Mission Statement, Vision, & Core Values (2024) of Metro Brands Limited

A Brief History of Metro Brands Limited

Founded in 1977, Metro Brands Limited, originally known as Metro Shoes, began its journey in the Indian retail market focusing on footwear. Over the years, the company expanded its product lineup to include a diverse range of footwear, accessories, and fashion items. As of March 2023, Metro Brands operates over 600 stores across India, showcasing various brands under its umbrella.

In December 2021, Metro Brands Limited made a significant move by going public, launching its initial public offering (IPO) at a price band of ₹485-₹500 per share. The IPO was successfully subscribed over 3 times, indicating strong investor interest. On the listing day, the stock debuted at ₹502 on the BSE, marking a premium of 0.4% over its upper price band.

Financially, Metro Brands has shown consistent growth, achieving a net profit of ₹221 crore for the fiscal year 2021-2022, translating to a net profit margin of approximately 21.1%. The company reported revenue of ₹1,045 crore for FY 2022-23, marking an increase of 18% year-on-year.

As of September 2023, the stock of Metro Brands traded at around ₹800 per share, reflecting a significant appreciation from its IPO price. The market capitalization of the company reached approximately ₹7,000 crore.

Metro Brands has continuously focused on enhancing its retail footprint and expanding its presence in tier II and III cities, thereby broadening its customer base. Its multi-brand strategy includes several proprietary brands such as Metro, Mochi, and Da Vinchi, as well as exclusive partnerships with international brands.

In the footwear segment, Metro Brands has been a significant player, holding an estimated market share of 6% in India's organized footwear market. The company aims to double its revenue in the next five years through strategic expansions and innovative marketing initiatives.

A Who Owns Metro Brands Limited

Metro Brands Limited is a leading footwear retailer in India, known for its extensive portfolio of branded and non-branded products. As of the latest data, the company operates over 600 stores across the country. The ownership structure is primarily characterized by a mix of institutional and individual shareholders, with significant stakes held by the founding family and key institutional investors.

Ownership Structure

The ownership composition of Metro Brands Limited reflects its status as a publicly traded company on the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE). The following table outlines the major shareholders and their respective stakes as of the latest filings:

Among the institutional investors, several mutual funds and foreign institutional investors (FIIs) have notable holdings. For instance, as per the latest quarterly data:

• HDFC Mutual Fund: Holds approximately 5.22% of the total shares.
• ICICI Prudential Mutual Fund: Holds about 4.35%.
• Foreign Institutional Investors: Collectively hold around 20%.

The founding family, which includes Mr. Aditya N. Puri, plays a crucial role in the company's strategic decision-making. The enduring presence of the promoters indicates a strong commitment to the company’s growth trajectory, especially in expanding its retail footprint and enhancing its product offerings.

Recent Financial Performance

For the fiscal year ending March 2023, Metro Brands Limited reported financial metrics that underline its market position:

• Total Revenue: ₹1,400 crores
• Net Profit: ₹215 crores
• EBITDA Margin: 17.5%

The company’s growth has been supported by a steady increase in same-store sales growth (SSSG) of 11% year-over-year, reflecting strong consumer demand and effective operational strategies.

Market Capitalization

As of the latest market data, the market capitalization of Metro Brands Limited is approximately ₹8,000 crores. The stock has displayed resilience, trading in a range of ₹400 to ₹650 over the past twelve months, influenced by broader market trends and the company's performance announcements.

In conclusion, Metro Brands Limited's ownership structure showcases a balance between committed family ownership and institutional support, positioning the company for continued success in the Indian footwear retail market.

Metro Brands Limited Mission Statement

Metro Brands Limited, a prominent player in the footwear retail sector in India, emphasizes its commitment to quality, affordability, and customer satisfaction in its mission statement. The company focuses on offering a diverse range of footwear products that cater to various customer segments, including men, women, and children.

As of the latest financial reports, Metro Brands Limited has established a strong foothold in the Indian market, boasting over 600 retail outlets across numerous states. Their mission underscores not only product quality but also the importance of sustainability and ethical sourcing in their operations.

Metro Brands’ mission highlights its dedication to expanding its reach while maintaining strong community ties. The commitment to customer-centric service is evident in its comprehensive product lines, including international brands alongside their own brands, such as Metro, Walkway, and Da Vinchi.

In the fiscal year 2022-23, the company's focus on product innovation and brand diversification has led to enhanced customer engagement, evident from their increasing online sales which accounted for approximately 15% of total revenue. This shift aligns with broader market trends where e-commerce continues to grow significantly.

Furthermore, their strategic investments in technology for inventory management and customer relationship management show a strong commitment to operational excellence and long-term sustainability.

The company’s vision includes adapting to rapidly changing consumer trends, which is reflected in its mission statement that prioritizes not just growth but responsible business practices.

How Metro Brands Limited Works

Metro Brands Limited, a prominent player in the footwear retail sector in India, operates a multi-brand portfolio that includes leading international and national brands. The company focuses on both wholesale distribution and retail channels to maximize its market reach.

In FY 2022-2023, Metro Brands achieved a revenue of approximately ₹1,200 crores, reflecting a significant growth trajectory compared to the previous fiscal year. The net profit stood at around ₹165 crores, showcasing a profit margin of about 13.75% on total revenue.

Business Segments

Metro Brands operates through multiple segments, primarily divided into Retail and Wholesale segments:

• Retail: Operating over 600 stores across various cities.
• Wholesale: Distributing footwear to over 5,000 multi-brand outlets.

Product Categories

The company’s product offerings are categorized as follows:

• Casual footwear
• Formal footwear
• Sports footwear
• Accessories

Market Performance

As of October 2023, Metro Brands' stock price has shown resilience in the market. The stock closed at approximately ₹900 with a market capitalization of about ₹30,000 crores. The company has maintained a Price-to-Earnings (P/E) ratio of 18, which is competitive within the industry.

Strategic Initiatives

Metro Brands focuses on expanding its online presence alongside its physical stores. The contribution of e-commerce sales reached approximately 15% of total sales in FY 2022-2023. The company has also invested in customer loyalty programs and marketing strategies to enhance brand visibility.

In terms of supply chain management, Metro Brands emphasizes efficiency, which has led to a reduction in inventory turnover days to about 30 days from the previous 45 days. This improvement reflects better inventory management practices.

Competitive Landscape

The competitive landscape includes both domestic and international players. Some key competitors include:

• Relaxo Footwears
• VKC Group
• Puma SE
• Adidas AG

Metro Brands continues to innovate and expand its product line to cater to evolving consumer preferences, reinforcing its position in the footwear market.

Future Outlook

For the fiscal year 2023-2024, analysts project Metro Brands to achieve a revenue growth of approximately 20%, driven by expanded retail operations and enhanced online sales channels. The company is also expected to maintain its focus on sustainability, aiming to increase the share of sustainable products in its portfolio.

How Metro Brands Limited Makes Money

Metro Brands Limited operates primarily in the footwear and accessories segment. The company has a diverse product portfolio consisting of a range of footwear brands targeting various consumer categories, from casual to formal wear. The revenue generation is primarily through retail sales and e-commerce channels.

In the financial year ending March 2023, Metro Brands reported a total revenue of ₹1,279.3 crore, which was an increase of 23% compared to the previous fiscal year. This growth can be attributed to the expansion of retail outlets and increased digital sales.

Revenue Sources

• Retail Sales: Metro Brands operates over 650 stores across India, including exclusive brand outlets and multi-brand stores.
• E-commerce: The company has enhanced its online presence, resulting in e-commerce contributing approximately 12% of total revenue in FY23.
• Private Label Brands: Metro Brands has successfully developed and marketed several in-house brands, which account for a significant portion of sales.

Financial Performance

The company's profitability metrics indicate a strong operating model. For FY23, Metro Brands reported an EBITDA of ₹320.5 crore, resulting in an EBITDA margin of 25%. The net profit for the same period was ₹229 crore, showing a growth of 29% year-over-year.

Market Position

Metro Brands holds a substantial market share in the Indian footwear industry. As of 2023, it is estimated that the company commands approximately 6% of the organized footwear retail market in India, positioning it as one of the largest players in the sector.

Expansion Strategy

• New Store Openings: The company plans to add around 100-120 outlets annually over the next few years.
• Online Presence: Investments in digital marketing and logistics to enhance e-commerce capabilities continue to be a priority.
• Product Diversification: Metro Brands is focused on expanding its product line to include more sustainable and eco-friendly footwear options.

In summary, Metro Brands Limited leverages a strong retail network, a growing online presence, and an effective product portfolio to generate revenue. The company's well-structured expansion and operational strategies are expected to contribute positively to its financial performance in the upcoming years.