CAMPUS ACTIVEWEAR

Campus is India’s largest sports and athleisure footwear brand. 'Campus' is the largest sports and athleisure
brand in India terms of value and volume in Fiscal 2021. Campus was introduced in 2005 as a lifestyle-
oriented sports and athleisure brand that offers a diverse product portfolio for the entire family. The brand
offers multiple choices across styles, color palettes, price points and an attractive product value proposition .

Our strength in the Indian sports and athleisure footwear landscape is demonstrated on account of the
following:

 We are the largest sports and athleisure footwear brand in India, both in terms of value and volume in
Fiscal 2021.
 We are the fastest growing scaled sports and athleisure footwear brand (being brands with over ₹ 2
billion of revenue in Fiscal 2019) in India over Fiscal 2019 to Fiscal 2021.
 We had an approximately 15% market share in the branded sports and athleisure footwear industry in
India by value for Fiscal 2020, which increased to approximately 17% in Fiscal 2021.
 We are one of the very few established Indian brands in a segment which is primarily dominated by
international brands.
 We are one of the most relevant brands in this segment, covering more than 85% of the total
addressable market for sports and athleisure footwear in India as of Fiscal
 Chapter – 1
INTRODUCTION AND HISTORY OF COMPANY

Campus Active Ltd. (NSE: CAMPUS) is India’s largest sports and athleisure footwear brand in terms of value
and volume in Fiscal 2021 (13.6 million pairs). The company has over 425 distributors in 28 states and 664 cities
with a pan-India trade distribution network. The firm had 19,200 stores and 5 production sites in India, with an
annual assembly capacity of 28.8 million pairs as of December 31, 2021. Furthermore, it has an extensive online
presence in D2C, which complements the trade channel in underpenetrated geographies. Having a 17% market
share in branded sports and athleisure footwear, Campus is one of the fastest-growing brands in the space from
FY 2019 to FY 2021

BACKSTORY
Incorporated in 2008 as a lifestyle-oriented sports and athleisure brand, Campus has a comprehensive product
assortment for the whole family. The brand provides a variety of styles, pricing ranges, and an appealing product
value proposition.

Hari Krishan Agarwal, Chairman, and MD have over 37 years of experience in the Indian footwear industry.
He is an ex-director of Action Shoes Private Limited. He always wanted his firm to go public because he
regarded the super-niche Sports and Athleisure industry as a big opportunity in India. This specialized trend had
already played out 15-20 years ago in the United States and China, and the Agarwal family foresaw it in India.

Nikhil Aggarwal, son of Hari Krishan Agarwal, is the Whole-Time Director and CEO of the company and
has14 years of experience in the footwear manufacturing and trading sector. He has completed a Workshop and
an Executive Education program at INSEAD, Singapore.

The company has appointed Raman Chawla as CFO, Archana Maini as CS, Piyush Singh as Chief Strategy
Officer, Raghu Narayanan as Supply chain & Operations country head, and Uplaksh Tewary as Retail country
head. All key managerial personnel possesses multi-year experience in leading MNCs. The company maintains
employees’ interest in the company through ESOPs.

HIGHLIGHTS OF THE CAMPUS ACTIVEWEAR

  Campus has a pan-India trade distribution network with over 425 distributors servicing over 19200
retail touch points (major presence in northern region). In addition, it has an extensive online
presence (D2C) which complements the trade channel in underpenetrated geographies .
 It has a vertically integrated manufacturing process with 100% of shoe assembly operations done in-
house. Furthermore, it manufactures 38% of sole requirements and 17% of uppers in-house.
Combination of in-house manufacturing facilities combined with integrated supply chain gives an
edge over peers, with industry best lead time (120 days).
 The company caters to a wide range of price points across entry (~38%), mid (~21%) and premium
(~41%). Revenue contribution from premium products has increased from 31% in FY19 to 41% in
9MFY22.
 For 9MFY22, the company clocked ~13.6 million pair volumes (up 67% YoY) with realisations up
15% YoY to | 615/pair
 The overall footwear Industry (| 72000 crore) is expected to grow at a CAGR of 8% in FY20-25E
whereas sports and athleisure segment (| 11000 crore) is expected to increase at a CAGR of 15%
during the same period.

COMPANY’S BACKGROUND
Incorporated in 2005, Campus is the largest sports and athleisure footwear brands in India in terms of value
and volume in FY21. The company offers one of the widest portfolios of footwear products among sports
and athleisure footwear brands in India in terms of SKUs (6388). It is one of the very few established Indian
brands in a segment, which is primarily dominated by international brands (Puma, Adidas, Sketchers, etc).
The top three players in the category in India include two international players and one domestic player –
Adidas, Puma and Campus. While Campus was one of the top three sports and athleisure footwear brands in
FY19 and FY20, it is the largest sports and athleisure footwear brand in India by value in FY21.

Source: RHP, ICICI Direct Research

The brand aims to generate an optimum blend of aspiration and value proposition for its target consumers
seeking quality sports and athleisure footwear in the latest trends and designs at attractive prices. Among key
sports and athleisure brands, the international brands are largely present in the semi premium and premium
segment (| 2000+) and there is limited offering in the value and mid premium price points. Players like
Campus fill the gaps to capture these segments. Campus is one of the most relevant brands in sports and
athleisure footwear in India and covers over 85% of the addressable market as of FY21, which is the highest
among key sports and athleisure footwear brands.

Campus has established an extensive ‘omni-channel experience’, pan-India distribution network, across
trade distribution and direct-to-consumer channels to drive sales of footwear and increase volumes of sales
in the premium category. It has two channels of distribution;
 trade distribution
 direct-to-consumer
Trade distribution: It has over 425 distributors directly servicing and fulfilling orders of over 19,200
geographically mapped retailers at a pan-India level as on December 31, 2021. Campus executed agreements
with all distributors, which carry a credit term of 30 to 60 days. Diversified sales mix across trade
distribution channel and top 15 distributors contributed 21% and 13% towards sale of goods in FY21 and
nine months ended December 31, 2021.
Direct to consumer (D2C): This channel consists of online and offline direct to consumer channels. The
company has an expansive online presence across several e-commerce channels such as Flipkart, Myntra,
Udaan and Fynd, among others, as well as its own e-commerce website. This has been the fastest growing
channel for the company with revenues growing at a CAGR of 197% in FY19-21 and contribution
increasing materially to ~32% in 9MFY22. In addition, it has 57 company owned company operated outlets
(COCO) and 28 franchise outlets as on December 31, 2021. The company launched its first EBO in FY17
mainly with the intention to premiumize products across its trade distribution network
The D2C channel has extensively complemented trade distribution channel towards extending its pan-India
reach. Its omni-channel experience, coupled with D2C channel scale-up, helped it unlock new consumer
bases while accelerating portfolio premiumisation.

Campus has a vertically integrated manufacturing process with 100% of the shoe assembly operations done
in-house (annual capacity: 28.8 mn pairs). Furthermore, it manufactures 38% of sole requirements and 17%
of uppers in-house. A majority of annual designs are conceptualised and commercialised under two flagship
seasons: (i) spring-summer by February/March; and (ii) autumn-winter by August/September. Each
collection usually takes around 120 to 180 days from product planning to commercialisation.
During YTDFY22, the company; (i) set up additional footwear assembly lines at its manufacturing facilities
in Dehradun, Uttarakhand and Baddi, Himachal Pradesh;
(ii) additional manufacturing capacity was at its sole manufacturing facility at Ganaur, Haryana; and (iii)
additional manufacturing capacity at uppers manufacturing facility at Haridwar, Uttarakhand. In FY21, it
commissioned a sole manufacturing facility at Ganaur, Haryana and in FY20, commissioned an uppers
manufacturing facility at Haridwar, Uttarakhand. Combination of in-house manufacturing facilities
combined with its integrated and exclusive supply chain creates an ecosystem that is not easily replicable.
On the raw material sourcing front, the company imports 10% from China and Vietnam while 90% is
sourced domestically. Only 15% of raw material is directly linked to crude.
KEY MEMBERS

Meet Hari Krishan Agarwal: Hari

Krishan Agarwal, the founder
of Campus Activewear, is a self-
made entrepreneur who has made a
name for himself in the footwear
industry. From humble beginnings, he
has built a successful business that has
become a household name in India.
His commitment to quality,
innovation, and customer satisfaction
has been instrumental in the success
of Campus Activewear. Agarwal’s
story is a reminder that with passion,
determination, and a strong work
ethic, anything is possible.
SOME INDEPENDENT DIRECTORS
OTHERS MEMBERS
 CHAPTER – 2
VISION MISSION AND OBJECTIVE OF THE COMPANY

CAMPUS’S VISION
To encourage free creative and confident self expression and raise shoe consciousness.

Campus believes that businesses grow due to society and hence it's important that we
give back to help grow the society as well.

MISSION
To emerge as the most preferred sports and athleisure brand in India while becoming an integral part of daily
active lifestyle of every Indian.

OBJECTIVES
Campus objectives are same as its values.
Chess is everything: science, art and sport. Imbibing the same spirit, we all at Campus offer the best of
technologies & design and ambitiously work together as a team to succeed in all our endeavours. Like in

chess, we all have our unique moves and together we checkmate. ARE PASSIONATELY
INNOVATIVE - we make our own little mark in the universe

ARE QUALITY & CUSTOMER FOCUSED - we hold high integrity, ethics &
ownership.

WEAR A POSITIVE ATTITUDE - we are optimistic & see the best even in
difficult situations.

ARE ENTREPRENEURIAL - we think outside the box & expect the unexpected.

ARE NIMBLE & AGILE - we learn & adapt fast. we approach problem with
solution.

ARE WINNERS - we are driven & responsible, together we symbolize success.

 CHAPTER – 3
MARKET LINKAGE

The market linkage model of social enterprise facilitates trade relationships between the target
population or “clients,” small producers, local firms and cooperatives, and the external market. The social
enterprise functions as a broker connecting buyers to producers and vice versa, and charging fees for this
service.

"Campus", has been the largest sports and athleisure footwear brand in India, in both volume and value
terms.
Campus we craft shoes with care for everyone- men, women and kids, with an equal attention to detail,
letting each shoe speak for itself.

Types of shoes offered by campus activewear

For Men
For Women
FOR KIDS

SERVICES PROVIDED BY CAMPUS ACTIVEWEAR

 Return & Claims Policy

IN RETURN POLICY
Definition: ‘Return’ is defined as the action of giving back the item purchased by the Buyer to the Seller on
the Campus website.
 Following situations may arise: -
 Item was defective.
 Item was damaged during the Shipping.
 Product(s) was/were missing.
 Wrong item(s) was/were sent by the Seller.
 Item size is not correct.
We encourage the Buyer to review the listing before making the purchase decision.

Buyer need to raise a return request within 15 days from the date of receipt of product by contacting
us on our contact number: +91-11-43272500

Amount will be refunded only after the product is verified by the seller (as mentioned above) and it
will be done within 10 working days once we receive the product.

CLAIM POLICY
Claims are entertained only against manufacturing defects and admissible when shoes have been
appropriately used. All minor defects will be considered for repair first.
Definition of Major Manufacturing Defect in Footwear
 Damaged/Discoloured Upper Material.
 Broken/Damaged Sole or Insole.
 Please include all price tags, labels, original packing and invoice along with the product.
If the product being returned is not in accordance with the above parameters, then buyer shall not be entitled
to any refund of money from the seller and the said item will be reshipped to the buyer at his cost.

REFUND POLICY
Amount will be refunded after the product is verified by the seller (manufacturing defects / wrong product
received /wrong size received) and it will be done within 10 working days once we receive the product and
the amount will be refunded through the same mode as the customer has done the payment.

Note: If customer wants to return their product, the request should be raised within 15 days from the date
they receive the product.
BUSINESS MODEL

The company focuses on creating a niche in the Sports and Athleisure segment, targeting India. The target
price range is between ₹500 and ₹3500.
The management is single-category focused, unlike other domestic brands that focus on multiple categories.
Inspiration for this move was brands like Nike, which have created wealth by focusing on a single segment.
The decadal CAGR of the company is around 27%.
The company’s cash flows are negative as they have recently set up two manufacturing plants for Uppers
and Soles. According to the CEO, the industry is very Capex light, as a 100 crore Capex could generate
around ₹500-600 crores of sales. The labor-intensive nature of the business commands efficient
management of the supply chain.
The company caters to a wide range of price points, including Entry (~38%), Semi-Premium (~21%), and
Premium (~41%). Revenue contribution from premium products has increased from 31% in FY 2019 to 41%
in the first nine months of FY 2022.
Brand wise Price segmentation compared to peers:

Differentiating Strategies:
 Focusing on a Single Segment rather than giving attention to multi-segments or multi-brands has
worked phenomenally for the company as it has shown a decadal CAGR of 27%.

 New designs: The industry is affected by trends, and regularly making new designs is the norm. The
company has launched,
2020- 697 new designs, which are 54% of their revenue from the sale of goods.
2021- 583 new designs, which are 65% of their revenue from the sale of goods.

 Advertising and sales promotion: Advertisements on traditional networks such as TV, billboards,
online ads, social media, etc., are essential to impact consumers’ minds and hold their attention.
The company spent 3.7% and 4.6% of revenue from operations on advertising and sales promotion in
2020 and 2021, respectively.
Moreover, the management claims to have over 2000 active designs at any time of the year, an extensive
portfolio in a single segment.

 Diversified Revenue Share: The company is well-diversified among different geographies and
focuses on underpenetrated markets.
 Source: company, leveraged growth.

 Shopping behaviour: We observe sales are migrating from traditional distribution channels to the
online D2Cs segment. It is profitable for the company as D2Cs have higher EBITDA Margins.
. CHAPTER - 4
FINANCIAL LINKAGE