1
2
Fashion and Lifestyle Business
Note : FY13 includes nine months financials of Pantaloons
25763281
4930
FY11 FY12 FY13
Revenue (Rs. Cr.)
235
339
466
FY11 FY12 FY13
EBITDA (Rs. Cr.)
Madura51%
Pantaloons26%
Jayashree23%
Revenue mix (FY13)
(For 9 months
Jul’12-Mar’13)
3
4Source: Technopak Reports
Apparel Market is expected to be Rs 3,00,000 Crore by FY16
5Source: Technopak Reports
Relevant Apparel Market is expected to be USD 16 billion by FY16
6
Key growth segments of the market
Source: Technopak Reports
7
8
Strong and consistent Growth delivering a ROACE of close to 29%.......
Revenue (Rs. Cr.)
Growth driven through distribution, category expansion, improved product and Channel mix
1,811
2,239 2,523
FY11 FY12 FY13
136
196
245
FY11 FY12 FY13
EBITDA (Rs. Cr.)
11%
20%
29%
7.5%
8.8%
9.7%
FY11 FY12 FY13
ROACE% EBITDA%
18%
34%
9
Madura has a strong portfolio of brands that it can leverage for
growth across segments
Mass
Fast Fashion
Sub-Premium
Premium
Super Premium
Luxury
Price Points
Nascent BusinessCore Business
10
Madura : Focus Areas
• Continue to strengthen Brand Equity through communication, merchandise & retail
• Drive growth through wider reach and deeper penetration
• Leverage by extension in adjacent categories / segments / accessories
• Continuously evaluate new opportunities for growth
• Build organization competencies and enablers to drive performance
11
Building Blocks for Sustainable Advantage
People
Consumer
Centricity
Enablers
Talent
Brand
Design
• Attract and retain employees from leading design and business
schools
• Invest in people to nurture talent
• Develop an organization of doers and go-getters
• Drive excellence in Retail processesRetail Excellence
• Continuously improve design process
• Robust supply chain to deliver OTIF (On Time In Full)Supply Chain
• Invest in IT to automate all processesIT
• Ensure Brand relevance to maintain consumer connect
Sourcing• Continuously improve sourcing processes to ensure right goods at
right prices at right time
Retail Roll-outs
• Geographical expansion
12
13
Pantaloons – A Compelling Proposition
One of the Top 2 large format apparel retailers
National presence with 70 large stores spanning 1.6 mn sq.ft
Focus on Tier 1 cities with over 55% of the stores present in Top 8 cities
Early mover advantage with marquee locations. Strong presence in East.
3.8 mn loyalty card holders contributing to ~70% of sales
Well positioned with 55% of Indian households as target market
Focus on private and licensed brands
Efficient Inventory management
~50% of sales contributed by private and licensed brands resulting in stronger customer stickiness and higher gross margins
Offering much more than apparels
Attractive Economics
Dominance in Fashion
Superior Consumer Understanding
Strong BrandPortfolio
1
ABNL has created leadership position in consumer businesses viz Madura Fashion & Lifestyle, Idea Cellular, Birla Sun Life Insurance etc.
Strong balance sheet support of the parent
Management & Parentage
2
3
4
5
14
Unparalleled Reach & Customer loyalty
Tied up real-estate in superior locations to fuel
uninterrupted growth
Ahmedabad
Chennai
Kolkata
Hyderabad
Nagpur
Mumbai
Bengaluru
Pune
Durgapur
Lucknow
Allahabad
Aurangabad
Bhopal
Bhubaneswar
Delhi / Noida
GhaziabadGurgaon
Guwahati
Indore
Kanpur
Mangalore
Nashik
Rajkot
Siliguri
SuratVadodara
Zirakpur
Coimbatore
• Presence in 36 cities through 70
stores & 26 Factory Outlets
• One of the leading fashion retailers in
top 8 cities
• Early mover advantage with marque
locations
Growing Pan-India Footprint
Bareilly
Bilaspur
Howrah
Ludhiana
Patna
Ranchi
Vishakhapatna
m
Strong store brand “Pantaloons” created over
the past 2 decades…
The Store caters to Indian tastes in a
modern environment
Focused on delivering contemporary
designs & fashion to Indian
sensibilities through large offering of
ethnic & neo traditional wear
Targeting the fashion yet value conscious
youth, stores designed to reflect : Fresh
Feeling, Fresh Attitude, Fresh Fashion
Created a strong connect with customers
across tier 1 as well as tier 2 towns with its
unique positioning
… resulting in a large loyal customer base
and connect
15
Wide range of offerings to varied customer segments
Strong offering of Fashion products across categories and
price points
Brands offering lifestyle choices with Great Affordability
Differentiator as “fresh fashion” focused on youth with
variety and sharp prices in women, men & kidswear
with a strong CRM programme
External brands continue in stores
Kid
s
Premium Mass
Cas
ual
Eth
nic
sp
ort
sF
orm
al
Pantaloons portfolio of private brands
Revenue Mix
Menswear35%
Womenswear
38%
Kidswear9%
Non Apparel
18%
16
Strategy for each category has been defined
Refresh Brand Mix & Strengthen PerformanceMen’s
Increase Brand Salience and Category coverage Exit Low Performing Brands Strengthen Private Brands in Casual & Denim
Mission Action
Establish Pantaloon as a destination store for
women’s wearWomen’s
Strengthen & Add more Private Brands and extension to cover broader consumer segment- age, price and fashion gaps
Expanding Kids Portfolio to exploit market
opportunityKid’s
Add New Brands to cover premium segment and drive higher brand salience
Introduce Infant Private Brand
Sharpen Portfolio, Build Women Bags & Footwear
businessNon Apparels
Improvement & Rationalization of External Brands Introduction of Private Brands in Women Bags &
Footwear
Category
17
Strategic plan to enhance business performance
Store wise Sales Enhancement Program
Expansion Program
Make it bigger Make it better Make it happen
New Businesses/ Categories/ Formats
Markdown Management
Portfolio Strategy and Assortment
Pricing Optimization
Sourcing Private Label
Working Capital Optimization
IT Transition
Supply Chain & Logistics
Sourcing External Brands
Store Renovation
Building the Organization
18
19
Performance and Key Focus areas
301415 499
473
631645
FY 11 FY12 FY13
Revenue (Rs. Cr.)
22%
774
1,0461,144
Wool
Linen
CAGR
FY11-FY13
17%
29%
Key Focus Areas
Continue to grow the businesses in a profitable
manner
–Deeper penetration in existing segments
–Entering / Creating new segments
–Focus on internal capabilities in delivering
superior margins
– Focus on enablers like IT, Supply Chain and
Inventory management processes to drive
efficiency in the system
FY11 FY12 FY13
EBITDA 99 141 154
EBITDA % 12.8% 13.4% 13.5%
ROACE% 32% 82% 97%
20
Disclaimer
Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements” including,
but not limited to, those relating to general business plans & strategy of Aditya Birla Nuvo Limited ("ABNL"), its future outlook & growth prospects,
future developments in its businesses, its competitive & regulatory environment and management's current views & assumptions which may not
remain constant due to risks and uncertainties. Actual results may differ materially from these forward-looking statements due to a number of factors,
including future changes or developments in ABNL's business, its competitive environment, its ability to implement its strategies and initiatives and
respond to technological changes and political, economic, regulatory and social conditions in the countries in which ABNL conducts business.
Important factors that could make a difference to ABNL’s operations include global and Indian demand supply conditions, finished goods prices, feed
stock availability and prices, cyclical demand and pricing in ABNL’s principal markets, changes in Government regulations, tax regimes, competitors
actions, economic developments within India and the countries within which ABNL conducts business and other factors such as litigation and labour
negotiations.
This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer to acquire any shares and should not be
considered as a recommendation that any investor should subscribe for or purchase any of ABNL's shares. Neither this presentation nor any other
documentation or information (or any part thereof) delivered or supplied under or in relation to the shares shall be deemed to constitute an offer of or
an invitation by or on behalf of ABNL.
ABNL, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the
fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained in this presentation, unless
otherwise specified is only current as of the date of this presentation. ABNL assumes no responsibility to publicly amend, modify or revise any forward
looking statements on the basis of any subsequent developments, information or events or otherwise. Unless otherwise stated in this document, the
information contained herein is based on management information and estimates. The information contained herein is subject to change without notice
and past performance is not indicative of future results. ABNL may alter, modify or otherwise change in any manner the content of this presentation,
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Aditya Birla Nuvo Limited
Regd. Office: Indian Rayon Compound, Veraval – 362 266 (Gujarat)
Corporate Office: 4th Floor ‘A’ Wing, Aditya Birla Center, S.K. Ahire Marg, Worli, Mumbai – 400 030
Website: www.adityabirlanuvo.com or www.adityabirla.com or Email: [email protected]