`

May 2013





This document has been prepared by Shilpa Bhattar and Kaustubh

Kulkarni. For any queries or detailed information contact us on

+91 22- 60022001 or email at research@reevolv.in

Reevolv Advisory Services

Private Limited
Indian Eyewear Retail Industry Report
Report
Indian Eyewear Retail Industry Report
2



Table of Contents


Particulars
Page Nos.


1. Executive Summary 5

2. Eyewear Industry Overview

2.1. Industry Overview 6

2.2. Market Opportunity 7

2.3. Growth Drivers 8

3. Business Dynamics

3.1. Eyewear Products Category 11

3.2. Key Characteristics of Eyewear products 12

3.3. Business Model 14

3.4. Typical Unit Economics for Eyewear Retail 21

3.5. Consumer Insights 22

3.6. Buying Criteria 24

3.7. Porters Five Forces Model 27

3.8. Key Success Factors of Eyewear Retail Industry 30

3.9. Key Challenges of Eyewear Retail industry 31

4. Primary Surveys / Interviews

4.1. Interviews 33

4.2. Consumer surveys 38

5. City wise Key players and Number of outlets

5.1. Tier 1 Cities 42

5.2. Tier 2 Cities 43

5.3. Tier 3 Cities 45

5.4. Other Cities 47
Indian Eyewear Retail Industry Report
3




6. Quantitative Information of players

6.1. Retail Shop 49

6.2. Manufacturers Spectacle Lenses & Frames and Sunglasses 52

6.3. Manufacturers Contact Lenses 55

7. Financial Benchmarking of players

7.1. Retail Shop 56

7.2. Manufacturers Spectacle Lenses & Frames and Sunglasses 58

7.3. Manufacturer Contact Lenses 59

8. Player Profiles Eyewear Retail

8.1. Bon Ton Opticals 60

8.2. Foresight Vision Care 61

8.3. Gangar EyeNation 64

8.4. GKB Opticals 67

8.5. Himalaya Opticals 71

8.6. Lawrence & Mayo 81

8.7. Lens & Frames 87

8.8. Optical Palace 88

8.9. Shiva Vision Care 89

8.10. Sunaina 92

8.11. Sunglass Hut 93

8.12. Titan Eye+ 97

8.13. V. A. Mayekar 100

8.14. Vision 360
o
and GKB Optolabs 101

8.15. Vision Express 105

8.16. World Optix 109
Indian Eyewear Retail Industry Report
4




9. Player Profiles Manufacturer of Spectacle Lenses & Frames and
Sunglasses

9.1. Carl Zeiss 110

9.2. Essilor 112

9.3. Hoya 139

9.4. Luxottica 142

9.5. Safilo 148

10. Contact Lenses Competitive Pricing 151

11. Player Profiles Contact Lenses

11.1. Acuvue 152

11.2. Bausch + Lomb 153

11.3. Ciba Vision 157

12. Annexure: Ratios 158
Indian Eyewear Retail Industry Report
5



1. Executive Summary

The growth of eyewear retail industry is result of increase in population, rising income levels, penetration
of the retail distribution network etc. The eyewear industry is following similar trends as observed in the
retail makeover in India. Over the years eyewear has changed from being a utility product for vision
correction to key fashion accessory. Increasingly eyewear is being perceived as reflective of ones
personality.


The fast paced transition is witnessed by the eyewear industry in terms of changing customer choices,
preferences, shift of localized opticians to organized chain of retail outlets and influx of foreign eyewear
brands.


The size of the eyewear market in India was Rs. XX billion in 2011 of which spectacle frames and
prescription lenses constituted the largest percentage of XX% of the market followed by sunglasses
(XX%) and contact lens (XX%).

The key success factors of this industry are

Quality of product and product portfolio

Delivery time

After sales service


However, as with any other industry, it is not without challenges. The scarcity of trained professionals is
the biggest challenge in the industry. This supply-demand gap is leading to an upward salary cost for
trained professionals coupled with higher attrition. The higher rentals in cities are acting as an impediment
to growth.

The findings of the survey conducted across cities and customer groups are as under:

Consumers prefer using spectacles rather than contact lens

People typically change their eyewear in around 2 years

Price, geographical distance and brand are the top parameters for consumers to select a
eyewear retail outlet
Comfort, Price and Style / Fashion / Design are the top parameters while buying eyewear
products

As per our estimates the market is expected to increase to Rs. XX billion in 2015 growing at a CAGR of

XX% per annum. Out of all the product categories, sunglass is the highest growing segment in India.


As per our estimates the share of organised market stood at XX% of the total eyewear retail market at Rs.
XX billion in 2011 which is expected to grow at XX% per annum and will reach to XX billion (XX% of the
overall market) in 2015E.
Indian Eyewear Retail Industry Report


2. Eyewear Industry Overview

2.1. Industry Overview








Indian Eyewear Retail Industry Report
7



2.2. Market Opportunity

The growth in eyewear retail in India is the result of increase in population, rising income levels,
penetration of the retail distribution network etc.

Total Market

The size of the eyewear market in India was Rs. XX billion in 2011 which is expected to increase
to Rs. XX billion in 2015 growing at a CAGR of XX % per annum.

Eyewear Retail Industry Size (20112015E)


Rs. In million 2011
% of total
market



2015E
% of total
market


CAGR%
(201015E)

Spectacle Frames and Prescription
Lenses

Contact Lenses

Sunglasses

Total Eyewear retail market




Spectacle frames and Prescription lenses









Contact Lens












.

Sunglasses
Indian Eyewear Retail Industry Report





2.3. Growth Drivers








Indian Eyewear Retail Industry Report
9



3. Business Dynamics

3.1. Eyewear Products Category




Spectacle Frames











Spectacle Lenses












Contact Lenses








Sunglasses
Indian Eyewear Retail Industry Report


3.2. Key Characteristics of Eyewear Products










Indian Eyewear Retail Industry Report
11



3.3. Business Model





Fig : Eyewear Industry Structure







3.3.1. Key functions of an Eyewear manufacturer are Design,
Manufacturing and Distribution









3.3.2. Brief Overview of Eyewear retail in India










3.3.3. Key Functions in an Eyewear Retail Business








Fig : Eyewear Retail Business Structure








3.3.4. Nature of Retail Eyewear industry
Indian Eyewear Retail Industry Report
12



3.4. Typical Unit Economics for Eyewear Retail


Standalone Stores:

Description Estimates

Average Area

Average Revenue per Month

Raw Material (as a % of sales)

Salary cost per month (all employees) (INR)

Salary cost as a % of Sales (incl. commission)

Rent

Rent (as a % of sales)

Marketing (as a % of sales)

Other Administrative Cost (as a % of sales)

Operating Margin (as a % of sales)

Capex Furniture and Fixtures

Capex Equipments
Inventory Rental
Deposit Capital
employed ROCE
%

Source: Reevolv Research
Indian Eyewear Industry Report


3.5. Consumer Insights







3.6. Buying Criteria



Indian Eyewear Industry Report
14



3.7. Porters Five Forces Model






Diagram



No Five Forces Remarks Market Trends

1a. Power of Supplier




1b. Power of Supplier




2a. Availability of Substitutes




2b. Availability of Substitutes




3. Entry Barriers




4.
Power of Customers




5. Competitive Rivalry
Indian Eyewear Industry Report
15



3.8. Key Success Factors for Eyewear Retail Industry

.
















3.9. Key Challenges of Eyewear Retail Industry
Indian Eyewear Industry Report
16



4. Primary Surveys / Interviews

4.1. Interviews
Interviewer 1: Owner of retail shop
Questions Answers
Which is the fast moving item across all eyewear product categories?
What is the preferred price point of your customer?
What is the Turnaround time for product delivery?
What is the basic requirement of customer?
Do you return outdated products to the company/ distributor?
Do you have any warehouse?
To whom you contact for the products?
Do you charge for after sales services?
Do you have skilled staff?
If goods are damaged in transport then who bares the losses?
What is the competitive outlook?
What is the basis of choosing the shop location?

What techniques you use to increase your sales?
Which is the peak season of sale?
How do you recruit your staff?
Do you have experienced staff or fresher?
How do you train your staff?








Interviewer 2 : Store Manager (Standalone Retail Outlet)
Questions Answers
Do you have any warehouse for quick service?
From where do you source products?
What is the Turnaround time for product delivery?
Do you charge for after sales services?
What do you do with outdated products?
How do you retain your customers?
Do you get credit from your supplier? If yes then for what period?
What is the criterion for recruiting your staff?
How do you train employees?

Do companies approach you for brand specific displays?
Which media do you prefer for advertisements?
Indian Eyewear Industry Report
17



Interviewer 3 : Store Manager (Standalone Retail Outlet)
Questions Answers
In how much time you deliver the product?
What are credit policies of suppliers?
Do you charge for after sales services?
What are the prevalent operating margins?
How do you select location for the outlet?
Do you have regular and repeat customers?

What is the price range of eyewear preferred by customers?
Are premium brands acceptable by customers?
Is it necessary to have an optometrist in a shop?







Interviewer 4 : Store Manager (Organized Eyewear Retail)
Questions Answers
Which is the fast moving item across all eyewear product categories?
What you do with outdated products?
Which is the highest contributing brand in terms of revenue?
Do you offer any discounts?
In how much time you deliver the product?
Do you charge for after sales services?
Do you have skilled man power to give after sales services?

Is there any market research done by your company while selecting the location of your store?
Do you have repeat customers?
Is there any seasonality in this business?

What promotional activities do you do to increase sales?
How you recruit your staff?
How do you train your staff?

Which media you prefer for your advertisement?
What is the revenue break of eyewear products?
Indian Eyewear Industry Report
18



Interviewer 5 : Store Manager (Organized Eyewear Retail)
Questions Answers
What is the preferred price range of customer?
What do you do with outdated products?
In how much time you deliver the product?

What is conversion ratio from footfalls to customer?
What if customer demands brand other than your stock?
Do you suggest any brands to customers?
Do you have skilled man power to give after sales services?
What is the nature of competition?
Which is peak season of sale?

Is your staff experienced or freshers?
How do you train your staff?
Which media do you prefer for your advertisement?
What is the incentive for employees?
What is the salary range of staff?



Interviewer 6 : Distributor Sunglasses, Spectacle Frames and Contact lenses
Questions Answers

What are your thoughts on eyewear retail industry?
Why are branded products important?
Who are the market leaders in various product categories of eyewear industry?
What is the investment required to start an eyewear retail store?
What is the payback period for the eyewear retailer?
What are the margins across eyewear products for a retailer?
Who provides training on eyewear?
Is there any minimum order quantity the retailer has to order?

What is the delivery period once the order is placed by the retailer?
What is the credit period you offer?
What is the stock return policy?

How does the pricing work in eyewear industry?

How does the prescription lens market work? What is the margin for retailer?
What is the delivery time for prescription lens?
What type of prescription lenses are preferred by the customer?
Within how much time frame do customers change their eyewear?
Is there any need to change frames after every two years?

Does the retailer need to maintain stock of contact lenses?

Do contact lens manufacturer take stock returns?

What is the typical margin for the retailer in contact lenses?
What is the benefit of selling of contact lenses?
Indian Eyewear Industry Report
19



4.2. Consumer Surveys


Preamble


1. Percentage of respondents requiring vision
correction
2. Eyewear preferences for vision correction

Pie Diagram Pie Diagram
3. Preferences for eye check up

Pie Diagram
4. Eyewear usage pattern (Spectacles & Contact
lenses)
5. Eyewear usage pattern (Sun Glasses)

Bar Chart Pie Diagram
6. Preferred price range for eyewear (per annum)

Bar Chart
7. Retail outlet preferences 8. Preferences for type of eyewear products


Bar Chart Bar Chart

9. Replacement frequency of eyewear
(Contact lenses)
10. Replacement frequency of eyewear
(Spectacles and Sun Glasses)


Pie Diagram Bar Chart


11. Reasons to select retail outlets for purchase of eyewear

Pie Diagram
12. Parameters while buying eyewear products

Pie Diagram
Indian Eyewear Industry Report
20




5. City-Wise Number of Outlets of Key Players

5.1. Tier 1 Cities

Bo



Hima


Lawr-



Opti-




Shiva



Suna-



Sungl




V.A.




Vision




Worl

Cities State
Regio
n


NCR NCR North

Ban-

galore
KAR South


Chennai TN South

Hyd-

erabad
AP South


Kolkata WB East
Mumbai MAH West
Pune MAH West
Ahm-

adabad
GUJ West

n
Ton
Fore-
sight
Gan-
gar
Vision
GKB
360
o

-laya
Opti-
cals
ence
&
Mayo
cal
Palace
Vision
Care
ina
Optic-
ans
-ass
Hut
Titan
Eye +
May-
ekar
Expr-
ess
d
Optix

KSR Total

Total
Indian Eyewear Industry Report
21



5.2. Tier 2 Cities


Cities State Region GKB
Vision
360
o

Himalaya
Opticals
Lawrence
& Mayo
Lens &
Frames
Sunglass
Hut
Titan
Eye +
Vision

Express
Total


Agra UP North
Allahabad UP North
Kanpur UP North
Lucknow UP North
Varanasi UP North
Amritsar PUN North
Ludhiana PUN North
Chandigarh CHD North
Coimbatore TN South
Madurai TN South
Kochi KER South
Kollam KER South
Kozhikode KER South
Thiruvananthapuram KER South
Thrissur KER South
Vijayawada AP South
Visakhapatnam AP South
Asansol WB East
Dhanbad JHK East
Jamshedpur JHK East
Ranchi JHK East
Patna BHR East
Raipur CHH East
Bhopal MP West
Gwalior MP West
Indore MP West
Indian Eyewear Industry Report
22





Cities State Region GKB

Jabalpur MP West
Jaipur RAJ West
Nagpur MAH West
Nashik MAH West
Aurangabad MAH West
Rajkot GUJ West
Surat GUJ West
Vadodara GUJ West
Total
Vision
360
o

Himalaya
Opticals
Lawrence
& Mayo
Lens &
Frames
Sunglass
Hut
Titan
Eye +
Vision

Express
Total






Indian Eyewear Industry Report
23



5.3. Tier 3 Cities


Cities State Region Foresight GKB


Dehradun UKH North
Moradabad UP North
Saharanpur UP North
Gorakhpur UP North
Jalandhar PUN North
Jammu J&K North
Belgaum KAR South
Gulbarga KAR South
Hubli KAR South
Mangalore KAR South
Mysore KAR South
Erode TN South
Puducherry PUD South
Tiruppur TN South
Guntur AP South
Bhubaneswar ODS East
Cuttack ODS East
Raurkela ODS East
Bokaro JHK East
Siliguri WB East
Durgapur WB East
Guwahati ASM East
Ujjain MP West



Vision
360
o




Himalaya
Opticals


Lawr-
ence &
Mayo



Lens &
Frames



Optical
Palace


Sunaina
Opticia-
ns



Titan
Eye +



Vision

Express
Total

Indian Eyewear Industry Report
24





Cities State Region Foresight GKB


Kolhapur MAH West
Bhavnagar GUJ West
Jamnagar GUJ West
Total

Vision
360
o


Himalaya
Opticals
Lawr-
ence &
Mayo

Lens &
Frames

Optical
Palace
Sunaina
Opticia-
ns

Titan
Eye +

Vision

Express
Total












Indian Eyewear Industry Report
25



5.4. Other Cities

Cities State Region

Ambala HAR North
Rohtak HAR North
Patiala PUN North
Bhatinda PUN North
Kurnool AP South
Chikmagalur KAR South
Davanagere KAR South
Shimoga KAR South
Tumkur KAR South
Udupi KAR South
Hosur TN South
Tirunelveli TN South
Alappuzha KER South
Aluza KER South
Kolenchery KER South
Kottayam KER South
Thiruvalla KER South
Palakkad KER South
Bhagalpur BHR East
Agartala TPR East
Balasore ODS East
Barrackpore WB East
Burdwan WB East
Serampore WB East


Vision
360
o



GKB
Optolabs


Himalaya

Opticals
L & M



Lens &
Frames


Sunaina
Opticians


Titan Eye
+


Vision
Express
Indian Eyewear Industry Report
26





Cities State Region

Chinsurah WB East
Bhilai CHH East
Bilaspur CHH East
Dimapur NAG East
Shillong MEG East
Calangute GOA West
Cavelossim GOA West
Verca GOA West
Mapusa GOA West
Margao GOA West
Nuvem GOA West
Panaji GOA West
Porvorim GOA West
Ponda GOA West
Porvorim GOA West
Betalbatim GOA West
Valsad GUJ West
Vapi GUJ West
Gandhidham GUJ West
Anand GUJ West
Total
Vision
360
o

GKB
Optolabs
Himalaya

Opticals
L & M

Lens &
Frames
Sunaina
Opticians
Titan Eye
+
Vision

Express
Total


Source : Company Website and Reevolv Research

Abbreviations
AP Andhra Pradesh GOA Goa KAR Karnataka NAG Nagaland
ASM Assam GUJ Gujarat KER Kerala NCR National Capital Region
BHR Bihar HAR Haryana MAH Maharashtra ODS Odisha
CHD Chandigarh J & K Jammu & Kashmir MEG Meghalaya PUD Puducherry
CHH Chhattisgarh JHK Jharkhand MP Madhya Pradesh PUN Punjab
Indian Eyewear Industry Report
27



6. Quantitative information of players




Company
6.1. Retail Shop


Category Products Units



2010 2011 2012
Name
Value
Volumes
(Rs 000)
Value
Rs/unit Volumes
(Rs 000)
Value
Rs/unit Volumes
(Rs 000)
Rs/unit




6.2. Manufacturers Spectacle Lenses & Frames and Sunglasses




Company

Installed


Category Products Units

2010 2011 2012
Name Capacity
Volumes
Value
(Rs 000)

Rs/unit Volumes
Value
(Rs 000)

Rs/unit Volumes
Value
(Rs 000)

Rs/unit






6.3. Manufacturers Contact Lenses


2010 2011 2012
Company
Name
Installed
Capacity
Category Products Units

Value

Volumes
(Rs 000)

Value

Rs/unit Volumes
(Rs 000)

Value

Rs/unit Volumes
(Rs 000)

Rs/unit



Source - Company Filings and Reevolv Research
Indian Eyewear Industry Report
28



7. Financial Benchmarking of players

7.1. Retail Shop


2011 2012

Eyewear
No
Retail


Total
Revenues


EBITDA
%


PAT %
ROCE

%


ROE %

Working
capital
Turnover
Ratio


Asset
Turnover


Total
Revenues


EBITDA
%


PAT %
ROCE

%


ROE %

Working
capital
Turnover
Ratio


Asset
Turnover





7.2. Manufacturer - Spectacle Lenses & Frames and Sunglasses
2011 2012
Manufacturer
of Spectacle
No Lenses &
Frames and
Sunglasses


Total
Revenues


EBITDA
PAT %

%


ROCE
ROE %

%

Working
capital
Turnover
Ratio


Asset
Turnover


Total
Revenues


EBITDA
PAT %

%


ROCE
ROE %

%

Working
capital
Turnover
Ratio


Asset
Turnover




7.3. Manufacturer - Contact Lenses
2011 2012

No
Contact
Lenses


Total
Revenues


EBITDA

%
PAT %



ROCE

%
ROE %


Working
capital
Turnover
Ratio


Asset
Turnover


Total

Revenues
EBITDA %



PAT
%


ROCE

%
ROE %


Working
capital
Turnover
Ratio


Asset
Turnover


Source Company Filings and Reevolv Research
Indian Eyewear Industry Report
29






8. Player Profiles Retail Shop

8.1.

8.1.1. Overview

Description

Company Name

Profile

Promoters Name

Year of Inception

Total No. of outlets

Future Plans

Source Company Website and Reevolv Research


8.1.2. Locations

Northern Region
Exclusive Stores
Main Cities
Source Company Website and Reevolv Research
Indian Eyewear Industry Report
30






8.1.3. Financials - wherever company filings are available



Balance Sheet as at 31st March (Rs. Mn)


Share Capital
Reserves & Surplus
Shareholders funds
Secured Loan
Unsecured Loan
Loan Funds

Deferred Tax Liability
Total Liabilities
Gross Block
Net Block

Capital Work in Progress

Investments
Inventories
Debtors
Other Current Assets

Total Current Assets & Advances

Current Liabilities

Provisions

Total Current Liabilities & Provisions
Net Working Capital excl. Cash & Bank
Cash & Bank
Net Working Capital incl. Cash & Bank

Total Assets

Source : Company Filings


FY2008 FY2009 FY2010 FY2011 FY2012
Indian Eyewear Industry Report
31






Key Ratios FY2008 FY2009 FY2010 FY2011 FY2012

Expenditure Ratios

Cost of Material Consumed as a % of Total Revenues
Personnel Expenses as a % of Total Revenues
Administrative Expenses as a % of Total Revenues
Selling & Distribution as a % of Total Revenues


Profitability Ratios

EBITDA %
EBIT %
PBT %
PAT %


Return Ratios
ROCE %
ROE %


Financial Ratios
Capital Employed
Total Debt/ Net Worth
Secured Debt/ Net Worth

Total Debt to EBITDA


Turnover Ratios

Working Capital Turnover Ratio
Net Fixed Assets Turnover Ratio
Inventory Days
Debtors Days


DuPont Analysis
EBIT/ Total Income
PAT/EBIT
PAT/ Total Income

Total Assets/ Net Worth

Total Income/ Total Assets

Source: Company Filings and Reevolv Research
Indian Eyewear Industry Report
32







9. Player Profiles Manufacturer of Spectacle Lenses & Frames and
Sunglasses



9.1.


9.1.1. Overview

Description

Company Name

Profile

Promoters Name

Year of Inception

Future Plans

Source Company Website and Reevolv Research
Indian Eyewear Industry Report
33






9.1.2. Financials - wherever company filings are available



Balance Sheet as at 31st March (Rs. Mn)


Share Capital
Reserves & Surplus
Shareholders funds
Secured Loan
Unsecured Loan
Loan Funds

Deferred Tax Liability
Total Liabilities
Gross Block
Net Block

Capital Work in Progress

Investments
Inventories
Debtors
Other Current Assets

Total Current Assets & Advances

Current Liabilities

Provisions

Total Current Liabilities & Provisions
Net Working Capital excl. Cash & Bank
Cash & Bank
Net Working Capital incl. Cash & Bank

Total Assets

Source : Company Filings


FY2008 FY2009 FY2010 FY2011 FY2012
Indian Eyewear Industry Report
34






Key Ratios FY2008 FY2009 FY2010 FY2011 FY2012

Expenditure Ratios

Cost of Material Consumed as a % of Total Revenues
Personnel Expenses as a % of Total Revenues
Administrative Expenses as a % of Total Revenues
Selling & Distribution as a % of Total Revenues


Profitability Ratios

EBITDA %
EBIT %
PBT %
PAT %


Return Ratios
ROCE %
ROE %


Financial Ratios
Capital Employed
Total Debt/ Net Worth
Secured Debt/ Net Worth

Total Debt to EBITDA


Turnover Ratios

Working Capital Turnover Ratio
Net Fixed Assets Turnover Ratio
Inventory Days
Debtors Days


DuPont Analysis
EBIT/ Total Income
PAT/EBIT
PAT/ Total Income

Total Assets/ Net Worth

Total Income/ Total Assets

Source: Company Filings and Reevolv Research
Indian Eyewear Industry Report
35






10. Contact Lenses Competitive Pricing



Acuvue Johnson & Johnson Bausch + Lomb Ciba Vision Novartis

Daily Disposable

Price per box

No of lens per box

Monthly expenditure

Fortnightly

Price per box

No of lens per box

Monthly expenditure

Monthly

Price per box

No of lens per box

Monthly expenditure

Annual

Price per box

No of lens per box

Monthly expenditure

Astigmatism

Replacement schedule

Price per box

No of lens per box

Monthly expenditure

Source Company Website and Reevolv Research
Indian Eyewear Industry Report
36






11. Player Profiles - Contact Lenses

11.1.

11.1.1. Overview

Description

Company Name

Profile

Promoters Name

Year of Inception

Future Plans

Source Company Website and Reevolv Research



11.1.2. Product Segments Brands wise

Product Brands








Source Company Website and Reevolv Research
Indian Eyewear Industry Report
37






11.1.3. Financials wherever company filings are available

Balance Sheet as at 31st March (Rs. Mn)


Share Capital
Reserves & Surplus
Shareholders funds
Secured Loan
Unsecured Loan
Loan Funds

Deferred Tax Liability
Total Liabilities
Gross Block
Net Block

Capital Work in Progress

Investments
Inventories
Debtors
Other Current Assets

Total Current Assets & Advances

Current Liabilities

Provisions

Total Current Liabilities & Provisions
Net Working Capital excl. Cash & Bank
Cash & Bank
Net Working Capital incl. Cash & Bank

Total Assets

Source : Company Filings



FY2008 FY2009 FY2010 FY2011 FY2012
Indian Eyewear Industry Report
38






Key Ratios FY2008 FY2009 FY2010 FY2011 FY2012

Expenditure Ratios

Cost of Material Consumed as a % of Total Revenues
Personnel Expenses as a % of Total Revenues
Administrative Expenses as a % of Total Revenues
Selling & Distribution as a % of Total Revenues


Profitability Ratios

EBITDA %
EBIT %
PBT %
PAT %


Return Ratios
ROCE %
ROE %


Financial Ratios
Capital Employed
Total Debt/ Net Worth
Secured Debt/ Net Worth

Total Debt to EBITDA


Turnover Ratios

Working Capital Turnover Ratio
Net Fixed Assets Turnover Ratio
Inventory Days
Debtors Days


DuPont Analysis
EBIT/ Total Income
PAT/EBIT
PAT/ Total Income

Total Assets/ Net Worth

Total Income/ Total Assets

Source: Company Filings and Reevolv Research
Indian Eyewear Industry Report
39






12. Annexure: Ratios



Key Ratios

Cost of Material Consumed %


Cost of Material Consumed
Total Revenues



X 100


Personnel Expenses %
Personnel Expenses
Total Revenues

X 100


Selling & Distribution Expenses %
Administrative Expenses %
EBITDA %
EBIT %
PBT %
PAT %
ROCE %
ROE %

Capital Employed



Working Capital Turnover Ratio



Net Fixed Assets Turnover Ratio
Selling & Distribution Expenses
Total Revenues

Administrative Expenses
Total Revenues

EBITDA Total
Revenues
EBIT
Total Revenues

PBT
Total Revenues

PAT
Total Revenues

EBIT Capital
Employed
PAT
Net Worth

Total of Asset / Liabilities
(Liabilities=Shareholders funds + Loan Funds +
Deferred Tax + Minority Interest)
Total Revenues
Net Current Assets excl Cash Bank

Total Revenues
(Net Fixed Assets excl Capital Work in Progress)

X 100


X 100


X 100


X 100


X 100


X 100


X 100


X 100



Inventory Days



Debtors Days
Inventory
(Cost of Material Consumed or Cost of material +
Manufacturing Cost wherever available)
Debtors
Total Revenues


X 365



X 365
Indian Eyewear Industry Report
40






About Reevolv

Reevolv is a boutique consulting and investment banking company offering a "One Stop Shop" in the
areas of business strategy, financial advisory and operations consulting to corporates and private equity
funds.

We service our clients in their constant re-evolution process through our in-depth industry research,
domain understanding, our timely and superior execution capabilities and strong network to provide
customized solutions to our clients.
With a host of implementation focused services spanning across functions, we ensure that our clients
reach the desired goals and objectives in most efficient manner. We achieve sustainability of our
initiatives by an all round involvement of the client resources. This approach of an integrated
improvement helps build a strong foundation for the forward leap of our clients. Reevolv understands and
acts upon the Strategic, Financial and Operational needs of the clients on a regular basis to ensure
adaptability and flexibility to suit the market and industry dynamics.

Founded in 2008, Reevolv is a team of CAs, MBAs and Engineers with functional and industry expertise
and diverse background of investment banking and management consulting.


Disclaimer

This report is published for information only. Reevolv Advisory Services Pvt. Ltd. or any of its affiliates,
group companies, directors, employees, agents or representatives shall not be liable for any loss or
damages whether direct or indirect that may arise from or in connection with the use of the information in
this document. This document is the sole property of Reevolv Advisory Services Pvt. Ltd. and prior
permission is required for full or part reproduction. This information is strictly confidential and is being
furnished to you solely for your information. This information should not be reproduced or redistributed or
passed on directly or indirectly in any form to any other person or published, copied, in whole or in part,
for any purpose.



Contact Details

For any queries or detailed information contact us on

+91 22- 60022001 or email at research@reevolv.in

Address: No. B/002,Vision Court Staney Fernandes Wadi CHS Ltd., Plot no.746, MTNL
Exchange Lane, Dadar (West), Mumbai 400 028

You can also email the research analyst at

Shilpa Bhattar

Kaustubh Kulkarni

shilpa@reevolv.in kaustubh@reevolv.in