Corporate Presentation I 2021 Lux Industries Limited
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LUX INDUSTRIES LIMITED CORPORATE PRESENTATION I 2021 WHAT’S INSIDE ESG Fast-track progress 03 ESG 18 Strengths 25 Financials 04 CSR 19 Manufacturing 26 Leadership Profile 20 New Markets 28 Management 21 Multi- Channel Footprint 30 New Venture 22 Branding 31 Transforming into a New Lux 24 Digitalisation Corporate identity 06 At a glance 07 Milestone 08 Product Portfolio 10 Merger Performance 11 Presence 12 Export presence 33 Financial performance 13 Governance Sustainability Opportunities 43 Environment 16 Opportunity landscape 44 Sustainability 45 CSR ESG 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 ▪ Recognizing the need for sustained progress of society to pursue long-term goals that are beneficial for the community View ESG details of Lux Industries Lux Industries Limited 03 CSR Supporting economically Addressing environment Supporting 180+ elderly Focusing on animal welfare backward people sustainability people benefiting 500+ cows Making available safe Promotion of traditional drinking water benefiting art & culture 1 lakh+ people Annual CSR expenditure Trees planted in 35-40 acres of land Lux Industries Limited 04 06 At a glance 07 Milestone 08 Product Portfolio 10 Merger 11 Presence 12 Export presence 13 Governance CORPORATE AT A GLANCE ENSURING EVERYDAY COMFORT FOR DECADES Lux group as a merged entity Unique in its value proposition Leadership Scale Indian innerwear Combined revenue Garment pieces; Retailer network across Country export presence company from operations manufacturing capacity India (volume terms) across 7 state-of-the-art plants Prominence Share in organised Fill rate against industry Employees SKUs; among industry’s Products spanning men's innerwear market average of 80% largest innerwear ranges innerwear, athleisure wear categories Lux Industries Limited 06 MILESTONE Shri. Giridhari Lal Todi Shares listed on • Commissioned Eastern Merger of J.M. Hosiery and Ebell founded Biswanath Hosiery the BSE and NSE India’s largest hosiery Fashions with Lux Industries Mills product manufacturing plant in Dankuni Comfort partner for IPL • Became Kolkata Knight • Launched India's first scented Export commenced across teams (Kings XI Punjab & Riders’ primary sponsor vest Lux Cozi the Middle East, Africa Pune Warriors India) • Launched One8 brand and Europe • Varun Dhawan roped Shah Rukh Khan became in as brand ambassador • Amitabh Bachchan onboarded Lux Industries Limited was brand ambassador for ONN as brand ambassador incorporated as a Public • Lux Cozi Her, innerwear Limited Company range for women, • Lux Classic & Lux Venus Classic launched relaunched IPO launched- oversubscribed 4 times Lux Industries Limited 07 PRODUCT PORTFOLIO Winter Categories Prominent brands **Total Revenue Wear in ₹ Cr Premium ₹ Cr Semi- premium ₹ Cr Economy Others ₹ Cr Presence across price segments helps the Company cater to a wide customer base and fast-track growth * Includes complete winterwear sale including Lux Cottswool ** Note : Net sales revenue of 2020-21 Lux Industries Limited 08 PRODUCT PORTFOLIO *Total Revenue Margin Prominent brands in ₹ Cr 18-21% 13-17% Upto 12% Others Presence across price segments helps the Company cater to a wide customer base and fast-track growth *Note : Net sales revenue of 2020-21 Lux Industries Limited 09 MERGER Group companies – Ebell Fashions Private Limited (brand Lyra) and EPS in FY21 (post-merger) J.M. Hosiery and Co Limited (brand Genx) merged with Lux Industries Limited EPS in FY20 (pre-merger) Benefits of the Merger ▪ Market growth ▪ EPS accretive Shares of Lux (pre-merger state) ▪ Expand product portfolio ▪ Expand into newer markets and segments ▪ Strong positioning Shares issued pursuant to ▪ Enhanced margins scheme of merger and application made to BSE & NSE for listing of shares. Lux Industries Limited 10 PRESENCE WIDENING AND DEEPENING REACH 1,150+ dealers' Available in 2 lakh+ multi- Stronger e-retail platform 12 Depots drive faster network brand stores and 11 EBOs presence distribution in India Strategically located Exclusive brand outlets manufacturing units (target by FY22) (West Bengal, Punjab, Tamil Nadu and Uttar Pradesh) to address growing markets Sales teams drive offtake Warehouses (12 states) Lux Industries Limited 11 EXPORT PRESENCE Kuwait Saudi Qatar Market traction in Germany Arabia Bahrain UAE Star Export House Oman recognition by tropical countries Chad Sudan Nepal Mali Jordan Government of India (including GCC Myanmar Niger region and Africa) Thailand Algeria Nigeria Morocco Benin Hong Kong Burkina Faso Geography-wise sales Senegal Gambia Yemen Bissau Panama Malaysia New countries added in Guinea Djibouti Sri Lanka past 5 years Cote d’Ivoire Togo Ghana Ethiopia Indonesia Gabon Kenya Domestic Uganda Angola Country-wide presence Cameroon Congo South Africa Singapore Republic of Congo and Democratic Australia Exports Republic of Congo. Targeted country-presence by 2025 Lux Industries Limited 12 GOVERNANCE Shareholding pattern 31.3.21 Experienced Board Strong Management Team Restructured business 22.42 • Promoter-Directors with 24 years of • Inducted several new members in the processes average industry experience; expertise- past two years Sales & Marketing, Brand Promotion, • New members include: Product Development, Board service & Nischal Puri, a hosiery industry veteran as 4.78 Governance the Director, Operations in Artimas 3.29 Enhanced IT investments • Independent Directors with expertise in Fashions Pvt. Ltd. (Subsidiary of Lux) 69.51 Accounting & Finance, Legal, Printing Saurabh Bhudolia – CFO and Packaging Jitendra Shah – VP, Finance Sagar Shah – Head, EBO and others Promoter FII DII Public Industry-specific • Inducted E&Y as Internal Auditor expertise Growing Trust • Inducted Economic Laws Practice (ELP) as Compliance Consultant • Marquee investors like Jupiter India Fund, Share of Independent Kotak Mutual Funds, Abakkus Growth • S.K. Agarwal and Co. is the Directors on Board Robust governance Statutory Auditor; planning to Fund and Life Insurance Corporation of India, among others induct a Big 4 in next 12-18 months • Covered by key research and brokerage houses such as Anand Rathi, SMIFS, B&K Securities Women Independent Directors Lux Industries Limited 13 GOVERNANCE Robust risk-management ▪ No duplications framework ▪ Minimal manual Procure interventions to Pay IT General Inventory Controls & Management Regulatory Compliance Organisation-wide Execution excellence accountability through: Inbound & Well-defined Human Outbound ▪ Resources Digital capability Logistics process ▪ Streamlined processes Process to be fully ▪ Higher transparency Finance and streamlined by Production Accounts & 2021-22 Fixed Assets Order to Cash Lux Industries Limited 14 16 Opportunity landscape LUX’S RESPONSE Strong distribution channel Employee workforce Longstanding dealer relationship Near-term investment to augment production through internal accrual Price range of products Existing market share in men's Cash balance Districts-presence in India innerwear Additional revenue generation potential through proposed expansion Lux industries Dankuni factory Lux Industries Limited 16 18 Strengths 19 Manufacturing 20 New Markets 21 Multi- Channel Footprint 22 Branding 24 Digitalisation 25 Financials 26 Leadership Profile 28 Management 30 New Venture 31 Transforming into a New Lux F AST - TRACK STRENGTHS 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 Integration: Capitalising on synergies through merger with J.M. Hosiery Efficiency: Presence across and Ebell Fashions value-chain and scale driving Lux value organisation-wide efficiency Quality: Creating new benchmarks system for quality and comfort Integration Efficiency Quality Lux Industries Limited 18 MANUFACTURING Yarn Present in yarn sourcing Flexible core manufacturing till packaging process Manufacturing Key focus areas: quality, cost Completed upgradation and Process effectiveness and innovation replacement of old equipment Cutting Investment on cutting Garment pieces manufactured machines from Italy, every year Note *Outsourced to job workers with strong company control Germany, and Singapore Lux Industries Limited 19 NEW MARKETS Domestic Sales (%) Share of revenues from value, From a innerwear pureplay Focus on premium semi-premium and premium to a mix of athleisure and innerwear range: 21 18 products category of FY21 outerwear player Current Market share – Revenue share Amount % Volume % ₹228 Crore in FY21 3 Expected Market Share – Premium 12 9 Unique socks, innerwear ₹500 Crore in FY25 28 Sub Premium 57 41 and sleepwear collection 30 for One8, globally Central East North Economy 31 50 South West Foray into 46 countries; grow exports revenue by Expanding EBITDA margin (%) Share of revenues from value, Foray into southern 60% in five years 20 semi-premium and premium region of India 16 products category of Q4 FY21 Revenue share Amount % Volume % Enter female (innerwear Premium 13 10 and outerwear) and kids Sub Premium 53 41 segment Economy 34 49 FY20 FY21 Lux Industries Limited 20 MULTI-CHANNEL FOOTPRINT ▪ Growing wholesale Adopting investment-light # market presence FOFO model Dealer attrition ▪ Association with 1,150+ dealers with focused