Raymond Limited · NSE:RAYMOND
Raymond — Investor Day (July 2024)
54 slides from Raymond's investor day presentation, Jul 9, 2024
Slide 1: Exchange filing cover letter
RL/SE/24-25/83 July 9, 2024 To The Department of Corporate Services - CRD The National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor P.J. Towers, Dalal Street Bandra-Kurla Complex Mumbai - 400 001 Bandra (East), Mumbai - 400 051 Scrip Code: 500330 Symbol: RAYMOND Dear Sir/Mad
Slide 2: Welcome to Raymond Investor & Analyst Conference
WELCOME TO RAYMOND Investor & Analyst Conference July 2024
Slide 3: Strategic Initiatives Undertaken
Strategic Initiatives Undertaken STRENGTHENING Recent Value Unlocking & Growth Initiatives THE CORE (FY21-24) IN LAST 12 MONTHS Reset the Business Model During Covid Selling of FMCG Business for Demerger of Lifestyle Business. ₹2,825 Cr making the Raymond completed on 30th June 2024, Group Net Debt
Slide 4: From Vision to Value
From Vision to Value Achieving Sustainable Growth Revenue EBITDA & Margins (%) Profit Before Tax & Margins (%) # (₹ Cr) (₹ Cr) (₹ Cr) .l 1,575 916 9,286 2.5X 6,578 Growth 30% 612 900% Growth Growth 9.3% 17.0% N 9.9 A % FY'20 FY'24 FY'20 FY'24 FY'20 FY'24 (31) Net Debt NWC Days Operational RoCE (%)*
Slide 5: Consecutive Quarters of Record Financial Performance
11 Consecutive Quarters of Record Financial Performance REVENUE QoQ 10% EBITDA & Margins (%) QoQ 21% 2,450 2,688 2,200 2,321 516 2,191 2,192 2,032 1,871 1,826 1,754 426 (₹Cr.) 1,583 379 382 358 358 351 303 252 19.2% 17.6% 235 17.4% 213 (₹Cr.) 17.3% 16.5% Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY
Slide 6: 3 Distinct Vectors of Growth
3 Distinct Vectors of Growth 1 Lifestyle 2 Real Estate 3 Engineering Business# ₹7,000 Cr+ ₹1,100 Cr ₹1,590 Cr ₹370 Cr ₹1,800 Cr ₹270 Cr Revenue EBITDA Revenue EBITDA Revenue EBITDA • Branded Textile • Thane ( ~100 Acre) 1. Auto Components with EV and • Branded Apparel - ₹25,000 Cr+ Revenue Potential
Slide 7: Lifestyle Ltd.
LIFESTYLE LTD. Presented by Mr. Sunil Kataria
Slide 8: Raymond Lifestyle — Our Vision
Raymond Lifestyle — Our Vision To be the leading FASHION & LIFESTYLE company with loved brands, fashion first approach and a delightful consumer experience to deliver superior stakeholder value.
Slide 9: Raymond Lifestyle — Values
Raymond Lifestyle — Values 01 03 05 TRUST INNOVATION CARE • We are one of India’s 02 • We have been crafting 04 • Our People are our biggest most trusted brands with world-class product strength and we nurture near 100% awareness offerings over the years and invest in our talent CONSUMER • We will c
Slide 10: Lifestyle: B2C and B2B
LIFESTYLE B2 C B2 B Business to Consumer Business to Business Branded Textile Garmenting Branded Apparel High Value Cotton Shirting Ethnix by Raymond
Slide 11: We are amongst India's Strongest Brands
We are amongst India’s Strongest Brands Ranked in the Top 10 list for 2024 Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 92.9 91.0 88.0 88.0 87.9 Rank 6 Rank 7 Rank 8 Rank 9 Rank 10 87.5 86.2 85.6 85.0 84.6 Brand Finance India 100 2024 Report
Slide 12: World class Manufacturing Excellence
We have world class Manufacturing Excellence Superior Fabric & Garmenting capabilities SUITING SHIRTING GARMENTING Mfg. World’s Finest Fabric Mfg. World’s Finest Fabric End-to-End 250s – Worsted Suiting 340s – Cotton Fabric Integrated Garment Mfg. 150 Lea Linen Fabric of High Value Menswear Clothing
Slide 13: Wide spread International Presence
We have a wide spread International Presence Global Footprint in 90+ Countries through Diversified Businesses Asia North Europe America Dubai Ethiopia South America Africa 45+ Retail Stores in Overseas Location Australia Overseas Store Location Manufacturing Location * Legends represent indicative s
Slide 14: Largest and fast expanding Retail Network
We have one of the largest and fast expanding Retail Network Adding 250-300 New stores in next 12-18 months 409 261 316 35 40 44 EBO MTM TRS 1,055 1,053 1,065 Mar'22 Mar'23 Mar'24 TRS – The Raymond Shop; MTM – Made To Measure; EBO – Exclusive Brand Outlet.
Slide 15: Strategic Approach
LIFESTYLE LTD. STRATEGIC APPROACH
Slide 16: Raymond Lifestyle — 3 Pronged Strategic Approach
Raymond Lifestyle — 3 Pronged Strategic Approach NEW CORE GROWTH CATEGORIES Ethnic Wear Branded Apparel Inner Wear Textile Garmenting Sleep Wear International Retail STRENGTHEN ACCELERATE BUILD THE “CORE” THE “GROWTH” THE “NEW”
Slide 17: Branded Textile: Extensive Reach
Branded Textile EXTENSIVE REACH 1 2 20,000+ SKUs Presence across 600+ SUITING SHIRTING Cities & Towns 3 4 1000+ TRS Stores 1430+ MBOs MADE TO HOME MEASURE FURNISHING Price Range ranging ₹300 to ₹3 lakhs per metre
Slide 18: Branded Textile
Branded Textile Continued focus on improving margins Revenue, (₹ Cr) 3,450 4,000 3,500 3,364 2,917 2,789 3,000 2,500 2,000 1,572 MTM 1,500 2% Wholesale 39% 1,000 Others 500 0 16% FY'20 FY'21 FY'22 FY'23 FY'24 Suiting Shirting 78% 20% MBO EBITDA, (₹Cr) 19% TRS 26% 800 20.9% 20.9% 25.0% 700 17.6% 20.0
Slide 19: Suiting
Suiting Drive Category Premiumization Growth Enablers Innovative Offerings Drive category Premiumization through highly differentiated wool rich blends and All wool products – Exotic & Regio Italia Expand distribution and gain share in top end MBOs for Regio Italia Pride Programme – Mass end Indirec
Slide 20: Shirting
Shirting Growth through Product Innovation and Distribution Growth Enablers Innovative Offerings Drive Premiumisation through : • Category building of linen segment • Premium Cotton with high fashion quotient prints – Regio Italia • Performance Products – Fearless Collection Volume growth in mass se
Slide 21: Branded Apparel
LIFESTYLE LTD. Branded APPAREL
Slide 22: Branded Apparel
Branded Apparel Sustain Profitable Growth Momentum A WIDESPREAD NETWORK PRESENCE 600+ Cities & Towns 409 EBOs Portfolio of Market leading Ready to wear 4,525+ MBO Counters brands in menswear segment 1,400 LFS Counters
Slide 23: Branded Apparel
Branded Apparel Sustain Profitable Growth Momentum Revenue, (₹Cr) 1,800 1,619 1,587 1,600 1,400 1,328 1,200 1,000 891 TRS New 28% 800 600 457 Offering & PA Accessories 400 11% 34% Other 17% 200 0 FY'20 FY'21 FY'22 FY'23 FY'24 PARX EBO 16% LFS 23% RRTW EBITDA, (₹Cr) 15% CP 20% MBO 250 11.9% 14.0% 200
Slide 24: Brand Growth Playbook
Brand Growth Playbook Raymond & Park Avenue Establish as a Establish RR as a Hybrid Formal Wear Readymade Premium Fashion Wear 1. Widening Product Portfolio: 1. Premium Ready to Wear • Casualization Wardrobe Solution • Stylish Hybrid Workplace 2. Widening Product Portfolio: Dressing • Performance pr
Slide 25: Brands Growth Strategy
Brands Growth Strategy ColorPlus & Parx Making the Brand Position as Trendy Relevant to Millennials Casual Wear for Gen Z 1. Widening Product Portfolio: 1. Widening Product Portfolio: • Establish Leadership in • Value for money casual wear Chinos Category • Denim • CP Sport • Athleisure • Casuals wi
Slide 26: Build the New: New Categories
New Categories BUILD THE “NEW” ETHNIX by SLEEPZ by INNER RAYMOND RAYMOND WEAR
Slide 27: Men's Ethnic Wear Market
Men’s Ethnic Wear Market Ethnic Wear Market Size (₹ ‘000 Cr) Share of Organised & Unorganised 25.0 Unorganized Organized 20.0 8% CAGR 15.0 62 55 75 10.0 20.0 14.0 45 5.0 38 8.0 25 0.0 2015 2023 2027 2015 2023 2027 • Organised market is growing at ~14% whereas unorganised is growing at 5%. • By 2027
Slide 28: Ethnix by Raymond
Ethnix by Raymond Growth Enablers • Design Language: Differentiated design for all occasions, high quality offerings at affordable pricing, strong presence in wedding category. • Optimal Portfolio: Mix of core ethnics (wedding) and smart ethnics (non wedding) catering occasion wear to regular wear.
Slide 29: Ethnix by Raymond
Ethnix by Raymond Ethnix range for targeted Occasion Smart Ethnix Festive Collection Wedding Collection
Slide 30: SleepZ by Raymond
Raymon SLEEPZ BY RAYMOND SleepZ Raymon an Raymon
Slide 31: SleepZ by Raymond
SleepZ by Raymond Consumer & Product Strategy: • Indian Wear & Western Wear. • Currently there is no branded player in this segment Distribution Strategy: • Indian wear (Kurta – Pajama Set) is an Unorganized Market. • Appointing Distributors PAN India Pricing Strategy: Will launch at Attractive Pric
Slide 32: Innerwear – Park Avenue
Innerwear – Park Avenue Consumer & Product Strategy: Targeting the Semi- Premium & Premium Category Consumer, (> 50% of the Market). Pricing Strategy: A Competitive pricing strategy with presence in Mid-Premium and Upwards Price Segment Brand & Promotion Strategy: Leveraging PA Brand & creating the
Slide 33: Garmenting
LIFESTYLE LTD. GARMENTING
Slide 34: Garmenting
Garmenting 3rd Largest Suit Manufacturer Revenue, (₹Cr) Growth Enablers 1,200 1,000 1,100 1,139 Adoption of “China + 1 strategy” by global brands 800 843 600 725 Gaining new customers/ markets through: 400 549 • Product innovation and adjacencies 200 • Cross selling via vertical integration 0 FY'20
Slide 35: Digitization
Digitization Develop Omni Channel Capabilities - Increase Revenue from CRM Digital Platforms Digital NPS Seamless and Personalized journey across touchpoints Over 2 Mn response MyRaymond.com Shoppers participate in NPS +18% D2C E-comm platform 100% YoY growth with Browses on Hyperlocal- local with a
Slide 36: Well Defined ESG Goals
Well Defined ESG Goals ENVIRONMENT (E) 20% 20% 30% Zero Liquid Discharge (ZLD) by 2030 Reduction in Renewable Energy Decrease in scope 1 & 2 by Target by 2030 Waste to landfill 2030 by 2030 SOCIAL (S) 100% Single Digit ZERO 20% Return to Employee Turnover Fatalities since Gender diversity Work Rate
Slide 37: Presented by Mr. Harmohan H Sahni (CEO Raymond Realty)
Presented by Mr. Harmohan H Sahni (CEO Raymond Realty)
Slide 38: Raymond Realty: A Retrospective
Raymond Realty: A Retrospective Our Journey and Growth First JDA Project The Address by GS - Bandra Launched: 2024 FINANCIALS GROWTH Invictus by GS launched (FY2020 & FY2024) Address by GS Season 2 launched FY2020 FY2024 2024 41% unit (1 PROJECT) (6 PROJECTS) sold 3rd Project TenX Era launched 2024
Slide 39: Brand Portfolio
Brand Portfolio: Creating product brands in a commoditized industry ASPIRATIONAL PREMIUM LUXURY SEGMENT SEGMENT SEGMENT
Slide 40: Approach to Business
Approach to Business Capital Light Business Model Manufacturing Mindset Annual Growth Margin ROCE OPERATIONAL INTENSITY ~20% ~20% ~20% Geographical Focus: MMR / Pune
Slide 41: Leading the Market: Key Achievements & Enablers
Leading the Market: Key Achievements & Enablers Amongst Top 10 Portfolio in Aspirational Listed Developers in to Premium Segment Country Strong Promoter Commitment Amongst Top 5 Delivered 5 Towers years Listed Developers in MMR Ahead of RERA Timeline Strong Execution Team Every 3rd House Sold in Net
Slide 42: Shape & Size of the Current Portfolio
Shape & Size of the Current Portfolio OWN LAND (~100 Acre) JDA LED BUSINESS MODEL Asset Light Expansion ₹7,000 Cr.+ AREA UNDER FURTHER POTENTIAL Appointed: Developer for projects in Development Development Launched The Address by MAHIM SION BANDRA EAST ~40 Acre ~60 Acre GS BANDRA ~4.0* mn sq.ft .RER
Slide 43: Constructing Success: Summarising the strategy
Constructing Success: Summarising the strategy Annual Growth ~20% Continued focus on Maharashtra Market Margin ~20% JDA Led ROCE Capital Light Business Model ~20% Creating product brands Operational Intensity
Slide 44: Engineering
ENGINEERING Presented by Mr. Gautam Maini (CEO Engineering Business)
Slide 45: Raymond Engineering Business
Raymond Engineering Business 1 Steel Files and Tools & Hardware Engineering 2 Auto and EV Component Business has 3 Verticles 3 Aerospace & Defense
Slide 46: Market Leading Position in Key Precision Engineering Products
Market Leading Position in Key Precision Engineering Products STEEL FILES RING GEARS #1 in India #1 in India with 60%+ with Market Share: Market Share • ~55% in PV Steel Files Ring Gears Flex Plates • ~45% in CV STEEL FILES FLEXPLATES #1 in Global Sole Domestic Installed Capacity with Manufacturer w
Slide 47: Product Portfolio
Product Portfolio Clean Powertrain Electric and Hybrid Hydraulics and Industrial 1. GDI Pump body 350 Bar (Machined Forging) 1. Oil sleeve 1. Cradle 2. GDI Pump body 600 Bar (Machined Forging) 2. Support bracket 2. Bearing journal 3. GDI Pump body 350 Bar 3. BLDC Upper hub cover 3. ELSD housing & Pl
Slide 48: Building a Stronger Scalable Combined Engineering Business
Building a Stronger Scalable Combined Engineering Business CONSOLIDATE Strong Auto Component Business Catering to Leading OEM EXPAND Entry into Sunrise Sectors Of Aerospace, Defense and EV MARGIN Operating Cost Synergies Led by Sourcing and Mfg. Efficiencies IMPROVEMENT SYNERGIES BENEFITS: More than
Slide 49: Engineering: Aerospace & Defense Supplier
One of India’s Largest Supplier of High Precision, Mission-Critical Components to ENGINEERING Global Aerospace & Defense OEMs.
Slide 50: Indian Aerospace Components Market all set to Take Off
Indian Aerospace Components Market all set to Take Off Industry Size India’s Share in Global Aerospace Factors Driving the Indian Components Market Aerospace Components Market $4.0Bn Global Aircraft Sales on Rise (a) To reach $210 Bn by 2027 growing at a CAGR of 4.3%, with Asia Pacific dominating ma
Slide 51: Comprehensive Aircraft Components
Comprehensive Aircraft Components: Supplying Key Elements Across the Entire Airframe and Engine Structure Components Wings Tails Fuselage System Components Landing Gear Engine Components Guide Vanes Engine Mount Critical Engine, Structure, and System Components Supplied in Large Volumes to Global Ma
Slide 52: Product Portfolio
Product Portfolio Aero Engine Aero Structure Aero System 1 2 1 2 3 3 1 2 3 4 5 6 4 5 6 4 5 6 1. Turbine Vanes 1. Swinging Link Support 1. Brake Manifold 2. Housing Assembly 2. Support Fitting 2. Clevis Pin 3. Fuel System Cylinder 3. Housing 3. Flange Tube 4. Housing Cover 4. Cover Assembly 4. TIR Ho
Slide 53: Dominating the India market
Dominating the India market As the leading exporter of highly critical Aero engine components Expertise in Precision Mfg. 1,200+ 300+ 25+ 2 Decades for the Aerospace Sector Precision Aero Engine Parts of Latest LEAP Global Aero Components Relationship with Parts Developed Engines Variants Manufactur
Slide 54: Thank You
THANK YOU REACH US @Raymond.IR@Raymond.in