Adding my research here:
Suditi Industries is in the business of processing and manufacturing of knitted hosiery fabrics and readymade garments.
They have two business categories- retail and fabrics/garments.
Retail business (B2C):
- Own brands- They have two main brands of their own. Riot offers fashion wear like denim, bottoms, jackets, shirts for men or skirts, dresses, cardigans, or tunics for women, along with accessories like belts, bags, and flip flops. The price points for men and women start from INR 599 onwards for the Tops and INR 1,999 onwards for the Bottoms. Indianink brand offers products such as Kurtas, Tunics, Skirts, Salwar Kameez, Knitted Churidar, Patiyala, Dupatta, Pants, etc. The collection ranges from INR 499 – Rs 1,899 and salwar kameez sets range from INR 2,699 – INR 3,999.
- Licensed brands- They have the license for designing and manufacturing licensed clothing line that includes categories like t-shirt, sweatshirts, polo’s, jackets, track pants, boxers, etc. of the brands FC Barcelona, Manchester City FC, Paris Saint Germain and NBA. The said agreements with these clubs are valid for a period of about 3 years from the time of initiation, renewable thereafter at the will of the clubs.
- Partnership brands- They have partnerships for clothing brands YWC (YouWeCan) Fashion with cricketer Yuvraj Singh and brand NUSH with celebrity actress Anushka Sharma. For NUSH brand it is a 50:50 JV.
The company has Pan India distribution channels with 18-20 large distributors across India. The company also has a presence across 150 multi-brand outlets across 15 States out of which 45 are in Mumbai. Its products are sold across a wide range of outlets including Shoppers Stop, Pantaloons, Lifestyle, Walmart, Central, etc., coupled with major online platforms like Myntra, Amazon, Flipkart, Jabong, Snapdeal.
Fabrics/garments (B2B):
In fabrics, the company has facilities for knitting, dyeing, printing and finishing of yarns with installed capacity of 4,050 MTPA of knitted hosiery fabrics.
In garments, the Company manufactures casual wear, sportswear and activewear for men, women and kids as contract manufacturing for other companies like Future Group, Mandhana, Siyaram Silk Mill Ltd, Raymond, Burnt Umber, Pantaloons, Lee Cooper, Madura Garments (Brand - Louis Philippe, Van Heusen, Allen Solly), Arvind Lee, Shoppers Stop, Spykar etc.
Some clients:
In garments, they have production capacity of 2 lakh pieces per month. To this, they are further adding 1.5 lakh pieces per month capacity via capex.
This has been commenced as per the timelines in Q3 FY22
Capacity utilisation in Q2 FY22 was around 75%
They are planning to add more licensed brands for sports apparel.
Exports is insignificant as of now but they intend on increasing this
They have done debt reduction
In Q3 FY22, there was a decrease in interest cost, suggesting that perhaps debt has been reduced
Promoter Mr Pawan Agarwal has increased his stake in Dec quarter:
Disc- have a tracking position
