The Indian innerwear and athleisure industry is steadily growing, with companies like Dollar Industries and Rupa & Company showing consistent performance. Growth is being driven by volume, and earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins are expected to stay in double digits.

In an interview with CNBC-TV18, Vinod Kumar Gupta, MD of Dollar Industries, and Ramesh Agarwal, ED and CFO of Rupa & Company, expressed optimism about achieving double-digit margin growth and exploring export opportunities.

Agarwal said that this year’s growth has mainly been driven by volume due to price resistance. He expects to see increased demand in the athleisure, thermal, and ladies’ wear segments.

“The EBITDA margins have gone down from 20%, but we hopefully will maintain the EBITDA margin between 10% and 11% for this year (FY25),” Agarwal added.

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Meanwhile, Gupta said that they are trying to maintain an EBITDA margin between 11% and 12% for the current fiscal year. It was down in the previous years because of price adjustments and the market going up and down. But now the market seems to be steady and flourishing.

“In terms of demand, we understand that there is a consumption recovery both for innerwear and outerwear and this is visible in the current market. Sentiments have also been boosted by the sales kicking off through quick commerce,” he added.

Gupta stated that Dollar Industries’ total exports account for 4% of its revenue. He also said that they are facing challenges in the market due to cheap products coming from China and Bangladesh.

“We are still struggling and trying to sell athleisure into the market, but we are hopeful of maintaining 10% to 12% growth in terms of exports this year, and we are also trying to enter into deep African markets where Indian products are well accepted,” Gupta added.

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Dollar Industries holds a 15% market share in the Indian hosiery sector and boasts a garment manufacturing capacity of around 250 million pieces. The company has a presence in 15 countries and offers a diverse portfolio that includes innerwear, athleisure, and activewear.

Rupa & Company plans to expand significantly by adding over 100 stores in FY25, focusing on high footfall areas in Tier 1, Tier 2, and Tier 3 cities. Their goal is to achieve a pan-India presence with 150 exclusive brand outlets (EBOs) in the next 2-3 years.

Dollar Industries has a market capitalisation of approximately ₹2,844.03 crore, with its shares rising nearly 17% over the past year. Meanwhile, Rupa & Company has a market capitalisation of around ₹2,687.93 crore, with its shares increasing by nearly 28% in the same period.

For the entire discussion, watch the accompanying video

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