Raymond Lifestyle Limited · NSE:RAYMONDLSL
Raymond Lifestyle — Jefferies 3rd India Forum (September 2024)
65 slides from Raymond Lifestyle's conference presentation, Sep 12, 2024
Slide 1: Intimation under Regulation 30 – Investor Conference
(Formerly known as Raymond Consumer Care Limited) RLL/SE/24-25/1 September 12, 2024 To The Department of Corporate Services - CRD The National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor P.J. Towers, Dalal Street Bandra-Kurla Complex Mumbai - 400 001 Bandra (East), Mumbai -
Slide 2: Raymond Lifestyle Ltd. Analyst & Investor Presentation
RAYMOND LIFESTYLE LTD. ANALYST & INVESTOR PRESENTATION
Slide 3: Our Vision
Our Vision To be the leading FASHION & LIFESTYLE company with loved brands, fashion first approach and a delightful consumer experience to deliver superior stakeholder value.
Slide 4: Our Values
Our Values INNOVATION • We have been crafting world-class product offerings over the years. • We will invest behind product and process innovation to drive disruptive growth. QUALITY CONSUMER DELIGHT We are recognized for Consumers delight is the heart of everything our high-quality product offering
Slide 5: Strong Resilient Brand since 1925
Strong Resilient Brand since 1925 Ranked in the Top 10 list for 2024 Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 92.9 91.0 88.0 88.0 87.9 Rank 6 Rank 7 Rank 8 Rank 9 Rank 10 87.5 86.2 85.6 85.0 84.6 WE ARE AMONGST INDIA’S STRONGEST BRANDS Brand Finance India 100 2024 Report. 4
Slide 6: Competing with India's Largest
Competing with India’s Largest Wedding/ Styling Domestic Textiles Garment Exports Ethnics Wear (Formal/ Casual) (Branded Fabric) Largest Ethnics Player Largest Garment Exporter Largest Apparel Player Leading Textile Player Note: Based on Internal Estimates. 5
Slide 7: B2C and B2B businesses
B2 C B2 B Business to CONSUMER Business to BUSINESS Branded Textile Garmenting Branded Apparel High Value Cotton Shirting 6
Slide 8: Strong Governance
Strong Governance With High Pedigree Board Members K NARASIMHA MURTHY VENEET NAYAR ANISHA MOTWANI MAHENDRA V DOSHI Independent Director Independent Director Independent Director Independent Director GAUTAM Ex Director NSE, Ex CEO- HCL Strategic Advisor- Promoter-LKP Group ONGC, LIC & UTI World Bank
Slide 9: Led by Experienced Management Team
Led by Experienced Management Team DEBDEEP SINHA VIKRAM MAHALDAR MANISH BHARATI BIDYUT BHANJDEO Chief Business Officer Chief Business Officer Chief Business Officer Chief Business Officer (Apparel) (Suiting) (Garmenting) (Ethnix) SUNIL KATARIA Chief Executive Officer (Lifestyle) ANUPAM DIKSHIT V
Slide 10: Raymond Lifestyle Pronged Strategic Approach
Raymond Lifestyle 3 Pronged Strategic Approach NEW CORE GROWTH CATEGORIES Ethnic Wear Branded Apparel Inner Wear Textile Garmenting Sleep Wear International Retail STRENGTHEN ACCELERATE BUILD THE “CORE” THE “GROWTH” THE “NEW” 9
Slide 11: Key Focus Areas
Key Focus Areas GARMENTING Maximizing Global WEDDING PLAYER Opportunities: Capitalizing on Dominating Wedding & Ceremonial China+1, Bangladesh+1 and FTA Attire Player for the Last 100 Years in India with potential for exponential growth through Indian Ethnic Wear The Complete Man BRANDED APPAREL RET
Slide 12: Raymond Wedding & Ceremonial Portfolio
RAYMOND WEDDING & CEREMONIAL PORTFOLIO 11 11
Slide 13: India's largest Men's Wedding wear company
India’s largest Men’s Wedding wear company for last 100 Years No Wedding is complete without a Raymond “Set” Total Total 23% 70% Total Clothing 30% Men’s Wear 5% 77% Market Size Clothing Women’s Market Size Men’s 92% Market Size 2% #2 Player Others ₹11,00,000Cr & ₹2,50,000Cr (2) Others 1% #3 Player
Slide 14: Viewing Business from a Different Lens
Viewing Business from a Different Lens Wedding & ~1.5x ~2.3x Ceremonial Portfolio x REVENUE (₹Cr) FY’24 FY’27E FY’30E BRANDED TEXTILE BRANDED APPAREL GARMENTING Revenue Wedding Share Revenue Wedding Share Revenue ₹3,449 Cr 55%-60%* ₹1,587 Cr 20%-25%* ₹1,035 Cr B2B HIGH VALUE RAYMOND LIFESTYLE COTTON
Slide 15: Raymond's Right to Win in Wedding Market
Raymond’s Right to Win In Wedding Market Strong Brand Equity Raymond's legacy of quality and craftsmanship has established it as a trusted brand, helping attract and retain customers. Diverse Product Range • Across price point in ready to stich • Introduction of Ceremonial fabric • Large scale up of
Slide 16: Retail
RETAIL 15 15
Slide 17: Replicating Success of TRS in Branded Apparel
Replicating Success of TRS in Branded Apparel Refresh product, design and retail identity TRS MTM EBO 2,150 650+ Stores To be added 900 1,518 1,409 1,351 409 316 50 Retail Expansion: Expanding 261 35 40 44 EBO Network for Enhanced 1,200 Apparel Growth 1,055 1,053 1,065 Mar'22 Mar'23 Mar'24 Mar'27E T
Slide 18: The Raymond Shop
THE RAYMOND SHOP Raymond FFs) FINE FABRICS one il ethnix parx ColorPlud PARK AVENUE’ Raymond a. Raymond Desde he tecpure Raymond CUSTOM TAILORING Seis Raymond oY © aymon =e PARK AVENUE INNERWEAR 7
Slide 19: Branded Textile
BRANDED TEXTILE 18 18
Slide 20: Branded Textile
Branded Textile EXTENSIVE REACH 1 2 20,000+ SKUs Presence across SUITING SHIRTING 800+ Cities & Towns 3 4 1,050+ TRS Stores 1,430+ MBOs MADE TO HOME MEASURE FURNISHING Price Range: ₹300 to ₹3 Lac per metre 19
Slide 21: Suiting Business - Growth Enablers
Suiting Business - Growth Enablers Drive category Premiumization through highly differentiated wool rich blends and All wool products – Exotic & Regio Italia. Growth Expand distribution and Enablers gain share in top end MBOs for Regio Italia. Pride Program – Mass end Indirect MBO expansion and Inno
Slide 22: Approach to Consolidate Leadership Position in Suiting
Approach to Consolidate Leadership Position In Suiting Segment SUSTAIN AND IMPROVE MARKET SHARE IN WORSTED 01 INVEST TO GAIN SHARE IN 02 SUITING POLY VISCOSE SEGMENT Source: Company Data 21
Slide 23: Create & Sustain Market Share in Worsted Suiting
Create & Sustain Market Share in Worsted Suiting 1 3 Recreate the Magic of Wool to Invest in premiumization educate consumer the unparalleled through carefully curated All benefits and superiority of wool, wool range with Italian and other natural fiber. design sensibilities. Enhancing the worsted p
Slide 24: Strong Growth in the Poly Viscose Segment
Strong Growth in the Poly Viscose Segment STRATEGIC Enhancing INVESTMENT Expand Distribution Product Portfolio Network FOR MARKET • Investing in a diverse range of Establish a robust distribution network with: PV products with benefits like LEADERSHIP • Last mile connect to more than 5000+ stretch –
Slide 25: Shirting Business - Growth Enablers
Shirting Business - Growth Enablers Maintain leadership position and increase market share in Cotton by Growth product enhancements. Enablers Exponential Growth in Linen Innovative Offerings 24
Slide 26: Maintain Leadership Position
Maintain Leadership Position By increase market share in Cotton by product enhancements. Product Portfolio Grow in Premium segment with the new range of Regio Italia Collection Focus on performance products, like Fearless (Spill resistant), Creaseless and Stretch in Cotton Leveraging inhouse capabil
Slide 27: Strengthening Linen
Strengthening Linen By Reinforcing with New Products and Campaigns Growth Enablers With the country witnessing high summer, Linen compliments with the weather and provides an excellent solution for summer. Opportunity in both 100% Linen and Linen blended fabrics. Products backed with strong media ca
Slide 28: Branded Apparel
BRANDED APPAREL 27 27
Slide 29: Branded Apparel
Branded Apparel Sustain Profitable Growth Momentum Portfolio of Market leading Ready to A WIDESPREAD wear brands in menswear segment NETWORK PRESENCE 600+ Cities & Towns 409 EBOs New Categories 4,525+ MBO Counters 1,400 LFS Counters 28
Slide 30: Branded Apparel – Growth Enablers
Branded Apparel – Growth Enablers 01 02 Rollout of Scaling Up New Retail of Business KEY FOCUS Identity AREA Brand Product 04 Building Portfolio 03 29
Slide 31: Scaling Up of Business
Scaling Up of Business Particular FY24 FY27E 409 ~900 EBO Stores Stores 1,065 ~1200 Focus on Targeting Metros/ State Capital/ TRS Key Malls/ Strategic Towns like pilgrimage Stores Stores and hidden gems. 4,525+ ~5,500+ MBO Counters Counters ~1,350 ~2,500+ LFS Counters Counters 30
Slide 32: New Retail Identity
New Retail Identity New Concept Renovating Design Older Stores Maintaining Freshness Index NEW RETAIL IDENTITY Inventory Management Retail Excellence in Store Operations 31
Slide 33: Product Assortment
Product Assortment Bringing out the Intuitive fashion for the The look of Fashion that Best in Men man ‘on the go’ True Success Starts with You Crafted to redefine your wardrobe with INNOVATION, QUALITY and TIMELESS DESIGN. 32
Slide 34: Brand Growth Playbook
Brand Growth Playbook Raymond Establish RR as a Readymade Premium Fashion Wear: 1. Premium Ready to Wear Wardrobe Solution 2. Widening Product Portfolio: • Stylish Formals • Ceremonial • Casualization 3. Channel Expansion Led by Retail & LFS Network 33
Slide 35: Brand Growth Playbook
Brand Growth Playbook Raymond Special Edition: An exquisite collection of Fine Italian fabric, crafted with delicate detailing designed for our high –profile consumers who value uncompromising Quality & Style. Performance Clothing: Using the finest technological innovations in a range of options Cer
Slide 36: Park Avenue
Park Avenue Intuitive fashion for the man always ‘on the go’ Establish as a Hybrid Wear 1. Widening Product Portfolio: • Casualization • Stylish Hybrid Workplace Dressing • Performance products - Flextech/ Airlite 2. Channel Expansion Led by Retail, LFS Network and MBOs 35
Slide 37: Park Avenue New Innovation
Park Avenue New Innovation 36
Slide 38: Brands Growth Strategy – ColorPlus
Brands Growth Strategy ColorPlus Making the Brand Relevant to Millennials 1. Widening Product Portfolio: • Maintaining Leadership in Chinos Category • CP Sport: Amplifying youth appeal • Casuals with focus on Colors, Comfort and Craftmanship • New age fabrics- Utmost performance and functionality fo
Slide 39: Brands Growth Strategy – ColorPlus
Brands Growth Strategy ColorPlus 38
Slide 40: Brands Growth Strategy – Parx
Brands Growth Strategy Parx Position as Trendy Casual Wear 1. Widening Product Portfolio: • Value for money casual wear • Denim • Athleisure 2. Channel Expansion Led by MBO, LFS Network and Online 39
Slide 41: Introducing New Categories
Raymond Introducing New Categories BUILD THE NEW Cater to the Changing Touching WEDDING WEAR 1 2 CUSTOMERS' DAILY LIVES TRENDS with Strong Brand Affinity 40
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Slide 43: Ethnix by Raymond
Ethnix by Raymond Ethnix range for targeted Occasion Smart Ethnix Festive Collection Wedding Collection 42
Slide 44: Men's Ethnic Wear Market
Men’s Ethnic Wear Market Ethnic Wear Market Size (₹ ‘000 Cr) Share of Organised & Unorganised 25.0 Unorganized Organized 20.0 8% CAGR 15.0 62 55 75 10.0 20.0 14.0 45 5.0 38 8.0 25 0.0 2015 2023 2027 2015 2023 2027 • Organised market is growing at ~14% whereas unorganised is growing at 5%. • By 2027
Slide 45: Raymond Ethnix — Right to Win
Raymond Ethnix — Right to Win RIGHT DESIGN SIZEABLE WEDDING SOURCING TO WIN CAPABILITY & EVOLVING BUSINESS CAPABILITY SEGMENT EXCELLENCE Raymond known Differentiated as a Premium Designs for all Large Strong Strong understanding Brand for Occasions Unorganized Supply Chain of product & Running Men’s
Slide 46: Ethnix by Raymond
Ethnix by Raymond Our Unique Proposition • Design Language: Differentiated design for all occasions, high quality offerings at affordable pricing, strong presence in wedding category. • Optimal Portfolio: Mix of core ethnics (wedding) and smart ethnics (non wedding) catering occasion wear to regular
Slide 47: Retail Footprint Expansion & Retail Excellence
Retail Footprint Expansion & Retail Excellence Major Expansion in Tier 1 & Tier 2 Cities Selective expansion in Tier 3 & Tier 4 Cities FY2027E FY2024 350+ Stores 114 Stores FY2022 FY2023 61 Stores Refresh Store Rollout 46
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Slide 49: Raymond — SleepZ
INDIAN WEAR Raymond — SleepZ 48 WESTERN WEAR
Slide 50: Raymond — SleepZ
Raymond — SleepZ CONSUMER & PRODUCT STRATEGY • Indian Wear & Western Wear • Currently there is no branded player in this segment DISTRIBUTION STRATEGY • Indian wear (Kurta – Pajama Set, Dhoti) is an Unorganized Market • Appointing Distributors PAN India PRICING STRATEGY Attractive Prices to convert
Slide 51: Innerwear — Park Avenue
Innerwear — Park Avenue Consumer & Product Strategy: Targeting the Semi-Premium and Premium Category Consumer, (> 50% of the Market). Pricing Strategy: A Competitive pricing strategy with presence in Mid-Premium and Upwards Price Segment. Brand & Promotion Strategy: Leveraging PA Brand and creating
Slide 52: Garmenting
GARMENTING 51 51
Slide 53: International Business — Garmenting
International Business — Garmenting An Introduction Globally Recognized 2+ Decades Well Diversified 5 State of the Art Partner of Tailored of Manufacturing Across Geographies, Manufacturing Units Clothing Experience Products and Customers 10+MN UN UNITS Over 10k Employees Fully Integrated Long Stand
Slide 54: International Business — Garmenting Key Drivers
International Business — Garmenting Key Drivers 1 3 5 Vertical Integration: Digital Value From Fiber to Garments Design Enabled Added Services • Ease and Cost of • 3D Prototyping and • DDP: Delivered Duty Paid Transacting Business Designing Capability • DCM: Demand Chain • Faster Response • Vertical
Slide 55: Strategic Acquisition of Customer
Strategic Acquisition of Customer 1. DESIGN CAPABILITIES • Design Co creation: Converging design and trend inputs, market intelligence and product ideas, from Multi-locational Design Studios, International Designers and Global Customer Base. • Design Studio in Italy, Spain and US. • In-house 3D Prot
Slide 56: In-house 3D Prototyping & Designing Capability
In-house 3D Prototyping & Designing Capability 55
Slide 57: Garmenting Expansion Strategy
Garmenting Expansion Strategy Raymond’s Garmenting EXPANSION STRATEGY Growth Enablers 1 2 3 Gaining New Customers/ Markets through: • Product innovation and adjacencies Global Geo- Global Brand Offers More Political Issues: Seeks Alternative Opportunities for • Cross selling via vertical integration
Slide 58: Financial Highlights
FINANCIAL HIGHLIGHTS 57 57
Slide 59: Robust Business Metrics — FY2024
Robust Business Metrics — FY2024 PROFIT & LOSS BALANCE SHEET 76 Days 97 Days ₹6,691 Cr 46% NWC Days Inventory Days REVENUE GROSS MARGIN ₹1,093 Cr 16.3% 604 bps 31.7% 10.4% ₹227 Cr EBITDA EBITDA % 5 Year Margin Operational Operational Net Cash Expansion ROCE* ROE* Surplus * Capital Employed for Opera
Slide 60: Segmental Performance — FY2024
Segmental Performance — FY2024 BRANDED TEXTILE BRANDED APPAREL GARMENTING ₹3,449 Cr ₹706 Cr ₹1,587 Cr ₹183 Cr ₹1,035 Cr ₹107 Cr REVENUE EBITDA REVENUE EBITDA REVENUE EBITDA 20.5% 556 bps 11.5% 974 bps 10.3% 644 bps EBITDA 5 Year Margin EBITDA 5 Year Margin EBITDA 5 Year Margin Margin Expansion Margi
Slide 61: Future Growth Guidance
Future Growth Guidance 12-15% 1 2 3 4 Sustainable Doubling NWC ₹600- ₹700 Cr of Annual Growth EBITDA Days Free cash generation in Revenue by 2028 60
Slide 62: ESG Goals
ESG GOALS 61 61
Slide 63: Well Defined ESG Goals
Well Defined ESG Goals ENVIRONMENT (E) 20% 20% 30% Zero Liquid Reduction in Renewable Energy Decrease Discharge (ZLD) scope 1 and 2 Target by 2030 in Waste to by 2030 by 2030 landfill by 2030 SOCIAL (S) 100% Single Digit ZERO 20% Return to Employee Fatalities since Gender diversity Work Rate Turnove
Slide 64: Raymond Lifestyle 2.0: Growth Drivers
Raymond Lifestyle 2.0: Growth Drivers Retail Expansion: New Growth Vectors: Adding 650+ Stores Ethnic, Sleepwear in Next 3 years and Innerwear 2.0 India’s Largest Garmenting: Wedding & Ceremonial Capitalizing on China+1, Attire Brand Bangladesh+1 and FTA RAYMOND- THE COMPLETE MAN 63 63
Slide 65: Thank You
THANK YOU REACH US @Raymond.IR@Raymond.in
Raymond Lifestyle — Jefferies 3rd India Forum (September 2024) on 6ix