Sc.fromUniversityofWarwick,U.K.•Joinedintheyear2016andwasinstrumentalinbringingtwointernationalbrands,i.e.FrenchConnectionU.K.(‘FCUK’)andFruitoftheLoom(‘FOTL’)•LooksafterthebusinessofthesetwointernationalbrandsinIndiaalongwithModernTradeMr. Pronob Mukerji, General Manager –Marketing & Media•More than 17 years of experience in Marketing & Media•Previously worked with Page Industries…maintaining brand leadership over decades12Most Promising Brand 2018 The Economic Times Indywood Excellence Award 2017Govt. of Telangana Best Corporate Brand 2016 The Economic TimesIndian Power Brand 2011-12 The Worlds Greatest Brand 2015 Asia “Macroman M-Series”Worldwide achievers(Zee)Business Leadership Awards 2013First Indian innerwear manufacturer as licensee of SUPIMAWe offer Affordability + Scalability + Inspirational Brands13Broad & unparalleled product portfolioBrands across a wide price rangeAn integrated & efficient business model State of Art Manufacturing facilityFar-reaching footprintsQuality implemented at all levelsUnwavering focus on R&DAccelerating the launch of inspirational brandsDeepening commitments by consistent investments1. Affordability2. Scalability3. Inspirations Brands1. Broad & unparalleled product portfolioInnerwearThermal WearCasual / AthleisureVestsBrief / DrawerLingerieVest / UpperLowersLeggings & Causal WearSocksT-shirtsBermudas & TracksAthleisure & Winter Fashion14"Rupa overhauls its portfolio periodically to the fast-changing requirements, evolving the market in line with changing times."1. Brands across a wide price rangeBrand across WomenBrand across all Users(Men + Women + Kids)Brand across MenEconomy SegmentMid-Premium SegmentPremium SegmentSuper Premium SegmentDiversified product offering across customer types, product categories and price segmentsBouquet of Brands across Price SegmentsGamut of products from innerwear to casual and athleisure wear(Inner wear + Thermal wear + Active wear)Strategically making presence in Mid-premium to Super premium brandsLicensing of International Brands152. An integrated & efficient business model 16Product Design & DevelopmentManufacturing ProcessLogistics & DistributionManufacturing ProcessKnittingProcessing / Dyeing & BleachingCuttingStitchingLogistics & DistributionWarehousingDistributionInvest extensively in manufacturing integration and scaleOutsourcing labour intensive processes helps keep our asset base and employee base lightUp-gradation and replacement of old machines as and when requiredCritical Processes done in-house›Reduce costs & Improves efficiency›Helps keep our asset base and employee base light›Helps maintain high quality of outputCritical Processes done in-house2. State of Art manufacturing facility17Ghaziabad (NCR)Domjur (West Bengal) Tirupur (Tamil Nadu) Bengaluru (Karnataka) Continues investment in R&D to produce environment-friendly clothes and minimize carbon footprintsDyeing:BestinclasstechnologyfordyeingandbleachingtomaintaincompetitivequalitystandardsCutting:CNCandCADtechnologyisadoptedtohaveaccuracyindesignandconsistencyinqualityandquantitywithminimumuseoflabourStitching:Specificationandtechnicalknow-howsupportprovidedtoallvendorstohaveconsistencyinquality25tons/dayFabric Dyeing3tons/dayYarn Dyeing7,00,000+Finished Goods per day7,000+SKUsKnitting:StateoftheArtKnittingprocessdoneatourmanufacturingplantsDisclaimer : Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness2. Far-reaching footprints18Seeding MarketsGrowing MarketsFocused Markets125,000+Retail Outlets 1,200+Dealers Pan India PresenceRUPAenjoysverystrongpositionintheEastofIndiaandhasgainedsignificantpresenceintheNorthfollowedbytheWestofIndiaStrategyistoforayinnewermarketsbyappointingnewdistributorsandbuildingexperiencedteamandfurtherpenetrateintheexistingmarketsRUPAhasawiderangeofproductportfoliowhichhelpsittostrategisetheproductofferingsuitingtothedifferentconsumerpreferencesoftherespectivestatesExports:RUPAexportsitsproductsinMiddleEastCountrieslikeUAE,SaudiArabia,Kuwait,Iraq,etc.Myanmar,Ukraine,Algeria,Indonesia,Nigeria,Congo,Russia,USAandSingaporeamongothersanditaimstostrengthenitspresenceintheexistingmarketsandintroducelocalisedproductsasperthevariedpreferencesoftheconsumersDisclaimer : Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completenessRUPAisincreasingitsfootprintsinSouthIndiaandplanstoexpandandimprovemarketsharegoingahead2. Quality implemented at all levels19"Quality is our lodestar at Rupa. Since inception to the present day, we have never, and we shall never, compromise on quality. Because, if you follow quality, everything else will follow automatically."Pursuit of quality without compromise is achieved by single-minded focus on innovation and research, continuous upgrading of machinery, stringent quality control measures, and international-standard production normsQuality is implemented at all levels, from Project Planning, Design and Documentation, to Execution and SupervisionApplication of advanced technology at every level –from planning to production –gives Rupa products the leading edge Multi-pronged use of technology helps to meet all the required specifications, ably assisted by a trained pool of highly-qualified scientists and techniciansRupa reinforces quality with technologyUnderstanding the value of research, the ultra-modern laboratory at Rupa’s Dyeing and Processing Plant gives advanced developmental support to the daily operationsThe 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.2. Unwavering focus on R&D20"At Rupa, the constant pursuit of excellence is achieved through an unwavering focus on research and development, because that is the way in which we can continue to deliver beyond expectations."We put in a lot of research and effort to give environmentally friendly clothesInnerwear, thermals and hosiery products are made from superior and natural fibers that are grown in sustainable farming methodsMost of our fabrics are biodegradableRegularly upgraded and modernized production technologies help to conserve and recycle precious water and energyWe make soft, breathable, lush and comfy knitted wear that also replenish the environment in every way we canHarnessing the power of technology allows to conform to international standards of fastness properties like rubbing, perspiration, light and washingEach of Rupa’s product proudly flaunts the Colorfast guaranteeMuch of the research is focused on enhancing the standards of colour in the quality control laboratoryUp-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 effectsOur products conform to international standards of fastness properties like rubbing, perspiration, light and washing and come with a Colorfast guarantee3. Accelerating the launch of inspirational brands21Globally known premium apparel brandWell-known & largest International brands in the innerwear categoryRupa –A truly Global Indian•Exclusivelicensetodevelop,manufacture,marketandselltheFCUKbrandofinnerwearandrelatedproductsinIndia•Accesstoaglobalbrandwithstrongbrandrecognitioninthesuperpremiumsegment•Bringsglobalexpertiseinimprovingotherareasaswellviz.,manufacturingprocesses,designingcapabilities,logisticmanagement,etc.•Morethan30distributionpointsatpanIndialevel,availableonAmazon,Myntra,Paytm,FlipkartandotherE-commercePortals•ExclusivelicensefromFruitoftheLoom,Inc,tomanufacture,distribute,advertiseandsellinnerwearandouterwearproductsformen,boys,women,girlsandtoddlersinIndia,undertheirbrandnames•ExclusivetieupwithAmazonandCentral;morethan60distributionpointsatpanIndialevel•WidelyacceptedbytheconsumersMaking luxury accessible Premium innerwear based on comfort accessible3. Deepening commitments by consistent investments22Strong brand recall developed through consistent investment in advertising and brand promotion strategies 20202016201720187.1%7.4%7.3%20197.4%7.3%7480868271Rs. Crs.Over Rs. 1,000 croresspent on brand development in the last decadeBrand Development Cost (Rs. In Cr)Consistent annual investment of 7-8% of sales in brand development to create a robust portfolio GROWTH STRATEGIESGrowth Strategies241. High Margin Business2. Active & Womenswear3. Focus on Thermal wear 4. Focus on Exports6. Re-organising the Distribution ChannelAim to increase share in premium + super premium categoryPlan to grow through in-licensing or inorganic brand associations as well through organic growth of the Casual wear rangeLeggings under the brands “Softline” and “Femmora” have significant growth and widely accepted by the consumerPlan to cross Rs. 200 crores of Thermal wear revenue in next 2 yearsMoving from wholesale distribution channel to a direct distribution channel for some productsFocus to double exports and tap new geographies in the next 2 years7. Modern RetailEBOsE-commerce•Plan to have presence through 300 LFS in the next 2 years•Plan to roll out 150 more EBOs in the next 2 years•Enhance brand visibility through increasing online presence5. Foray in new markets in IndiaForay in newer markets and further penetrate in the existing markets1. Scaling high margin revenue stream25•VisiontooccupythewhitespaceinthecategoryandconsumermindspacewheretheaspirationalIndianconsumercanshowoffhisstylequotientanddiscerningtaste•CateringtothebrandsensitiveIndianyouth,aspiringtowardssuper-premiumproductcategories•MakingluxuryaccessibletotheIndianconsumers•Givenitssuper-premiumpositioning,distributionlargelythroughitsretailMBO’s(veryselectivelypresentacrosspremiumretaillocations)alongwithanaggressiveecommercestrategy•Companyistargeting6,000-8,000doorsinthenext3-5years•FruitoftheLoomispositionedwithinthelarge,fastgrowingmass-premiumcategory,providingsignificantroomtocreatescaled-upbrands,comparabletothevaluesegment•Aimistomakepremiuminnerwearbasedoncomfortaccessibletotheconsumerandbecomethebywordforthecategory•Givenitspremiumpositioning,followsanaggressivedistributionledstrategy;extensivepresenceacross3,280retailtouchpoints(MBO’s)alongwithastrongonlinefocus•Companytargetsexpansioninto30,000+doorsinthenext3-5years448812620112025e20152018Premium + Super Premium (Rs. in Cr)Premium + Super Premium (% of revenue)11.2%2025e2011201820146.9%9.4%1. Scaling high margin revenue stream26One of the Largest Premium Brand of Innerwear, Leisurewear, Sportswear, Activewear & Athleisure, for Men & WomenMacroman M-Series and Macrowoman W-Series have top notch fabrics, are styled by cutting edge designers, available in a variety of colors and patterns, with interesting accents and a range of exciting cuts for fashion and comfortDirect distribution model with access to retailers through own sales personnelRanbir Kapoor as the brand ambassador to connect with the target customer set2. Reinforcing high growth segments –Athleisure27“There’s a fun side to everyone. Be it the tiny tots, teenagers or grownups”Bumchums range of T-shirts, Bermudas, Tracks and Muscle Tees is designed for those who hate seriousnessHigh Growth Potential in Active / Thermal WearHealth and lifestyle focused Active wear segment industry has grown by ~13% CAGR since 2011“The most recent popular expression in design is "athleisure," one of those made-up terms that are so incredibly strange as to be flawlessly illustrative. That is, fashioners are fixated on garments that fit a to some degree general class of being suitable for either athletic or recreation interests”Range for Men, Women and KidsAthleisure -Anything from active leisure wear to workout clothesWinterwear -From lounge wear and full sleeve t-shirt to classic stylish hoodie2. Reinforcing high growth segments –Womenswear28Plans to scout for opportunities in Women Wear to develop brand capabilities, manufacturing ability or distributional reachPioneeringPremiumLeggings,LingerieandOuterwearbrandwithahugerangeofwardrobeessentialshoseekeasewithafashionableedgeSoftlineaimstomake‘comfortable’thenewfashionstatement.‘Softline’hasalwayspushedtheenvelopeintermsofinnovation,varietyandcomfortBrandsmantra‘EffortlessYou’,communicatesexactlytoreachouttotheprimaryconsumerbase,i.e.youngwomen,fulfillingtheirneedforcomfortableyetstylishLingerie,LeggingsandCasualwearVarietyofleggings,craftedfromunique4DcottonstretchfabricforaddedcomfortAvailablein250+coloursforallsizes.OuterwearconsistofWesternKurtipants,PalazzopantsandKnittedpants.Craftedfromhighqualitycotton,blendedwithelastanethatallowsfreemovementfordailywear3. Reinforcing high growth segments –Thermal wear29Plan to cross Rs. 200 crores of Thermal wear revenue in next 2 yearsYour ideal companion during winter months. Now, you can stay warm and stylish in wintersThermocot fabric is knitted on hi-tech machines with a perfect blend of Cotton and Polyester to give a perfect and warm fit even in the lowest temperaturesExquisite range of thermal wear Available in a variety of exciting colours, trendy styles and all sizes, it is ideal for every member of the familySo stylish yet thin that you can step out in your Torrido for morning jogs or even wear it under the shirt for a business meeting4/5. Focus on Exports and new markets30Disclaimer : Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completenessRussiaSouth East AsiaMiddle East CountriesIndiaAfricaUAE | Saudi Arabia | Kuwait | Iraq | Myanmar | Ukraine | Algeria | Indonesia | Nigeria | Congo | USA | Singapore | Russia and many moreExports of Rs. 25 crores in FY20 | Plan to double export revenues by FY 2022USAStrategy is to foray in newer markets by appointing new distributors and building experienced team and further penetrate in the existing markets6. Excellence is all about Simplifying and Optimising 31Wholesale Distribution ChannelWholesalersSemi WholesalersRetailersRetailersDirect Distribution ChannelDistributorsRetailersBetter control on priceswith well-defined margins for distributors and retailers Improving inventory turnover with support to distributors and direct interaction with retailersBetter inventory management with mapping of primary and secondary salesIncrease salesthrough increasing presence and availability at retail counters of all the SKUsStrategically move towards Direct Distribution channel for its product categoriesAgentsCompany’s Sales Representatives7. Prudent investing to drive business forward32Different modern retail formats and e-commerce platform offer significant opportunities to propel growthMODERN RETAIL TRADEEXCLUSIVE BRAND OUTLETSONLINE PORTALSCurrently have 150+ storesStrategy:›IncreaseBrandFootprintsacrossallbrandscreatingspecialproductlinemorerelevantforModernTrade›Improveontimeorderserviceabilitytoavoidrevenueloss›Createarobust,techdrivenwarehouseinfrastructure›Becomeasecondarysalesdrivencompany,investingonBrandstaffFuturePlan:›Tohavepresencethrough300countersinthenext2yearsCurrently have 11 storesStrategy:›CreatesmalltomidsizedFranchiseStoreModelwithbest-in-classSOPs›Buildandnurture,competentFranchiseeManagementOrganisationCapabilities›EstablishFranchisemodelwithinTop50Cities›InvestinKeyenablerslikeStoredesign,Branding,IT,CRM,SCM,CS,Marketing&Training/DevelopmentFuturePlan:›Adding7-10storesinnext1quarter›Torollout150moreEBOsinthenext2yearsPresent on all e-commerce sitesStrategy:›E-commerceIndustryisexpectedtogrowdoubleby2022($50Billion)›Developarobusttech-basedwarehouseinfrastructuretosupportPurePlayMarketPlacebusinessModel›Developpacks/CombosbasedonrequirementsFuturePlan:›EnhancebrandvisibilitythroughincreasingonlinepresenceSubstantial opportunity to drive growth33Increasing income levels and high spending powerEmergence of purpose-specific innerwear (sporty, casual, fashionable) widening the MarketIncreasing penetration of electronic media leading to branded productsGrowth in penetration of organized retailChanging Fashion TrendsGrowing urbanization4,3008,50017,894201020152027E6% CAGR7,00014,50056,364201020152027E12% CAGRMen Category (Innerwear Industry)Rs. In CrsWomen Category (Innerwear Industry)Source: Industry EstimatesHISTORICAL FINANCIALSHistorical Financials -Standalone35Revenue (Rs. In Cr)4784854124314674985356006786774743299M FY21FY19FY16*FY17*FY18H1H2FY201,0131,0841,0901,108941827EBITDA (Rs. In Cr)666757706510265741091006064H2FY189M FY21FY16*FY17*FY19FY20H1131141166167170125PAT (Rs. In Cr)443731384570344064553545H1FY19FY16*9M FY21FY17*FY2078FY1895H2779380115EBITDA Margin13.0%13.0%15.2%15.3%13.2%20.1%FY16*FY17*FY18FY19FY209M FY21EBITDA%PAT Margin7.7%7.1%8.7%8.4%8.5%13.9%FY16*FY17*FY18FY19FY209M FY21PAT%* Financials for FY16 and FY17 are Pre-IND ASHistorical Financials -Standalone3625.7%Mar-19Sep-20Mar-17*Mar-16*Mar-18Mar-2025.1%27.1%23.7%15.5%26.2%RoCE %RoE %19.1%Mar-20Mar-1817.2%Mar-16*Mar-17*Mar-19Sep-2022.9%19.8%13.3%22.0%0.390.180.220.300.220.11Sep-20Mar-19Mar-16*Mar-17*Mar-20Mar-18Debt to Equity1089710511617214862691101228991313252434841Mar-19Mar-17*Mar-16*Sep-20Mar-20Mar-18Working Capital (Days)InventoryCreditorsDebtors* Financials for FY16 and FY17 are Pre-IND ASHistorical Financials -Consolidated37Revenue (Rs. In Cr)479488422488488513536605698661487346FY18FY17*FY16*1,149FY199M FY21H1FY20H21,0151,0931,120975859EBITDA (Rs. In Cr)6666566060102667399915464FY17*FY19FY16*FY18FY209M FY21H2H1132139155151114167PAT (Rs. In Cr)32342938386634385836244386H1FY16*FY18FY17*FY199M FY21FY20H266727462109EBITDA Margin13.0%12.7%13.9%13.2%11.7%19.4%FY16*FY17*FY18FY19FY209M FY21EBITDA%PAT Margin6.5%6.6%7.7%6.5%6.4%12.7%FY16*FY17*FY18FY19FY209M FY21PAT%* Financials for FY16 and FY17 are Pre-IND ASHistorical Financials -Consolidated38RoCE %RoE %0.390.180.230.380.300.18Sep-20Mar-16*Mar-20Mar-17*Mar-18Mar-19Debt to Equity1099810812117515163701141269498313454475246Mar-20Mar-16*Mar-17*Mar-18Mar-19Sep-20Working Capital (Days)InventoryDebtorsCreditors* Financials for FY16 and FY17 are Pre-IND ASSep-20Mar-16*24.3%Mar-17*Mar-1820.2%Mar-1923.0%Mar-2025.1%13.6%26.0%14.2%Mar-20Mar-16*Mar-17*Mar-18Mar-19Sep-2019.0%17.9%18.4%11.0%22.5%Sharing profits consistently3927.4%FY12FY13FY14FY16FY18FY15FY17FY19FY2024.5%30.1%30.3%32.1%27.7%33.2%32.2%38.6%Payout as a % of Profits150%Dividend % of FV200%250%275%275%275%300%300%300%Company:CIN: L17299WB1985PLC038517Mr. Sumit Khowalasumit.khowala@rupa.co.inInvestor Relations Advisors:THANK YOUMr. Sagar Shroff +91 9820519303sagar.shroff@linkintime.co.inMr. Deven Dhruva +91 9833373300deven.dhruva@linkintime.co.in