Sunil Suresh, Managing Director, Stanley Lifestyles Limited

25 Jan 2024 , 08:24 AM

Please elaborate on the core mission that Stanley Lifestyles aims to fulfill in the luxury home solutions market.

Stanley’s clientele is the one who aspires to experience luxury and we offer it at its finest with a customized design as per the clients’ need. We offer the best in class bespoke, one of its kind furniture which we as a company and the client is proud of. We aspire to become a single point solution provider for bespoke, Made in India, furniture brand for every room of a home, which is 100% made under highest level of quality standards in our fully integrated facilities which are no less than any other European Brands. We aim to be nothing but the best. Every piece of furniture we make can be considered as more of an art piece than just a mere piece of furniture; its unique, its top-notch quality, its durable and its elegant. We do not compromise on quality.

We maintain an extensive nationwide retail presence through diverse store formats, ensuring heightened brand visibility across multiple markets. As of June 30, 2023, we boasted the largest network of luxury furniture outlets in India. Our furniture offerings are retailed through three distinct store formats—Stanley Level Next, Stanley Boutique, and Sofas & More by Stanley—each tailored to different market segments: ultra-luxury, luxury, and super premium, respectively.

Our standalone stores strategically dot the Indian landscape, strategically positioned to cover key markets, granting us a competitive edge over rivals. Our store expansion focuses on locations that amplify brand penetration and engage broad customer bases. The success of our geographical growth hinges on the robustness of the “Stanley” brand, our product portfolio, and store economics. Our expansion strategy's effectiveness is intricately tied to our ability to successfully launch new stores. As of June 30, 2023, we operated 34 COCO stores in major metropolises and 21 FOFO stores encompassing “Stanley Level Next,” “Stanley Boutique,” and “Sofas and More by Stanley” formats across 22 cities in nine States and Union Territories in India.

How do you define the brand's distinctive value proposition?

The furniture industry is a complex network involving various stakeholders, from raw material suppliers to manufacturers, retailers, designers, and customers. Each plays a vital role in the creation, production, distribution, and sale of furniture products. Our procurement team carefully selects suppliers capable of meeting changing demand and quality standards for our raw materials and we package the end product inhouse itself.

Our brand's unique appeal lies in merging modernity, functionality, elegance, and ergonomic design. We meticulously craft our products using top-quality materials sourced globally, ensuring furniture that not only meets but exceeds our customers' expectations. This emphasis on quality ensures that each piece from Stanley Lifestyles offers more than furniture; it delivers an experience—an effortless fusion of sophistication and usefulness that deeply resonates with our esteemed customers.

We are a homegrown brand that has grown from the ground up as a result of our unwavering commitment to quality design and uniqueness. We do not offer generic furniture. Our furniture is designed to meet the specific needs of each client, and our team of experts devotes a significant amount of time to creating an environment that our clients are proud to call home. We believe in customization.

How does Stanley Lifestyles leverage innovation and technology to enhance the luxury home solutions it provides to customers?

We have state of the art machinery which I can proudly say no one else in India has its latest technology helps us map our upholstery requirements for any particular piece of furniture we curate. Not only does our machinery help us achieve the highest level of efficiency, but so does the skilled manpower that has been with us for decades. Our artisans receive extensive training before being allowed to work on the shop floor. This allows them to make the best use of the raw materials and achieve the desired aesthetic for the furniture. We are equipped with the most recent European trends and machinery, as well as over two decades of artisanal craftsmanship updated with trendy materials and cutting-edge technology. This commitment ensures that our products not only reflect timeless craftsmanship but also integrate the latest innovations, resulting in furniture that epitomizes sophistication, functionality, and modernity.

How are you approaching global expansion, and are there specific markets or regions that the brand is currently focusing on?

Before venturing out into the overseas market, we would like to organically grow in the Indian Luxury Market; this will take some time, and we are not in a hurry to expand overseas. For the foreseeable future, our primary focus will be on India. When we are ready for geographical expansion, we will certainly expand there. Overseas opportunities are plentiful in the Middle East and select Far Eastern markets, where our styling and designs are preferred by the rich. We intend to enter these markets in the coming years, but we are currently focused on the Indian market.

What is the long-term vision for Stanley Lifestyles, and how do you envision the brand evolving in the coming years?

In the coming years, our focus extends beyond mere products; we aspire to cultivate a lifestyles synonymous with elegance, functionality, and exclusivity. This evolution involves not only offering exceptional home solutions but also curating experiences that resonate with our discerning clientele. Our aim is to foster a community that appreciates not just the products but the ethos and essence of luxury living, making Stanley Lifestyles a hallmark of sophisticated living in the Indian context. In short, we intend to emerge as the true Indian luxury home lifestyles brand. we have started the move from furniture to full home solutions and will target to be an aspirational brand for luxury home makers.

For potential investors, what key financial indicators or milestones should they consider while evaluating Stanley Lifestyles as an investment opportunity?

Stanley Lifestyles stands as the sole premium/luxury brand with an extensive pan-India presence. As the residential housing segment gradually moves towards premiumization, an expected trillion-dollar market by 2030 awaits. Stanley has showcased a consistent profitability track record spanning over a decade. Our growth trajectory aims for an organic 25% year-on-year expansion, aligning with our commitment to scaling operations while concurrently boosting profitability.

Over the past three fiscal years, our EBITDA has seen substantial growth, increasing from ₹297.75 million in Fiscal 2021 to ₹827.17 million in Fiscal 2023, with corresponding EBITDA margins of 15.21%, 20.19%, and 19.74% during the same period. Our restated profit after tax has notably surged from ₹19.23 million in Fiscal 2021 to ₹349.77 million in Fiscal 2023, showcasing a remarkable CAGR of 326.48%. Positive cash flows from operating activities have been consistent, with ₹329.80 million, ₹285.23 million, and ₹679.71 million in Fiscal 2021, 2022, and 2023, respectively. Demonstrating our sustained profitability, our Return on Capital Employed has risen from 5.52% in 2021 to 16.63% in 2023, while our Return on Net Worth climbed from 0.56% in 2021 to 15.18% in 2023.