Slide 1: Santosh Ladha
Santosh Digitally signed by Santosh Ladha Ladha Date: 2024.09.04 15:51:16 +05'30'
Slide 2: IRIS Clothings Limited Investor Presentation September 2024
IRIS Clothings Limited Investor Presentation____________September 2024
Slide 3: Vision 2030
VISION 2030 Biggest 500+ 20,000+ Kidswear Brand Established Retail Touchpoints Brand Outlets in India
Slide 4: Renowned Brand in Kids Apparel
Renowned Brand in Kids Apparel Establishment Phase Well Established Listed Vision 2030 Going Kids Apparel Brand Direct to Consumer 2004-2013 2014-2023 2024 & Beyond Manufacturing | Retail B2B Manufacturing | Retail B2B | Business Model Manufacturing | Retail B2B E-commerce B2B | Retail D2C E-commerc
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 Added 20 distributors in the first Manufacturing facility in Howrah Started selling under our Focus on offering high quality 10 years, established presence with a ca
Slide 7: Growth Phase: 2014–2023
Growth Phase: 2014–2023 Well Established Listed Kids Apparel Brand with Consumer Sales of `250+ crores
Slide 8: Manufacturing Facilities Expanded
Manufacturing Facilities Expanded to 06 Manufacturing excellence has been one of our biggest strengths Total Installed Capacity Area of Installed Capacity 33,000 1,25,000 Pieces/Day sq. ft. Foreshore Road, Howrah Pachla, Howrah Uluberia, Howrah Srijan Industrial Park, Bombay Road 4 units for stitchi
Slide 9: Product Portfolio Enhanced Across Categories
Product Portfolio Enhanced Across Categories Brand 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) X Dresses | Tops Dresses | Tops | T-shirts Tops | T-shirts |
Slide 10: Collaboration with Disney Certifies Process & Stringent Quality Control
Collaboration with Disney Certifies Process & Stringent Quality Control… Leveraging Opportunities through Disney Alliance & In-house Expertise Licensing Agreement with Disney FAMA Approval for Manufacturing Strategic Partnership that allows IRIS to design and sell apparel Received FAMA approval to ma
Slide 11: Helps in Premium Market Positioning
…Helps in Premium Market Positioning Premium Pricing Capability: Exclusive nature of the licensing agreement allows customers to pay premium price for products contributing to higher profit margins. Disney Licence Helps to: 1 Diversify product line with various Disney franchises 2 Increase sales thro
Slide 12: Strengthen Distribution Network
Strengthen Distribution Network Domestic 3 230 Exports 4 7 1 16 170 12 14 6 1 3 Portugal Countries 1 100 Nepal 3 2 9 21 Mozambique 5 Saudi Arabia 33 Africa 5 170 UAE 10 Middle East 2 6 2004 2014 2024 2030E 3 7 • Exports under Brand Distributors Distributors Trend • Spreading Brand Awareness
Slide 13: Financial Growth in-line with Business Growth
Financial Growth in-line with Business Growth Revenue from Operations (`Crores) Profit After Tax (`Crores) CAGR 19.4% CAGR 37.4% 121.9 12.2 10.1 113.0 111.5 8.3 87.9 6.5 62.0 5.1 60.7 52.9 3.3 3.9 46.7 1.6 36.4 29.8 24.7 0.7 0.6 0.2 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY14 FY15 FY1
Slide 14: 2024 & Beyond: Going Direct to Consumer (D2C)
2024 & Beyond Going Direct to Consumer (D2C) V I S I O N 20,000+ Biggest Kidswear Brand 500+ Outlets Retail Touchpoints in India
Slide 15: Well Established Brand with PAN India Presence
1 Brand 170 Distributors Well Established Brand with Present in 33,000 PAN India Pieces 26 States Installed Capacity/Day Presence… 10 Units 1,500+ Manufacturing (8) Dispatch (2) Employees Opened …Going Direct to Consumer (D2C) 7 EBOs in East India
Slide 16: DOREME: Retail Strategy
DOREME : Retail Strategy EBOs—Retail Business Model Store Opening Plan EBO Expansion Plan Ownership Model EBOs in Clusters 100 (COCO & FOCO) Store Addition 100 Total Stores Cluster model EBOs in Company Owned 100 strategy to enhance Company Operated (COCO) model brand to have first-hand experience 10
Slide 17: EBO Store Design
EBO Store Design Good experience in existing store, Standardised celebrating one year. store design For the past two years, there has been a focused effort on expanding the retail footprint. Better layout This ongoing retail identification roll-out strategy indicates a long-term commitment to increas
Slide 18: Enhanced Merchandise in Store
Enhanced Merchandise in Store Infantwear category Sportswear category Disney products range share to increase share to grow to expand IRIS has recently launched The newly introduced sportswear line Category expansion in Disney woven night suits. in FY24 is expected to contribute products such as Dis
Slide 19: Expansion of Manufacturing Capacity
Expansion of Manufacturing Capacity Through Brownfield, Greenfield and OEMs Brownfield Expansion Greenfield Expansion OEMs Focusing on debottlenecking in Planned growth of Retail B2B business Outsourced manufacturing of certain existing facilities to increase the current and EBOs roll out will require
Slide 20: Store Economics
Store Economics Average Payback Period Store Size 15 – 18 months 750 – 1,000 sq. ft. Average Investments for 1 EBO Store Average Average Yearly (Incl. Inventory) Bill Value Revenue Per Store `30 Lakhs `1,500/- `75 Lakhs – `1 Crore Product portfolio Store location and resistant to redundancy from vag
Slide 21: Driven by Excellence
Driven by Excellence Success Propelled by Leadership & Management Iris Clothings Limited was steered to success by a proficient management team, led by founder and visionary Santosh Ladha. Powered by his expertise and dynamic approach, the dedicated team help foster innovation, inspire excellence, an
Slide 22: Financials
Financials
Slide 23: Key Financials Profitability Statement
INR(Crores) FYI 21 FYI 22 FYI 23 FYI 24 Key Financials Total Revenue COGS 87.9 50.0 111.5 59.6 113.0 63.7 121.9 57.7 Raw Material Cost 48.8 57.9 61.7 57.7 Power & Fuel Cost 1.2 1.7 2.0 0.0 Profitability Gross Profit Employee Cost 37.9 10.3 52.0 16.8 49.3 18.3 64.2 21.5 Statement Other Mfg. Exp. G&A Ex
Slide 24: Key Financials Balance Sheet
Equity & Liabilities MAR 21 MAR 22 MAR 23 MAR 24 Key Financials Equity Share Capital Reserves 16.3 22.5 16.3 32.4 16.3 40.6 16.3 52.9 Shareholders Fund 38.8 48.7 57.0 69.2 Long-term Borrowings -0.5 -0.7 -0.9 -1.2 Balance Sheet Other Long-term Liabilities Total Long-term Liabilities 6.8 6.3 6.6 5.9 5
Slide 25: Ratio Analysis
Ratio Analysis EBITDA Margin (in %) Working Capital Days Return on Assets (in %) 236.3 22.8 10.8 192.0 21.7 9.2 19.5 19.3 167.2 17.2 152.9 8.6 7.6 131.9 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 X) 1
Slide 26: Annexures
Annexures
Slide 27: Garment Industry—Opportunities Ahead
Garment Industry—Opportunities Ahead Textile & Apparel Market to pick up post hit from macro-headwinds Domestic Textile & Apparel Market ($ Billion) Indian Apparel Retail Industry Forecast ($ Million) Benefit for 250 82,804 89,219 IRIS Clothings 76,647 160 70,605 125 64,585 106 59,980 Rapid retail ex
Slide 28: Case Study
Case Study Power of Brand & Retail B2C Business (Case Study) Opportunity to grow as kids brand in India v/s Globally Global Carter's • Kids brand doing well Transformed from • Have established track records Children's Apparel 35,000x 1865 Startup Growth from Inception India into a Global Giant of Ch
Slide 29: Thank You!
Thank You! For further details please contact +91-80807 96083 Abhishek Bhatt abhishek.bhatt3@in.ey.com Vikash Verma vikash.verma1@in.ey.com Ernst & Young LLP REGISTERED OFFICE 103/24/1, Foreshore Road, Howrah 711 102 www.irisclothings.in CIN: L18109WB2011PLC166895