Vedant Fashions Limited

Investor Presentation - Jan 2024

Disclaimer

This presentation and the accompanying slides (the “Presentation”), which have been prepared by
Vedant Fashions Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer,
recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any
contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering
document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company
makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness,
fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the
information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly
excluded

Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects
that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance
and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include,
but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the
industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of
growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s
market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or
achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no
obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by
third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third-party
statements and projections. All Maps used in the presentation are not to scale. All data, information, and maps are provided "as is" without
warranty or any representation of accuracy, timeliness or completeness.

Vedant Fashions Limited • 2

About Vedant Fashions
 Introduction to Vedant Fashions
Indian Wedding and Celebration Wear Brands

Headquartered in Kolkata, incorporated in 2002 by Mr. Ravi

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01

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Modi, Vedant Fashions offers Indian wedding & celebration
wear for men, women & kids
One-stop destination with wide product portfolio for every

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02
02 celebratory occasion; aspirational yet value-for-money

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offering
Largest company in India in men’s Indian wedding &

199
celebration wear by Revenue, OPBDIT1 & PAT*. Commands 03

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dominant position in conventionally unorganized market
Omni-channel network of EBOs, MBOs, LFS & Online (own

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04

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website & leading lateral e-commerce platforms)
Manyavar brand is category leader in branded Indian

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05

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wedding & celebration wear market with pan-India
presence*
Delivers aristocratic & seamless customer experience via

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06
06

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aesthetic franchisee-owned EBOs
Growing presence in women’s Indian wedding &

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07

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celebration wear with Mohey - Largest brand by number of
stores with pan-India presence*
Retail footprint (YTD Dec FY24) of 1.64 mn sq. ft. across

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08
08 India (657 EBOs2 in 250 cities & towns in India) and

9
Overseas (16 EBOs in USA, UAE, Canada & U.K.)

Source: *Crisil Report; As of FY20 (latest available); Note: (1) OPBDIT is Operating profit before depreciation, interest & tax; (2) Includes 122 shop-in-shops (SIS)

Vedant Fashions Limited • 4

 What makes Manyavar Special

Aspirational Yet Multi-brand Product Strong Control Over Curated Marketing Industry Leading Strong Corporate
Value for Money Portfolio Entire Ecosystem Strategy with Multi Economics Governance
Channel Presence

o Aspirational Brand with o One-stop destination o Strong design o World Class Financial o Experienced
o Emotional connect with
Aristocratic & seamless with wide product capabilities with data- Matrix in apparel retail management with rich
theme-based
customer experience portfolio for men, driven/ AI backed being largest company functional expertise
campaigns
women & kids catering decision-making and in India in men’s Indian
o Uniform pricing across to all celebratory demand forecasting wedding & celebration o Big 4 statutory auditor
online & offline occasions across price o Celebrity brand wear by Revenue, coupled with eminent
o Tech-driven unique
channels in India points ambassadors OPBDIT & PAT* Board of Directors
supply chain &
o Low level of obsolete & inventory mgmt. with o Asset light &
o No discounts/ end-of- o Embraces ESG &
dead stock Automated o Omni-channel network franchisee-led EBO
season sales for promotes CSR
Replenishment System with pan-India presence distribution model with
Manyavar brand o 52 Week Design
at pin code level high cash conversion
collection Model
ratio
o Multi Decade growth o Integrated secondary
Opportunity for the sales network with full o Leads the peer set in
Category from here visibility of products terms of financial &
sold at our stores operational metrics
o Having First mover
advantage, VFL scaled
up and organized highly
unorganized and
fragmented category

Source: *Crisil Report; As of FY20 (latest available)

Vedant Fashions Limited • 5
Evolution Over the Years

1st EBO in Surpassed >INR Launched Mohey Strategic Acquisition of Launched Twamev (Men’s Listing on Stock
Brand Manyavar Bhubaneshwar 1,000 mn EBO (Women’s Celebration Mebaz premium wear brand) Exchanges
started operations revenue Wear label)
via predecessor Kedaara Capital invested Crossed INR 10,000 mn
entity EBO revenue & 1 mn sq.
ft. of EBO presence

1999
1999 2008
1999
2008 1999
2012 1999
2015 1999
2017 1999
2019 1999
2022

1999
2002 1999
2011 1999
2013 1999
2016 1999
2018 1999
2021 1999
2023

Incorporated Vedant 1st International Official Indian Wear Crossed INR 5,000 mn Launch of Manthan Celebration Wear Launch of
Fashions Pvt. Ltd. store in Dubai (UAE) Partner of 3 IPL in EBO revenue (Value Celebration Partner in Femina Exclusive
teams Wear label) Miss India 2021 Twamev EBO’s
1st Store in USA
Official Sponsor of 2 IPL
teams

Vedant Fashions Limited • 6

Key Investment Highlights/ Our Strengths
Key Investment Highlights/ Our Strengths

Unique business model

Large & growing Indian wedding Market leader in Indian combining asset-light brand play
& celebration wear market celebration wear market with along with seamless purchase
driven by an increased spending diversified brand portfolio across experience; no end of season
on such wear value spectrum for entire family sales/ discounts for Manyavar
brand

Widespread pan-India multi-

Attractive marketing initiatives Technology-based supply chain
channel presence through EBO
of creating connections through network with strong processes
network with scalable franchisee
emotions in place
model

Strong growth trajectory with

Experienced & professional Experienced Board of Directors industry leading margins, return
leadership team aided by professional partners metrics & healthy cash
generation

Vedant Fashions Limited • 8

 Diversified Brand Portfolio Catering to Aspirations of Entire Family
Brands Year Target Group Price Spectrum Distribution Product Portfolio Kay Attributes

Men: Kurta, Indo-western, Sherwani, o Category leader in branded Indian wedding & celebration
EBOs, MBOs, LFS, jacket, accessories wear market with a pan-India presence*
19991 Men, Boys Mid - Premium
E-commerce Kids: Kurta set, jacket set, Indo-western,
accessories o No end of season sales or discounts for Manyavar brand

o Largest brand by number of stores, with pan-India

o Lehenga
presence focusing women’s Indian wedding & celebration
o Saree
wear*
EBOs & E- o Skirt Top
2015 Women Mid - Premium o Benefit from Manyavar’s leadership position & pan-India
commerce o Gown
EBO footprint
o Salwar Suit
o Celebrity brand ambassador & campaigns like “#Dulhan
o Accessories
wali feeling”
Men’s Women’s
o Kurta set Saree
o Upscale consumer experience
o Sherwani Lahenga
2019 Men, Women’s Premium EBO’s o Cross-sell premium offering to Manyavar customers
o Indo-western Skirt Top
o Priced between Manyavar & luxury boutique brands
o Suit Gown
o Accessories Accessories

Men: Kurta, Indo-western, Sherwani,

o South India focused regional brand; strong presence in AP
Jacket, Suit, Accessories
Mid – Premium to & Telangana
20172 Men, Women, Kids EBO’s Women: Lehenga, Saree, Suit, Kurti
Premium o One-stop shop for ethnic celebration need of entire family
Kids: Lehenga, Gown, Frock, Kurta, Suit,
o Rich heritage brand with strong legacy
Accessories

o Large blend of product designs at value prices

MBOs, LFS, E-
20183 Men Value o Kurta o Aims to cater to sizable number of mid-market weddings
commerce
& other celebrations

Source: Crisil Report; *As of FY20 (latest available); Note: (1) Brand ‘Manyavar’ started operations via predecessor entity in 1999; (2) Brand ‘Mebaz’ was started in 2002 but was acquired by Company in 2017; (3.) Large scale operations commenced after refreshed launch in 2018;

Vedant Fashions Limited • 9

Our Growth Strategy
Our Growth Strategy

Retail Expansion within Up-selling and cross- Enhancement of brand Significant potential and Disciplined approach
and outside India selling initiatives appeal through targeted space for growth of our towards acquisitions
marketing initiatives emerging brands

Vedant Fashions Limited • 11

Q3 and YTD Dec FY24 Key Highlights, Update and Financial
Performance
 Company Key Performance Highlights

• In Q3 FY24, retail footprint presence increased by 52 k sq. ft. net retail area and by 1.72 Lacs sq. ft. net retail area in 9M FY24;
• As of Dec 2023, total retail presence stands at 1.64 mn sq. ft.

• In Q3 FY24, Revenue from operations grew by +7.5 % as compared to Q3 FY23; and PAT grew by +4.9 % in Q3 FY24 as
compared to Q3 FY23;
• Retail growth (Sale of our Customers) was up +11.1% in Q3FY24 as compared to Q3 FY23

• Revenue from operations grew by approx. +53% in 9M FY24 as compared to pre covid period of 9M FY20*
• PAT grew by approx. +80% in 9M FY24 as compared to pre covid period of 9M FY20*;

• In Q3 FY24, October month was significantly impacted due to inauspicious Shraddh period, however EBO Customer sales grew
by approx. +30.7% and SSSG grew by approx. +17.3% during major wedding/ festivities period of 60 days starting from Navratri
as compared to last year 60 days comparable period starting from Navratri ;

• In TTM Dec 2023, the Company reported strong Cash Conversion ratio (Operating Cashflow / PAT) of +85%**;
• During 9M FY24 period, Company reported strong Gross Margin of 67.2% and PAT margin of 29.7%;

During nine-month period Dec 2023, Company’s overall performance got impacted due to significantly lower weddings nationally,
general slowdown impacting consumer sentiments, coupled with higher base effect of last year, post covid. However, the company
have been able to effectively maintain strong financial margins and profitability metrices, reflecting resilient business fundamentals;
Note: 1. *FY20 quarterly numbers considered are not audited/reviewed and all numbers are based upon broad management estimates; ** Figures represented above are based upon management estimates;
Note 2: All figures in relation to financial statements are based upon Consolidated financials;
Vedant Fashions Limited • 13
Wide Pan-India Reach and Presence including International Markets

Presence (As of YTD Dec FY24) Net Rollout (Q3 FY24) Net Rollout (9M FY24)

1.64 mn Sq. ft. 52 k Sq. ft. 172 k Sq. ft.

EBO’s Area* EBO’s Area EBO’s Area
(Including 36K area of Intl. Stores in 4
Countries)

673 4 24
EBO’s* (Including 16 Intl. EBO’s) EBO’s EBO’s
(Including 4 Exclusive Twamev EBO’s)

250
Cities and towns in India

Note: 1.* Global EBO’s Area and count including shop-in-shops (SIS); EBO’ presence in 12 International Cities in 4 Countries of USA, UAE, Canada and U.K. Vedant Fashions Limited • 14
Vedant Fashions Limited •
Key Financial Highlights (Consolidated)
INR in mn
Q3 FY24 YoY Analysis

Revenue from Operations Gross Profit1 & Gross Margin EBITDA2 & EBITDA Margin PAT & PAT Margin

Margins → 67.8% 67.8% Margins → 51.2% 51.1% Margins → 34.1% 33.2%

+7.5% +7.5% +7.4% +4.9%

4,414 4,745 2,993 3,218 2,258 2,424 1,504 1,577

Q3 FY’23 Q3 FY’24 Q3 FY’23 Q3 FY’24 Q3 FY’23 Q3 FY’24 Q3 FY’23 Q3 FY’24

9M FY24 YoY Analysis

Revenue from Operations Gross Profit1 & Gross Margin EBITDA2 & EBITDA Margin PAT & PAT Margin

Margins → 67.8% 67.2% Margins → 50.0% 48.4% Margins → 31.6% 29.7%

-0.9% -1.8% -4.0% -6.8%

10,133 10,044 6,872 6,750 5,070 4,865 3,202 2,984

9M FY’23 9M FY’24 9M FY’23 9M FY’24 9M FY’23 9M FY’24 9M FY’23 9M FY’24

Note: (1) Gross Profit = Revenue from Operations – Cost of Goods Sold; Cost of Goods Sold = Cost of Material Consumed + Changes in Inventories of finished goods, stock in trade & Work-in-progress + Purchase of stock-in-trade + Job Charges;
Gross Margin = Gross Profit ÷ Revenue from Operations (2) Note for EBITDA = PBT + Finance cost + Depreciation - Interest Income - Dividend Income - Profit on sale of investments - Profit on fair valuation of investments carried at FVTPL;

Vedant Fashions Limited • 16

Key Retail Performance Overview
INR in mn
Retail Performance Vs FY23
(Sale of our Customers1) across Channels

Q3 FY’24 Vs Q3 FY’23 9M FY’24 Vs 9M FY’23

+11.1% -2.7% **
6,504 13,786 13,416
5,853

Q3 FY’23 Q3 FY’24 9M FY’23 9M FY’24

VFL recorded SSSG2 of –2.1%* in Q3 FY24 over Q3 FY23 VFL recorded SSSG2 of -12.7% ** in 9M FY24 over 9M FY23

* October month was significantly impacted by Shraddh ** Significant Lower Wedding Dates

Note: (1) Sales of our customers comprises of sales of products of our brands (a) made by our EBOs, LFSs and online channel customers, and (b) made by us to MBOs (including shop in - shops) and certain lateral e - commerce platforms customers at RSP; (2) SSSG stores for
comparing with Q3 FY23 and 9M FY23 includes stores open on or before 31st Mar’ 2022 and running as on 31st Dec’ 2023;

Vedant Fashions Limited • 17

Profit and Loss Statement Q3 and 9M FY24 (Consolidated)
INR in mn

Quarter ended Nine Month ended Year ended

Particulars Dec 31, 2023 Dec 31, 2022 Dec 31, 2023 Dec 31, 2022 31-Mar-23
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Sr.no Income:
I Revenue from operations 4,745 4,414 10,044 10,133 13,549
II Other income 155 100 456 268 402
III Total income ( I + II ) 4,900 4,514 10,500 10,401 13,952
IV Expenses:
Cost of materials consumed
- Raw materials 358 385 914 1,130 1,436
- Accessories & packing materials 45 52 113 146 191
Purchases of stock-in-trade 730 721 1,408 1,715 2,281
Changes in inventories of finished goods, stock-in-trade and work-in-progress 212 16 357 (435) (389)
Employee benefits expense 138 153 434 418 566
Finance costs 112 75 313 230 315
Depreciation and amortisation expense 344 251 968 763 1,038
Other expenses 842 843 1,988 2,130 2,755
Total expenses 2,780 2,495 6,494 6,097 8,193

V Profit before tax (III-IV) 2,119 2,019 4,005 4,304 5,758

VI Tax expense:
- Current tax 524 511 969 1,097 1,445
- Deferred tax 18 5 52 5 23
VII Profit for the period / year (V-VI) 1,577 1,504 2,984 3,202 4,291

Vedant Fashions Limited • 18

Wedding: Launched South-specific range(Pancha, Veshti) with superstar Ram Charan
and continued Rest of India with 360 approach

Vedant Fashions Limited • 19

Festivals : Promoted new collections via 360 approach

Vedant Fashions Limited • 20

Women: Brand building for Mohey leveraged content co-created with celebrity
associations, real brides & leading stylists

Vedant Fashions Limited • 21

Financial Summary
 Long Track Record of Strong Growth Trajectory
INR in mn

Revenue & Sales of Customers Gross Profit1 EBITDA2

Sales of Customers Margins Margins

11,355 12,652 8,362 14,736 18,614 65.0% 65.3% 66.8% 66.9% 67.4% 42.2% 43.6% 49.9% 50.1% 50.1%

13,549 9,126
6,783
10,408 6,958 5,213
9,155 5,980
8,007 5,203 3,988
5,648 3,771 3,380
2,817

FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23

PBT PAT RoCE (Pre-Tax)3

Margins Margins

33.8% 34.1% 32.2% 40.6% 42.5% 22.0% 25.8% 23.5% 30.3% 31.7%

95.32%
4,291 75.38%
5,758
3,149
4,230 48.24% 47.80%
2,366 34.07%
2,709 3,118 1,764
1,819 1,329

FY19 FY20 FY21 FY22 FY23

FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23

Note: (1) Gross Profit = Revenue from Operations – Cost of Goods Sold; Cost of Goods Sold = Cost of Material Consumed + Changes in Inventories of finished goods, stock-in-trade & Work-in-progress + Purchase of stock-in-trade + Job Charges; Gross Margin = Gross Profit ÷
Revenue from Operations (2) Note for EBITDA = PBT + Finance cost + Depreciation - Interest Income - Dividend Income - Profit on sale of investments - Profit on fair valuation of investments carried at FVTPL; (3) ROCE = Numerator = PBT + Finance cost –
(Interest income on fixed deposits, debentures + Profit on sale of investments + Profit on fair valuation of investments carried at FVTPL + Dividend income from mutual funds) Denominator = Net worth – (Current investment + Non current investment + Other bank balance)

Vedant Fashions Limited • 23

Awards and Accolades
2023 2014
2018
2020

“Entrepreneur Of The Year”

“Most Admired Retailer of the Year “Fastest Growing Company-maximum
Consumer Products and Retail
“Men’s Indianwear” Marketing & Promotions Campaign” turnover INR 300 crore”
EY
Images Excellence Award Images Retail Award ET Bengal Corporate Award
“India Retail Champions Award”
Apparel & Lifestyle category
"Retail Marketing Campaign of the Year “Pioneer in Ethnic Retail Business”
#TaiyaarHokarAaiye” ABP News
ET Now
2022 2017
“Excellence in Business Performance –
Turnover between INR 300 Crore and
“Dream Employer of the Year” 1,000 Crore” 2008-2010
“Most Admired Fashion Brand of the year:
World HRD Congress ET Bengal Corporate Award
Men’s Indian Wear”
Images Fashion Award
“The Best of Bharat” Awards
E4M Pride of India “Iconic Men’s Ethnic Brand”
Central Icons
“Most Admired Fashion Brand of the 2019
year: Men’s Indianwear” 2015
Images Fashion Award

“Transformational Contribution to Indian “National Retailer of the Year” 2004-2008

Apparel and Retail Industry” 4th Annual Indian Retail & Indian eRetail
2021 Ministry of Textiles and the Clothing Awards
Manufacturers Association of India

“Most Admired Retailer of the year Times Business Award for “Excellence in Supply Chain Management “Best Men's Ethnic Wear Brand”
Marketing and Advertising campaign” “Best Men's Ethnic Wear Brand (East)” & Fulfillment” Central Icons
Mapic India Times Group Images Retail Tech Award
“Retail Marketing Campaign of the Year” “Highest Job Creator - above INR 300
“Best Employer Branding Award” ET Now crore to INR 1000 crore”
World HRD Congress and Stars Group ET Bengal Corporate Award

Vedant Fashions Limited • 24

Glossary
Term Description

Company Vedant Fashions Limited

The report titled “Assessment of the apparel industry with a special focus on Indian wedding and celebration wear market in India” dated Sep-2021 as updated
Crisil Report
by the addendum dated December 2021 prepared by CRISIL
EBO Exclusive brand outlets of a brand or company

ERP Enterprise resource planning system

Apparel worn on special occasions such as weddings; close-knit family functions like puja, house warming, etc.; festivals such as Diwali, Eid, Holi and
Indian wedding & celebration wear
Rakshabandhan; and other events such as Independence Day and Republic Day
Indo-western Combination of traditional Indian ethnic apparel & western wear

LFS Large format stores

MBO Multi-brand outlets

Men’s ethnic wear or apparel Apparel including Kurtas, Indo-westerns, Sherwanis, jackets & other accessories

OPBDIT Operating profit before depreciation, interest & tax

Ready-to-wear Apparel made for general market & sold through shops rather than made to order for an individual customer

RSP Retail selling price

Includes sales of products of Company’s brands (a) made by Company’s EBOs, LFSs & online channel customers, & (b) made by Company to MBOs (including
Sales of Customers
shop-in-shops) & certain lateral e-commerce platforms customers at RSP
SIS (Shop-in-shops) An arrangement where a separate retail space is allocated in stores for retailing Company’s products

Women’s ethnic wear or apparel Apparel such as lehengas, sarees & stitched suits

Vedant Fashions Limited • 25

COMPANY :

Vedant Fashions Limited

CIN : L51311WB2002PLC094677
Investor Relations Team
[email protected]
www.vedantfashions.com

INVESTOR RELATIONS ADVISORS :

Orient Capital (a division of Link Group)

Mr. Nikunj Jain Mr. Rajesh Agrawal
+91 9769060608 +91 99674 91495
[email protected] [email protected]

Thank you