Thread by @techlunatic

Footwear sector an overview 🧵

China is #1 in footwear industry in the world with production of appx. 1420 crore pairs

India is #2 with 221 crores pairs made per year

In developed countries, per capita consumption is 7 pairs, world average is 3 pairs, India's is ~1.1 pair

https://twitter.com/techlunatic/status/1300287098952364037

Sorting Indian footwear companies by marketcap shows that Bata and Relaxo have a duopoly (nearly 48% market share each)

Sales comparison shows that Bata and Relaxo take home the largest revenues.

Profit comparison shows that Bata takes home slightly more profit than Relaxo (but add to it the context that Relaxo was started with a very miniscule startup equity compared to Bata).

4Y Sales growth comparison :

Relaxo has come out on top of Bata in this duration.

4Y Profit growth comparison

Relaxo has come out on top of Bata in this duration.

Net profit margin, Bata has a slight edge :

Interest Coverage Ratio : Relaxo has the edge over Bata

Return on Paid-up Equity : Relaxo leads by a huge margin, which shows that Relaxo's management was able to raise a puny company to nearly the size of its giant rival, Bata by pacing at a faster rate of growth.

Both Bata and Relaxo have similar ROE :

Being the larger company, Bata has the largest reserves, followed by Relaxo, which comes a close second.

Conclusion : Size of indian footwear industry is rs. 1,75,000 crore appx. and anticipated to grow upto rs. 5,60,000 crores (appx. 3.5 times) by 2027.

Footwear industry in india is expected to grow by rate of appx. 21% cagr for next 5/6 years.