I traveled to Kanpur to attend the AGM of the company. It was a formality kind of thing as it was largely just employees. Just 1 more investor had come from Mumbai apart from us.
Suja Mirza (takes care of Red Tape) was there along with Faraz Mirza (take care of export business) and they seemed to be the key people running the companies. Few key points:
- China was closed post Covid and imports really dropped. This has been a big welcome change for the domestic shoe industry and hence most of the cos have started doing very well. Earlier there was dumping of poor quality goods from China and un-organized players in Delhi used to import and create unhealthy competition. Now domestic cos are doing well.
- We added 72 stores in Red Tape. Count is about 350-360 now. Shift from shoes to garments. We are doing very well in garments and are a fashion company now.
- Export team is very bullish and local RM availability is helping us. We can grow multifold in this segment too.
- There is huge opportunity for exports over next 3 years
- For red tape – we are doing very well and see a strong growth ahead. Plan to open another 40-50 stores and may close about 10. We are largely a north India brand but now plan to go South too. Opening in Mumbai, Karnataka, Bihar etc.
It was interesting to see the sharp jump in deposits from franchisees in the latest AR
Shuja in his usual self was very ambitious and bullish about things. As per him, the franchise model is doing really well and there are lot of people wanting to open more stores but we are going in phase manner.
Disc: Invested in family acs. May change position randomly
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