footwear market is not merely a bustling bazaar; it’s a meticulously choreographed ballet, each step pulsating with the rhythm of a billion-dollar industry. Poised to pirouette from a graceful $15.22 billion waltz to a breathtaking $35.43 billion crescendo by 2029, this market, fueled by the aspirational arabesques of a rising middle class, evolving lifestyles, and swelling disposable incomes, has captivated the attention of investors yearning to join the grandpas.
The undisputed prima ballerina, waltzing gracefully with a market cap of ₹7,974 Cr. The management stated that volume growth in H2 is likely to be normalised to 15%, led by closed footwear. In Q4FY23, it highlighted that it will target 15-20% volume growth in FY24. Triggeres for growth include that demand is likely to recover in FY24, especially in rural India. The company is doubling its capacity of Sparx from the current 50,000 pairs/day to 100,000 pairs/day at Bhiwadi in Rajasthan.
A seasoned veteran, still holding centre stage with a market cap of ₹2,921 Cr. Over the last couple of years, following the change in management, a renewed focus on growth has been evident, catalysed by a brand refresh, introduction of new product lines (such as the newly launched sneaker segment), and enhancements to the backend supply chain infrastructure. The management expects double-digit revenue growth in the medium term, on the back of high single-digit SSSG. It expects premiumization to further boost this revenue.
Injecting youthful energy and capturing the athleisure trend, its market cap steps in at ₹2,230 Cr. According to the management, upcoming elections, strong monsoon, and the impending festive season could revive revenue growth and margin improvement in H2FY24. Price sensitivity in the Campus products is strong. Company has not taken any significant price hike and intends to sell a majority of the products at full price. Online sales grew 10% YoY while D2C offline jumped 82% YoY due to store additions in Q2FY24.
Catering to regional nuances and building a loyal fan base, its market cap stands at ₹1,518 Cr. The Company is the second largest footwear retailer in India in terms of number of exclusive retail stores operating under the Khadim’s brand, with the largest presence in East India and one of the top three players in South India. The Company also has the largest footwear retail franchise network in India.
The market leader in this segment in terms of market capitalization which stands at Rs Rs 35,331 Cr. Metro Brands is one of the largest Indian footwear speciality retailers, and are among the aspirational Indian brands in the footwear category. The Company retails footwear under its own brands of Metro, Mochi, Walkway, Da Vinchi and J. Fontini. The company opened its first store under the Metro brand in Mumbai in 1955, and as per latest count, the company operates 624 Stores across 142 cities spread across 30 States and Union Territories in India.
While the market may encounter occasional dips, the long-term trajectory is undeniably upward. The projected CAGR paints a clear picture of sustained growth, offering investors a promising outlook. Ultimately, the decision rests on your individual risk appetite and investment goals. However, the Indian footwear market, with its robust growth potential, strong fundamentals, and diversification benefits, warrants serious consideration from long-term investors seeking