Beginning
In 1976, two brothers Mukund Lal Dua and Ramesh Kumar Dua dreamed to grow their father's business of footwear's to what is Relaxo today.
It is one of the leading and popular footwear companies in India today. The Indian footwear segment is dominated by BATA and Relaxo today.
Journey
Since 1976 Relaxo has grown strongly.
Strong Brands
Many of Relaxo's brands are today household names and enjoy leading marketshare in India.
Business Strategy
Relaxo is a leading player in the "value"segment in India.
Despite stiff competition, nation-wide lockdown and resultant economic challenges, Relaxo has registered 5% growth in sales and 29% growth in profits in the FY 19-20.
Relaxo has continued to strengthen its distribution network particularly in under-penetrated markets by improving supply chain. The company has presence in nearly 50,000 retail outlets which are serviced through 700 distributors.
It also has a network of 390 stores and being a value segment player - its rental costs are low.
It has also undertaken cost rationalisation measures. It has recently commissioned a new manufacturing plan in Bhiwadi in Rajasthan. As this plant ramps up its production - the total capacity of Relaxo is likely to go upto 800000 pairs per day.
Stock Returns
Relaxo Stock over 5 years
Relaxo Stock over 1 year
(Disclaimer: This blog is for education purposes only and not to solicit any business or offer any kind of advise.)
