INSUBCONTINENT EXCLUSIVE:
slower growth path over the last few years, given the high competition from e-tailing, now plans to grow its revenues in double-digits
It owns brands including Killer, Lawman, Easies, and Integriti.
While the industry peers were driving sales volumes by offering dicounts
over the past few years, Kewal Kiran focused on improving cashflows and profitability
This helped in building a cash pile of Rs 300 crore, which is nearly 60 per cent of the annual revenue
distributors taking the total count to 200
It also plans to increase presence to 4,500 multibrand outlets (MBOs) from the current 3,500 MBOs
Besides, the company which has refrained from the aggressive discount offering strategies will be introducing lower priced products through
brand extensions rather than diluting its existing brands.
Despite a muted growth from FY16 till FY18, its 10-year compounded sales growth
In the first nine months of FY19, sales grew by 8 per cent to Rs 370 crore
The operating profit before depreciation (EBIDTA) grew by 15 per cent to Rs 85 crore
With EBIDTA margin of 23 per cent, it has one of the highest profitability in the sector
The margin is expected to expand in the coming quarters as higher growth would result in better utilisation of fixed costs (operating
institutional funds including SBI Mutual Fund, Kotak Fund, Nalanda Fund and Pinebridge hold close to 21 per cent.
