Rupa & Co. Ltd. · NSE:RUPA
Rupa & — Investor Presentation (February 2014)
36 slides from Rupa &'s investor presentation, February 2014
Slide 1: Rupa & Company Limited Investor Presentation
Rupa & Company Limited (“Rupa”) Investor Presentation CONFIDENTIAL 1
Slide 2: Disclaimer
Disclaimer This Investor Presentation has been prepared by Rupa & Company Limited (“Rupa”) and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or supplied shoul
Slide 3: Table of Contents
Table of Contents Section Particulars Page No. 1 Executive Summary 4 2 Key Strengths 6 3 Company Overview 8 4 Financial Highlights 22 5 Business Strategy 28 6 Industry Overview 30 CONFIDENTIAL 3
Slide 4: Section 1: Executive Summary
Section 1: Executive Summary CONFIDENTIAL 4
Slide 5: Executive Summary
Executive Summary • Innerwear is a large and fast growing industry. Branded Innerwear is a low penetrated space growing across all segments and geographies • Changing customer preferences leading to a rapid shift to organised retail for innerwear. Growth of Inner wear organised retail will further b
Slide 6: Section 2: Key Strengths
Section 2: Key Strengths CONFIDENTIAL 6
Slide 7: Key Strengths
Key Strengths RUPA – the largest branded innerwear company in India catering to 1 large addressable market Strong brands across price and customer segments. High Brand 2 Recall and Brand Pull 3 Unparalleled reach and distribution network 4 Cost efficient manufacturing model leading to higher returns
Slide 8: Section 3: Company Overview
Section 3: Company Overview CONFIDENTIAL 8
Slide 9: Company Overview
Company Overview Overview Shareholding Structure as on December 31, 2013 • RUPA incorporated in 1985 by 3 first generation entrepreneurs of the Agarwala family. • RUPA is the largest manufacturer of hosiery products in India with product portfolio comprises of men’s, women’s and kids innerwear, knit
Slide 10: Significant Milestone
Significant Milestone • Took over the business of Binod Hosiery and • Acquired the brand “Euro” converted into public and started export of limited company products • Forayed into the manufacturing of Promoters started • IPO and listing of equity Jeans under the brand “Euro Jeans” • Launched premium
Slide 11: Products & Brand Portfolio
Products & Brand Portfolio Men Women Kids Thermal Wear Socks Vests Innerwear •Jon Bra •Frontline •Jon •Softline •Euro •Kidline •Butterfly •Mseries •Air Vest •Skywing Panty •Interlock •Softline Casual Wear •Ribline •Jon •Bumchum •Xing, Hunk •Butterfly •Mseries •Expando Briefs Socks Thermalwear •Front
Slide 12: Strong Brand Positioning
Strong Brand Positioning BASIC MID PREMIUM Inner Wear PREMIUM SUPER PREMIUM Inner Wear Casual Wear Thermal Wear Men’s Women’s Kids’ Men’s Women’s Kids’ Extensive Portfolio of strong brands and ability to play the entire value chain • In house created and owned brands with >100 registered trademarks
Slide 13: Brands & Advertising
Brands & Advertising Overview • RUPA followed the strategy of progressing from commodity centric marketing to brand led market positioning through following initiatives: • Widened the product offering across all sections of society – Economy, Mid-premium, Premium and Super premium segments, covering
Slide 14: Strong Distribution Network
Strong Distribution Network Overview RUPA has Pan – India Presence with a largest distribution network: • 3 central Warehouse • 19 Exclusive Business Outlets (EBO) - Rupa – 2, M Series - 17) • 20 branches • 829 Sales & Marketing Professionals • 950 dealers • 1,10,000 Retailers Dealer Network – Pan I
Slide 15: Cost efficient manufacturing model
Cost efficient manufacturing model Focus on Design and Product Development Development of In-house • Continuous Investment in Product design & Innovation design & product • Control on entire procurement and handling of raw materials Material purchase & inward logistics • Own logistics and supply c
Slide 16: Presence in format Stores, E-commerce and Export
Presence in format Stores, E-commerce and Export Large Format Store Tie - ups E-Commerce Currently Exports to… DUBAI SAUDI KUWAIT IRAN YEMEN NIGERIA UGANDA GHANNA SINGAPORE CONFIDENTIAL 16
Slide 17: Hoardings & Advertisement
Hoardings & Advertisement CONFIDENTIAL 17
Slide 18: Retail Promotions
Retail Promotions CONFIDENTIAL 18
Slide 19: Award & Achievements
Award & Achievements RUPA delivers superior products to its customer Recipient of prestigious awards & certificates 1. Largest innerwear and casual wear manufacturing company in India by “Limca book of Records” for the 10th time 2. Power brand status for the year 2011 conferred in London 3. Master b
Slide 20: Board of Directors
Board of Directors Name & Designation Brief Profile • Mr. Prahlad holds a bachelor’s degree in law from University of Calcutta, Kolkata • He has more than 40 years of experience in the textile industry. He has been a member of the Board of Directors Mr. Prahlad Rai Agarwala since 1985. He provides s
Slide 21: Board of Directors (Contd…)
Board of Directors (Contd…) Name & Designation Brief Profile • Mr. Raj is a PG in economics from the Delhi School of Economics and also holds a Diploma in Industrial Relations and Personnel Management from Punjab University, Patiala. • He has 37 years of experience with LIC of India, Bahrain, Nepal,
Slide 22: Section 4: Financial Highlights
Section 4: Financial Highlights CONFIDENTIAL 22
Slide 23: Key Financial Highlights - Annual
Key Financial Highlights - Annual CAGR 18.5% 18.4% 39.7% 41.2% 45.4% 44.3% 46.0% CONFIDENTIAL 23
Slide 24: Key Financial Highlights - Quarterly
Key Financial Highlights - Quarterly CONFIDENTIAL 24
Slide 25: Financial Performance
Financial Performance Total Income (INR in Mn) EBIDTA (INR in Mn) & EBIDTA Margin (%) 15.3% 16.0% 9,000 8,300 1,350 12.8% 1,268 14.0% 8,000 7,117 10.7% 12.0% 7,000 6,513 1,050 8.9% 911 10.0% 7.9% 6,000 8.0% 5,359 699 750 5,000 6.0% 4,228 479 4,000 450 4.0% 333 3,000 2.0% 150 0.0% 2,000 FY09 FY10 FY1
Slide 26: Revenue Matrix
Revenue Matrix Sales Value Mix Category Wise Sales Value Growth CAGR (FY09 – FY13) Category Wise 100% 4% 6% 7% 41% 8% 9% 50% 80% 40% 60% 30% 17% 96% 94% 93% 92% 91% 40% 20% 20% 10% 0% 0% FY09 FY10 FY11 FY12 FY13 Other Category Super Premium Other Category Super Premium Sales Value Growth CAGR (FY09
Slide 27: Revenue Matrix (Contd…)
Revenue Matrix (Contd…) Sales Value Mix – Brand Wise Softline Kidline Footline Euro Jeans Softline Kidline Footline Euro Jeans Air Bumchums 5% 0% 2% 0% Air Bumchums 4% 1% 1% 0% 0% 5% 0% 4% Euro Euro Thermocot 5% Thermocot 6% Jon Jon 8% 7% 32% M' Series 33% M' Series 4% 9% Macroman Frontline Macroman
Slide 28: Section 5: Business Strategy
Section 5: Business Strategy CONFIDENTIAL 28
Slide 29: Business Strategy
Business Strategy Aggressively enhance reach in new rural markets via further appointing To gain market share in the premium segment by aggressive brand building sub dealers Expanding Presence in Southern India Increasing the share of Premium by aggressive marketing & distribution products in sales
Slide 30: Section 6: Industry Overview
Section 6: Industry Overview CONFIDENTIAL 30
Slide 31: Innerwear Segment Overview
Innerwear Segment Overview Overview Innerwear Market in India The size of the Indian Innerwear market is INR 15,870 30,000 27,900 Crores (USD 2.9 billion) in 2012 and is expected to grow 25,000 to INR 27,900 Crores by 2017. 20,000 INR in Crore Men’s innerwear segment is expected to grow at 9% 15
Slide 32: Menswear Segments
Menswear Segments Menswear Segment Overview Menswear Market Menswear innerwear segment is worth INR 6,330 Cr. 150,000 131,000 The menswear market can be divided into woven 125,000 shirts, trousers, denims, winterwear, innerwear, T- 100,000 INR in Crores 87,500 shirts, suits, activewear, ethnic w
Slide 33: Womenswear Segments
Womenswear Segments Womenswear Segment Overview Womenswear Market Womenswear innerwear segment in 2012 is at INR 150,000 9,540 Crores. 121,400 125,000 On account of the growing acceptance of women’s 100,000 INR in Crores western wear in Indian Market, Denim is growing at 78,500 17%, Innerwear at
Slide 34: Changing Indian Demographics
Changing Indian Demographics Overview Per Capita Income International Monetary Fund estimates, India’s per capita GDP to be 1,05,705 in 2016E. McKinsey Global Institute expects India’s average household disposable income to be 319,518 in 2025E A ~10x rise in middle class households in 2025E an
Slide 35: Innerwear Industry – Growth Drivers
Innerwear Industry – Growth Drivers Increasing income levels and high spending Increasing power penetration of Preference for electronic recognizable media leading brands to branded products Growth in penetration of Growing organized retail urbanization Changing Fashion Trends CONFIDENTIAL 35
Slide 36: Thank You
Thank You CONFIDENTIAL 36
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