Safari Industries (india) Limited · NSE:SAFARI
Safari Industries (india) — Investor Presentation (August 2021)
32 slides from Safari Industries (india)'s investor presentation, August 2021
Slide 1: Safari Industries (India) Ltd. Corporate Presentation
SAFARI INDUSTRIES (INDIA) LTD. CORPORATE PRESENTATION AUGUST 2021
Slide 2: Disclaimer
DISCLAIMER This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, or a solicitation of any offer, to purchase or sell any securities of Safari Industries (India) Limited (the “Company”). This presentation should not be considered as a recommendati
Slide 3: 1. Corporate Overview
1. CORPORATE OVERVIEW
Slide 4: Executive Summary
EXECUTIVE SUMMARY Consistently growing One of the fastest growing luggage brands in India luggage brand ~ 35% CAGR in Revenues & ~ 52% CAGR in EBITDA from FY 12 to FY 20 One of the top 3 luggage brands in India Leadership position Leadership position in an oligopolistic market Safari is the top mo
Slide 5: Corporate Snapshot
CORPORATE SNAPSHOT Consolidated FY 21 ‐ INR 3,313 Mn FY 21 ‐ INR 34 Mn Revenues Debt* FY 20 ‐ INR 6,868 Mn FY 20 ‐ INR 753 Mn Customer >3900 (MBOs) FY 21 ‐ INR ‐26 Mn EBITDA Touch >1400 (Modern Trade) FY 20 ‐ INR 729 Mn Points >4000 (CSDs & CPCs) FY 21 ‐ INR ‐209 Mn 800+ (across Soft PAT SKUs Luggag
Slide 6: Share Performance
SHARE PERFORMANCE HISTORICAL STOCK PRICE MOVEMENT Performance in comparison with BSE Sensex based on monthly closing price: 700 50,000 650 47,500 B 600 45,000 S S A 550 42,500 E Share Price (₹) F 500 40,000 S A 450 37,500 E R 400 35,000 N I S 350 32,500 E 300 30,000 X 250 27,500 SAFARI BSE Performan
Slide 7: Shareholding Pattern & Revenue Growth
SHAREHOLDING PATTERN & REVENUE GROWTH Shareholding pattern as on 31st March 2021 23.25% Promoter Institutions (Public) 55.27% Non Institutions (Public) 21.48% Revenues (Consolidated ₹ Mn) 6,868 >10x growth in 5,790 total revenue from 4,227 FY 12 to FY 20 3,535 3,313 2,789 2,165 1,671 621 941 FY 12 F
Slide 8: Timeline of Key Events
TIMELINE OF KEY EVENTS Foray into PC manufacturing Launched polycarbonate luggage and new product categories e.g. laptop bags SAP implementation in July 2017 Launched in 1974. Tano Capital invested ~₹500 Mn in July GST migration from July 2017 2014 Malabar Fund invested ~₹510 Mn in Sta
Slide 9: Pillars of Success
PILLARS OF SUCCESS Attractive industry dynamics Diversified customer offerings with a wide product portfolio Well entrenched distribution network Experienced management team Sound corporate governance 9
Slide 10: 2. Industry Snapshot
2. INDUSTRY SNAPSHOT
Slide 11: Attractive Industry Dynamics
ATTRACTIVE INDUSTRY DYNAMICS SIZEABLE MARKET WITH HEALTHY GROWTH POTENTIAL Global luggage market is expected to bounce back strongly post the pandemic led drop in ‘20‐21 Core long term drivers of market growth remain in place: 1. Consumers upgrading to branded luggage 2. Shortening replacement cycle
Slide 12: Attractive Industry Dynamics: Strong Macro Drivers
ATTRACTIVE INDUSTRY DYNAMICS UNDER PINNED BY STRONG MACRO DRIVERS Long‐term growth estimate of Indian tourism market at 7.5% CAGR… …leading to a ~2x rise in air passenger traffic over 2018‐24E No. of Passengers in mn 400 350 400 >11% 300 CAGR 300 US$ bn 250 200 200 150 158 116 135 184 380 164 173 18
Slide 13: 3. Business Highlights
3. BUSINESS HIGHLIGHTS
Slide 14: Comprehensive Luggage Offerings
BUSINESS HIGHLIGHTS COMPREHENSIVE LUGGAGE OFFERINGS •Daily use Safari’s Offering •School children •Leisure •Teenagers/ •Work college students •Business/ Family •Adults Travel School Bags, Laptop Backpacks All customer Suitable for all segments occasions Reaching Delivering at customers via multiple
Slide 15: Business Highlights: At a Glance
BUSINESS HIGHLIGHTS AT A GLANCE Post the new management, product portfolio has been revamped to suit the changing consumer trends Identified the evolving trends and deployed focus and resources on driving Hard Luggage Newer, youth‐centric designs and patterns in Strengthened the product team U
Slide 16: Supply Chain Snapshot
BUSINESS HIGHLIGHTS SUPPLY CHAIN SNAPSHOT Operational Value Chain Design Procurement & Manufacturing Branding & Distribution India sourcing/ Import of Outsourcing finished products driven model E‐Commerce Started first office Mother Warehouse Soft luggage in Shanghai in (Bhiwandi, 2015 Maharashtra)
Slide 17: 4. Management Team & Corporate Governance
4. MANAGEMENT TEAM & CORPORATE GOVERNANCE
Slide 18: Board of Directors
BOARD OF DIRECTORS Mr. Sudhir Jatia Over 28 years experience in the Luggage Industry in India (Chairman and Managing Appointed as Safari Industries (India) Ltd Managing Director from 18th April 2012 Director) Studied commerce from Mumbai University and attended the Owner/President Management P
Slide 19: Board of Directors
BOARD OF DIRECTORS Mr. Rahul Kanodia Over 30 years of professional experience and has held several progressively senior and leadership positions (Independent Director) Currently, Executive Director of Datamatics Global Services Ltd. and serves as the Chairman for the Western Region of ESC (Elect
Slide 20: Committees
COMMITTEES AUDIT COMMITTEE NOMINATION, REMUNERATION & COMPENSATION COMMITTEE Name of the Director Position on Committee Nature of Directorship Name of the Director Position on Committee Nature of Directorship Dr. Shailesh Mehta Chairman Independent Mr. Punkajj Lath Member Independent Mr. Punkajj Lat
Slide 21: CSR Activity
CSR ACTIVITY TRUSTS/ FOUNDATIONS CONTRIBUTED TO Annam Access Life Avanti Fellows Bal Asha Trust Apex Foundation Annam aspires to Access Life provides Avanti Fellows is an Bal Asha Trust Apex Kidney help underprivileged a loving and NGO which helps rescues abandoned Foundation helps children and wome
Slide 22: Organization Chart
ORGANIZATION CHART CHAIRMAN & MANAGING DIRECTOR Executive Assistant (EA) to CMD Chief Marketing Officer Marketing Team Design & Development VP‐ Campus Gear Sales D&D Team – Safari & Campus Sr. VP ‐ CSD Sr. VP – Trade, Retail, VP – Modern Chief Financial and Business Head – Gear Sales E‐commerce, Tra
Slide 23: Management Team
MANAGEMENT TEAM LEADERSHIP TEAM Sudhir Jatia, Chairman & Managing Director Studied commerce from Mumbai University Attended the Owner/President Management Program of Harvard Business School Acquired Safari Industries (India) Limited in the year 2011 and was appointed as its Managing Director f
Slide 24: Management Team
MANAGEMENT TEAM SENIOR MANAGEMENT TEAM Pushkar Jain, Chief Marketing Officer Sonali Majumdar, Chief Human Resource Officer MBA – Marketing from MDI Gurgaon PGDPM HR from XISS, Ranchi 21+ years experience with companies like 20+ years experience in sectors like Media, Bluestone.com, Tata Doco
Slide 25: 5. Growth Strategy
5. GROWTH STRATEGY
Slide 26: Focused Product Strategy
FOCUSED PRODUCT STRATEGY Category Growth • Growth in SL is driven by • 4‐wheeler (fastest growing within SL) • Short‐duration travel products (e.g. rolling duffels) • Focus on stronger design aesthetics with youthful constructions and colours Soft Luggage (SL) • Polycarbonate (PC) is the growth driv
Slide 27: Channel Strategy
CHANNEL STRATEGY Consciously crafted channel strategy involves balancing volume and value led growth with increasing touch points being the sole focus Modern Trade CSDs & CPCs Multi Brand EBOs and E‐Commerce OE & Exports Outlets Institutional •Focus on •Increasing •Increasing •Ramping up •EBOs •OE b
Slide 28: Branding & Marketing
BRANDING & MARKETING Marketing strategy that converges brand, product and channel strategies to evolve Safari into a one stop luggage brand Focusing on thoughtful innovations and providing simple, doable design solutions to common problems Creating a distinctive “Design Identity” Product, Design
Slide 29: 6. Financial Summary
6. FINANCIAL SUMMARY
Slide 30: Financial Summary: Profit & Loss Statement
FINANCIAL SUMMARY PROFIT & LOSS STATEMENT (Consolidated) Profit and Loss Statement (₹ mn unless specified otherwise) FY 21 FY 20 Revenue from operations 3,280 6,859 Other income 33 9 Total income 3,313 6,868 COGS 1,907 3,841 Gross profit 1,406 3,027 Gross Margin % 42% 44% Employee benefits expense 5
Slide 31: Financial Summary: Balance Sheet
FINANCIAL SUMMARY BALANCE SHEET (Consolidated) Balance Sheet (₹ mn unless specified otherwise) FY 21 FY 20 A ASSETS Non‐Current Assets Tangible assets 373 412 Right‐of‐use assets 290 370 Intangible assets 5 15 1 Financial assets 346 40 Deferred tax assets (net) 110 20 Income tax assets (net) 28 31 O
Slide 32: Thank You
THANK YOU
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