V-Mart Retail Limited has informed the Exchange about Investor Presentation
Ref. No. CS/S/L-504/2021-22
22nd July, 2021
To: The Listing Department NATIONAL STOCK EXCHANGE OF INDIA LIMITED “Exchange Plaza” Bandra Kurla Complex, Bandra (E ), Mumbai – 400 051 Scrip Code: VMART Fax: 022-26598120 Email: cmlist@nse.co.in
To: The Corporate Relationship Department BSE LIMITED Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001 Scrip Code: 534976 Fax: 022-22723121 Email: corp.relations@bseindia.com
Dear Sir/Madam,
Sub: Presentation to Analysts/Investors
Please find enclosed herewith the presentation being forwarded to Analysts/Investors on the acquisition of assets of 74 value fashion retail stores in South India by V-Mart Retail Ltd. from Arvind Lifestyle Brands Ltd., a wholly owned subsidiary of Arvind Fashions Ltd.
The above presentation is also available on the company's website: http://www.vmart.co.in.
We request you to kindly take the above information on record.
Thanking you,
Yours Truly For V-Mart Retail Limited
Megha Tandon Company Secretary & Compliance Officer
Encl: As above
MEGHA TANDONDigitally signed by MEGHA TANDON Date: 2021.07.22 20:43:06 +05'30' www.vmartretail.com
V-Mart Retail Ltd. Review of Financial Results Q2 FY’21
V-Mart Retail Limited
Disclaimer
This presentation has been prepared by V-Mart Retail Limited (“V-Mart”) and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or supplied should not be deemed to constitute an offer. 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 such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements”, including those relating to the general business plans and strategy of V- Mart, its future financial condition and growth prospects, future developments in its industry and its competitive and regulatory environment, and statements which contain words or phrases such as ‘will’, ‘expected to’, ‘horizons of growth’, ‘strong growth prospects’, etc., or similar expressions or variations of such expressions. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results, opportunities and growth potential to differ materially from those suggested by the forward-looking statements.
V-Mart may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation cannot be copied and disseminated in any manner.
No person is authorized to give any information or to make any representation not contained in and not consistent with this presentation and, if given or made, such information or representation must not be relied upon as having been authorized by or on behalf of V-Mart. This presentation is strictly confidential
Transaction Summary
Transaction Overview
Rationale
•
•
•
•
Acquisition of assets of the Unlimited business from Arvind Lifestyle Brands Ltd (“ALBL”), a wholly owned subsidiary of Arvind Fashions Ltd (“AFL”) for cash by way of an Asset Transfer Agreement
V-Mart will acquire fixed assets of all running stores and warehouses, leases, less than 1 year old inventory, and other current assets of the Unlimited business along with the store brand Unlimited
The Assets are being acquired at their book value, with estimated outlay of about Rs. 150 Crore at closing, with certain contingent payments to be made based on certain milestones achieved in these stores, over next few years, post the acquisition
VMart currently invests Rs.2 Cr (1 cr in capex and 1 cr in Inventory) for any new store. This acquisition allows the company to acquire 74 existing stores in a new territory at a very similar cost, resulting in acquiring :
• Good proven successfully running 74 store locations across 6 new states with a 7.8 lakh sq ft area
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•
•
Existing customer footfalls and a strong loyal customer database
Established warehouse and supply chain logistics, the entire skilled front end operations team and a strong brand inspired product development capability along with select experienced backend team
Existing revenues of ~ Rs.530 cr (basis FY 20 Sales)
Timeline
•
Transaction is expected to be completed in about 60 days
3
V-Mart to Gain Significantly from this Transaction
Access to New Markets
South India Experience
• • •
•
•
Expand to South India Complementary market, no overlap Pan India Presence
Local team with deep understanding of southern markets Reduces time to develop new market
Product & Sourcing Synergies
Leverage larger sourcing volumes Vendor consolidation & Scale benefits
• • • Use ALBL’s design teams
Alignment of Interests
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ALBL’s product strengths and V-Marts value retail focus to complement growth potential
4
V-Mart Store Footprint
J&K 8
Chandigarh 1 Punjab 4
Haryana 1
HP 2
Uttarakhand 8
Arunachal Pradesh 1
Delhi 3
Rajasthan 16
UP 111
Gujarat 6
MP 15
Nagaland 1
Assam 9
Bihar 51
JHK22
Meghalaya 1
West Bengal 14
Odisha 8
Tier
Cities
Stores
Tier I
Tier II
Tier III
Tier IV
Total
17
16
124
35
192
64
40
143
35
282
% of Stores
23%
14%
51%
12%
100%
5
Unlimited Store Footprint
Gujarat 1
Maharashtra 5
Goa 1
Karnataka 21
Kerala 1
AP/TS 23
Tamil Nadu + Pondicherry 22
Tier
Cities
Stores
Tier I
Tier II
Tier III
Tier IV
Total
4
10
12
11
37
33
15
14
12
74
% of Stores
45%
20%
19%
16%
100%
6
Combined Footprint: Mutually Exclusive Presence
zzzz282 Stores
74 Stores
Tier
Cities
Stores
Tier I
Tier II
Tier III
Tier IV
Total
21
26
136
46
229
97
55
157
47
356
% of Stores
27%
15%
44%
13%
7
Pan-India Player with Revenues >Rs 2,000 Cr.
No of stores
Total Area (lacs sq ft)
Cities
States
282
23.0
192
19
Revenue (FY20; Rs Cr)
1,662
Note: Gujarat is an overlapping state; hence excluded from the combined count.
74
7.8
37
7
533
356
30.8
229
25*
2,195
8
About Unlimited Stores
d n a r B
i
g n n o i t i s o P
• A value family fashion store offering quality products for men, women & kids
• ASP of Rs 500
s e r o t S
s t c u d o r P
• South India focused • 74 stores across 37 cities • Stores located in high streets & malls • Avg. store size of ~10,500 sq ft
• Apparel, across a range of private
label, partner brands and third-party brands
• Strong portfolio in denims and
women’s ethnic wear
9
www.vmartretail.com
Thank You
For further information, please contact: CFO: Anand Agarwal – ir_vmart@vmartretail.com