Financial Management

Analysis
of
Indian Shoe Industries
Members

Name Registration Number

Abhijeet Bose 017PGDM071
Anirban Banerjee 017PGDM080
Arpita Basu 017PGDM085
Gourav Guha 017PGDM090
Nabarun Ghosh 017PGDM101
Nilankur Saha 017PGDM105
Rumki Sarkar 017PGDM116
 INTRODUCTION

 India ranks second among the footwear producing nations in the

world.
 Major concentration is on the gents footwear section.
 Footwear industry is a significant of the leather industry.
 The Indian footwear market scores over other footwear markets as it
gives benefits like low cost of production, abundant raw material and
has huge consumption market.
Overview of Shoe Industries in
India

Size of the Industry:-

Indian leather industry sector stands at USD 17.85*
billion of which ‘lion’s share’ comes from the shoe
industries.
(Exports- USD 5.85* billion & Domestic Market- USD 12*
billion
*as of FY2015-
16
Segmentation of Shoe Industries
in India

Footwear Market Share (%) by the end of

FY 16-17
Major Players of Indian Shoe
Industry
 Year wise Comparison of
Net Working Capital

Khadims Liberty
400.00 70
300.00 60
200.00 Sreeleathers 50
100.00 700,000,000.00 40
30
0.00
600,000,000.00 20
2017
-100.00 2016 2015
10
-200.00 500,000,000.00 0
Net
400,000,000.00 Working 2017 2016 2015
Capital
Relaxo 300,000,000.00 in
Rupees Bata
120 200,000,000.00 10,000.00
100 8,000.00
Net 100,000,000.00
80 Net
Working 6,000.00 Working
60 0.00
Capital in Capital in
40 2017 2016 2015 4,000.00
Rupees Million
20 Crores 2,000.00 Rupees
0 0.00
2017 2016 2015 2017 2016 2015
 Current Status of
INDIAN SHOE INDUSTRIES

CURRENT STATUS of INDIAN SHOE INDUSTRIES w.r.t. Net Working Capital

NET WORKING CAPITAL 900.00
in Rupees Crores 800.00
700.00
SHOE INDUSTRY 2017 2016 2015 600.00

KHADIMS 500.00 NET WORKING

1 35.15 2.51 -16.26 400.00 CAPITAL in
LIBERTY 300.00 FY16-17
2 64.24 51.08 47.26
200.00
RELAXO
3 97.40 57.01 60.61 100.00
0.00
BATA
4 856.23 742.45 555.23
SREELEATHERS
5 62.61 48.19 35.82
OPERATING CYCLE OF SREELEATHERS LIMITED
FOR 2017
Inventor
y Inventor
Purchase y sold
d

Account
Inventory
Receivable
Period
period 3
35 days
days
Time

Account
Payable Cash Cycle
period

Cash
Paid for
Inventor
y
OPERATING CYCLE OF RELAXO FOOTWEARS LIMITED
FOR 2017
Inventor
y Inventor
Purchase y sold
d

Account
Inventory
Receivable
Period
period 26
61 days
days
Time

Account
Payable Cash Cycle
period

Cash
Paid for
Inventor
y
OPERATING CYCLE OF BATA INDIA LIMITED FOR
2017
Inventor
y Inventor
Purchase y sold
d

Account
Inventory
Receivable
Period
period 10
103 days
days
Time

Account
Payable Cash Cycle
period

Cash
Paid for
Inventor
y
OPERATING CYCLE OF KHADIMS FOR 2017
Inventor
y Inventor
Purchase y sold
d

Account
Inventory
Receivable
Period
period 45
67 days
days
Time

Account
Payable Cash Cycle
period

Cash
Paid for
Inventor
y
OPERATING CYCLE OF LIBERTY FOR 2017
Inventory
Inventor
Purchase
y sold
d

Account
Inventory
Receivable
Period 121
period 88
days
days
Time

Account
Payable Cash Cycle
period

Cash
Paid for
Inventor
y
 10.45

9.62

10.05

60.88

60.83

61.28

3.54

3.61

3.82

5.43
2017

5.30

4.04
2016
2015

3.02
iNVENTORY TURNOVER RATIO

3.21

3.66
 INVENTORY HOLDING PERIOD
2017 2016 2015

121

114
103

101

100
95

90
69
67
61
61

61
38

36
35

Sreeleathers Relaxo BATA KHADIMS LIBERTY

 Receivable Turnover Ratio
2017 2016 2015

574.86
118.70

113.52

46.12
37.19

34.49

19.10
17.93
15.95

15.33
14.23

8.05

4.74

4.56
4.13
Sre e le a the r s Re la xo BATA KHAD I MS L I BERT Y
 Receivable holding period
2017 2016 2015

88

80
77
45
26

24
23

20

19
11
10

8
3
3

Sre e le a the r s Re la xo BATA KHAD I MS L I BERT Y

 Year wise Comparison of
Return on Assets

Return on Assets
20.00%

Return on Assets 15.00%

Company 2017 2016 2015 10.00%

Khadims 7.51% 7.19% -5.40% 5.00%

Liberty 1.54% 2.62% 4.22%

0.00%
Khadims Liberty Relaxo Bata Sreeleathers
Relaxo 11.52% 12.07% 4.70%
-5.00%

Bata 8.26% 12.64% 14.25%

-10.00%
Sreeleathers 8.62% 5.09% 4.08%
Return on Assets 2017 Return on Assets 2016
Return on Assets 2015
 Year wise Comparison of
Return on Equity

Return on Equity
Return on Equity 30.00%

25.00%

Company 2017 2016 2015 20.00%

15.00%
Khadims 16.61% 16.35% -14.45%
10.00%

5.00%
Liberty 4.04% 6.58% 11.77% 0.00%
Khadims Liberty Relaxo Bata Sreeleathers
-5.00%
Relaxo 20.33% 25.06% 10.77%
-10.00%

Bata 11.98% 17.90% 21.89% -15.00%

-20.00%

Sreeleathers 9.31% 5.45% 4.31% Return on Equity 2017 Return on Equity 2016
Return on Equity 2015
 Comparison of Current Assets

7000

6000

5000

4000
2017
2016
3000 2015

2000

1000

0
Sreeleathers BATA Khadims Relaxo Liberty
 Year wise Comparison of Current
Ratio
4.5

3.5

2.5
2017
2016
2 2015

1.5

0.5

0
SREELEATHERS BATA KHADIMS RELAXO LIBERTY
 Quick Assets Comparison

7000

6000

5000

4000
2017
2016
3000 2015

2000

1000

0
Sreeleathers BATA Khadims Relaxo Liberty
 ACID TEST Ratio
Comparison
4.5

3.5

2.5
2017
2016
2 2015

1.5

0.5

0
SREELEATHERS BATA KHADIMS RELAXO LIBERTY
 CONCLUSION

 Bata India Ltd. by far is the current market Leader among

Indian Shoe Industries
 Other major players also has shown a steady growth in
yearly manner.
 Nature of the market is perfect competition with no player
controlling the market or price.