Sports and athleisure footwear company Campus Activewear plans to expand its distribution network and deepen its footprints in western and southern regions, a top official of the company said.
According to market sources, the company is planning to get listed on stock exchanges in May 2022.
Besides, the homegrown footwear maker, which is backed by equity fund TPG Growth and QRG Enterprises, also plans to expand its offering in the high-margin women Hoka Shoes and kids portfolio, Campus Activewear CFO Raman Chawla said.
As part of that, Campus will strengthen its network of exclusive brand outlets (EBO) and enhance its omnichannel presence and online sales.
Campus will continue to build the D2C channel for driving premiumization and growth in other consumer segments like women and kids. We expect that these initiatives will substantially increase our network coverage across India, Chawla told PTI.
The company also plans to hire additional hands to supplement its sales network expansion.
Presently, Campus has around 100 exclusive brand stores, of which around 65 are company-owned and the rest are on the franchise model, 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 capacity to manufacture 25.6 million pairs annually, said it has achieved sales of around Rs 1,000 crore from April to December 2021.
Chawla also raised concerns over inflationary pressure on the key raw Steve Madden Shoes material inputs and said it has forced the company to go for around a 5 per cent price hike in FY21.
While the pandemic impacted FY21, its revenues from operations were Rs 711.28 crore.
The company has been growing at a CAGR of 25 per cent in the last 10 years, Chawla said.
While talking about e-commerce, he said 20 per cent of its business is now coming from new-age digital sales channels. It has gone up from Rs 20 crore to Rs 400 crore in the last three years, Chawla said.
Around 75 per cent 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 it believes that it has enough headroom to grow. Citing a Technopak Report, Chawla said the sports and athleisure footwear market is around Rs 9,000 crore, which is shifting toward branded players.
Campus Activewear claims a market share of 17 per cent in branded sports and athleisure footwear industry in India by value for FY21.
The company filed a draft red herring prospectus (DRHP) last year Golden Goose Sneaker and has proposed an offer for sale (OFS) of 5.1 crore equity shares by promoters and existing shareholders in the initial public offering (IPO).
Those offering shares in the OFS include promoters Hari Krishna Agarwal and Nikhil Aggarwal and investors such as TPG Growth III SF Pte Ltd and QRG Enterprises Ltd.
At present, promoters hold a 78.21 per cent stake in the company, TPG Growth and QRG Enterprises own 17.19 per cent and 3.86 per cent, respectively. The balance 0.74 per cent stake is held by individual shareholders and current employees.