Vedant Fashions Limited · NSE:MANYAVAR
Vedant Fashions — Q4 FY2022 Earnings Presentation
45 slides from Vedant Fashions's earnings presentation, May 10, 2022
Slide 1: Exchange filing cover letter
Manyavar May 10, 2022 The Manager The Manager Corporate Relationship Department Listing Department BSE Limited National Stock Exchange of India Limited 1st Floor, New Trading Wing, Exchange Plaza, 5th Floor, Rotunda Building, Plot No. C-1, Block G, P J Towers, Dalal Street, Fort, Bandra Kurla Comple
Slide 2: Vedant Fashions Limited Investor Presentation
Vedant Fashions Limited Investor Presentation May 2022 1
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Vedant Fashions 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 4: Contents
Contents 1 2 3 4 5 About Vedant Key Investment Our Growth Q4 Update and Financial Fashions Highlights Strategy Financial Summary Performance 3
Slide 5: About Vedant Fashions
1 2 3 4 5 About Vedant Key Investment Our Growth Q4 Update and Financial Fashions Highlights Strategy Financial Summary Performance 4
Slide 6: Introduction to Vedant Fashions
Introduction to Vedant Fashions Indian Wedding and Celebration Wear Brand Our Brands ✓ Headquartered in Kolkata, incorporated in 2002 by Mr. Ravi Modi, Vedant Fashions offers Indian wedding & celebration wear for men, women & kids Largest company in India in men’s Indian wedding & celebration wear b
Slide 7: What makes Manyavar Special
What makes Manyavar Special #2 Multi-brand Product Portfolio #3 #1 ▪ One-stop destination with wide product portfolio for Strong Control Over Entire Ecosystem men, women & kids catering to all celebratory ▪ Strong design capabilities with data-driven/ AI backed Aspirational Yet Value for Money occas
Slide 8: Our Brand Portfolio
Our Brand Portfolio One-stop Destination for Every Family’s Celebration Wear Needs Manyavar is category leader in branded Indian wedding & celebration wear market with pan- India presence*. Manyavar is our flagship Men’s & Kid’s brand in mid-premium Indian wedding & celebration wear price range Twam
Slide 9: Evolution Over the Years
Evolution Over the Years ▪ Strategic Acquisition Celebration Brand Wear Partner in of Mebaz Manyavar Femina Miss started ▪ Kedaara Capital India 2021 operations invested via Launched Mohey predecessor (Women’s Celebration ▪ Launched Twamev (Men’s entity Wear label) premium wear brand) ▪ Crossed INR
Slide 10: Key Investment Highlights
1 2 3 4 5 About Vedant Key Investment Our Growth Q4 Update and Financial Fashions Highlights Strategy Financial Summary Performance 9
Slide 11: Our Strengths
Our Strengths Large & growing Indian wedding & celebration wear market driven by an increased spending on such wear Market leader in Indian celebration wear market with diversified brand portfolio across value spectrum for entire family Unique business model combining asset-light brand play along wi
Slide 12: Large and Growing Indian Wedding and Celebration Wear Market
Large and Growing Indian Wedding and Celebration Wear Market Indian Ethnic Wear & Celebration Wear Market Aggregate Industry1 Men Women Ethnic Wear Ethnic Wear Ethnic Wear ~1,800 5.5-6.0% ~180 ~1,458 NA NA ~2,350-2,400 NA NA Celebration Wear Celebration Wear Celebration Wear ~1,020 5.5-6.0% ~133 5.0
Slide 13: Driven by Increased Spending on Celebration Wear
…Driven by Increased Spending on Celebration Wear Multi-day & multi-event wedding Trend to wear apt Indian Wedding & #1 Huge domestic market of weddings per year #2 celebrations #3 Celebration wear for events 3-5 days Wedding span Population estimated in marriage Many festivals spent 34% age (20-39
Slide 14: Diversified Brand Portfolio Catering to Aspirations of Entire Family
Diversified Brand Portfolio Catering to Aspirations of Entire Family Year 19991 2019 20182 2015 20173 Target Group Men, Boys Men Men Women Men, Women, Kids Price Spectrum Mid-Premium Premium Value Mid-Premium Mid-Premium to Premium Distribution EBOs, MBOs, LFS, E-commerce EBOs MBOs, LFS, E-commerce
Slide 15: Aesthetic Appeal with Modern Touch stores
Aesthetic Appeal with Modern Touch stores to provide Enhanced and Elevated Customer Experience 14
Slide 16: Aesthetic Appeal with Modern Touch stores
Aesthetic Appeal with Modern Touch stores to provide Enhanced and Elevated Customer Experience 15
Slide 17: Unique Model with High Barriers to Entry
Unique Model with High Barriers to Entry Supply Chain & Vendor Management Inventory Management ► Tech-based fully-integrated supply chain with automated ► Algorithm-based inventory management system for real- replenishment system time monitoring store inventory at EBOs ► Large network of 460+ regist
Slide 18: Attractive Marketing Initiatives of Creating Connections through Emotions
Attractive Marketing Initiatives of Creating Connections through Emotions Theme-based Marketing Campaigns around Indian Traditions & Values to Develop Deeper Emotional Connect # #Pehno Apni Pehchan # #Shaadi Grand Hogi # Apno Wali Shaadi Embrace your roots Celebrations incomplete Weddings about Best
Slide 19: Fully Integrated Technology-based Supply Chain Network
Fully Integrated Technology-based Supply Chain Network ► Automated Replenishment System ► Longstanding relationship fabric at EBO level & material suppliers ► Use of tech to monitor & manage real-time store inventory levels 460 42 cities Registered Sourcing 0.26 mn sq. ft. vendors network Central Wa
Slide 20: Consistent Focus on Building Strong and Automated Processes
Consistent Focus on Building Strong and Automated Processes ◼ Launch of Compliance Tool; Adoption of Wooqer – ◼ Launch of MBO Digital Order ◼ Launch of Upgraded Website; Successful Adoption of App ERP Integrated System since Communication Module with ◼ Fully integrated stores catalogue Business Anal
Slide 21: Experienced Board of Directors aided by Professional Partners
Experienced Board of Directors aided by Professional Partners Ravi Modi Shilpi Modi Sunish Sharma Chairman & MD Whole-time Director Nominee Director PG Diploma in Computer Aided Mgt. (IIM Calcutta), Commerce (St. Xavier's College, Kolkata) Commerce (Allahabad University) B.Com (DU), Cost Accountant
Slide 22: Embracing ESG by Empowering Artisans and Community
Embracing ESG by Empowering Artisans and Community Inclusive growth of all stakeholders even during tough Contributions through Manas Foundation times Informal education Employment to local Associated with over 460 Continued to support & to tribal children artisans & embroidery registered vendors en
Slide 23: Awards and Accolades
Awards and Accolades 2018 2014 2020 2022 “Most Admired Retailer of the Year “Fastest Growing Company- “Men’s Indianwear” maximum turnover INR 300 crore” Marketing & Promotions Campaign” “Dream Employer of the Year” Images Excellence Award ET Bengal Corporate Award Images Retail Award World HRD Congr
Slide 24: Our Growth Strategy
1 2 3 4 5 About Vedant Key Investment Our Growth Q4 Update and Financial Fashions Highlights Strategy Financial Summary Performance 23
Slide 25: Our Growth Strategy
Our Growth Strategy Retail Expansion within Up-selling and cross-selling and outside India initiatives Enhancement of brand appeal through targeted marketing Disciplined approach initiatives towards acquisitions Significant potential and space for growth of our emerging brands 24
Slide 26: Retail Expansion within and Outside India
Retail Expansion within and Outside India Strategic enablers Independent growth strategy for each of the brands Expansion in new cities / Expansion in new Increasing penetration in existing towns in existing geographies markets across existing cities geographies Strong existing Cluster-based Identif
Slide 27: Retail Expansion within and Outside India (Cont'd.)
Retail Expansion within and Outside India (Cont’d.) Strong focus on increasing presence in international markets Key parameters to expand Strong-rooted Indian Large Indian diaspora High spending power international presence traditions International Presence (FY22) UK 3 Canada* 1 Countries USA* 5 12
Slide 28: Up-selling and Cross-selling Initiatives
Up-selling and Cross-selling Initiatives Up-selling & Cross-selling Initiatives Deepen customer connections & extend buying opportunities Up-sell Growth Strategy Wedding Non Wedding Customers looking for premium offerings Cross-sell High ABV, ABS, & Leveraging ‘Manyavar’ store presence Productivity
Slide 29: Enhanced Focus on Kids Segment to Drive Growth
Enhanced Focus on Kids Segment to Drive Growth Large & growing Kids’ Indian Wedding & Brands in Celebration Wear market* Kids Category Ethnic Wear 162 Distribution EBOs, MBOs, LFS, E-commerce EBOs Channel Celebration Wear Kids’ Product Kurta set, jacket set, indo-westerns & Lehengas, gowns, frocks,
Slide 30: Significant Potential for Growth of our Emerging Brands (1/2)
Significant Potential for Growth of our Emerging Brands (1/2) Independent brand strategy enabled with assessment of customer demand, international & local trends & evolving customer preferences Opportunity Strategy 15-20% Introduction of Cross-sell with ‘Manyavar’ brand as coordinated Jodi, ~INR 735
Slide 31: Significant Potential for Growth of our Emerging Brands (2/2)
Significant Potential for Growth of our Emerging Brands (2/2) INR 133 bn 5.0-6.2% 20-25% 18-22% Opportunity Overall men’s Indian wedding & CAGR Penetration of Branded men’s Indian CAGR celebration wear Market (FY20) (FY20-25E) wedding & celebration wear Market (FY20) (FY20-25E) Target Focus on furth
Slide 32: Disciplined Approach towards Acquisitions
Disciplined Approach towards Acquisitions Growth via acquisitions Driven by… Established Competitor Regional gaps and consolidate leadership position Leverage existing strong cash position Optimize omni-channel network Expand Presence in Product / Category New Regions Expansion Resulting in… Increas
Slide 33: Q4 Update and Financial Performance
1 2 3 4 5 About Vedant Key Investment Our Growth Q4 Update and Financial Fashions Highlights Strategy Financial Summary Performance 32
Slide 34: Wide Pan-India Reach and Presence including International Markets
Wide Pan-India Reach and Presence including International Markets Presence Presence Net Rollout (as of Mar-22) (as of Dec-21) (Q4 FY22) 1.27 mn 1.21 mn 57 k Sq. ft. Sq. ft. Sq. ft. EBO’s Area EBO’s Area EBO’s Area 595 578 17 EBOs1 EBOs1 EBOs1 223 222 Cities & towns in India Cities & towns in India I
Slide 35: Strong Retail Growth across Channels
Strong Retail Growth (Sale of our Customers1) across Channels INR in mn Q4 FY’22 Vs Q4 FY’21 FY’22 Vs FY’21 +45.4% +76.2% 3,981 14,736 2,738 VFL recorded SSSG2 of 33.4% in Q4 FY’22 over Q4 FY’21 and 65.2% SSSG in 8,362 FY’22 over FY’21 Q4 FY’21 Q4 FY’22 FY’21 FY’22 Note: 1. Sales of our customers co
Slide 36: Q4 FY22 and FY22 Financial Highlights (Consolidated)
Q4 FY22 and FY22 Financial Highlights (Consolidated) Q4 FY22 YoY Analysis INR in mn Revenue from Operations Gross Profit & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin Margins → 67.4% 66.4% Margins → 47.3% 49.6% Margins → 24.9% 29.9% 54.7% 52.4% 61.9% 86.3% 2,963 1,967 1,469 887 1,916 1,291
Slide 37: Profit and Loss Statement Q4 FY22 and FY22 (Consolidated)
Profit and Loss Statement Q4 FY22 and FY22 (Consolidated) INR in mn Quarter ended Year ended Particulars March 31, 2022 December31, 2021 March 31, 2021 March 31, 2022 March 31, 2021 (Audited) (Unaudited) (Unaudited) (Audited) (Audited) Sr.no Income: I Revenue from operations 2,963 3,847 1,916 10,408
Slide 38: Marketing Initiatives
Marketing Initiatives Marketing Initiatives Theme- based Marketing Ad Campaigns Official Indian Wear partner for ICC World Cup 2021 # #Manyavar Aa Gaya # #Diwali Wali Feeling Collaboration with Celebrity Influencers Twamev Launch on Social Media Platform News Channels & Multiplex Collaboration 37
Slide 39: Financial Summary
1 2 3 4 5 About Vedant Key Investment Our Growth Q4 Update and Financial Fashions Highlights Strategy Financial Summary Performance 38
Slide 40: Long Track Record of Strong Growth Trajectory
Long Track Record of Strong Growth Trajectory INR in mn Revenue & Sales of Customers Gross Profit1 EBITDA2 Sales of 11,355 12,652 8,362 14,736 Margins → 65.0% 65.3% 66.8% 66.9% Margins → 42.2% 43.6% 49.9% 50.1% Customers 10,408 6,958 5,213 9,155 5,980 8,007 5,203 3,988 3,380 5,648 3,771 2,817 FY 19
Slide 41: Consolidated P&L Statement
Consolidated P&L Statement Year ended Year ended Year ended Year ended INR mn 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 Revenue from operations 8,007 9,155 5,648 10,408 Other income 191 325 602 499 Total income 8,198 9,480 6,250 10,908 Cost of goods sold 2,226 2,512 1,463 2,668 Job Charges 578 663 414
Slide 42: Consolidated Balance Sheet
Consolidated Balance Sheet INR mn As at 31-Mar-19 As at 31-Mar-20 As at 31-Mar-21 As at 31-Mar-22 Assets Non-current assets Fixed Assets 2,421 2,608 2,556 2,480 Right-of-use assets 1,963 2,460 2,035 2,667 Capital work-in-progress 14 - 2 - Investments 252 460 800 1,003 Other non-current assets 1,107
Slide 43: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Year ended Year ended Year ended Year ended INR mn 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 Cash flow from operating activities Profit before tax 2,709 3,118 1,819 4,230 Operating profit before working capital changes 3,369 3,989 2,472 5,050 Movement in working capita
Slide 44: Glossary
Glossary Term Description Company Vedant Fashions Limited The report titled “Assessment of the apparel industry with a special focus on Indian wedding and celebration wear market in India” dated Sep- Crisil Report 2021 as updated by the addendum dated December 2021 prepared by CRISIL EBO Exclusive b
Slide 45: Thank You
Thank You Company : Investor Relations Advisors : Vedant Fashions Limited Orient Capital (a division of Link Group) Mr. Rajesh Agrawal CIN: L51311WB2002PLC094677 +91 99674 91495 rajesh.agrawal@linkintime.co.in Investor Relations Team investor.relations@manyavar.com Ms. Rasika Sawant +91 95944 57518