V.i.p.industries Ltd. · NSE:VIPIND
V.i.p.industries — Q2 FY23 Earnings Presentation
40 slides from V.i.p.industries's earnings presentation, Oct 21, 2022
Slide 1: Exchange filing cover letter
21st October, 2022 BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Dalal St, Kala Ghoda, Fort, Plot No. C/1, G Block, Mumbai – 400 001. Bandra Kurla Complex, Bandra (East), Mumbai – 400 051. Code No. 507880 Code – VIPIND Subject: Presentations
Slide 2: Investor Presentation Q2 & H1 FY23
INVESTOR PRESENTATION Q2 & H1 FY23
Slide 3: Disclaimer
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 change
Slide 4: Index
Index Industry Overview Company Overview Q2 Financial Performance Brands, Channels & Categories Market Share Q3 Sneak Preview
Slide 5: Industry Overview
Industry Overview
Slide 6: Industry Overview
Industry Overview The luggage & backpacks market in India is estimated to be around ~Rs. 10,000 crore with organized players constituting ~56% of the market1 Growing Favorable Customer Demographics Cohorts Changing Shift from • Rising middle class and Attitude • Luggage is extending to its increased
Slide 7: Growing Middle India And Its Increasing Propensity To Indulge
Growing Middle India And Its Increasing Propensity To Indulge Will Further Accelerate The Industry Growth Ballooning middle class consisting of ‘connected aspirants’ will form majority of India’s demography going forward Spending By The Global Middle Class India is projected to house the world’s lar
Slide 8: Changing Attitudes Towards Travel Inducing Shorter Replacement Cycles
Changing Attitudes Towards Travel Inducing Shorter Replacement Cycles In Luggage Industry Category Core : Durability with Flaunt / Expression will be key additional features for Category core convenience ▪ Multiple travel occasions with ▪ 2-3 Travel Occasions increasing trend of international ▪ Busi
Slide 9: Consumer Cohorts Extending Beyond Travel
Consumer Cohorts Extending Beyond Travel INTERNATIONAL STUDENT TRAVEL • Expenditure on weddings • Departures from India for • Luggage as a preferred GIFTING & PROMOTIONS had been on the rise in International Education personal gifting item is India and as per industry has grown at a CAGR of emerging
Slide 10: Macro Pressures & Consumer Preference Shift Fueling Growth For Organized Players
Macro Pressures & Consumer Preference Shift Fueling Growth For Organized Players towards Branded Preference Shift Good quality Consumer products Organised vs Unorganised Luggage Market Split Organised Unorganised 43% 42% 40% 39% 44% 55% 53% Constraints Post 61% Growth of Organized Supply chain pande
Slide 11: Company Overview
Company Overview
Slide 12: Undisputed leader in an Oligopolistic Indian Luggage Industry
Undisputed leader in an Oligopolistic Indian Luggage Industry 9 Own Established in Manufacturing Facilities in India & 1968 Bangladesh #1 In the Servicing customers organized through 10,500 luggage Point of Sales space across 800 towns Present in multiple luggage Over 8000 categories across employee
Slide 13: Milestones
Milestones Leveraging our rich heritage & strong legacy Strategic Shift from Revenue Journey (Rs. In Cr.) China Aristocrat Restage Sourcing Caprese 1,785 To Own Launch Mfg 1,714 Bangladesh Aristocrat Operations Acquisition Skybags Launch 1,416 1,283 1,290 1,234 1,064 Carlton Acq 988 China Ofc 868 85
Slide 14: Our Board & Management
Our Board & Management He is a Commerce graduate and an He has a degree in Business Administration from experienced industrialist who has pioneered the Marshall School of Business, Los Angeles. He the luggage industry in India. He has an has attended several sessions of the YPO / Harvard experience
Slide 15: Senior Management
Senior Management Abhinav Kapoor Anjan Mohanty Anup Sur Ashish Saha MVH Sastry Vice President Sales Chief Executive Officer – Head - Supply Chain & Sr. Vice President – India Head Procurement Over 20 years of Bangladesh Logistics Manufacturing & New 20 years of experience in experience in FMCG 23 ye
Slide 16: VIP Power Brands: High Equity, targeted at distinctive opportunity spaces
VIP Power Brands : High Equity, targeted at distinctive opportunity spaces Partner every young middle Indian in this Innovative & Caring partner that makes every Trendy , colorful luggage brand that helps you Proposition journey with products that are built to trip comfortable, safe and enjoyable ge
Slide 17: VIP Power Brands: High Equity, targeted at distinctive opportunity spaces
VIP Power Brands : High Equity, targeted at distinctive opportunity spaces Avant-garde range of handbags & accessories for every woman Proposition Luggage Partner For Young Visionaries & Leaders who wishes to announce her arrival in life The New Face Of Business All That A Girl Can Be Brand Print BR
Slide 18: Diversified Product Portfolio
Diversified Product Portfolio HARD LUGGAGE DUFFLE BAGS LADIES HANDBAGS SOFT LUGGAGE BACKPACKS
Slide 19: Healthy geographical presence
Healthy geographical presence 4 Regions 20 Branches RETAIL TRADE VIP Penetration Town Pop Strata Universe MODERN TRADE FY20 H1 FY23 50K - 1 Lakh 583 51% 67% GENERAL TRADE 1 - 5 Lakhs 395 85% 95% ECOM 5 -20 Lakhs 81 100% 100% CSD CPC 20 - 50 Lakhs 8 100% 100% 50 Lakhs+ 5 100% 100% INSTITUTIONAL Total
Slide 20: Financial Overview
Financial Overview
Slide 21: Performance Highlights (Consolidated)
Performance Highlights (Consolidated) Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Revenue Operational Highlights (Rs. cr) 330 397 356 591 515 Growth 5% (over base FY20) -20% -8% 14% 25% • Q2 revenue growth at 56% over Q2 FY22 • Q2 FY23 is at 87% of Q1 revenue – highest ever Q2-FY23 Consolidated Financia
Slide 22: Q2 & H1 Financial Performance - Consolidated
Q2 & H1 Financial Performance - Consolidated Quarter ended Year ended Year ended Particulars Sep-22 Jun-22 Sep-21 Sep-22 Sep-21 Mar-22 Revenue from Operations 515 591 330 1105 536 1290 Other Income 5 7 7 12 21 36 Total Revenue 520 598 337 1118 557 1326 COGS 267 296 175 563 276 645 Gross Contribution
Slide 23: Key Financial Metrics – P&L
Key Financial Metrics – P&L Revenue Gross Margin 598 48.1% 49.9% 520 47.1% 337 Sep-22 Jun-22 Sep-21 Sep-22 Jun-22 Sep-21 EBITDA PBT Before Exceptional Items 85 18.3% 14.8% 14.4% 52 25 Sep-22 Jun-22 Sep-21 Sep-22 Jun-22 Sep-21
Slide 24: Key Financial Metrics – Balance sheet
Key Financial Metrics – Balance sheet Net Debt Net Current Assets (No of Days) 77 61 112 117 92 - Sep-22 Mar-22 Sep-21 Sep-22 Mar-22 Sep-21 Investments & Cash & Bank Borrowings 106 138 123 61 61 71 Sep-22 Mar-22 Sep-21 Sep-22 Mar-22 Sep-21
Slide 25: Brands, Channels & Categories
Brands, Channels & Categories
Slide 26: Revenue Performance: Channels
Revenue Performance : Channels • Distribution Expansion, Share gain in large & weak accounts, Value Channel-wise revenue Q2 Q2 Q2 YoY % Segment Competitiveness & Productivity improvement driving Salience FY20 FY22 FY23 Growth growth across traditional physical channels of Retail, General and Modern
Slide 27: Revenue Performance: Categories & Brands
Revenue Performance : Categories & Brands Brand-wise revenue Q2 Q2 Q2 YoY % Category-wise revenue Q2 Q2 Q2 YoY % Salience FY20 FY22 FY23 Growth Salience FY20 FY22 FY23 Growth CARLTON 5% 5% 6% 63% UPRIGHTS 64% 76% 75% 51% VIP 27% 21% 21% 48% HL - UPRIGHT 47% 62% 67% 62% SKYBAGS 38% 36% 32% 36% SL - U
Slide 28: Value Segment continues to Outshine
Value Segment continues to Outshine Set story drives Luggage business in both Hard & Soft Aggressive promo ‘s executed with ecom partners for festival sales Sets salience in Value portfolio revenue 29% 17% 1% 2% 18-19 19-20 21-22 22-23 Distribution thrust in tier II & tier III towns New Launches in
Slide 29: Premiumization Themed Innovations
Premiumization Themed Innovations Skybags - 3 new ranges launched in hard luggage First Hard case with Bometric Lock First Hard case in Businesss Overnighters India’s First Ever Personalised First Ever Metallic finish Ecom Exclusive - Special Luggage launched - Xpressionz in printed PC films focus o
Slide 30: Premiumization Through specific targeted communications
Premiumization Through specific targeted communications Owning # Airport look with Targeting International Student sustained Influencer Led Content Traveller through print / Social on social Media Media Building Affity with GenZ through Backpack Campaigns - # Back to Cool Inspiring the Solo woman tr
Slide 31: Driving Premiumization through Consumer Promotions
Driving Premiumization through Consumer Promotions EOSS – END OF SEASON SALE BUY MORE SAVE MORE Partnership with HDFC offering extra ON PREMIUM RANGES VIP + CARLTON: Driving frequency through EOSS through offline & 10% discount in Q2 online channels during lean period STUDENTS SPECIALS SKYBAGS: Capt
Slide 32: Market Share
Market Share
Slide 33: Market share On A Gain Trajectory
Market share On A Gain Trajectory Market Share % 50% 53% 52% 55% 54% 56% 55% 58% 56% 57% 60% 61% 59% 50% 47% 48% 45% 46% 44% 45% 42% 44% 43% 40% 39% 41% Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 VIPIL Other 2 Organised players *Relative Market share b
Slide 34: Q3 Sneak Preview
Q3 Sneak Preview
Slide 35: Exciting Mega Launches in Q3 FY23
Exciting Mega Launches in Q3 FY23 Limited Edition FIFA Luggage Range Our Hero Launch Of The Year!
Slide 36: Exciting Mega Launches in Q3 FY23
Exciting Mega Launches in Q3 FY23 VIP Highlander The SUV Of Luggages !
Slide 37: Exciting Mega Launches in Q3 FY23
Exciting Mega Launches in Q3 FY23 COUTURE LINE OF CAPRESE X MANISH MALHOTRA RANGE FOR PARTY WEAR IN KEEPING WITH CAPRESE SENSIBILITIES AND MANISH MALHOTRA LOOKS
Slide 38: Exciting Mega Launches in Q3 FY23
Exciting Mega Launches in Q3 FY23
Slide 39: For Further Information Contact
For Further Information Contact: VIP Industries Limited Miss Neetu Kashiramka – Chief Financial Officer Email: neetu.kashiramka@vipbags.com Adfactors PR Pvt. Ltd. Snighter Albuquerque/ Rushabh Shah Email: snighter.a@adfactorspr.com/ rushabh.shah@adfactorspr.com Mobile: 9819123804 / 8082180182 5th Fl
Slide 40: Thank you
Thank you