• Yet another year of healthy growth. FY 19 was a crucial year for us, as we continued to focus on the growth agenda. We closed the fiscal year with increase in revenue by 17.63%, EBITDA by 7.36% and PAT by 8.92%. Company has shown strong growth in the top line during FY 19, despite the uncertain market scenario and increasing competition.
  • Relaxo brand portfolio comprises a collection of footwear, from the classic brand synonymous with comfort and value to young and exciting brands.
  • Bahamas: An immensely popular brand in the world of casual footwear, Relaxo Bahamas is a unisex brand that offers a range of exciting, vibrant designs which bring out the fun quotient and freedom of spirit.
  • Sparx: Ambition, Passion, Performance. The three tenets that drive the adrenaline surge can be best exemplified by Sparx. The brand offers a range of sports and casual footwear catering to the demand of young sportsmen, fitness enthusiasts and the restless youth. With Sparx, pushing the limits and reaching for excellence is a natural reaction.
  • Total retail outlets increased from 302 to 343 during the financial year. The asset light, Franchise owned Franchise Operated model has given a positive response encouraging the company to venture into newer territories. We plan to open 50-60 more Company owned Company operated/Franchise owned Franchise Operated stores in FY 2020.
  • Currently, large part of India’s population is below 35 years of age and with factors like growing younger population and rising middle-class, there has been a significant rise in demand for branded footwear. Moreover, younger generation is more aspirational, well-connected and networked, tech-savvy and has high spending power. All this provides an opportunity for branded players to grow further.
  • Company is seeing potential in export markets, due to demand in non-leather footwear in specific markets. Company has restrategized its export presence in various geographies and created nation specific product portfolio.
  • Resource strength of India in the form of materials and skilled manpower is a comparative advantage for the country, among other things.
  • Robust cost control initiatives, Manufacturing excellence and quality improvement, Volume led growth, Regular disposal of aged inventory, control over administrative and operative expenses.

Additional resources:


My view: The stock is highly valued at this point of time, but if a person like Mr. Ramesh Dua was spending money on creating brands in early 2010s, one should’ve understood the potential.

There’s a nice thread on https://forum.valuepickr.com/t/relaxo-footwear-a-wannabe-brand-play/275 about their story and how it evolved over the years.

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