This report includes statements representing the Companys belief and may be regarded as Forward-Looking Statements describing our objectives and plans. These forward-looking statements are subject to various risks and uncertainties including but not limited to, government actions, local & global political or economic developments, legislative changes, technological advancements, risks inherent in the Companys growth strategy, reliance on specific suppliers and other factors that could lead to actual results which could materially differ from those anticipated by the pertinent forward-looking statements.
The forward-looking statements contained in this report are provided as on the date of this report, and we commit to continuously evaluate and update these statements as necessary to reflect any subsequent events or circumstances.
Industry Structure and Developments
The global footwear market was valued at approximately $423 billion in 2024 and is projected to reach $618 billion by 2033, growing at a CAGR of 4.3%L This robust growth is driven by increasing disposable incomes, urbanization, and changing fashion trends. The non-athletic footwear segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 3.9%2.
Meanwhile, Indias Footwear Industry was valued at approximately $18.7 billion in 2024 and is projected to reach $46.02 billion by 2033, growing at a CAGR of 10.1%3. With annual production of over 2.1 billion pairs, India ranks as the second- largest footwear producer globally after China4. The domestic consumption stands at around 2.1 billion pairs annually, with per capita footwear consumption of 1.9 pairs, significantly lower than the global average of 3.2 pairs, indicating substantial growth potential5.
The Indian footwear industry is experiencing significant transformation driven by evolving consumer preferences and emerging fashion trends. Rising disposable incomes among Indias expanding middle class have fuelled a noticeable premiumization trend, with premium and branded footwear growing at approximately 12% annually6. This shift coincides with the dominance of athleisure footwear, which has consistently outpaced formal footwear growth as Indian consumers increasingly prioritize comfort and versatility in their daily footwear choices mirroring the broader global trends.
The digitalization of the footwear industry in form of effective omni-channel strategy employed by several brands (giving a seamless shopping experience across both offline and online
channels), has further transformed the industry landscape. This digital shift has democratized access to a wide variety of footwear styles and brands for consumers across India, while enabling direct-to-consumer (D2C) brands to bypass traditional retail brick & mortar channel. These interconnected trends collectively illustrate an industry in dynamic transition, balancing tradition with innovation, value with premium offerings, and local preferences with global trends.
Rising Shift Toward Premium Footwear
The premiumization trend in the Indian footwear industry represents a significant market evolution driven by the countrys expanding middle class with rising disposable incomes. This shift is characterized by increasing consumer willingness to invest in higher-quality, branded footwear that offers superior comfort, durability, and style attributes.
This evolution has catalysed the emergence of many innovative direct-to-consumer (D2C) brands especially with sneaker offerings, which have disrupted traditional retail models by offering premium, design-focused footwear at competitive price points through digital-first strategies and through leveraging social media marketing.
Furthermore, the increasing awareness towards fitness and well-being has additionally spurred the growth and styling of footwear; particularly, in the branded segment. Consumers are now seeking footwear products which not only look stylish but also provide comfort and support for their active lifestyles. The branded segment of the footwear market is particularly benefiting from this trend, with consumers seeking out premium footwear products that offer a blend of style, comfort and functionality.
Growth of E-Commerce and O-Commerce Channels
The Indian footwear retail landscape has undergone a remarkable transformation through the convergence of e-commerce, quick commerce, and omni-channel strategies that have fundamentally altered how consumers discover, evaluate, and purchase footwear. This digital acceleration has been driven by several interconnected factors, including widespread smartphone penetration, affordable mobile data, improved logistics infrastructure, and evolving consumer behaviours that prioritize convenience and selection.
Established e-commerce marketplaces continue to dominate the online footwear space with their vast assortments and robust delivery networks, while the quick commerce revolution has extended to footwear, with platforms piloting 10-minute
deliveries for select footwear styles in major metropolitan areas, catering to urgent consumer needs for casual footwear, flip- flops, and athletic basics. These quick commerce initiatives have been particularly successful with younger demographics who value immediacy and spontaneous purchasing.
Opportunities and Challenges
Opportunities:
While India is the second largest footwear producer, contributing approximate 11.6% to the global footwear production, it consumes just 12.4% of global production even with its large population base representing an immense untapped domestic market with substantial headroom for growth7.
Further, almost 65% of the countrys population resides in the rural areas, where the footwear market penetration is low and hence, presents a huge opportunity. The rural opportunity is complemented by significant potential in underserved women & kids footwear segments.
On the international front, India is well-positioned to capitalize on the global shift in supply chains, as countries diversify away from China due to evolving geopolitical dynamics and rising Chinese manufacturing costs, creating new opportunities for India to boost its share in global footwear exports. Indias combination of competitive labour costs, established manufacturing infrastructure and growing technical expertise offers a compelling alternative for international brands seeking reliable production partners.
Challenges, Risks & Concerns:
One of the most significant challenges facing the Indian footwear industry is its highly unorganised structure, which accounts for nearly 70% of the market8. This segment is dominated by small-scale manufacturers and local artisans who often operate without formal compliance, quality standards, or modern infrastructure. As a result, organised players struggle to compete on price while maintaining product quality and regulatory adherence. The fragmented nature of the industry also hampers innovation, scalability, and access to financing, ultimately limiting the sectors potential for global competitiveness and long-term growth.
The Indian footwear industry is heavily labour-intensive, relying on manual processes for cutting, stitching, and assembly. While this creates significant employment, particularly in rural areas, it also presents challenges. A major issue is the shortage of skilled workers, especially in advanced design and mechanised operations, which affects productivity and product quality. Additionally, dependence on manual labour makes scaling up difficult and limits consistency in output. Rising labour costs and a lack of formal training infrastructure further compound the problem, making it harder for the industry to modernise and compete with more automated global manufacturing hubs. 7Invest India - Investment Opportunities in Leather & Footwear 81Lattice Report - The Sole of Fashion Footwear Industry
The industrys financial performance remains vulnerable to risks associated with fluctuations in raw material prices and foreign exchange rates. Furthermore, intensifying competition from both domestic and international brands continues to exert pressure on market share and profitability. Key operational challenges include talent hiring & retention, combating counterfeit products, maintaining consistent product quality, and fostering innovation through continuous new product development. Additionally, the industry must navigate rapidly evolving consumer preferences, which demand agility and responsiveness in design, marketing, and distribution strategies.
Despite facing challenges such as labour management and technological developments, your Company has consistently demonstrated its ability to navigate through the risks and uncertainties. With nine state-of-the-art manufacturing units, your Company is well-equipped to tackle any challenge that comes its way.
To mitigate risks, your Company proactively monitors its major concerns and takes appropriate steps in consultation with the Risk Management Committee and the Board of Directors of the Company.
With over four decades of experience in the manufacturing and marketing of footwear, your Company has a strong foundation to overcome any obstacle. Your Company is committed to deliver high-quality products and services to customers while maintaining a safe and fair work environment for its employees.
Internal Control System and its Adequacy
A separate paragraph on internal control systems and its adequacy has been provided in the Boards Report.
Human Resources / Industrial Relations
The Company has made significant strides in enhancing its human capital through a series of focused initiatives aimed at employee development, digital transformation, and elevation of leadership capabilities. Key actions taken include the introduction of innovative app-based training modules, strategic recruitment from leading educational institutions, and the implementation of a comprehensive cloud-based Human Resource Management System (HRMS). As of March 31, 2025, the Company had a total of 7,355 employees, reflecting its sustained efforts to build a strong and future-ready workforce. The Company is committed towards fostering a dynamic culture characterized by trust, collaboration, and mutual growth, thereby empowering employees to thrive and to make meaningful contributions to the organizations continued success.
Financial Performance of the Company
During the year, your Company achieved a revenue of H2,789.61 Crores and profit of H170.33 Crores. Detailed report on financial
performance of the Company is provided in point no. 2 & 3 of the Boards Report.
The Board has recommended a final dividend @300% equivalent to H3/- per equity share of HI/- each fully paid up for the FY25.
The capital expenditure incurred during the FY25 amounted to H61.64 Crores (net of grant received of H17.07 Crores) as compared to H231.80 Crores in FY24. The capital expenditure
was in line with the growth strategy of your Company and was funded through internal accruals.
Your Company has no term loan outstanding as on March 31, 2025.
Your Company has only one segment i.e. Footwear and related products and the performance is already captured in point no. 2 & 3 of the Boards Report and Financial Statements.
Details of Significant changes in Key financial ratios along with explanation
In compliance with the requirement of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred as Listing Regulations), the key financial ratios along with explanation for significant changes (i.e. changes of 25% or more as compared to the immediately preceding financial year) has been provided hereunder:
S.N. Particulars | UOM | 2024-25 | 2023-24 | Change in % between Current FY & Previous FY | Explanation / Reason for Change |
1 Debtors Turnover | Times | 7.44 | 8.38 | (11.22) | - |
2 Inventory Turnover | Times | 3.12 | 3.36 | (7.14) | - |
3 Interest Coverage Ratio | Times | 12.13 | 15.41 | (21.28) | - |
4 Current Ratio | Times | 2.74 | 2.40 | 14.17 | - |
5 Debt Equity Ratio | Times | - | 0.01 | (100.00) | Nil utilisation of working capital limits as on March 31, 2025 |
6 Operating Margin i.e. EBITDA | % | 13.69 | 13.95 | (1.86) | - |
7 Net Profit Margin | % | 6.14 | 6.93 | (11.40) | - |
8 Return on Net worth | % | 8.31 | 10.40 | (20.10) | Due to change in profit |
Disclosure of Accounting Treatment, if different from that prescribed in an Accounting Standard: Not Applicable
Outlook
While in FY 2024-25, the overall consumer demand remained modest due to high inflation, discretionary spending & challenging macro environment; however, the Indian economy is expected to see a gradual recovery in FY 2025-26. This cautiously optimistic outlook is supported by ongoing government
initiatives and a steady rise in disposable incomes among consumers.
Our Company is well positioned to tap into these emerging opportunities, supported by our diversified brand portfolio, adaptive market strategies, planned launch of the premium footwear range and a wide distribution network. By continuing to focus on innovation, premium products, and customer-centric practices, we aim to further strengthen our position in the Indian footwear market.
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