The Company Plans To Expand Distribution Following Its IPO In May

Today’s news, The company will expand distribution after its IPO in May

Campus Activewear, a sports and athleisure footwear brand, wants to extend its distribution network and deepen its presence in the western and southern areas.

This is according to a top company executive.
The company intends to launch on stock exchanges in May 2022, according to market sources.

Campus Activewear CFO Raman Chawla said the domestic footwear producer,

Which is funded by TPG Growth and QRG Enterprises, also wants to increase its offering in the high-margin women and kids portfolio.

The campus will expand its network of exclusive brand outlets (EBO) as well as its omnichannel presence and online sales as part of this.

The campus will continue to develop its direct-to-consumer channel to drive premiumization and development in other consumer groups such as women and children.

We expect these activities to significantly enhance our network coverage across India, according to Chawla.

In addition, the company intends to hire more people to help with the expansion of its sales network.

According to him, Campus currently has roughly 100 exclusive brand stores, 65 of which are company-owned, and the rest are franchised.

The campus added 190 new distributors in FY21, and 53 new distributors in the first half of FY22 (April-September).

When discussing e-commerce, he stated that new-age online sales channels currently account for 20% of the company’s revenue.

In the previous three years, it has risen from Rs 20 crore to Rs 400 crore, according to Chawla.

Non-metro cities account for about 75% of their revenues, with tier-I regions accounting for the balance.

The company has focused on the domestic market as part of its plan, and it believes it has ample room to expand.

According to Chawla, the sports and athleisure footwear market is worth roughly Rs 9,000 crore and is migrating toward branded players, according to a Technopak Report.

In India’s branded sports and athleisure footwear sector, Campus Activewear claims a market share of 17% by value in FY21.

Last year, the company filed a draught red herring prospectus (DRHP), proposing an initial public offering (IPO) of 5.1 crore equity shares by promoters and existing shareholders (IPO).

Promoters Hari Krishna Agarwal and Nikhil Aggarwal, as well as investors TPG Growth III SF Pte Ltd and QRG Enterprises Ltd, are among those selling shares in the OFS.

Promoters currently own 78.21% of the company, while TPG Growth and QRG Enterprises own 17.19% and 3.86 percent, respectively.

Individual stockholders and present workers own the remaining 0.74 percent stake.