Iris Clothings Ltd. · NSE:IRISDOREME
Iris Clothings — Investor Presentation (August 2024)
28 slides from Iris Clothings's investor presentation, Aug 27, 2024
Slide 1: GEETA Digitally LADHA 10:44:06 +05'30'
GEETA Digitally signed by GEETA LADHA LADHA 10:44:06 +05'30' Date: 2024.08.27
Slide 2: Iris Clothings Limited Investor Presentation August 2024
Iris Clothings Limited Investor Presentation August 2024
Slide 3: Vision 2030
VISION 2030 Biggest Kids Wear Brand 2 500+ Established Brand Outlets 20,000+ Retail Touch Points in India
Slide 4: DOREME: Well Established Brand in Kids Apparel
DOREME: Well Established Brand in Kids Apparel Well Established Listed Vision 2030 Establishment Phase Kids Apparel Brand Going Direct to Consumer 2004-2013 2014-2023 2024 & Beyond Business Manufacturing Retail E-commerce Manufacturing Retail Manufacturing Retail E-commerce Model B2B B2B B2B B2B B2B
Slide 5: Establishment Phase: 2004 – 2013
Establishment Phase : 2004 – 2013 Manufacturer for Kids Comfort Clothing
Slide 6: Started as Kids Clothing Manufacturer, Growing Through Focus on Quality
Started as Kids Clothing Manufacturer, Growing Through Focus on Quality Manufacturing Facilities Market Reach Product Branding Strategy Manufacturing facility in Howrah Added 20 distributors in first 10 Started selling under our Focus on High Quality at with capacity of 8,000 pcs years, established
Slide 7: Growth Phase: 2014 – 2023
Growth Phase : 2014 – 2023 Well Established Listed Kids Apparel Brand with Consumer Sales of Rs. 250+ crores
Slide 8: Manufacturing Facilities Expanded to 6 Locations
Manufacturing Facilities Expanded to 6 Locations Manufacturing excellence has been one of our biggest strengths Foreshore Road, Pachla, Uluberia, Srijjan Industrial Park, Howrah Howrah Howrah Bombay Road • 4 units for stitching and • First fully modernized • Consolidates all the • 3rd fully moderniz
Slide 9: Product Portfolio Enhanced Across Categories
Product Portfolio Enhanced Across Categories Brand DOREME offers a wide range of apparels for infants, toddlers, and junior boys and girls that suit both their indoor and outdoor requirements Kids (0-5 years) Girls (6-16 years) Boys (6-16 years) Disney X DOREME Dresses | Tops | Dresses| Tops | T-shi
Slide 10: Collaboration with Disney Certifies Process & Stringent Quality Control
Collaboration with Disney Certifies Process & Stringent Quality Control… Leveraging Opportunities Leveraging throughthrough Opportunities Disney Disney Alliance & In House Alliance & In Expertise House Expertise Licensing Agreement with Disney Strategic Partnership that allows IRIS to design and sel
Slide 11: Helps in Premium Market Positioning
… Helps in Premium Market Positioning Premium Pricing Capability: Exclusive nature of the licensing agreement allows Leveraging Opportunities through Disney Alliance & In House Expertise customers to pay premium price for products contributing to higher profit margins Boosts brand Diversifies produc
Slide 12: Strengthen Distribution Network
Strengthen Distribution Network Domestic Domestic Exports 7 170 Distributors Trend Countries 3 Distributors 4 7 230 1 16 12 14 6 1 170 3 1 3 2 21 9 100 ▪ Portugal 5 ▪ Africa ▪ Nepal ▪ UAE ▪ Mozambique ▪ Middle East 33 ▪ Saudi Arabia 5 10 2 6 2004 2014 2024 2030E • Exports under DOREME Brand • Spread
Slide 13: Financial Growth in-line with Business Growth
Financial Growth in-line with Business Growth Revenue from Operations (Rs. Crores) Profit After Tax (Rs. Crores) 12.2 121.9 10.1 113.0 111.5 8.3 87.9 6.5 62.0 60.7 5.1 52.9 46.7 3.9 36.4 3.3 29.8 24.7 1.6 0.7 0.6 0.2 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY14 FY15 FY16 FY17 FY18 FY1
Slide 14: 2024 & Beyond
2024 & Beyond Going Direct to Consumer (D2C) Vision 2030: Biggest Kids Wear Brand with 500+ Outlets and 20,000+ Retail Touch Points in India
Slide 15: DOREME - Well Established Brand with PAN India Presence
DOREME - Well Established Brand with PAN India Presence… … Going Direct to Consumer (D2C) 1 Brand 26 States 10 Units of presence Manufacturing (8) Dispatch (2) 6 EBOs Opened 6 EBOs in East India 170 33,000 1,500+ Pieces Installed Distributors Capacity /day Employees
Slide 16: DOREME: Retail Strategy
DOREME : Retail Strategy EBO Expansion Plan 100 100 100 400 500 100 • EBOs in Company Owned Company 300 75 200 • Cluster model strategy to enhance Operated (COCO) model to have 100 first-hand experience of operations 6 25 DOREME brand presence citywide • Continue with only COCO model for FY24 FY25E
Slide 17: EBO Store Design
EBO Store Design Standardised store design and layout for better identification of DOREME brand, ongoing enhancements based on market feedback Good Experience in Existing Store, Celebrating One Year From the past year two years, there has been a focused effort on expanding the retail footprint. This
Slide 18: Enhanced Merchandise in Store
Enhanced Merchandise in Store Infant wear category share to increase • IRIS has recently launched woven night suits • In FY25, launch of new products like innerwear and nightwear Sportswear category share to grow • The newly introduced sportswear line in FY24, is expected to contribute higher in FY2
Slide 19: Expansion of Manufacturing Capacity
Expansion of Manufacturing Capacity Through Brown-field, Green field and OEMs Brownfield Expansion: Focusing on debottlenecking in existing facilities to increase the current capacity utilization of 75% Addition of modern sewing machines every year to enhance productivity and introduce new line of a
Slide 20: Store Economics
Store Economics Convenie nce store Average Store Size Average Investments Average Yearly Average Bill Value Payback Period Revenue Per Store (Sq. ft.) for 1 EBO store (Incl. Inventory) 15-18 Rs. 75 Lakhs - 750 – 1,000 Rs. 1,300 Rs. 30 Months 1 Crore Lakhs Store location and size optimized, ensuring
Slide 21: Financials
Financials 20
Slide 22: Key Financials - Profitability Statement
Key Financials - Profitability Statement INR(Crores) FY21 FY22 FY23 FY24 Total Revenue 87.9 111.5 113.0 121.9 COGS 50.0 59.6 63.7 57.7 Raw Material Cost 48.8 57.9 61.7 57.7 Power & Fuel Cost 1.2 1.7 2.0 0.0 Gross Profit 37.9 52.0 49.3 64.2 Employee Cost 10.3 16.8 18.3 21.5 Other Mfg Exp. 6.1 8.6 5.6
Slide 23: Key Financials – Balance Sheet
Key Financials – Balance Sheet Equity & Liabilities Mar’21 Mar’22 Mar’23 Mar’24 Equity Share Capital 16.3 16.3 16.3 16.3 Reserves 22.5 32.4 40.6 52.9 Shareholders Fund 38.8 48.7 57.0 69.2 Long Term Borrowings -0.5 -0.7 -0.9 -1.2 Other Long-Term Liabilities 6.8 6.6 5.8 8.8 Total Long-Term Liabilities
Slide 24: Key Ratio Analysis
Key Ratio Analysis EBITDA Margin (in %) Working Capital Days Return on Assets (in %) 22.8 21.7 236.3 10.8 19.5 19.3 192.0 9.2 17.2 8.6 167.2 7.6 152.9 131.9 4.8 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Net Profit Margin (in %) Return on Equity (%) Debt-to-Equity (in
Slide 25: Annexures
24 Annexures
Slide 26: Garment Industry - Opportunities Ahead
Garment Industry - Opportunities Ahead Textile & Apparel Market to pick up post hit from macro-headwinds Benefit for IRIS Clothings Domestic Textile & Apparel Market ($ Indian Apparel Retail Industry Forecast Billion) ($ Million) 250 89,219 Rapid retail expansion across India 82,804 76,647 70,605 59
Slide 27: Case Study
Case Study Power of Brand & Retail B2C Business (Case Study) Opportunity to grow as Kids brand in India v/s Global Carter's: Children's Apparel: 35,000x Growth from Inception • Carter's has transformed from 1865 startup into a global children's apparel giant • Kids brand doing well Revenue Growth: G
Slide 28: Thank you
Thank you For further details please contact: Abhishek Bhatt/Vikash Verma Ernst & Young LLP : +91-8080796083 : abhishek.bhatt3@in.ey.com : vikash.verma1@in.ey.com R E G I ST E R E D O F F I C E 103/24/1, Foreshore Road, Howrah - 711 102 www.irisclothings.in CIN: L18109WB2011PLC166895