Rupa & Company Limited has informed the Exchange about Investor Presentation

| Gomer Date: 11/08/2021 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, Ref: Di re un Regulation EBI (Listin i Requirements) Regulations, 2015 (‘SEBI Listing Regulations’) Sub: Investor Presentation Please find enclosed herewith Investor Presentation of the Company. The Investor Presentation will also be available on the website of the Company. This is for your information and record please. Thanking you. Yours faithfully, For ne y Limited Kundan Kumar Jha Company Secretary & Compliance Officer ACS 17612 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 ISO 9001:2008 Certified Company CIN No.: L17299WB1985PLC038517 INVESTOR PRESENTATIONAugust 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.Q1 FY22FINANCIAL HIGHLIGHTSStrong Q1 FY22 Performance*4Revenue from OperationsRs. 218 crores+4%EBITDARs. 42 crores+16%Profit After TaxRs. 27 croresEBITDA Margin 19.3%+200 bpsPAT Margin 12.5%+270 bpsExport RevenuesRs. 5 crores+125%* On Consolidated Basis+32%Q1 FY22 Performance Highlights5* On Consolidated BasisParticulars (Rs. Crs.)Q1 FY22Q1 FY21Y-o-YFY21Total Revenue218.0209.54%1,312.7Total Raw Material74.2111.2611.4Subcontracting Expenses59.328.7241.9Value Addition84.569.621%459.4Value Addition (%)38.8%33.2%35.0%Employee Expenses 14.49.752.7Other Expenses 28.023.6149.3EBITDA 42.136.316%257.3EBITDA Margin (%) 19.3%17.3%19.6%Other Income2.00.27.3Depreciation 3.43.813.8EBIT40.732.824%250.8Finance Cost 3.24.213.4Profit beforeTax37.528.631%237.4Tax 10.38.062.1Profit After Tax27.220.632%175.3PAT Margin (%) 12.5%9.8%13.4%EPS (As per Profit after Tax)3.422.5922.04Strong FY21 Performance*6Revenue from OperationsRs. 1,313 crores+35%Gross Profit Rs. 459 crores+34%EBITDARs. 257 crores+126%Profit After TaxRs. 175 crores+183%Gross Profit Margin 35.0%+20 bpsEBITDA Margin 19.6%+790 bpsPAT Margin 13.4%+700 bpsTotal DividendRs. 5/-per share+67%Highest ever Revenues & Most Profitable Year at Rupa & Co.* On Consolidated BasisFY20 : Rs. 3/-per shareStrong Balance Sheet7Return on Capital Employed (RoCE)30.8%Net Debt to Equity0.04xHighest ever Revenues & Most Profitable Year at Rupa & Co.+1,710 bpsReturn on Equity (RoE)26.8%+1,610 bpsOperating Cash FlowsRs. 211 crores+133%Working Capital Days165 daysImproved by 54 daysfrom FY20FY20 : 219 daysReduced from 0.30x in FY20Cash & Bank BalancesRs. 118 croresImproved from Rs. 1.7 crores in FY20* On Consolidated BasisNet DebtRs. 27 croresReduced from Rs. 177 crores in FY20Return on Capital Employed (RoCE)(excl. Cash)33.3%+1,950 bpsBalance Sheet8ASSETS (Rs. Crs.)Mar-21Mar-20Non ‐Current AssetsProperty, plant and equipment168.9 166.2 Right of Use Assets18.1 11.9 Capital work‐in‐progress19.4 6.4 Intangible Assets6.0 7.2 Intangible Assets under development0.0 0.0 Financial Assets(i) Investments0.0 0.0 (ii) Loans1.2 2.0 (iii) Other Financial Assets1.5 0.2 Deferred Tax Assets11.6 11.6 Non ‐Current Tax Assets10.3 10.2 Other Non‐Current Assets8.5 10.5 Total Non ‐Current Assets245.5 226.2 Current AssetsInventories390.6 467.3 Financial Assets(i) Trade receivables364.4 251.3 (ii) Cash and cash equivalents3.2 1.3 (iii) Bank balances other than (ii) above115.2 0.4 (iv) Loans4.1 3.4 (v) Other Financial Assets0.8 0.0 Other Current Assets42.7 50.6 Income Tax Assets (Net)0.0 0.0 Total Current Assets921.0 774.4 Total Assets1,166.4 1,000.6 EQUITY & LIABILITIES(Rs. Crs.)Mar-21Mar-20EquityEquity Share Capital8.0 8.0 Other Equity721.6 570.0 Total Equity729.5 578.0 LiabilitiesNon ‐Current LiabilitiesFinancial Liabilities(i)Borrowings13.5 10.9 (ii) Lease Liabilities14.7 6.9 (iii) Other Financial Liabilities0.0 0.0 Provisions0.4 0.7 Deferred Tax Liabilities, (net)10.5 9.6 Other Non Current Liabilities1.7 2.0 Total Non ‐Current Liabilities40.9 30.1 Current LiabilitiesFinancial Liabilities(i) Borrowings126.4165.1(ii) Lease Liabilities1.33.0(iii) Trade Payables(a) total outstanding dues of micro enterprises and small enterprises11.60.3(b) total outstanding dues of creditors other than micro enterprises and small enterprises151.0134.5(iv) Other Financial Liabilities77.180.7Provisions3.43.3Current Tax Liabilities (net)19.50.0Other Current Liabilities5.85.7Total Current Liabilities396.0392.5Total Equity and Liabilities1,166.41,000.6* On Consolidated BasisCash Flow Statement9Cash Flow Statement (Rs. Crs.)Mar-21Mar-20Cash Flow from Operating ActivitiesProfit before Tax237.4 84.0 Adjustment for Non-Operating Items23.8 31.3 Operating Profit before Working Capital Changes261.2 115.3 Changes in Working Capital-6.7 19.3 Cash Generated from Operations254.5 134.6 Less: Direct Taxes paid-43.9 -44.2 Net Cash from Operating Activities210.6 90.4 Cash Flow from Investing Activities-137.0 -15.2 Cash Flow from Financing Activities-71.7 -81.1 Net increase/ (decrease) in Cash & Cash equivalent1.9 -5.9 Cash and cash equivalents at the beginning of the year1.3 7.2 Effect of exchange rate changes on Cash & Cash Equivalent0.0 0.0 Cash and cash equivalents at the end of the year3.2 1.3 * On Consolidated BasisABOUT THE COMPANY#1Undisputed knitwear Indian brand…11‘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’SKUsSub Brands7,000+181,200+Dealers100+Registration of Trademark'sNationally & Internationally7,00,000+ Finished goods pieces per day1,25,000+Retail OutletsPresence across major E-commerce platforms… with long legacy of delivering excellence12RUPA brand incorporated1968Rupa & Co. Pvt. Ltd. Established1985199519961997200020032008200920122013201520162018Took 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”Listing of shares at NSE and BSELaunched premium brand Macroman MSeriesLaunch 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 board13Mr. Prahlad Rai Agarwala, Chairman•Morethan50yearsofexperienceinthetextileindustry•ProvidesstrategicdirectiontotheCompanyandisthedrivingforcebehindtheestablishmentandgrowthoftheCompanyMr. Ghanshyam Prasad Agarwala, ViceChairman•More than 47 years of experience in the textile industry•Rich experience in leadership, strategic guidance, risk foresight and operations of the Company•Actively engaged in various philanthropic activitiesMr. Kunj Bihari Agarwal, Managing Director•Morethan45yearsofexperienceinthetextileindustry,specializationinmarketinganddistribution•Guidesthecompanyandthemanagementatallthestagesofitsdevelopmentandstrategicdecisions•ActivelyengagedinvariousphilanthropicactivitiesMr. 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 team14Mr. 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’.HeisalsomanagingtheGroup’sFinancefunctionandInvestorRelationActivites•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 decades15Most Promising Brand 2018 The Economic Times Indywood Excellence Award 2017Govt. of Telangana Best Corporate Brand 2016 The Economic TimesIndian Power Brand 2011-12 First Indian innerwear manufacturer as licensee of SUPIMAThe Worlds Greatest Brand 2015 Asia “Macroman M-Series”Worldwide achievers(Zee)Business Leadership Awards 2013We offer Affordability + Scalability + Inspirational Brands16Broad & 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 portfolio17InnerwearThermal WearCasual / AthleisureVestsBrief / DrawerLingerieVest / UpperLowersLeggings & Causal WearSocksT-shirtsBermudas & TracksAthleisure & Winter Fashion"Rupa overhauls its portfolio periodically to the fast-changing requirements, evolving the market in line with changing times."1. Brands across a wide price range18Brand 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 Brands2. An integrated & efficient business model 19Product 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 facility20Ghaziabad (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 footprints21Growing MarketsFocused MarketsSeeding 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 levels22Pursuit 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 techniciansUnderstanding 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."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."2. Unwavering focus on R&D23We 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 brands24Globally 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 investments25Strong brand recall developed through consistent investment in advertising and brand promotion strategies 7.4%7.4%201920174.2%201820207.3%7.1%2021*8086827154Rs. Crs.Over Rs. 1,000 croresspent on brand development in the last decadeBrand Development Cost (Rs. In Cr)Consistent annual investment of 6-8% of sales in brand development to create a robust portfolio * Lower in 2021 due to CoVID, no brand expense done in H1FY21Expect Branding and Advertisement Cost to come back to normalcy i.e. 6-8% of revenues in FY224. IT Infrastructure –Sales & Distribution26•Significant decrease in operational time for article management and maintenance •Data Record Error Rate will reduce ensuring that master data is clean and streamline •Reduce duplication and manual effort in order scheduling •Reduce duplication and manual effort in sales order booking with fast SO creation App•Increase flexibility in creation of sales order with configuration of prefilling data•Single source of truth for outside manufactured articles or traded articles•Reduce manual effort for creation of multiple DOs•Reduce manual effort of manual quality process•Digital Rework Process in case of Return4. IT Infrastructure –Demand Planning27Contract-1000 PCsForecast-1200 PCsMSO-1000 PCsCSO-200 PCsYarn-1200 PCsFabric-1200 PCsGarments-1200 PCsOBD-1200 PCsFashion Demand Planning –Dealer Contracts, Order & Forecasts DemandSupplyGROWTH STRATEGIESGrowth Strategies291. 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 stream30One 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 personnel1. Scaling high margin revenue stream31•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+doorsinthenext3-5years44881262025e201520112018Premium + Super Premium* (Rs. in Cr)Premium + Super Premium* (% of revenue)11.2%20116.9%20142025e20189.4%* Includes FCUK, Fruit of the Loom and M Series2. Reinforcing high growth segments –Athleisure32“There’s a fun side to everyone. Be it the tiny tots, teenagers or grownups”“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”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 2011Range 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 –Womenswear33Plans 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+coloursforallsizesOuterwearconsistofWesternKurtipants,PalazzopantsandKnittedpants.Craftedfromhighqualitycotton,blendedwithelastanethatallowsfreemovementfordailywear3. Reinforcing high growth segments –Thermal wear34Plan 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 markets35Disclaimer : 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 36Wholesale 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 forward37Different 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 growth38Increasing 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% CAGR7,00014,50056,36420102027E201512% CAGRMen Category (Innerwear Industry)Rs. In CrsWomen Category (Innerwear Industry)Source: Industry EstimatesCSR Activities39Supporting the Meritorious StudentsDonating Blankets to the needyProviding Safe Drinking WaterMore than 400 water filters and coolers installed at public placesRewarding the meritorious students, especially the underprivileged children in the societyCSR Activities40PromotingGirl Child EducationPromoting overall development of the Girl ChildCSR Activities41Donation to the Tribal Society Contribution towards AnnamitraProviding Food to the needy childrenUpliftment of all from the Tribal societyCSR Activities42Providing Food RationSupporting the Mid-Day Meal Project by ISKCONProviding CoVID BedsProviding Food during CoVIDCSR Activities43Providing education and vocational training to the underprivileged studentsHISTORICAL FINANCIALSHistorical Financials -Consolidated45Revenue (Rs. In Cr)479488422488488513536605698661487800FY20FY16*FY17*FY21FY18FY19H2H11,0151,0931,1201,1499751,313EBITDA (Rs. In Cr)66665660601026673999154155FY17*H1FY16*FY18H2FY19FY20FY21132139155151114257PAT (Rs. In Cr)3234293838663438583624109FY19FY17*FY21FY16*FY18H2FY20H16672867462175EBITDA Margin13.0%12.7%13.9%13.2%11.7%19.6%FY16*FY17*FY18FY19FY20FY21EBITDA%PAT Margin6.5%6.6%7.7%6.5%6.4%13.4%FY16*FY17*FY18FY19FY20FY21PAT%* Financials for FY16 and FY17 are Pre-IND ASHistorical Financials -Consolidated46RoCE %RoE %0.390.180.230.380.300.19Mar-21Mar-18Mar-16*Mar-17*Mar-19Mar-20Debt to Equity10998108121175109637011412694101313454475045Mar-16*Mar-17*Mar-18Mar-20Mar-19Mar-21Working Capital (Days)InventoryCreditorsDebtors* Financials for FY16 and FY17 are Pre-IND AS23.0%Mar-16*Mar-17*Mar-21Mar-18Mar-20Mar-1924.3%25.1%20.2%13.6%30.8%Mar-20Mar-16*Mar-17*Mar-19Mar-18Mar-2119.0%17.9%18.4%26.8%14.2%11.0%Historical Financials -Standalone47Revenue (Rs. In Cr)478485412431467498535600678677474763FY19FY181,013FY16*1,261H2FY17*1,090FY20FY21H11,0841,108941EBITDA (Rs. In Cr)6667577065102657410910060155FY16*H2166FY17*FY18FY19FY20FY21H1131141170125257PAT (Rs. In Cr)4437313845703440645535111FY21FY16*FY17*FY18FY19FY20H1H27877959380181EBITDA Margin13.0%13.0%15.2%15.3%13.2%20.4%FY16*FY17*FY18FY19FY20FY21EBITDA%PAT Margin7.7%7.1%8.7%8.4%8.5%14.3%FY16*FY17*FY18FY19FY20FY21PAT%* Financials for FY16 and FY17 are Pre-IND ASHistorical Financials -Standalone48* Financials for FY16 and FY17 are Pre-IND ASRoCE %RoE %0.390.180.220.300.220.13Mar-16*Mar-17*Mar-18Mar-20Mar-19Mar-21Debt to Equity1089710511617210962691101228996313252434843Mar-20Mar-18Mar-16*Mar-17*Mar-19Mar-21Working Capital (Days)InventoryDebtorsCreditorsMar-1927.1%Mar-17*Mar-20Mar-16*Mar-1825.1%Mar-2125.7%15.5%23.7%30.5%22.9%Mar-16*Mar-18Mar-17*19.1%Mar-1913.3%Mar-20Mar-2119.8%17.2%25.6%Sharing profits consistently49Dividend % of FVPayout as a % of Profits24.5%30.1%32.1%33.2%30.3%27.7%32.2%38.6%22.7%Consistently sharing over 20% -30% of the profits as Dividend to shareholders200250275275275300300300300200FY13FY20FY14FY16FY15FY19500FY18FY17FY21Mark of gratitude to our shareholders during the pandemic:Special Dividend of Rs. 2/-per equity share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