- They are amongst the top 10 retailers of ethnic apparel, particularly sarees, in south India.
- They have four store formats – Kalamandir, Varamahalakshmi Silks, Mandir and KLM Fashion Malls.
- As of July 2023, they operate 54 stores in four major south indian states i.e Telangana, Andhra Pradesh, Karnataka and Tamil Nadu.
- Share of organized retail in women’s apparel was 15% in 2015, increased to 31% in 2022, and is expected to reach 44% in 2028, amounting to 1,75,444 cr.
- Too many related party transactions for rent, marketing, purchases
- 68.38% of FY23 revenue is from Women’s Sarees
- Revenue split between normal vs premium vs ultra premium
- Revenue split across states
- 31.33% promoter shareholding pledged to SBI
- Inventory turnover ratio for FY23 compared to listed peers
- Company provided 32.6cr loans to employees.
- Few pending cases with GHMC, bombay high court and Income tax.
- Company planning to setup 30 new stores in next 3 years in below split:
- Saree & Others category(Lehenga, Indian dresses/gowns) within women’s apparel is expected to grow at a CAGR of 19% from FY 2022 to FY 2027, reaching INR 1,24,837 Cr in FY 2027.
- Main Competitors – Nalli, Pothys, The Chennai Silk, Kankatala, Rangoli, Neerus and VRK Retail
- Women Indian Wedding and Festive wear market, which forms the largest share of this category is expected to grow at a CAGR of 23%% to reach ₹ 1,30,129 crore in Fiscal 2027 from the existing ₹ 46,211 crore in Fiscal 2022
- Working capital heavy business compared to listed peers (No listed peer with major revenue from sarees).
- Region wise share of saree market –
- Sai silks has 9% market share in south india organized saree market.
- The key organised players and their share in the South India saree market are given as below:-
Disc – Not Invested. Studying
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