Lux Industries Ltd. · NSE:LUXIND
Lux Industries — Investor Presentation (November 2021)
50 slides from Lux Industries's investor presentation, Nov 1, 2021
Slide 1: Cover letter to NSE and BSE
November 01, 2021. To, The Secretary, National Stock Exchange of India Ltd., Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandera (E), Mumbai — 400 051 Symbol: LUXIND To, The Secretary, BSE Limited, P.J. Towers, Dalal Street, Mumbai- 400 001 Scrip Code: 539542 Dear Sir, Sub: Investor Presenta
Slide 2: Lux Industries Limited Corporate Presentation Q2 FY22
LUX INDUSTRIES LIMITED CORPORATE PRESENTATION I Q2 FY 22
Slide 3: What's Inside
WHAT’S INSIDE ESG Fast-track progress 03 ESG 18 Strengths 25 Financials 04 CSR 19 Manufacturing 26 Leadership Profile 20 New Markets 27 Next Generation 21 Multi- Channel Footprint 28 Management 22 Branding 30 New Venture 24 Digitalisation 31 Transforming into a New Lux Corporate identity 06 At a gla
Slide 4: ESG
ESG ESG ▪ Collaborated with Churchgate Partners to implement ESG ▪ Provide more transparency in disclosures regarding Environment, Social and Governance related issues ▪ Guided by the principles to make a difference in society by giving back in equal measures ▪ Recognizing the need for sustained pro
Slide 5: CSR
CSR Supporting economically Addressing environment Supporting 180+ elderly Focusing on animal welfare backward people sustainability people benefiting 500+ cows Making available safe Promotion of traditional drinking water benefiting art & culture 1 lakh+ people Actual CSR expenditure (HYE Sep’21) B
Slide 6: Corporate
06 At a glance 07 Milestone 08 Product Portfolio 10 Merger 11 Presence 12 Export presence 13 Governance C O R P O R AT E
Slide 7: At a Glance
AT A GLANCE ENSURING EVERYDAY COMFORT FOR DECADES Lux group Unique in its value proposition Leadership Scale Indian innerwear Combined revenue Garment pieces**; Retailer network across Country export presence company from operations* manufacturing capacity India (volume terms) across 7 state-of-the-
Slide 8: Milestone
MILESTONE Shri. Giridhari Lal Todi Shares listed on • Commissioned Eastern Merger of J.M. Hosiery and Ebell founded Biswanath Hosiery the BSE and NSE India’s largest hosiery Fashions with Lux Industries Mills product manufacturing plant in Dankuni Comfort partner for IPL • Became Kolkata Knight • La
Slide 9: Product Portfolio
PRODUCT PORTFOLIO Winter **Total Revenue Categories Prominent brands Wear in ₹ Cr Premium ₹ Cr Semi- premium ₹ Cr Economy Others ₹ Cr Presence across price segments helps the Company cater to a wide customer base and fast-track growth * Includes complete winterwear sale including Lux Cottswool ** No
Slide 10: Product Portfolio
PRODUCT PORTFOLIO *Total Revenue Margin Prominent brands in ₹ Cr 22-26% 15-21% Upto 15% Others Presence across price segments helps the Company cater to a wide customer base and fast-track growth *Note : Net sales revenue of HYE Sep’21 Lux Industries Limited 09
Slide 11: Merger
MERGER Group companies – Ebell Fashions Private Limited and J.M. Hosiery EPS in HYE Sep’21 (post-merger) and Co Limited merged with Lux Industries Limited EPS in HYE Sep’20 (post-merger) Benefits of the Merger ▪ Market growth ▪ EPS accretive Shares of Lux (post-merger state) ▪ Expand product portfol
Slide 12: Presence
PRESENCE WIDENING AND DEEPENING REACH 1,170+ dealers' Available in 2 lakh+ multi- Stronger e-retail platform 12 Depots drive faster network brand stores and 15 EBOs presence distribution in India Strategically located Exclusive brand outlets manufacturing units (target by FY23) (West Bengal, Punjab,
Slide 13: Export Presence
EXPORT PRESENCE Iraq Kuwait Saudi Qatar Star Export House Market traction in Germany Arabia Bahrain UAE Oman Sudan recognition by tropical countries Chad Jordan Nepal Government of India (including GCC Mali Myanmar Niger region and Africa) Thailand Algeria Nigeria Morocco Benin Hong Kong Burkina Fas
Slide 14: Governance
GOVERNANCE Shareholding pattern 30.9.21 Experienced Board Strong Management Team Restructured business 14.94% • Promoter-Directors with 24 years of • Inducted several new members in the processes average industry experience; expertise- past two years 6.57% Sales & Marketing, Brand Promotion, • New m
Slide 15: Governance: risk-management framework
GOVERNANCE Robust risk-management ▪ No duplications framework ▪ Minimal manual Procure interventions to Pay IT General Inventory Controls & Management Regulatory Compliance Organisation-wide Execution excellence accountability through: Inbound & Outbound Well-defined Human ▪ Digital capability Logis
Slide 16: Opportunity landscape
16 Opportunity landscape Lux Industries Limited
Slide 17: Lux's Response
LUX’S RESPONSE Strong distribution channel Employee workforce Longstanding dealer relationship Near-term investment to augment production through internal accrual Price range of products Existing market share in men's Gross cash balance Districts-presence in India innerwear Additional revenue genera
Slide 18: Fast-Track
18 Strengths 19 Manufacturing 20 New Markets 21 Multi- Channel Footprint 22 Branding 24 Digitalisation 25 Financials 26 Leadership Profile 27 Next Generation 28 Management 30 New Venture 31 Transforming into a New Lux FAST-TRACK Lux Industries Limited
Slide 19: Strengths
STRENGTHS Expansion: Foraying into new segments Technology: Augmenting digital and geographies and expanding multi- capability with investments in channel footprint automation (SAP Hana) for enhanced operational control Expansion Technology Integration: Capitalising on synergies through merger with
Slide 20: Manufacturing
MANUFACTURING Yarn Present in yarn sourcing Flexible core manufacturing till packaging process Key focus areas: quality, cost Completed upgradation and effectiveness and innovation replacement of old Manufacturing equipment Process Investment on cutting Garment pieces manufactured machines from Ital
Slide 21: New Markets
NEW MARKETS Domestic Sales (%) Share of revenues from value, From a innerwear pureplay Focus on premium 15 semi-premium and premium to a mix of athleisure and innerwear range: 22 products category of HYE Sep’21 outerwear player Current Market share – ₹144 Crore in HYE Sep’21 3 Revenue share Amount %
Slide 22: Multi-Channel Footprint
MULTI-CHANNEL FOOTPRINT ▪ Growing wholesale Adopting investment-light market presence #FOFO model Dealer attrition ▪ Association with 1,170+ dealers with focused engagement initiatives Strong presence in Target revenue of ₹100 Cr by Depots drive faster Average daily online multi-brand outlets and on
Slide 23: Branding
BRANDING Building brands judiciously Branding investments in the last five years +, leading to Q2 FY22 Amitabh Bachchan, Virat Kohli, Varun Dhawan, Kartik Aaryan, Taapsee Pannu are brand endorsers Average share of revenues spent on branding (FY17- Q2 FY22) Sponsored KKR team in the IPL to enhance br
Slide 24: Branding: Creating a successful brand
BRANDING 1 2 3 Creating Innovative products Sustaining Successful brand and launches brand across different promotion price point 6 5 4 Clear and Evolving Strengthening consistent brand communication endorsement product salience compatibility 7 8 Messaging around desired Translating brand strengths
Slide 25: Digitalisation
DIGITALISATION End-to-end IT solutions through Enhanced MIS system for business dealer integration systems visibility; data-based Process decision-making Timeline Change Led by Bibek Maity, CIO and his Invested in SAP-Hana and Internal Team People 25-member team SAP rollout across the Experience org
Slide 26: Financials
FINANCIALS Overhauled credit policy to strengthen working capital ROCE, HYE Sep’21 Working Capital Days in Working Capital Days in HYE Sep'20** HYE Sep'21** Deleveraged balance sheet and Sales Growth HYE Sep’21 vs Inventory cycle in HYE Sep'20** Inventory cycle in HYE Sep'21** Sep’20 created strong
Slide 27: Leadership Profile
LEADERSHIP PROFILE Ashok Kumar Todi Pradip Kumar Todi Chairman Managing Director • Visionary, Founder and Promoter • Founder and Promoter • Commerce Graduate; engaged in the hosiery business • Commerce Graduate for over five decades • Primarily focuses on product development and production • Forte l
Slide 28: Next Generation
NEXT GENERATION Navin Kumar Todi Rahul Kumar Todi Saket Todi Udit Todi Executive Director Executive Director Executive Director Executive Director • Post Graduate (Brand • MSC in Finance from LSE, • Commerce Graduate • Post Graduate (Marketing) from Management) from MICA Economics (Hons.) from St. •
Slide 29: Management
MANAGEMENT Saurabh Kumar Bhudolia Smita Mishra Sanjay Mittal Chief Financial Officer Company Secretary & Compliance Officer Vice President (Sales) • Qualified Chartered Accountant • Qualified Company Secretary, associated with the • Has led and supported various leadership roles for • 18+ years of e
Slide 30: Management
MANAGEMENT Mr. Bibek Narendra Maity Panjwani Surendra Kumar Bajaj Narendra Panjwani Head Chief of Information Quality Control Officer Vice President (Marketing) Head of Quality Control • Postgraduate (MBA & MCA) • 35+ years of experience in marketing industry • Bachelor of Science • 22+ years of exp
Slide 31: New Venture
NEW VENTURE Impressive portfolio Company’s critical Endorsed by Virat Kohli (innerwear, loungewear, margin driver and has huge growth Revenues in HYE Sep’21 Expected revenues in sleepwear) potential 2024-25 Created an inorganic, and new distribution channel Independent and dedicated manufacturing Br
Slide 32: Transforming into a New Lux
TRANSFORMING INTO A NEW LUX Combination of mass, Professionally-driven Technology-driven mid-premium and with defined premium employee roles Mass segment Promoter-driven Legacy processes Pull marketing Pan-India presence To From Push marketing Selected states of presence Men’s innerwear, Strengthene
Slide 33: Financial performance
33 Financial performance Lux Industries Limited
Slide 34: Performance: Half year ended Sep'21
PERFORMANCE In ₹ crore In ₹ crore In ₹ crore Revenue Gross Profit PAT Sep'21 Sep'20 Sep'21 Sep'20 Sep'21 Sep'20 1051.95 823.76 405.62 265.38 163.76 103.54 In ₹ crore % % EBITDA Gross Margin PAT Margin Sep'21 Sep'20 Sep'21 Sep'20 Sep'21 Sep'20 231.96 154.71 38.56 32.22 15.57 12.57 % In ₹ crore EBITDA
Slide 35: Performance: Quarter ended Sep'21
PERFORMANCE In ₹ crore In ₹ crore In ₹ crore Revenue Gross Profit PAT Sep'21 Sep'20 Sep'21 Sep'20 Sep'21 Sep'20 630.86 504.51 244.10 167.75 100.04 66.72 In ₹ crore % % EBITDA Gross Margin PAT Margin Sep'21 Sep'20 Sep'21 Sep'20 Sep'21 Sep'20 141.00 97.67 38.69 33.25 15.86 13.22 % In ₹ crore EBITDA Ma
Slide 36: Performance: Sales by category
PERFORMANCE Half Year Ended Category NSV Sep’21 NSV Sep’20 Sales Growth Volume Growth ASP Growth (in ₹ crores) (in ₹ crores) Premium 144 79 83% 38% 30% Mid- Premium 578 460 25% 5% 19% Economy 315 273 16% -5% 21% Total 1037 812 28% 2% 24% Quarter Ended Category NSV Sep’21 NSV Sep’20 Sales Growth Volu
Slide 37: Performance: Cash flow
PERFORMANCE In ₹ crore Cash Flow Sep’21 Sep’20 Net Cash flow from Operations (123.41) 265.15 Cash flow from / (used in) investing activities 68.44 (56.12) Cash flow from / (used in) in financing activities 37.19 (118.63) Net increase / (decrease) in cash and cash equivalents (17.78) 90.40 Cash and c
Slide 38: Performance highlights
PERFORMANCE Revenue for the half year is at Margin for the half year Growth led by premium EBITDA stands at ₹ 232 Crore ₹ 1051.95 Crore with a stands at 38.56% improved category @ 83%, well @22.05% with an growth of 28% by 634 basis points as supported by mid-premium improvement of 327 basis compare
Slide 39: Performance: Half-year revenue, EBITDA, PAT
PERFORMANCE Revenue ₹ (Cr) EBITDA ₹ (Cr) EBITDA Margin (%) PAT ₹ (Cr) PAT Margin (%) 232 1,052 22 164 16 19 824 13 155 104 HY HY HY HY HY HY HY HY HY HY SEP'20 SEP'21 SEP'20 SEP'21 SEP'20 SEP'21 SEP'20 SEP'21 SEP'20 SEP'21 Lux Industries Limited 38
Slide 40: Performance: Quarterly revenue, EBITDA, PAT
PERFORMANCE Revenue ₹ (Cr) EBITDA ₹ (Cr) EBITDA Margin (%) PAT ₹ (Cr) PAT Margin (%) 141 22 100 631 16 19 505 13 98 67 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q1 Q1 FY21 FY22 FY21 FY22 FY21 FY22 FY21 FY22 FY21 FY22 Lux Industries Limited 39
Slide 41: Performance: Turnover days
PERFORMANCE Inventory Turnover (days)* Credit Turnover (days)* Debtor Turnover (days)* Working Capital Turnover (days)* 159 63 121 101 52 85 122 89 YE HY YE HY YE HY YE HY MAR'21 SEP'21 MAR'21 SEP'21 MAR'21 SEP'21 MAR'21 SEP'21 *Computed on the basis of extrapolated half yearly sales to annualized n
Slide 42: Performance: Capital employed, RoCE, net worth
PERFORMANCE Capital Employed ₹ (Cr) Cash and Cash Equivalents* ₹ (Cr) RoCE (%) Net Worth ₹ (Cr) 37 1,209 275 1,165 166 36 1,038 1,001 MAR'21 SEP'21 MAR'21 SEP'21 MAR'21 SEP'21 MAR'21 SEP'21 *Gross cash and cash equivalents Lux Industries Limited 41
Slide 43: Environment, Sustainability, CSR
43 Environment 44 Sustainability 46 CSR Lux Industries Limited
Slide 44: Environment
ENVIRONMENT 1 MW rooftop solar Energy-saving LED lighting power plant at Dankuni systems in our plants save (West Bengal) unit energy Process technology help 40-45% of our total save water power requirements met through renewable sources Substantial electricity Reducing carbon cost reduction footpri
Slide 45: Sustainability
SUSTAINABILITY Action Impact Our products are made of 100% natural fibre and we Hygienic products and reduced environmental use recyclable packaging impact Many suppliers manufacture exclusively for us Consistent product quality and employment generation Manufacturing locally and maximising local so
Slide 46: Sustainability: Covid relief
SUSTAINABILITY Organized vaccination Distributed free food drive for around 1600 packets to 3000+ people people including employees and their loved ones Free distribution of Replaced biometric with oximeter and oxygen face detector attendance concentrators to the system needy Regular temperature che
Slide 47: CSR: Education
CSR Commitment for support of ₹ 2 crore towards the building of free residential school project for over 1000+ unprivileged girls in Joka, WB. Built the Saraswati Sishu Mandir School at Bali (Murshidabad) Providing quality education to local and tribal children Partnership and consultation with NGOs
Slide 48: CSR: Healthcare
CSR Supporting Reaching healthcare Pushpawati Singhania through focused Hospital & Research intervention areas Institute (kidney ailments, cardio- vascular diseases, cancer among others) Engaging in providing Providing OPD and IPD treatment to ailing services to the population economically underpriv
Slide 49: Disclaimer
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 securities, and sh
Slide 50: For further information, please contact
For further information, please contact Company : Investor Relations Advisors : CIN: L17309WB1995PLC073053 CIN: U74140MH2010PTC204285 Mr. Saurabh Kumar Bhudolia Mr. Jigar Kavaiya +91 9920602034 saurabh.bhudolia@luxinnerwear.com jigar.kavaiya@sgapl.net www.luxinnerwear.com www.sgapl.net
Lux Industries — Investor Presentation (November 2021) on 6ix