Relaxo Footwears Limited

OVERVIEW KEY FINANCIALS (INR in Crore)

Revenue EBITDA
• Incorporated in 1984, Relaxo is India’s leading footwear manufacturing
3000 500
company (non-leather), with headquarter in Delhi. 2590 405
• The company has established 8 state of-the-art manufacturing facilities, 2500 2292 400
302 324
1949
with a capacity of manufacturing 7.5 pairs of footwear per day. 2000 1712 1652 300 240 231
1481 201
• With strong presence in low priced footwear segment with more than 70% 1500 200
of sales under ₹ 500 category.
1000 100
• Company has a well spread out distribution network consisting of 50000+ FY15 FY16 FY17 FY18 FY19 FY20E FY15 FY16 FY17 FY18 FY19 FY20E
retailers and 385 company owned-company controlled (COCO) stores.
• Apart from flagship brand “Relaxo”, company has investments in sub-brands 5yr Revenue CAGR 13.5% 5yr EBITDA CAGR 18% 5yr PAT CAGR 21.7%
like Flite, Sparx, Bahamas, & Schoolmate.
In INR Crore FY15 FY16 FY17 FY18 FY19 FY20E
Revenue 1481 1712 1652 1949 2292 2590
REVENUE – Geographical & Distribution(FY20Q3) YoY Growth % 22.19 15.6 (3.5) 18 17.6 13
West
15% E-Com Exports EBITDA 201 240 231 302 324 405
5% LFS 3%
5% EBITDA Margins % 13.5 14 14 15.5 14.1 15.7
EBO 7%
PAT 103 120 120 161 175 252
South
15% North Net Profit Margins % 7 7 7.3 8.3 7.6 9
50%

MBO
PORTFOLIO OF BRANDS
80%
East
20%

Relaxo is a leading player in the ‘Value’ segment

Relaxo Footwears Limited – Key Investment Highlights
➢ Favorable dynamics of Indian footwear industry
➢ Leading player in the ‘value’ segment with an array of strong brands
Key Highlights ➢ Robust financial performance & product portfolio
➢ High Brand Equity

➢ Introducing a dedicated line for manufacturing fast moving SKUs

➢ Implementing lean manufacturing techniques in a bid to minimize wastages without
Focused on enhancing its manufacturing operations
compromising on productivity
➢ Implementing Maynard Operation Sequence Technique (MOST)

➢ Relaxo has, over the years, built a robust distribution network on a pan-India basis.
➢ The products are retailed in over 50000+ touch points through network of 650+
Broadening distribution channel, enhancing pan-India footprint distributors.
➢ Strong relationship with distributors.
➢ Streamline the distribution network – especially in underpenetrated markets

➢ Company already have 8 state-of-the art manufacturing facilities.

➢ With the increasing demand, the capacity has grown at a CAGR of 10% in FY09-19, with
utilization rate at 70%, while in peak seasons, it goes up to 90%
Strong manufacturing backbone provides competitive edge
➢ In-house manufacturing facility helps in maintaining quality and pricing.
➢ Relaxo is adding capacity of additional 1.0 lakh pairs per day in the Bhiwadi plant within
the next three years, with estimated capex of 90 crore, funded through internal accruals.

➢ Continued investment in the brands to sustain demand pull

➢ Increase the presence and reach of retail network (EBO).
Advancing towards Tomorrow ➢ Continued manufacturing excellence across all production units
➢ Increase exports by expanding the presence in international markets
➢ Innovation and Process improvement by leveraging IT Transformation