Lux Industries Ltd. · NSE:LUXIND
Lux Industries — Investor Presentation (August 2023)
44 slides from Lux Industries's investor presentation, Aug 14, 2023
Slide 1: Cover letter to stock exchanges
CT LUX$D August 14, 2023. 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 P
Slide 2: Lux Industries Limited Corporate Presentation Q1 FY'24
LUX INDUSTRIES LIMITED CORPORATE PRESENTATION I Q1 FY’24
Slide 3: What's Inside
WHAT’S INSIDE 03 Market 03 Market Outlook & Company Update 16-28 Fast-track progress 05-13 16 Strengths 17 Manufacturing 18 New Markets 23 Financials 24 Leadership Profile 25 Next Generation Corporate identity 19 Multi- Channel Footprint 26-27 Management 05 At a glance 20 Branding 28 Transforming in
Slide 4: Market Outlook & Company Update
MARKET MARKET OUTLOOK & COMPANY UPDATE Economy & Market Update Brand Performance ➢ Continuing inflationary pressures leading to muted ➢ Clear shift towards organized segment demands ➢ Strong brand recall felt – Power brands performing well despite inflationary pressures ➢ Sluggish export demand ➢ Mi
Slide 5: Corporate
05 At a glance 06 Milestone 07 Brand Portfolio 08 Product Portfolio 09 Prominent Brand Margins 10 Presence 11 Export presence 12 Governance 13 Internal Controls C O R P O R AT E
Slide 6: At a Glance
AT A GLANCE ENSURING EVERYDAY COMFORT FOR DECADES Lux group Unique in its value proposition Leadership Scale No.1 ₹521 crore 34 crore 2 lakh+ 46+ Indian innerwear Combined revenue Garment pieces** Retailer network across Country export presence company from operations* manufacturing capacity India (
Slide 7: Building on a Rich Legacy
MILESTONE BUILDING ON A RICH LEGACY 1957 2023 • Shri Girdhari Lal Todi founded 2017-2018 • Roped in Janhvi Kapoor as • Varun Dhawan roped in as brand ambassador for ‘Lyra’ Biswanath Hosiery Mills 2019 brand ambassador of Lux Cozi • Onboarded Jacqueline 1993-1995 • Amitabh Bachchan became face • Kart
Slide 8: Lux Product Portfolio
BRAND PORTFOLIO LUX PRODUCT PORTFOLIO Men’s Kidswear Innerwear Vest Vest Mega Men’s Innerwear Womenswear Brief Brief Briefs Innerwear Trunk Trunk Vests Brassieres T-Shirt Half Pant Boxers Panties Track Pants T Shirts Camisole T-Shirt Shapewear Mens Outerwear Womenswear T- Shirt Half Pant Outerwear T
Slide 9: Presence Across Diverse Price Points
PRODUCT PORTFOLIO PRESENCE ACROSS DIVERSE PRICE POINTS Winter **Total Revenue Categories Prominent brands Wear in ₹ Cr Premium ₹ Cr 23 30 03 56 Semi- premium ₹ Cr 145 95 34 01 275 Economy Others ₹ Cr 160 12 14 01 187 Presence across price segments helps the Company cater to a wide customer base and
Slide 10: Widening and Deepening Reach
PRESENCE WIDENING AND DEEPENING REACH 1,170+ dealers' Available in 2 lakh+ multi- Stronger e-retail platform 13 Depots drive faster network brand stores and 9 EBOs presence distribution in India 550+ Sales teams drive offtake Participated in highly 19 anticipated Apparel & Warehouses (12 states) Tex
Slide 11: Taking Homegrown Brands to the Global Market
EXPORT PRESENCE TAKING HOMEGROWN BRANDS TO THE GLOBAL MARKET Iraq Kuwait Saudi Qatar Bahrain Star Export Market traction in Germany Arabia UAE Oman Sudan House tropical countries Chad Jordan Nepal recognition (including GCC Mali Niger Myanmar by region and Africa) Government Algeria Thailand Nigeria
Slide 12: Advancing with Good Governance
GOVERNANCE ADVANCING WITH GOOD GOVERNANCE Shareholding Pattern as on 30.06.2023 Experienced Board Strong Management Team 14.67% • Promoter-Directors with 25+ years of • Inducted several new members in the recent years 2.18% average industry experience; expertise- Sales & Marketing, Brand Promotion,
Slide 13: Strengthening Internal Controls
GOVERNANCE STRENGTHENING INTERNAL CONTROLS SOP driven culture Robust risk-management ▪ Minimal manual framework interventions Procure ▪ Well implemented to Pay IT General Cyber Security Inventory Controls & Management Regulatory framework Compliance Organisation-wide Execution excellence accountabil
Slide 14: Opportunity Landscape
15 Opportunity landscape Lux Industries Limited
Slide 15: Responding to Market Opportunities
OPPORTUNITY LANDSCAPE RESPONDING TO MARKET OPPORTUNITIES 1,170+ 3,100+ 20+ years ₹50 crores Strong distribution channel Employee workforce Longstanding dealer relationship Near-term investment to augment production through internal accrual ₹24 to ₹1790 ~15% ₹150 crores 674+ Price range of products E
Slide 16: Fast-Track
17 Strengths 18 Manufacturing 19 New Markets 20 Multi- Channel Footprint 21 Branding 23 Digitalization 24 Financials 25 Leadership Profile 26 Next Generation 27 Management 29 Transforming into a New Lux FAST-TRACK Lux Industries Limited
Slide 17: Growth Initiatives
STRENGTHS GROWTH INITIATIVES 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 Quality: Creating new benchmarks Efficie
Slide 18: Enhancing Manufacturing Capabilities
MANUFACTURING ENHANCING MANUFACTURING CAPABILITIES Yarn 3 Cr kg Demonstrated manufacturing Flexible core manufacturing excellence for over 3 decades process s pc Cr 3C 34 rk g Ability to consistently deliver high Manufacturing Key focus areas: quality, cost quality products on timely basis Process e
Slide 19: Venturing into Newer Regions and Segments
NEW MARKETS VENTURING INTO NEWER REGIONS AND SEGMENTS Share of revenues from value, From an innerwear Focus on premium Diversify product portfolio semi-premium and premium pureplay to a mix of innerwear range: in female (innerwear products category of Q1 FY’24 athleisure and outerwear - ₹55 Crore in
Slide 20: Expanding Through Multi-Channel Footprint
MULTI-CHANNEL FOOTPRINT EXPANDING THROUGH MULTI-CHANNEL FOOTPRINT ▪ Growing wholesale Adopting investment-light market presence #FOFO model ▪ Association with 1,170+ dealers with focused engagement initiatives Strong presence in Target revenue of ₹100 Cr multi-brand outlets and large format stores f
Slide 21: Crafting 360 Degree Branding Initiatives
BRANDING CRAFTING 3600 BRANDING INITIATIVES Building brands ₹900 crores judiciously Branding investments in the last seven years including Q1 Salman Khan, Sourav FY’24 Ganguly, Jacqueline Fernandez, Vijay Deverakonda, 8% Varun Dhawan, Average share of revenues Boman Irani, Janhvi spent on branding K
Slide 22: Creating Successful Brand Strategy
BRANDING CREATING SUCCESSFUL BRAND STRATEGY 1 2 3 Creating Innovative products Sustaining Successful brand and launches brand across different promotion price point 6 5 4 Clear and consistent Evolving Strengthening brand product communication endorsement salience compatibility 7 8 Messaging around d
Slide 23: Accelerating Digital Adoption
DIGITALISATION ACCELERATING DIGITAL ADOPTION IT New Initiatives by Launched ‘Lyra Connect’ developing new age solutions Retailer App- a first of its kind Process app to directly connect with its Timeline for better customer experiences Change – led by Prateek Agarwal and retailers his team. Led by B
Slide 24: Strengthening Financials
FINANCIALS STRENGTHENING FINANCIALS Overhauled credit policy to 14.19% 209 days 193 days strengthen working capital Working Capital Days in Working Capital Days in ROCE, YE Mar’23 Q1 FY’23 Q1 FY’24 143 days 133 days Deleveraged balance sheet and ₹150 crores Inventory cycle in Q1 FY’23 Inventory cycl
Slide 25: Our Leadership Profile
LEADERSHIP PROFILE OUR LEADERSHIP PROFILE Ashok Kumar Todi Pradip Kumar Todi Chairman Managing Director • Visionary, Founder and Promoter • Visionary, Founder and Promoter • Commerce Graduate; engaged in the hosiery business • Commerce Graduate for over five decades • Primarily focuses on product de
Slide 26: Next Generation Taking Vision Forward
NEXT GENERATION NEXT GENERATION TAKING VISION FORWARD 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)
Slide 27: Strengthening the Management Team
MANAGEMENT STRENGTHENING THE MANAGEMENT TEAM Professionals in key positions Udai Kumar Agarwal Ajay Nagar Smita Mishra Chief Operating Officer (COO) Chief Financial Officer (CFO) Company Secretary & Compliance Officer • Qualified Chartered Accountant and Cost • Qualified Chartered Accountant • Quali
Slide 28: Strengthening the Management Team
MANAGEMENT STRENGTHENING THE MANAGEMENT TEAM Well-defined roles and responsibilities Mr. Bibek Narendra Maity Panjwani Surendra Kumar Bajaj Sanjay Mittal Prateek Agarwal Head Chief of Information Quality Control Officer Vice President (Marketing) Vice President (Sales) GM – IT & New Initiatives • Po
Slide 29: Prepared for Tomorrow
TRANSFORMING INTO A NEW LUX PREPARED FOR TOMORROW 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
Slide 30: Business Highlights, Financial Performance
31 Business Highlights 32 Financial performance Lux Industries Limited
Slide 31: Q1 FY'24 Business Highlights
BUSINESS HIGHLIGHTS Q1 FY’24 BUSINESS HIGHLIGHTS FINANCIAL POWER GROWTH DRIVERS PERFORMANCE BRANDS DIGITAL PLAY BRAND INVESTMENT Quarterly YoY volume Power brand Lyra Pivoting from primarily Substantial investment Long Standing growth of 3% registering volume growth offline to Omni-channel in brand
Slide 32: Financial Snapshots - Q1 FY'24 & FY'23
PERFORMANCE FINANCIAL SNAPSHOTS- Q1 FY’24 & FY’23 Revenue (₹ In Crores) EBITDA (₹ In Crores) PAT (₹ In Crores) EBIDTA EBIDTA Margin De-growth (%) PAT PAT Margin 50 8.84% Q1FY'24 565 8% 78 13.60% 6.41% 2.92% 521 33 15 Q1 FY23 Q1 FY 24 Q1 FY 23 Q1 FY 24 Q1 FY 23 Q1 FY 24 Revenue (₹ In Crores) EBITDA (
Slide 33: Performance
PERFORMANCE PERFORMANCE Inventory Turnover (days) Credit Turnover (days) Debtor Turnover (days) Working Capital Turnover (days) 143 58 118 209 193 38 133 104 Q1 FY 23 Q1 FY 24 Q1 FY 23 Q1 FY 24 Q1 FY 23 Q1 FY 24 Q1 FY 23 Q1 FY 24 Capital Employed (₹ In Crores) Cash and Cash Equivalents (₹ In Crores)
Slide 34: Bird's-Eye View
PERFORMANCE BIRD’S-EYE VIEW Quarter Ended Category NSV Q1 FY’24 NSV Q1 FY’23 Sales Growth Volume Growth ASP Growth (in ₹ crores) (in ₹ crores) Premium 56 71 -22.1% -18.1% -4.9% Mid- Premium 275 296 -7.1% 5.7% -12.1% Economy 187 198 -5.2% 4.3% -9.1% Total 518 565 -8.3% 2.8% -10.8% Lux Industries Limi
Slide 35: ESG, Sustainability, CSR, Environment
37 ESG 38 Sustainability 39 CSR 43 Environment Lux Industries Limited
Slide 36: Reinforcing Our ESG Commitment
ESG REINFORCING OUR ESG COMMITMENT 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 ▪ Recogni
Slide 37: Continuing Sustainability Commitment
SUSTAINABILITY CONTINUING SUSTAINABILITY COMMITMENT 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 Manufact
Slide 38: CSR
CSR Supporting economically Addressing environment Supporting 180+ elderly Focusing on animal welfare backward people through sustainability people benefiting 500+ cows various measures such as by building rest rooms Making available safe Promotion of traditional Encourage Sports activities Providin
Slide 39: Spreading the Seeds of Knowledge
CSR SPREADING THE SEEDS OF KNOWLEDGE Commitment for support of ₹ 2 crores towards the building of a free residential school project for over 1000+ unprivileged girls in Joka, WB has been fulfilled. Built the Saraswati Sishu Mandir School at Bali (Murshidabad) Contributed ₹ 1.5 crores to Dhanuka Dhun
Slide 40: Ensuring Well-Being for All
CSR ENSURING WELL-BEING FOR ALL 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 popul
Slide 41: Current Status of Project / Proposed
CSR Current Status of Project Proposed Lux Industries Limited 40
Slide 42: 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 30-40% of our total save water power requirements met through renewable sources Substantial electricity Installations of Capacitors cost reduc
Slide 43: 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 44: For further information, please contact
For further information, please contact Company : Investor Relations Advisors : CIN: L17309WB1995PLC073053 CIN: U74140MH2010PTC204285 investors@luxinnerwear.com Mr. Jigar Kavaiya +91 9920602034 jigar.kavaiya@sgapl.net www.luxinnerwear.com www.sgapl.net