Campus Shoes IPO Set to Happen in May, Company to Expand Distribution Footprint
Additionally, the local shoemaker, which is backed by investment fund TPG Growth and QRG Enterprises, also plans to expand its offering in the high-margin women’s and children’s portfolio, said Raman Chawla, chief financial officer of Campus Activewear.
In this context, Campus will strengthen its network of exclusive brands (EBO) and will strengthen its omnichannel presence and its online sales.
“Campus will continue to build the D2C channel to drive premiumization and growth in other consumer segments like women and children. We expect these initiatives to significantly increase our network coverage across India,” said Chawla at PTI.
The company also plans to hire additional staff to complete the expansion of its sales network.
Currently, Campus has about 100 exclusive-brand stores, of which about 65 are company-owned and the rest are franchise-style, he said.
In FY21, Campus added 190 new distributors while in the first half (April-September) of FY22, it added 53 distributors.
The Delhi-based company, which has an installed manufacturing capacity of 25.6 million pairs per year, said it achieved sales of around Rs 1,000 crore from April to December 2021.
Chawla also raised concerns about inflationary pressure on key raw material inputs and said this forced the company to opt for a price increase of around 5% in FY21.
While the pandemic impacted FY21, its operating revenue was Rs 711.28 crore.
The company has grown at a CAGR of 25% over the past 10 years, Chawla said.
Speaking of e-commerce, he said 20% of his business now comes from new era digital sales channels. “It has gone from Rs 20 crore to Rs 400 crore in the last three years,” Chawla said.
About 75% of its sales come from non-metro cities, and Tier I regions contribute the rest.
As part of its strategy, the company is focusing on the domestic market and believes it has enough room to grow. Citing a Technopak report, Chawla said the market for sports and leisure footwear is around Rs 9,000 crore, which is looking towards brand name players.
Campus Activewear claims a 17% market share in the branded sports and leisure footwear industry in India by FY21 value.
The company filed a draft red diversion prospectus (DRHP) last year and offered an offer for sale (OFS) of 5.1 crore equity shares by promoters and existing shareholders under the initial public offering (IPO).
Those offering shares in the SFO include promoters Hari Krishna Agarwal and Nikhil Aggarwal and investors such as TPG Growth III SF Pte Ltd and QRG Enterprises Ltd.
Currently, the promoters hold a 78.21% stake in the company, TPG Growth and QRG Enterprises hold 17.19% and 3.86% respectively. The balance of 0.74% is held by individual shareholders and current employees.