Dollar Industries bullish about South India Market

Dollar Industries Limited, one of the most trusted names in the lifestyle outerwear & innerwear business in India, today shared their Vision for the South Indian markets. As a major step, Dollar Industries has signed superstar, Mr Mahesh Babu as their Brand Ambassador for South India.

Dollar Industries Limited, which began its journey in 1972 under the able leadership of visionary par excellence Mr Din Dayal Gupta, as Bhawani Textiles, now holds 15% market share of the branded hosiery segment in India and the Group is targeting a growth of 11% - 12% at on a year-on-year basis. As a part of their Vision South India strategy, Dollar Industries is targeting around 50% growth in sales from Southern market as compared to current year.

"We have received a good response for our products from the Southern markets and consumers have accepted our quality products at affordable prices from the house of Dollar. The acceptance here is evident from our sales growth in these markets. Our domestic sales have recently increased from these markets and stands at around 8%. With Mahesh Babu now being our Brand Ambassador for southern market, it will act as a catalyst to boost our brand prominence and sales even more. We are extremely bullish and targeting to garner around 20% of our domestic revenue from South market", said Mr Vinod Kumar Gupta, Managing Director, Dollar Industries Ltd.

"Dollar Industries is experiencing robust demand and an increasing proportion of higher-margin products in our portfolio. This positive trend positions us well to achieve our desired topline and bottom-line growth in the near future. We also have plans to open 50 exclusive brand outlet across the south market in the coming 3 years where consumers can experience the entire range of Dollar products" said Mr Binay Kumar Gupta, Joint Managing Director, Dollar Industries Ltd.

The wide variety of Dollar products are spread across 6 categories - MAN, WOMAN, JUNIOR, ALWAYS, THERMALS & PROTECT. Bollywood superstar Mr Akshay Kumar, endorsing Dollar Man, is associated with Dollar as the brand ambassador for over 14 years. Actress, Ms Yami Gautam is the brand ambassador for Dollar Women i.e Missy and Actor, Mr Saif Ali Khan is the brand ambassador for Dollar Always i.e Lehar.

Dollar Industries have manufacturing units in Kolkata, Ludhiana, Tirupur & New Delhi. The company has a goal to reach a revenue of Rs 2000 crore by FY26, and to achieve this revenue, the company has already announced a capex in the year 2021, for increasing the capacity of the spinning unit in Tirupur from 22000 spindles to 42000 spindles. That capex has already been incurred and very soon the additional production capacity will start which will help us internally in production.

"Tirupur being the hub for hosiery industry because of its economic and financial viability, we have our production system in Tirupur and the business has grown over the years. We have many dealers who are associated with us in southern market who are a great support for the Company in terms of selling and distribution of the products. In the recent past we have started our flagship initiative, Project Lakshya, for growing our sales in south market. The Pilot project was started in Karnataka in the year 2019. The response was so impressive that we decided to replicate the same model at Pan India level in phased manner", added Mr Vinod Kumar Gupta.

For FY24, Dollar Industries' gross profit grew 22.6% YoY to ₹ 50,588 Lacs, whereas EBITDA grew by 61.5% to ₹ 15,864 Lacs. The company achieved PAT of ₹ 9,020 Lacs, showing a growth of 71.7% YoY, registering a PAT margin of 5.7%.

Dollar's growth is sustained by introducing newer designs and quality products according to the customer's evolving specifications and demands. Brand loyalty too has also played an important role in the company's growth. Adhering to latest technologies and innovations have helped the company in creating a benchmark in the industry. Dollar believes in eco-friendly ways of production, and thus have introduced a zero - discharge technique with evaporation system.

As a part of the company's Green Mission initiative the existing 6 MW Solar Power Plant is already in use and 2MW unit is also installed but pending for government approval which will be further taking it up at 8MW.

Shares of Dollar Industries Limited was last trading in BSE at Rs. 568.60 as compared to the previous close of Rs. 559.90. The total number of shares traded during the day was 7567 in over 688 trades.

The stock hit an intraday high of Rs. 571.55 and intraday low of 561.70. The net turnover during the day was Rs. 4295140.00.

Source : Equity Bulls

Keywords

DollarIndustries INE325C01035 SouthIndiaMarket Bullish BrandAmbassador MaheshBabu