Indian Eyewear Retail Industry report
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Transcript of Indian Eyewear Retail Industry report
`
May 2013
For any queries or detailed information
contact us on+91 – 22 – 2436 3161 / +91 22- 60022001 or
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Reevolv Advisory Services
Private Limited
Indian Eyewear Retail Industry Report
Report
Indian Eyewear Retail Industry Report
2
Table of Contents
Particulars Page Nos.
1. Executive Summary 5
2. Eyewear Industry Overview
2.1. Industry Overview 6
2.2. Market Opportunity 7
2.3. Growth Drivers 8
3. Business Dynamics
3.1. Eyewear Products Category 11
3.2. Key Characteristics of Eyewear products 12
3.3. Business Model 14
3.4. Typical Unit Economics for Eyewear Retail 21
3.5. Consumer Insights 22
3.6. Buying Criteria 24
3.7. Porters Five Forces Model 27
3.8. Key Success Factors of Eyewear Retail Industry 30
3.9. Key Challenges of Eyewear Retail industry 31
4. Primary Surveys / Interviews
4.1. Interviews 33
4.2. Consumer surveys 38
5. City wise – Key players and Number of outlets
5.1. Tier 1 Cities 42
5.2. Tier 2 Cities 43
5.3. Tier 3 Cities 45
5.4. Other Cities 47
Indian Eyewear Retail Industry Report
3
6. Quantitative Information of players
6.1. Retail Shop 49
6.2. Manufacturers – Spectacle Lenses & Frames and Sunglasses 52
6.3. Manufacturers – Contact Lenses 55
7. Financial Benchmarking of players
7.1. Retail Shop 56
7.2. Manufacturers – Spectacle Lenses & Frames and Sunglasses 58
7.3. Manufacturer – Contact Lenses 59
8. Player Profiles – Eyewear Retail
8.1. Bon Ton Opticals 60
8.2. Foresight Vision Care 61
8.3. Gangar EyeNation 64
8.4. GKB Opticals 67
8.5. Himalaya Opticals 71
8.6. Lawrence & Mayo 81
8.7. Lens & Frames 87
8.8. Optical Palace 88
8.9. Shiva Vision Care 89
8.10. Sunaina 92
8.11. Sunglass Hut 93
8.12. Titan Eye+ 97
8.13. V. A. Mayekar 100
8.14. Vision 360o and GKB Optolabs 101
8.15. Vision Express 105
8.16. World Optix 109
Indian Eyewear Retail Industry Report
4
9. Player Profiles – Manufacturer of Spectacle Lenses & Frames and
Sunglasses
9.1. Carl Zeiss 110
9.2. Essilor 112
9.3. Hoya 139
9.4. Luxottica 142
9.5. Safilo 148
10. Contact Lenses – Competitive Pricing 151
11. Player Profiles – Contact Lenses
11.1. Acuvue 152
11.2. Bausch + Lomb 153
11.3. Ciba Vision 157
12. Annexure: Ratios 158
Indian Eyewear Retail Industry Report
5
1. Executive Summary
The growth of eyewear retail industry is result of increase in population, rising income levels, penetration
of the retail distribution network etc. The eyewear industry is following similar trends as observed in the
retail makeover in India. Over the years eyewear has changed from being a utility product for vision
correction to key fashion accessory. Increasingly eyewear is being perceived as reflective of one’s
personality.
The fast paced transition is witnessed by the eyewear industry in terms of changing customer choices,
preferences, shift of localized opticians to organized chain of retail outlets and influx of foreign eyewear
brands.
The size of the eyewear market in India was Rs. XX billion in 2011 of which spectacle frames and
prescription lenses constituted the largest percentage of XX% of the market followed by sunglasses
(XX%) and contact lens (XX%).
The key success factors of this industry are
Quality of product and product portfolio
Delivery time
After sales service
However, as with any other industry, it is not without challenges. The scarcity of trained professionals is
the biggest challenge in the industry. This supply-demand gap is leading to an upward salary cost for
trained professionals coupled with higher attrition. The higher rentals in cities are acting as an impediment
to growth.
The findings of the survey conducted across cities and customer groups are as under:
Consumers prefer using spectacles rather than contact lens
People typically change their eyewear in around 2 years
Price, geographical distance and brand are the top parameters for consumers to select a
eyewear retail outlet
Comfort, Price and Style / Fashion / Design are the top parameters while buying eyewear
products
As per our estimates the market is expected to increase to Rs. XX billion in 2015 growing at a CAGR of
XX% per annum. Out of all the product categories, sunglass is the highest growing segment in India.
As per our estimates the share of organised market stood at XX% of the total eyewear retail market at Rs.
XX billion in 2011 which is expected to grow at XX% per annum and will reach to XX billion (XX% of the
overall market) in 2015E.
Indian Eyewear Retail Industry Report
2. Eyewear Industry Overview
2.1. Industry Overview
Indian Eyewear Retail Industry Report
7
2.2. Market Opportunity
The growth in eyewear retail in India is the result of increase in population, rising income levels,
penetration of the retail distribution network etc.
Total Market
The size of the eyewear market in India was Rs. XX billion in 2011 which is expected to increase
to Rs. XX billion in 2015 growing at a CAGR of XX % per annum.
Eyewear Retail Industry Size (2011–2015E)
Rs. In million 2011 % of total
market
2015E % of total
market
CAGR%
(2010–15E)
Spectacle Frames and Prescription
Lenses
Contact Lenses
Sunglasses
Total Eyewear retail market
Spectacle frames and Prescription lenses
Contact Lens
.
Sunglasses
Indian Eyewear Retail Industry Report
2.3. Growth Drivers
Indian Eyewear Retail Industry Report
9
3. Business Dynamics
3.1. Eyewear Products Category
Spectacle Frames
Spectacle Lenses
Contact Lenses
Sunglasses
Indian Eyewear Retail Industry Report
3.2. Key Characteristics of Eyewear Products
Indian Eyewear Retail Industry Report
11
3.3. Business Model
Fig : Eyewear Industry Structure
3.3.1. Key functions of an Eyewear manufacturer are Design,
Manufacturing and Distribution
3.3.2. Brief Overview of Eyewear retail in India
3.3.3. Key Functions in an Eyewear Retail Business
Fig : Eyewear Retail Business Structure
3.3.4. Nature of Retail Eyewear industry
Indian Eyewear Retail Industry Report
12
3.4. Typical Unit Economics for Eyewear Retail
Standalone Stores:
Description Estimates
Average Area
Average Revenue per Month
Raw Material (as a % of sales)
Salary cost per month (all employees) (INR)
Salary cost as a % of Sales (incl. commission)
Rent
Rent (as a % of sales)
Marketing (as a % of sales)
Other Administrative Cost (as a % of sales)
Operating Margin (as a % of sales)
Capex – Furniture and Fixtures
Capex – Equipments
Inventory Rental
Deposit Capital
employed ROCE
%
Source: Reevolv Research
Indian Eyewear Industry Report
3.5. Consumer Insights
3.6. Buying Criteria
Indian Eyewear Industry Report
14
3.7. Porters Five Forces Model
Diagram
No Five Forces Remarks Market Trends
1a. Power of Supplier
1b. Power of Supplier
2a. Availability of Substitutes
2b. Availability of Substitutes
3. Entry Barriers
4. Power of Customers
5. Competitive Rivalry
Indian Eyewear Industry Report
15
3.8. Key Success Factors for Eyewear Retail Industry
.
3.9. Key Challenges of Eyewear Retail Industry
Indian Eyewear Industry Report
16
4. Primary Surveys / Interviews
4.1. Interviews
Interviewer 1: Owner of retail shop
Questions Answers
Which is the fast moving item across all eyewear product categories?
What is the preferred price point of your customer?
What is the Turnaround time for product delivery?
What is the basic requirement of customer?
Do you return outdated products to the company/ distributor?
Do you have any warehouse?
To whom you contact for the products?
Do you charge for after sales services?
Do you have skilled staff?
If goods are damaged in transport then who bares the losses?
What is the competitive outlook?
What is the basis of choosing the shop location?
What techniques you use to increase your sales?
Which is the peak season of sale?
How do you recruit your staff?
Do you have experienced staff or fresher?
How do you train your staff?
Interviewer 2 : Store Manager (Standalone Retail Outlet)
Questions Answers
Do you have any warehouse for quick service?
From where do you source products?
What is the Turnaround time for product delivery?
Do you charge for after sales services?
What do you do with outdated products?
How do you retain your customers?
Do you get credit from your supplier? If yes then for what period?
What is the criterion for recruiting your staff?
How do you train employees?
Do companies approach you for brand specific displays?
Which media do you prefer for advertisements?
Indian Eyewear Industry Report
17
Interviewer 3 : Store Manager (Standalone Retail Outlet)
Questions Answers
In how much time you deliver the product?
What are credit policies of suppliers?
Do you charge for after sales services?
What are the prevalent operating margins?
How do you select location for the outlet?
Do you have regular and repeat customers?
What is the price range of eyewear preferred by customers?
Are premium brands acceptable by customers?
Is it necessary to have an optometrist in a shop?
Interviewer 4 : Store Manager (Organized Eyewear Retail)
Questions Answers
Which is the fast moving item across all eyewear product categories?
What you do with outdated products?
Which is the highest contributing brand in terms of revenue?
Do you offer any discounts?
In how much time you deliver the product?
Do you charge for after sales services?
Do you have skilled man power to give after sales services?
Is there any market research done by your company while selecting the location of your store?
Do you have repeat customers?
Is there any seasonality in this business?
What promotional activities do you do to increase sales?
How you recruit your staff?
How do you train your staff?
Which media you prefer for your advertisement?
What is the revenue break of eyewear products?
Indian Eyewear Industry Report
18
Interviewer 5 : Store Manager (Organized Eyewear Retail)
Questions Answers
What is the preferred price range of customer?
What do you do with outdated products?
In how much time you deliver the product?
What is conversion ratio from footfalls to customer?
What if customer demands brand other than your stock?
Do you suggest any brands to customers?
Do you have skilled man power to give after sales services?
What is the nature of competition?
Which is peak season of sale?
Is your staff experienced or fresher’s?
How do you train your staff?
Which media do you prefer for your advertisement?
What is the incentive for employees?
What is the salary range of staff?
Interviewer 6 : Distributor – Sunglasses, Spectacle Frames and Contact lenses
Questions Answers
What are your thoughts on eyewear retail industry?
Why are branded products important?
Who are the market leaders in various product categories of eyewear industry?
What is the investment required to start an eyewear retail store?
What is the payback period for the eyewear retailer?
What are the margins across eyewear products for a retailer?
Who provides training on eyewear?
Is there any minimum order quantity the retailer has to order?
What is the delivery period once the order is placed by the retailer?
What is the credit period you offer?
What is the stock return policy?
How does the pricing work in eyewear industry?
How does the prescription lens market work? What is the margin for retailer?
What is the delivery time for prescription lens?
What type of prescription lenses are preferred by the customer?
Within how much time frame do customers change their eyewear?
Is there any need to change frames after every two years?
Does the retailer need to maintain stock of contact lenses?
Do contact lens manufacturer take stock returns?
What is the typical margin for the retailer in contact lenses?
What is the benefit of selling of contact lenses?
Indian Eyewear Industry Report
19
4.2. Consumer Surveys
Preamble
1. Percentage of respondents requiring vision
correction
2. Eyewear preferences for vision correction
Pie Diagram Pie Diagram
3. Preferences for eye check up
Pie Diagram
4. Eyewear usage pattern (Spectacles & Contact
lenses)
5. Eyewear usage pattern (Sun Glasses)
Bar Chart Pie Diagram
6. Preferred price range for eyewear (per annum)
Bar Chart
7. Retail outlet preferences 8. Preferences for type of eyewear products
Bar Chart Bar Chart
9. Replacement frequency of eyewear
(Contact lenses)
10. Replacement frequency of eyewear
(Spectacles and Sun Glasses)
Pie Diagram Bar Chart
11. Reasons to select retail outlets for purchase of eyewear
Pie Diagram
12. Parameters while buying eyewear products
Pie Diagram
Indian Eyewear Industry Report
20
5. City-Wise Number of Outlets of Key Players
5.1. Tier 1 Cities
Bo
Hima
Lawr-
Opti-
Shiva
Suna-
Sungl
V.A.
Vision
Worl
Cities State Regio
n
NCR NCR North
Ban-
galore KAR South
Chennai TN South
Hyd-
erabad AP South
Kolkata WB East
Mumbai MAH West
Pune MAH West
Ahm-
adabad GUJ West
n Ton
Fore- sight
Gan- gar
Vision GKB
360o
-laya Opti- cals
ence &
Mayo
cal Palace
Vision Care
ina Optic-
ans
-ass Hut
Titan Eye +
May- ekar
Expr- ess
d Optix
KSR Total
Total
Indian Eyewear Industry Report
21
5.2. Tier 2 Cities
Cities State Region GKB Vision
360o
Himalaya
Opticals
Lawrence
& Mayo
Lens &
Frames
Sunglass
Hut
Titan
Eye +
Vision
Express Total
Agra UP North
Allahabad UP North
Kanpur UP North
Lucknow UP North
Varanasi UP North
Amritsar PUN North
Ludhiana PUN North
Chandigarh CHD North
Coimbatore TN South
Madurai TN South
Kochi KER South
Kollam KER South
Kozhikode KER South
Thiruvananthapuram KER South
Thrissur KER South
Vijayawada AP South
Visakhapatnam AP South
Asansol WB East
Dhanbad JHK East
Jamshedpur JHK East
Ranchi JHK East
Patna BHR East
Raipur CHH East
Bhopal MP West
Gwalior MP West
Indore MP West
Indian Eyewear Industry Report
22
Cities State Region GKB
Jabalpur MP West
Jaipur RAJ West
Nagpur MAH West
Nashik MAH West
Aurangabad MAH West
Rajkot GUJ West
Surat GUJ West
Vadodara GUJ West
Total
Vision
360o
Himalaya
Opticals
Lawrence
& Mayo
Lens &
Frames
Sunglass
Hut
Titan
Eye +
Vision
Express Total
Indian Eyewear Industry Report
23
5.3. Tier 3 Cities
Cities State Region Foresight GKB
Dehradun UKH North
Moradabad UP North
Saharanpur UP North
Gorakhpur UP North
Jalandhar PUN North
Jammu J&K North
Belgaum KAR South
Gulbarga KAR South
Hubli KAR South
Mangalore KAR South
Mysore KAR South
Erode TN South
Puducherry PUD South
Tiruppur TN South
Guntur AP South
Bhubaneswar ODS East
Cuttack ODS East
Raurkela ODS East
Bokaro JHK East
Siliguri WB East
Durgapur WB East
Guwahati ASM East
Ujjain MP West
Vision
360o
Himalaya
Opticals
Lawr-
ence &
Mayo
Lens &
Frames
Optical
Palace
Sunaina
Opticia-
ns
Titan
Eye +
Vision
Express Total
Indian Eyewear Industry Report
24
Cities State Region Foresight GKB
Kolhapur MAH West
Bhavnagar GUJ West
Jamnagar GUJ West
Total
Vision
360o
Himalaya
Opticals
Lawr-
ence &
Mayo
Lens &
Frames
Optical
Palace
Sunaina
Opticia-
ns
Titan
Eye +
Vision
Express Total
Indian Eyewear Industry Report
25
5.4. Other Cities
Cities State Region
Ambala HAR North
Rohtak HAR North
Patiala PUN North
Bhatinda PUN North
Kurnool AP South
Chikmagalur KAR South
Davanagere KAR South
Shimoga KAR South
Tumkur KAR South
Udupi KAR South
Hosur TN South
Tirunelveli TN South
Alappuzha KER South
Aluza KER South
Kolenchery KER South
Kottayam KER South
Thiruvalla KER South
Palakkad KER South
Bhagalpur BHR East
Agartala TPR East
Balasore ODS East
Barrackpore WB East
Burdwan WB East
Serampore WB East
Vision
360o
GKB
Optolabs
Himalaya
Opticals L & M
Lens &
Frames
Sunaina
Opticians
Titan Eye
+
Vision
Express
Indian Eyewear Industry Report
26
Cities State Region
Chinsurah WB East
Bhilai CHH East
Bilaspur CHH East
Dimapur NAG East
Shillong MEG East
Calangute GOA West
Cavelossim GOA West
Verca GOA West
Mapusa GOA West
Margao GOA West
Nuvem GOA West
Panaji GOA West
Porvorim GOA West
Ponda GOA West
Porvorim GOA West
Betalbatim GOA West
Valsad GUJ West
Vapi GUJ West
Gandhidham GUJ West
Anand GUJ West
Total
Vision
360o
GKB
Optolabs
Himalaya
Opticals L & M
Lens &
Frames
Sunaina
Opticians
Titan Eye
+
Vision
Express Total
Source : Company Website and Reevolv Research
Abbreviations
AP Andhra Pradesh GOA Goa KAR Karnataka NAG Nagaland
ASM Assam GUJ Gujarat KER Kerala NCR National Capital Region
BHR Bihar HAR Haryana MAH Maharashtra ODS Odisha
CHD Chandigarh J & K Jammu & Kashmir MEG Meghalaya PUD Puducherry CHH Chhattisgarh JHK Jharkhand MP Madhya Pradesh PUN Punjab
Indian Eyewear Industry Report
27
6. Quantitative information of players
Company
6.1. Retail Shop Category Products Units
2010 2011 2012
Name Value Volumes
(Rs ‘000)
Value Rs/unit Volumes
(Rs ‘000)
Value Rs/unit Volumes
(Rs ‘000) Rs/unit
6.2. Manufacturers – Spectacle Lenses & Frames and Sunglasses
Company Installed
Category Products Units
2010 2011 2012
Name Capacity
Volumes Value
(Rs ‘000)
Rs/unit Volumes Value
(Rs ‘000)
Rs/unit Volumes Value
(Rs ‘000)
Rs/unit
6.3. Manufacturers – Contact Lenses
2010 2011 2012
Company Name
Installed Capacity
Category Products Units
Value Volumes
(Rs ‘000)
Value Rs/unit Volumes
(Rs ‘000)
Value Rs/unit Volumes
(Rs ‘000)
Rs/unit
Source - Company Filings and Reevolv Research
Indian Eyewear Industry Report
28
7. Financial Benchmarking of players
7.1. Retail Shop 2011 2012
Eyewear
No Retail
Total
Revenues
EBITDA
%
PAT % ROCE
%
ROE %
Working capital
Turnover Ratio
Asset
Turnover
Total
Revenues
EBITDA
%
PAT % ROCE
%
ROE %
Working capital
Turnover Ratio
Asset
Turnover
7.2. Manufacturer - Spectacle Lenses & Frames and Sunglasses 2011 2012
Manufacturer of Spectacle
No Lenses & Frames and Sunglasses
Total Revenues
EBITDA
PAT % %
ROCE
ROE % %
Working capital
Turnover Ratio
Asset Turnover
Total Revenues
EBITDA
PAT % %
ROCE
ROE % %
Working capital
Turnover Ratio
Asset Turnover
7.3. Manufacturer - Contact Lenses 2011 2012
No Contact
Lenses
Total
Revenues
EBITDA
% PAT %
ROCE
% ROE %
Working capital
Turnover Ratio
Asset
Turnover
Total
Revenues EBITDA %
PAT %
ROCE
% ROE %
Working capital
Turnover Ratio
Asset
Turnover
Source – Company Filings and Reevolv Research
Indian Eyewear Industry Report
29
8. Player Profiles – Retail Shop
8.1.
8.1.1. Overview
Description
Company Name
Profile
Promoters Name
Year of Inception
Total No. of outlets
Future Plans
Source – Company Website and Reevolv Research
8.1.2. Locations
Northern Region
Exclusive Stores
Main Cities
Source – Company Website and Reevolv Research
Indian Eyewear Industry Report
30
8.1.3. Financials - wherever company filings are available
Balance Sheet as at 31st March (Rs. Mn)
Share Capital
Reserves & Surplus
Shareholders’ funds
Secured Loan
Unsecured Loan
Loan Funds
Deferred Tax Liability
Total Liabilities
Gross Block
Net Block
Capital Work in Progress
Investments
Inventories
Debtors
Other Current Assets
Total Current Assets & Advances
Current Liabilities
Provisions
Total Current Liabilities & Provisions
Net Working Capital excl. Cash & Bank
Cash & Bank
Net Working Capital incl. Cash & Bank
Total Assets
Source : Company Filings
FY2008 FY2009 FY2010 FY2011 FY2012
Indian Eyewear Industry Report
31
Key Ratios FY2008 FY2009 FY2010 FY2011 FY2012
Expenditure Ratios
Cost of Material Consumed as a % of Total Revenues
Personnel Expenses as a % of Total Revenues
Administrative Expenses as a % of Total Revenues
Selling & Distribution as a % of Total Revenues
Profitability Ratios
EBITDA %
EBIT %
PBT %
PAT %
Return Ratios
ROCE %
ROE %
Financial Ratios
Capital Employed
Total Debt/ Net Worth
Secured Debt/ Net Worth
Total Debt to EBITDA
Turnover Ratios
Working Capital Turnover Ratio
Net Fixed Assets Turnover Ratio
Inventory Days
Debtors Days
DuPont Analysis
EBIT/ Total Income
PAT/EBIT
PAT/ Total Income
Total Assets/ Net Worth
Total Income/ Total Assets
Source: Company Filings and Reevolv Research
Indian Eyewear Industry Report
32
9. Player Profiles – Manufacturer of Spectacle Lenses & Frames and
Sunglasses
9.1.
9.1.1. Overview
Description
Company Name
Profile
Promoters Name
Year of Inception
Future Plans
Source – Company Website and Reevolv Research
Indian Eyewear Industry Report
33
9.1.2. Financials - wherever company filings are available
Balance Sheet as at 31st March (Rs. Mn)
Share Capital
Reserves & Surplus
Shareholders’ funds
Secured Loan
Unsecured Loan
Loan Funds
Deferred Tax Liability
Total Liabilities
Gross Block
Net Block
Capital Work in Progress
Investments
Inventories
Debtors
Other Current Assets
Total Current Assets & Advances
Current Liabilities
Provisions
Total Current Liabilities & Provisions
Net Working Capital excl. Cash & Bank
Cash & Bank
Net Working Capital incl. Cash & Bank
Total Assets
Source : Company Filings
FY2008 FY2009 FY2010 FY2011 FY2012
Indian Eyewear Industry Report
34
Key Ratios FY2008 FY2009 FY2010 FY2011 FY2012
Expenditure Ratios
Cost of Material Consumed as a % of Total Revenues
Personnel Expenses as a % of Total Revenues
Administrative Expenses as a % of Total Revenues
Selling & Distribution as a % of Total Revenues
Profitability Ratios
EBITDA %
EBIT %
PBT %
PAT %
Return Ratios
ROCE %
ROE %
Financial Ratios
Capital Employed
Total Debt/ Net Worth
Secured Debt/ Net Worth
Total Debt to EBITDA
Turnover Ratios
Working Capital Turnover Ratio
Net Fixed Assets Turnover Ratio
Inventory Days
Debtors Days
DuPont Analysis
EBIT/ Total Income
PAT/EBIT
PAT/ Total Income
Total Assets/ Net Worth
Total Income/ Total Assets
Source: Company Filings and Reevolv Research
Indian Eyewear Industry Report
35
10. Contact Lenses – Competitive Pricing
Acuvue – Johnson & Johnson Bausch + Lomb Ciba Vision – Novartis
Daily Disposable
Price per box
No of lens per box
Monthly expenditure
Fortnightly
Price per box
No of lens per box
Monthly expenditure
Monthly
Price per box
No of lens per box
Monthly expenditure
Annual
Price per box
No of lens per box
Monthly expenditure
Astigmatism
Replacement schedule
Price per box
No of lens per box
Monthly expenditure
Source – Company Website and Reevolv Research
Indian Eyewear Industry Report
36
11. Player Profiles - Contact Lenses
11.1.
11.1.1. Overview
Description
Company Name
Profile
Promoters Name
Year of Inception
Future Plans
Source – Company Website and Reevolv Research
11.1.2. Product Segments – Brands wise
Product Brands
Source – Company Website and Reevolv Research
Indian Eyewear Industry Report
37
11.1.3. Financials – wherever company filings are available
Balance Sheet as at 31st March (Rs. Mn)
Share Capital
Reserves & Surplus
Shareholders’ funds
Secured Loan
Unsecured Loan
Loan Funds
Deferred Tax Liability
Total Liabilities
Gross Block
Net Block
Capital Work in Progress
Investments
Inventories
Debtors
Other Current Assets
Total Current Assets & Advances
Current Liabilities
Provisions
Total Current Liabilities & Provisions
Net Working Capital excl. Cash & Bank
Cash & Bank
Net Working Capital incl. Cash & Bank
Total Assets
Source : Company Filings
FY2008 FY2009 FY2010 FY2011 FY2012
Indian Eyewear Industry Report
38
Key Ratios FY2008 FY2009 FY2010 FY2011 FY2012
Expenditure Ratios
Cost of Material Consumed as a % of Total Revenues
Personnel Expenses as a % of Total Revenues
Administrative Expenses as a % of Total Revenues
Selling & Distribution as a % of Total Revenues
Profitability Ratios
EBITDA %
EBIT %
PBT %
PAT %
Return Ratios
ROCE %
ROE %
Financial Ratios
Capital Employed
Total Debt/ Net Worth
Secured Debt/ Net Worth
Total Debt to EBITDA
Turnover Ratios
Working Capital Turnover Ratio
Net Fixed Assets Turnover Ratio
Inventory Days
Debtors Days
DuPont Analysis
EBIT/ Total Income
PAT/EBIT
PAT/ Total Income
Total Assets/ Net Worth
Total Income/ Total Assets
Source: Company Filings and Reevolv Research
Indian Eyewear Industry Report
39
12. Annexure: Ratios
Key Ratios
Cost of Material Consumed %
Cost of Material Consumed
Total Revenues
X 100
Personnel Expenses %
Personnel Expenses
Total Revenues
X 100
Selling & Distribution Expenses %
Administrative Expenses %
EBITDA %
EBIT %
PBT %
PAT %
ROCE %
ROE %
Capital Employed
Working Capital Turnover Ratio
Net Fixed Assets Turnover Ratio
Selling & Distribution Expenses
Total Revenues
Administrative Expenses
Total Revenues
EBITDA Total
Revenues
EBIT
Total Revenues
PBT
Total Revenues
PAT
Total Revenues
EBIT Capital
Employed
PAT
Net Worth
Total of Asset / Liabilities
(Liabilities=Shareholders funds + Loan Funds +
Deferred Tax + Minority Interest)
Total Revenues
Net Current Assets excl Cash Bank
Total Revenues
(Net Fixed Assets excl Capital Work in Progress)
X 100 X 100 X 100 X 100 X 100 X 100 X 100 X 100
Inventory Days
Debtors Days
Inventory
(Cost of Material Consumed or Cost of material +
Manufacturing Cost wherever available)
Debtors
Total Revenues
X 365 X 365
Indian Eyewear Industry Report
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About Reevolv
Reevolv is a boutique consulting and investment banking company offering a "One Stop Shop" in the areas of
business strategy, financial advisory and operations consulting to corporates and private equity funds.
We service our clients in their constant re-evolution process through our in-depth industry research, domain
understanding, our timely and superior execution capabilities and strong network to provide customized solutions
to our clients.
With a host of implementation focused services spanning across functions, we ensure that our clients reach the
desired goals and objectives in most efficient manner. We achieve sustainability of our initiatives by an all round
involvement of the client resources. This approach of an integrated improvement helps build a strong foundation
for the forward leap of our clients. Reevolv understands and acts upon the Strategic, Financial and Operational
needs of the clients on a regular basis to ensure adaptability and flexibility to suit the market and industry
dynamics.
Founded in 2008, Reevolv is a team of CAs, MBAs and Engineers with functional and industry expertise and
diverse background of investment banking and management consulting.
Disclaimer
This report is published for information only. Reevolv Advisory Services Pvt. Ltd. or any of its affiliates, group
companies, directors, employees, agents or representatives shall not be liable for any loss or damages whether
direct or indirectthat may arise from or in connection with the use of the information in this document. This
document is the sole property of Reevolv Advisory Services Pvt. Ltd.and prior permission is required for full or
part reproduction.This information is strictly confidential and is being furnished to you solely for your information.
This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any
other person or published, copied, in whole or in part, for any purpose.
Contact Details
For any queries or detailed information
contact us on +91 – 22 – 2436 3161 / +91 22- 6002 2001 or email at [email protected]
Address: No. B/002,Vision Court Staney Fernandes Wadi CHS Ltd., Plot no. 746, MTNL Exchange Lane, Dadar
(West), Mumbai 400 028
You can also email the research analyst at
Shilpa Bhattar
Kaustubh Kulkarni