Manyavar DRHP Takeaways!
KYI - Know Your IPO ✅
It is not just a clothing company!
It is a SaaS company (Stitching or Sherwani as a service) 😝😝
Do Retweet as it will help us educate more investors!
KYI - Know Your IPO ✅
It is not just a clothing company!
It is a SaaS company (Stitching or Sherwani as a service) 😝😝
Do Retweet as it will help us educate more investors!
1/n
About Manyavar -
- The largest company in India in the men’s Indian wedding and celebration wear segment
- Crisil – “‘Manyavar’ brand is a category leader in the branded Indian wedding and celebration wear market with a pan-India presence through its multi-channel network”
About Manyavar -
- The largest company in India in the men’s Indian wedding and celebration wear segment
- Crisil – “‘Manyavar’ brand is a category leader in the branded Indian wedding and celebration wear market with a pan-India presence through its multi-channel network”
2/n
- For a large portion of attires and accessories, third-party manufacturers (“jobbers”) are used
- Jobbers perform different stages of the manufacturing process, including cutting, embroidery, stitching, and finishing
- For a large portion of attires and accessories, third-party manufacturers (“jobbers”) are used
- Jobbers perform different stages of the manufacturing process, including cutting, embroidery, stitching, and finishing
3/n
- Their warehouse, factory, and a majority of their jobbers are based in and around Kolkata, India, and they depend on jobbers for a significant portion of the manufacturing processes of their products
- Their warehouse, factory, and a majority of their jobbers are based in and around Kolkata, India, and they depend on jobbers for a significant portion of the manufacturing processes of their products
4/n
Brands -
- Manyavar, Mohey, Mebaz, Manthan and Twamev
- A Major revenue chunk (84.2% in FY21) comes from the sale of products under the Manyavar brand.
Brands -
- Manyavar, Mohey, Mebaz, Manthan and Twamev
- A Major revenue chunk (84.2% in FY21) comes from the sale of products under the Manyavar brand.
5/n
Distribution –
- Exclusive brand outlets (EBOs)
- Multi brand Outlets (MBS) and Large Format Stores (LFS)
- E-Commerce
- They intend to expand the footprint of their franchisee-owned EBOs, MBOs, and LFS and use targeted marketing initiatives such as digital and offline
Distribution –
- Exclusive brand outlets (EBOs)
- Multi brand Outlets (MBS) and Large Format Stores (LFS)
- E-Commerce
- They intend to expand the footprint of their franchisee-owned EBOs, MBOs, and LFS and use targeted marketing initiatives such as digital and offline
6/n
EBOs and Franchisees: The good ‘fit’ -
- 90% revenue came from EBOs in FY21
- As of Jun 30, 2021, they have 300+ franchisees and 537 EBOs (includes 55 shop-in-shops & 12 international stores) spread over 1.1 m.sq.ft in 207 cities/towns in India & 8 cities internationally
EBOs and Franchisees: The good ‘fit’ -
- 90% revenue came from EBOs in FY21
- As of Jun 30, 2021, they have 300+ franchisees and 537 EBOs (includes 55 shop-in-shops & 12 international stores) spread over 1.1 m.sq.ft in 207 cities/towns in India & 8 cities internationally
7/n
- As of June 30, 2021, 70% of their franchisees have been with them for 3+ years
- For franchisee-owned EBOs – the top 5 franchises accounted for 28% of total sales as of June 30, 2021. It was 36% in FY19.
- As of June 30, 2021, 70% of their franchisees have been with them for 3+ years
- For franchisee-owned EBOs – the top 5 franchises accounted for 28% of total sales as of June 30, 2021. It was 36% in FY19.
8/n
- In FY21, 44.22% of sales were generated by franchisee-owned EBOs from Tier I cities, 42.05% from Tier-II cities, and 12.31% from Tier III towns. The remaining 1.42% were generated from international markets
- In FY21, 44.22% of sales were generated by franchisee-owned EBOs from Tier I cities, 42.05% from Tier-II cities, and 12.31% from Tier III towns. The remaining 1.42% were generated from international markets
9/n
- Highly concentrated on a single discretionary product – Indian wedding and celebration wear.
- Extends credit to franchisee-owned EBOs, MBOs, and LFSs in respect of products sales, and thus faces the risk of uncertainty in receiving outstanding amounts.
- Highly concentrated on a single discretionary product – Indian wedding and celebration wear.
- Extends credit to franchisee-owned EBOs, MBOs, and LFSs in respect of products sales, and thus faces the risk of uncertainty in receiving outstanding amounts.
10/n
Financials -
- No Debt
- Company pulled back on A&P
- CFO and FCF good (IPO anyways is a pure OFS)
- Lucrative margin business (brand magic, many more trying to get here like AB group, etc)
Financials -
- No Debt
- Company pulled back on A&P
- CFO and FCF good (IPO anyways is a pure OFS)
- Lucrative margin business (brand magic, many more trying to get here like AB group, etc)
11/n
Manyavar Valuations -
- Buyback of shares @ Rs 990 on 14/07/21 (FV 2)
- Split to FV Rs 1 (so Rs 495)
- If IPO at Rs 600, Mcap= 14520 Cr
- At Rs 700, Mcap = 16940 Cr
- Sales of 950 Cr in FY20, 625 Cr in FY21
- Taking 1000 cr sales - 14.5x to 17x Price to sales!
Expensive!
Manyavar Valuations -
- Buyback of shares @ Rs 990 on 14/07/21 (FV 2)
- Split to FV Rs 1 (so Rs 495)
- If IPO at Rs 600, Mcap= 14520 Cr
- At Rs 700, Mcap = 16940 Cr
- Sales of 950 Cr in FY20, 625 Cr in FY21
- Taking 1000 cr sales - 14.5x to 17x Price to sales!
Expensive!
12/n
- Peers and a closer look at them -
- Key financial parameters of players operating in the Indian wedding and celebration market
- Key financial parameters of ethnic-wear market players in casual wear but having Indian wedding and celebration wear brands as well
- Peers and a closer look at them -
- Key financial parameters of players operating in the Indian wedding and celebration market
- Key financial parameters of ethnic-wear market players in casual wear but having Indian wedding and celebration wear brands as well
13/n
- Key Brands in the space
- Factors contributing to the growth in the domestic apparel market
- Competitive Landscape Men's Segment (in celebration wear we see that Manyavar's brands are having a good hold)
- Competitive Landscape Women's Segment (quite a few brands here)
- Key Brands in the space
- Factors contributing to the growth in the domestic apparel market
- Competitive Landscape Men's Segment (in celebration wear we see that Manyavar's brands are having a good hold)
- Competitive Landscape Women's Segment (quite a few brands here)
14/n
Market Sizes -
- Apparel
- Ethnic Wear
- Indian Wedding and Celebration Wear
Market Sizes -
- Apparel
- Ethnic Wear
- Indian Wedding and Celebration Wear
15/n
According to CRISIL, the Indian wedding/celebration wear apparel market was estimated at Rs 1.02 lakh Cr in FY20!
Just the apparel 🤯
Expected to reach Rs 1.37 lakh Cr by FY25 thanks to higher spending per consumer, and increasing trend of multi-day wedding functions!
According to CRISIL, the Indian wedding/celebration wear apparel market was estimated at Rs 1.02 lakh Cr in FY20!
Just the apparel 🤯
Expected to reach Rs 1.37 lakh Cr by FY25 thanks to higher spending per consumer, and increasing trend of multi-day wedding functions!
16/n
About 9.5 million to 10 million weddings happen in India every year!
Imagine the total outlay on these 10 million weddings 🤯
And of course, goes without saying that the top 5-10% of weddings (Big Fat Indian weddings) would account for 90% of the expenses
About 9.5 million to 10 million weddings happen in India every year!
Imagine the total outlay on these 10 million weddings 🤯
And of course, goes without saying that the top 5-10% of weddings (Big Fat Indian weddings) would account for 90% of the expenses
17/n
This was definitely a good DRHP to read!
End of thread! Thanks for reading :)
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This was definitely a good DRHP to read!
End of thread! Thanks for reading :)
Hit the follow button and never miss out on more such threads!
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