Campus Activewear Limited: history, ownership, mission, how it works & makes money

A Brief History of Campus Activewear Limited

Campus Activewear Limited, a prominent player in the Indian sports and athleisure market, was founded in 2005. The company specializes in manufacturing and selling a diverse range of activewear products, including footwear, apparel, and accessories.

In its early years, Campus was positioned heavily towards providing affordable and high-quality products for the youth segment. By 2016, the company's expanding portfolio and innovative marketing strategies began to establish it as a noteworthy competitor in the industry.

In 2021, Campus Activewear made a significant step by launching its Initial Public Offering (IPO). The IPO, which opened on April 26, 2021, was priced in the range of ₹278 to ₹292 per share. The offering was well-received, with the issue being subscribed over 51 times on the final day, reflecting strong investor interest.

In the fiscal year ended March 2022, Campus Activewear reported a revenue increase of approximately 27% compared to the previous year, demonstrating robust growth in a competitive market. The company attributes its success to a combination of expanding distribution channels and targeted marketing efforts aimed at younger consumers.

As of 2023, Campus Activewear has positioned itself as the largest sport and activewear brand in India by volume. It holds a market share of approximately 12% in the athleisure segment, competing with established brands like Adidas, Nike, and Puma.

Additionally, Campus has embraced sustainability, launching initiatives to incorporate eco-friendly materials into their products. The company's commitment to environmental responsibility aims to resonate with the growing demographic of environmentally-conscious consumers.

As of June 2023, Campus Activewear's stock was trading at around ₹485, reflecting a significant appreciation since the IPO and highlighting investor confidence in the company’s growth trajectory.

Furthermore, the company has reported an impressive Return on Equity (ROE) of approximately 20% for the fiscal year ending March 2022, indicating efficient use of equity capital to generate earnings.

With plans to expand product lines and enter new markets, Campus Activewear Limited continues to focus on innovation and brand loyalty, reinforcing its position in the rapidly evolving landscape of activewear.

A Who Owns Campus Activewear Limited

Campus Activewear Limited, a prominent player in the Indian athletic footwear sector, is known for its innovative and stylish sneaker offerings. The company's ownership structure is primarily categorized into promoters, institutional investors, and retail participants.

As per the latest publicly available data from September 2023, the ownership of Campus Activewear is distributed as follows:

The promoters of Campus Activewear include the Bhansali family, who have played a significant role in the company's growth since its inception. As of the latest figures, the main promoters include:

In terms of market capitalization, Campus Activewear was valued at approximately ₹6,200 Crores as of September 2023, reflecting its solid growth trajectory and investor confidence. The company’s share price has seen notable fluctuations, with a closing price around ₹450 during this period.

The firm has shown not only growth in ownership stakes but also improvement in its financials. For the fiscal year ending March 2023, Campus Activewear reported revenues of ₹800 Crores, showcasing a year-over-year growth of around 15%. The net profit for the same period was approximately ₹100 Crores, which reflects a robust profitability margin of around 12.5%.

Additionally, the company's product diversification and strategic marketing have contributed to its strong brand presence in the athletic wear market. Partnerships with e-commerce platforms and expansion into international markets are part of their growth strategy, further enhancing their ownership value among investors.

Campus Activewear Limited Mission Statement

Campus Activewear Limited focuses on becoming a leading sports and active lifestyle company in India. Their mission statement emphasizes innovation, customer satisfaction, and quality. They aim to inspire individuals through their products that promote a healthy lifestyle.

As of 2023, Campus Activewear has positioned itself as a significant player in the Indian footwear segment. The company’s mission underlines the commitment to producing high-quality, durable, and stylish products catering to the needs of customers across various demographics.

In the fiscal year ending March 2023, Campus Activewear reported total revenue of ₹1,050 crore, reflecting an increase of 25% compared to ₹840 crore in the previous year. The company’s EBITDA margin stood at 18%, showcasing strong operational efficiency.

Additionally, Campus Activewear's growth strategy includes expanding its retail presence and enhancing its online sales channels. The brand aims to open 200 new stores in tier-1 and tier-2 cities within the next three years, contributing to the projected revenue growth.

The mission also incorporates sustainability, with the company pledging to reduce its carbon footprint by 15% by 2025, integrating eco-friendly practices in their production processes.

As part of its community engagement, Campus Activewear is committed to sponsoring local sports events and initiatives, reinforcing its brand commitment to fostering an active lifestyle among the youth.

The brand's vision aligns with the growing trend in health consciousness among Indian consumers, where the activewear market is expected to reach ₹30,000 crore by 2025, growing at a CAGR of 12%.

How Campus Activewear Limited Works

Campus Activewear Limited is a leading player in the Indian sports and lifestyle footwear market. As of the latest financial year ended March 2023, the company reported a total revenue of ₹1,121.3 Crore, marking a substantial increase from ₹853.7 Crore in the previous year, reflecting a growth of 31.4%.

The company operates primarily in the athletic and lifestyle segments, focusing on affordable and quality products. Campus Activewear serves a diverse customer base through a multi-channel retail strategy that includes both online and offline presence. The brand has extensive distributions channels, including e-commerce platforms such as Amazon, Flipkart, and their own website, alongside a widespread network of brick-and-mortar stores.

Financial Performance

In the fiscal year 2023, the company’s net profit stood at ₹142.5 Crore, compared to ₹100.3 Crore in the previous financial year, resulting in a net profit margin of 12.7%. The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the year was ₹263.5 Crore, with an EBITDA margin of 23.5%.

Market Positioning

Campus Activewear has positioned itself as a budget-friendly brand that does not compromise on quality. The company has gained significant traction among youth and fitness enthusiasts. In the fiscal year 2023, it maintained a market share of approximately 12% in the Indian footwear market.

The company's product range includes sports shoes, running shoes, and casual wear footwear designed to cater to different demographics. Over the past year, Campus introduced over 200 new styles, enhancing its portfolio and appealing to a broader audience.

Production and Supply Chain

Campus Activewear operates two manufacturing facilities located in North India. These facilities have an annual production capacity of approximately 20 million pairs of footwear. The sourcing of raw materials is managed through established relationships with suppliers to ensure quality and timely delivery.

The company employs a just-in-time inventory approach, minimizing stock holding costs and enhancing operational efficiency. Logistics partnerships allow for effective distribution across the country, ensuring availability across retail outlets and online platforms.

Marketing Strategy

Campus Activewear invests heavily in marketing and brand visibility. The brand's marketing expenditure represented approximately 8% of total revenue in FY 2023. This includes collaborations with influencers, social media campaigns, and traditional advertising channels.

The company's digital presence has grown significantly, with its social media following increasing by 45% over the last year, paving the way for higher engagement with younger audiences.

Sustainability Initiatives

In line with global trends, Campus Activewear has embraced sustainability. The company aims to reduce its carbon footprint by 30% by 2025 and has initiated the use of eco-friendly materials in 15% of its product lines. This commitment has resonated well with environmentally-conscious consumers.

Through a multi-faceted approach focusing on product innovation, strategic marketing, and sustainability, Campus Activewear Limited has solidified its position in the competitive landscape of footwear in India.

How Campus Activewear Limited Makes Money

Campus Activewear Limited operates primarily in the apparel sector, focusing on the manufacture and distribution of footwear, particularly in the activewear segment. The company's revenue generation is multi-faceted, involving several key streams that contribute to its overall financial performance.

Revenue Streams

• Footwear Sales: The core business of Campus Activewear is its wide range of athletic and lifestyle footwear. In FY 2023, the company reported a total revenue of INR 1,024 crores, with footwear sales accounting for approximately 90% of this total.
• Brand Collaborations: Campus collaborates with various sports and lifestyle brands. This partnership allows for co-branded products, increasing visibility and penetration in the market. The collaborations have reportedly resulted in a revenue boost of around 12%.
• Direct-to-Consumer (DTC) Sales: The DTC channel has been rapidly growing, especially post-COVID-19. In recent reports, Campus Activewear noted that DTC sales contributed about 30% of their total revenue in FY 2023.
• Online Sales Channels: The shift to e-commerce has been significant. As of the end of FY 2023, online sales represented approximately 25% of total sales, with growth rates exceeding 45% year-over-year.
• Retail Partnerships: The company has established a strong presence through multi-brand outlets and exclusive brand outlets. Campus has over 300 retail touchpoints across India, contributing around 40% of total sales revenue.

Financial Performance Overview

The financial performance of Campus Activewear Limited indicates robust growth driven by strategic initiatives and market demand. Below are the key financial highlights for FY 2023:

Market Positioning

Campus Activewear positions itself as a leading player in the Indian athleisure market. The company's strategic focus on sustainability and innovation in product design has forged a strong brand identity that appeals to a broad demographic. The activewear market in India is projected to grow at a CAGR of 14% over the next five years, providing a significant opportunity for Campus to expand its market share.

Cost Structure

The company maintains a competitive edge through efficient cost management. The primary cost drivers include:

• Raw Material Costs: Approximately 55% of total costs.
• Manufacturing Expenses: Roughly 25% of total costs, due to economies of scale in production.
• Marketing and Advertising: Accounts for about 10% of total expenses, focused on digital marketing and brand endorsements.
• Distribution Costs: Comprising 10% of total expenditures, with an emphasis on expanding logistics capabilities.

In conclusion, Campus Activewear Limited leverages multiple revenue streams, a solid market presence, and robust cost management strategies to drive sustainable growth in the competitive activewear landscape. The company continues to adapt to changing market dynamics, ensuring its financial performance remains strong amidst the evolving consumer landscape.