Lux Industries Ltd. · NSE:LUXIND
Lux Industries — Investor Presentation (April 2019)
40 slides from Lux Industries's investor presentation, Apr 22, 2019
Slide 1: Cover letter to stock exchanges
April 22, 2019. To, To, The Secretary, The Secretary, National Stock Exchange of India Ltd., BSE Limited, Exchange Plaza, C-1, Block G, P.J. Towers, Bandra Kurla Complex, Bandera (E), Dalal Street, Mumbai — 400 051 Mumbai- 400 001 Symbol: LUXIND Scrip Code: 539542 Dear Sir, Sub: Investor Presentatio
Slide 2: Lux Industries Investor Presentation April 2019
DEPENDABLE PROFITABLE PASSION ENERGETIC DYNAMIC TRUSTED CONTEMPORARY DURABLE YOUTHFUL VALUE BRAND FASHION FOR MONEY QUALITY COMFORTABLE ASPIRATIONAL EFFICIENCY FAMILIAR SUSTAINABILITY April 2019
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Lux Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securi
Slide 4: Pioneering Commitment
Pioneering Commitment 1st Ranked ~8% of innerwear Annual revenue 2,000 invested in company in Volume Terms Brand pieces sold 5,000+ every minute Promotion SKU’s 14-15% More than Manufacturing Capacity of 1st Ranked Market share in 100 products innerwear Organized 2,000 lac Men’s across 12 garments p
Slide 5: Market Opportunity
KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO COZI CLASSIC ONN Market Opportunity TOUCH VENUS GENX
Slide 6: Exponential Opportunities
Exponential Opportunities…. ✓ Addressed Men and Women wear categories Presence across Categories Rs. In Cr ✓ At the cusp of rapid growth; per capita inner wear expenditure expected to double to Rs. 300 2020E 28,000 16,500 2,300 ✓ Innerwear market of Rs. 24,000 Cr (2015) projected to grow to Rs. 47,0
Slide 7: Poised to Grow
….poised to Grow Technology Rising exports 04 05 03 06 Demographic dividend Innovation 07 Middle class boom 02 08 Consumer purchasing power Brand consciousness 09 Growing population 01 10 Online retail Goods & Service Tax (GST) 6
Slide 8: Strong Foundation
KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO COZI CLASSIC ONN Strong Foundation TOUCH VENUS GENX
Slide 9: We are gaining Market Share
Lux} We are gaining Market Share 99
Slide 10: We have created Brand Equity
We have created Brand Equity Economy Segment Mid Premium Segment Premium Segment
Slide 11: Our Products are Bare Necessities
Our Products are Bare Necessities Diverse Product Premiumization Milestone Achieved ✓ Lux Cozi helped sectorial Portfolio ✓ ONN Brand growing revenues at 30% transformation from un- organized to brand driven ✓ Mass, Semi Premium & ✓ Increase in Premium Brand Premium contribution to revenue & Expandi
Slide 12: Our Products satisfy Customer needs
Our Products satisfy Customer needs Presence across Categories Presence across various Price Points Revenue : 21% Premium products to grow at a EBITDA Margin : CAGR of 30% in the next 2-3 years 15-18% Premium Revenue : 45% EBITDA Margin : 13-15% Med Premium Revenue : 34% EBITDA Margin : 8-10% … From
Slide 13: We manufacture to maintain High Quality Standards
We manufacture to maintain High Quality Standards One of Lowest Manufacturing Cost ❑ 100% of our products in-house with zero Outsourcing ❑ Invested extensively in manufacturing integration and scale with the objective to reduce costs Largest Employer in Sector ❑ Our pool of 1,496 employees (as on 31
Slide 14: We have advanced Manufacturing Facilities
We have advanced Manufacturing Facilities State-of-the-art 350 Fully Ahead of the Equipment in circular Automated Capture your trends due to the creating Top- Knitting in-house audience’s expertise notch Products machines attention. Stitching of its in-house for consumers units design team Manufactu
Slide 15: We deliver Quality to generate Loyalty
We deliver Quality to generate Loyalty 01 Manufacture 100% of our products in- house with zero outsourcing State-of-the-art Machines from Company invested in cutting machine from 02 Morgan Technica SPA, Italy, and knitting machine from Mayer & Cie, Germany, and United Texmac Pte Ltd Singapore Up-gra
Slide 16: We have right distribution setup to Support Growth
We have right distribution setup to Support Growth Merchandise Strength ❑ Core strength lies in the goodwill that we enjoy among distributors, dealers and retailers rather than machines and products 950+ 9 Capitalizing Opportunity Distributors ❑ First Indian innerwear company to organize distributor
Slide 17: We have Celebrity Endorsements
We have Celebrity Endorsements Lux’s profit from every rupee invested in brand spending increased from 5.74% in FY13 to 7.47% in FY19 16
Slide 18: We are led by Experienced Leadership
We are led by Experienced Leadership Mr. Ashok Kumar Todi Mr. Pradip Kumar Todi ❑ Presently looking after the ❑ His forte lies in Marketing Product Development and of the products and Production formulating various policies for Growth & ❑ His forte is in developing new Expansion of the business patt
Slide 19: We are supported by Strong Management Team
We are supported by Strong Management Team ❑ Mr. Saket Todi, son of Shri Ashok Kumar Todi, aged 27 years Mr. Saket Todi ❑ Has done his post graduation in Brand Management and has eminent knowledge in marketing Sr. Vice President (Marketing) ❑ His contribution towards strengthening the premiumisation
Slide 20: We are supported by Strong Management Team
We are supported by Strong Management Team ❑ He heads the Sales function and plays an important role in ❑ He has done post graduation in MBA & MCA and has more than Mr. Sanjay Mittal Mr. Bibekananda formulating the Sales Strategy 22 years of experience in IT function of manufacturing sector Maity Vi
Slide 21: We are honoured by Awards & Recognitions
We are honoured by Awards & Recognitions 2012-13 2013 2014 2014-15 Asia’s Most Promising Brands The Master Brand The Master Brand The Admired Brand of India 2015 2016 2018 The World’s Greatest Brands Asia’s Greatest Brands Lux Cozi - Best Brand of the Year 20
Slide 22: Market Penetration Strategy
KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO Market Penetration COZI CLASSIC ONN TOUCH Strategy VENUS GENX
Slide 23: Market Penetration
Multi-Product & Multi-Brand Approach Quality at Low Costs Premiumization ❑ 100 products under 12 brands for a growing family’s needs ❑ Only 20% of the innerwear market accounted for by the premium Product & Quality and Semi-premium Segments, offering significant headroom for ❑ 5000 SKUs across all m
Slide 24: Technologically Advanced Expansion
Technologically Advanced Expansion Integrated Unit across knitting, processing and cutting functions which will strengthening efficiency, productivity & profitability New state-of-the-art 12 lakh sq. ft (approx) manufacturing facility in Dankuni, West Bengal Rs.83 Cr investment across 11.48 acres on
Slide 25: The New Age Distribution: E-Commerce
The New Age Distribution: E - Commerce ❑ Company is creating an online presence through e-commerce websites, enhancing access and image Amazon Snap Deal Myntra Other Presence: ❑ Keep It On ❑ Jabong Paytm FlipKart Shopclues ❑ Lime Road ❑ Tata Cliq 24
Slide 26: Focus on Demographics with Huge Potential
Focus on Demographics with Huge Potential ✓ First Indian innerwear brand to extend its product portfolio from innerwear vests to outerwear cum related products Europe ✓ Product offerings include Vests, briefs, trunks, boxers, Middle East thermal wear, Panties, camisoles, leggings, lounge India wear,
Slide 27: Sustained Brand Investments
Sustained Brand Investments 12 Ye Andar Ki Baat Hai the first television Marketing Spend (Rs. In Cr) 1992 advertisement featuring Sunny Deol was Brands launched. 109 100+ 91 Products Face of Lux Sunny Deol was signed as Lux Cozi’s 76 2001 brand ambassador 56 56 49 41 New look - Indian film icon Shah
Slide 28: Capturing Market Share of the Unorganised Space
Capturing Market Share of the Unorganised Space GST to aid faster customer transition from the Unorganised Space to the Organised one… ✓ Have signed Mr. Amitabh Bachchan as the Brand Ambassador for our brand ‘Venus’. It is one of the largest innerwear brands in India. We have also signed him for our
Slide 29: Product Innovation – India's First Scented Vest
Product Innovation – India’s First Scented Vest INDIA looks good, feels good and smells good!! Landmark Product in the Men’s Innerwear Category Creating value based products keeping in mind the essential necessity and aspirational style quotient of India Unique feature of these vests is the fact tha
Slide 30: Continuous Strategic Innovation
Continuous Strategic Innovation Artimas Fashions CSE Consulting Synergies Private Limited LLP (Wholly Owned (License Owner of ✓ Aim at providing superior product quality coupled Subsidiary of Lux One8) – Brand of Virat with comfortable feel that will grab instant attention Industries) Kohli of the y
Slide 31: Financial Performance
KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO COZI CLASSIC ONN Financial Performance TOUCH VENUS GENX
Slide 32: Q4 FY19 Financial Highlights
Q4 FY19 Financial Highlights* Revenue (Rs. In Cr) EBITDA (Rs. In Cr) Profit after Tax (Rs. In Cr) +19% +13% +24% 395 65 38 333 58 30 Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 EBITDA Margins (%) PAT Margins (%) - 80 bps + 40 bps 17.4% 16.6% 9.1% 9.5% Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 * - Ind-AS F
Slide 33: FY19 Financial Highlights
FY19 Financial Highlights* Revenue (Rs. In Cr) EBITDA (Rs. In Cr) Profit after Tax (Rs. In Cr) +13% +21% +30% 1,218 189 101 1,079 156 78 FY18 FY19 FY18 FY19 FY18 FY19 EBITDA Margins (%) PAT Margins (%) + 110 bps + 110 bps 14.5% 15.6% 8.3% 7.2% FY18 FY19 FY18 FY19 * - Ind-AS Financials 32
Slide 34: Proforma Financials
Proforma Financials Revenue (Rs. In Cr) J. M. Hosiery* Ebell Fashions* Q4 FY19 Revenues (Rs. Crs.) Revenues (Rs. Crs.) +49% +15% +33% 68 589 126 68 126 395 110 51 Lux Industries JM Hosiery Ebell Fashions TOTAL Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 (STANDALONE) Revenue (Rs. In Cr) J. M. Hosiery* Ebell Fash
Slide 35: Financial Performance
Financial Performance* Particulars (Rs. In Cr) Q4 FY19 Q4 FY18 Y-o-Y FY19 FY18 Y-o-Y Total Income from Operations 394.6 332.9 19% 1217.9 1079.4 13% Raw Material Cost 221.9 157.7 577.0 485.5 Employee Expenses 11.0 8.2 43.5 37.5 Subcontracting / Jobbing expenses 56.9 67.0 240.6 221.6 Other Expenses 39
Slide 36: Balance Sheet
Balance Sheet* Equity & Liabilities (Rs. Crs.) Mar-19 Mar-18 Assets (in Rs. Crs.) Mar-19 Mar-18 Equity 413.9 318.6 Non-current assets 140.6 135.9 Equity Share capital 5.3 5.3 Property, Plant and Equipment 131.8 125.3 Other Equity 408.6 313.3 Capital work-in-progress 0.4 5.3 Intangible assets 0.4 1.1
Slide 37: Operating Performance
Operating Performance Revenue (Rs. In Cr) PAT (Rs. In Cr) EBITDA & PAT Margins (%) EBITDA% PAT% 1,218 101 15.6% +9% 14.5% 1,079 +31% 78 12.6% 909 941 960 871 60 10.0% 45 51 8.9% 8.3% 713 8.0% 7.2% 31 6.3% 6.2% 20 5.0% 5.5% 3.6% 2.9% FY13 FY14 FY15 FY16 FY17 FY18* FY19 FY13 FY14 FY15 FY16 FY17 FY18 F
Slide 38: Lean Balance Sheet & Sustained Returns
Lean Balance Sheet & Sustained Returns Return on Equity (RoE) Return on Capital Employed (RoCE) Net Debt to Equity (x) 24.3% 24.4% 24.5% 30.1% 1.1 1.0 22.9% 21.9% 0.4 FY17* FY18 FY19 FY17* FY18 FY19 FY17^ FY18 FY19 ^ - Preference Share Capital of Rs. 56 crores considered * - Excl. Preference Share C
Slide 39: Vision 2020
Vision 2020…. 1 To achieve Revenue of Rs. 1,500 crores; having 13% - 15% annual growth rate 2 Maintaining sustainable growth in EBITDA Margin of 100 to 150 basis points To constantly add new and innovative products for gaining significant market share 3 and to capture various other countries in the
Slide 40: Contact details
Company : Investor Relations Advisors : KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO COZI CLASSIC ONN CIN: L17309WB1995PLC073053 CIN: U74140MH2010PTC204285 TOUCH Mr. Ajay Patodia ajay.patodia@luxinnerwear.com Mr. Jigar Kavaiya +91 9920602034 jigar.Kavaiya@sgapl.net VENUS GENX Mr. Deven Dhruva +91