Studds Accessories

Company Overview Famous as the world’s largest manufacturer of helmets, Studds Accessories Ltd has come a long way from manufacturing its first helmet in the garage to now manufacturing more than 6 million helmets every year. Founded in 1983, Studds products are now available in 40 countries. Studds has one wholly owned subsidiary: SMK Europe Unipessoal LDA, based in Portugal. Studds is expected to benefit the most from the newly government norms of only BIS- certified helmets to be made and sold in India. The demand for helmets is expected to grow at a double-digit growth rate in the coming years due to stringent traffic norms, increase in market share of organised players and rise in sales of premium vehicles. Foreseeing strong future demand, the company has invested ₹ 200 crores under Govt. of India ‘Make in India’ scheme to double its manufacturing capacity from present 7 million to 14 million. The manufacturing plants are fully automated and equipped with moulding, visor coating, paint shops, packaging and warehousing units. The manufacturing plants of Studds are the biggest in Asia. Studds has partnered with Rajasthan Royals as their associate sponsor for IPL 2021 and 2022 season. Studds has a strong distribution network and chain of exclusive brand outlets across India. Presently, Studds has 26% market share in India aiming to increase its market share to 40% in the coming three years. Business Model Studds is a leading manufacturer and exporter of automotive and bicycle helmets, motorcycle accessories, and face shields. The company manufactured 64 lacs helmets during FY 2020-21. The company has 4 manufacturing plants, all of them located in Faridabad, Haryana. Besides helmets, Studds also manufactures two-wheeler accessories like jackets, side boxes, top boxes, gloves, rain suits and goggles. The company exports around 10% of its turnover to around 40 countries in the Middle East, Europe, North America and Latin America. Brands The company retails its helmets under 2 brands: STUDDS and SMK. STUDDS is positioned towards the domestic market while SMK is an export-focussed premium brand. Registered Address The registered office of the company is located at Mathura Road, Ballabgarh, Faridabad, Haryana. Symbol Studds Accessories Ltd. Face Value (₹): 5 ISIN: INE00Q601028 Demat Status: NSDL & CDSL Lot Size: 10 Shares Board of Directors Name Designation Profile Mr. Madhu Bhushan Khurana Chairman & Managing Director linkedin Mr. Sidhartha Bhushan Khurana Managing Director linkedin Mr. Shanker Dev Choudhry Independent Director NA Final 1 Ms. Pallavi Saluja Independent Director linkedin Mr. Pankaj Duhan Independent Director linkedin Key Business Highlights World’s largest helmet manufacturer with the production capacity of 14 million helmets, Studds is growing fast to grow its market share from 26% to 40% in the coming three years on the back of rising market share of organised players and stringent regulations. Studds maintains excellent corporate governance standards and consistently distributed dividends at average 10% of net profits. Studds is a relatively debt-free company and maintains a negative working capital cycle. Studds is expanding its retail presence through dealerships and exclusive brand outlets and aims to double its exports presence in the coming three years. Financial Highlights Particulars 2020-21 2019-20 2018-19 2017-18 Total Income (₹ Crores) 484 420 397 341.7 PAT (₹ Crores) 74 75 41 33 Diluted EPS (₹) 37.61 37.89 20.92 16.71 Book Value per Share (₹) 147.38 109.64 80.15 1079 Equity (₹ Crores) 290 216 158 118 Peer Comparison The major competitors of Studds are Vega, and Steelbird. Media Updates “Interview With Sidhartha Bhushan , MD, Studds Accessories Ltd – On the Future of Helmet Industry in India” Read More: https://www.autox.com/interviews/interview-with-sidhartha-bhushan-khurana-md-studds-accessories-ltd-108691/ “FM suggest to cut GST on Two – Wheelers” “Two-wheelers are neither a luxury nor sin goods and so merit a GST rate revision. Thus the need for lowering GST rates on two-wheelers which she assured was indeed a good suggestion as this category is neither a luxury nor a sin good and hence merits a rate revision,” the statements said Finance Minister Nirmala Sitharaman said at an industry interaction on Tuesday. Two-wheelers currently attract 28 per cent GST. Two-wheeler has become a basic necessity for transportation of millions of medium-income group households in India. Under this pandemic condition also demand for two – wheelers has increased and shall increase further due to factors such as – Social Distancing and Personal Mobility , Shifting towards low budget vehicals, vehical finaning availiability , leasing a better option and lower commitment. This move shall be a great one for both two- wheeler, helmet manufacturer and other accessories products related to two-wheelers industry. Read More: https://www.timesnownews.com/auto/bike-news/article/indian-government-to-consider-reducing-gst-on-two-wheelers/642684 https://yourstory.com/2020/05/six-factors-drive-demand-two-wheelers-post-lockdown “Huge Opportunity for Organized helmet players: Over 80 million two-wheeler riders need helmets” In a phone interview with Mint Mr. Sidhartha Bhushan Khurana, managing director, Studds Accessories told” There are about 21 crore two-wheelers plying on the roads in India. Out of that, only 60% people wear helmets. More than 8 crore people still need helmets as the necessary headgear for safety.” “The government had issued a mandate for the two-wheeler riders to compulsorily wear helmets a few years ago and this move has resulted in an exponential growth in the demand of helmets over years as the two-wheeler market recorded sharp growth over the last decade.” “The life of a regularly used helmet is typically 3-4 years. So that market is the biggest market for us. That said, the life of a bike is around 10-12 years in India. So one motorcycle sees 3 to 4 helmet replacements on average.Pegging the current market size at 2.5 crore helmets per year, Studds command a 30% market share in this segment and expected to touch 40% in next few years.” Read More: https://www.livemint.com/news/india/over-80-million-two-wheeler-riders-need-helmets-studds-11597679705310.html “Studds Accessories Ltd aims for domestic market share of 40% by next 3 years with 10% growth in its business in FY2021” Studds Accessories Ltd in FY 2020 has sold around 7.2 Million Helmets out of which 5 lacs helmets were exported and remaining were sold in domestic market. The demand for helmets has increased in domestic market and so the company has started off with its new plant at Faridabad with installed capacity of 6 million helmet p.a With this new plant the total production capacity of Studds stands at 12.5 million bike helmets and 1.5 million bicycle helmets p.a. With government initiative of “Banning Non -ISI certified helmets” will be a major boost for organized players such as Studds, Vega , Steelbirds, etc. Thus with all this positive notes management aims to capture over 40% of domestic market by next 3 years time frame and also despite pandemic situation aims to achieve growth of 10% in FY 2021. The amendment in the Motor Vehicle Bill for road safety laws will come into effect from 1st March, 2021.This shall be a boost to ISI certified helmet makers. Two wheeler segment is buzzing with action in India. This segment has attracted attention as people are wary of public transport fearing spread of coronavirus. Sales of pre-owned vehicles is also going up. We are almost back to pre-corona demand levels.This year we intend to launch 12 new Exclusive Brand Outlets (EBOs) across the country. The capex for the EBOs would be about Rs 3 crores. For our industry, we feel sales will increase post COVID due to apprehensions of using ride sharing and public transport”. At the moment Studds has all 4 units operational with about 80% capacity. Read More: https://twitter.com/StuddsHelmet/status/1292100445075148800/photo/1 https://cfo.economictimes.indiatimes.com/news/driving-helmets-demand-back-to-pre-covid-levels-as-indians-avoid-public-transport-studds-cfo/77454352 https://www.carandbike.com/news/plan-to-acquire-40-per-cent-of-helmet-market-in-3-years-studds-helmets-md-2329966 “Government puts ban on Non ISI Helmets in Two Wheeler” – Positive move for Organized Helmet Players The Ministry of Road, Transport and Highways released a notification laying down new norms for two-wheeler helmets under which all helmets will require ISI certification and the 1.2-kg weight limit has been dropped.Helmet manufacturers in India will not be able to manufacture, stock, and sell helmets that are not certified by the Bureau of Indian Standard’s (BIS) safety standards. The new norms will come into effect in March 2021. The two-wheeler helmet manufacturers association has welcomed the government’s decision, lauding it as a positive move towards curbing the sale of non-standardized helmets. Read More: https://www.financialexpress.com/auto/industry/two-wheeler-helmet-manufacturers-association-welcomes-govts-move-on-banning-non-isi-helmets/2047754/ “Covid -19 Earning Opportunity – Studds retailing the protective glasses and the face shield to assist efforts against Corona Virus” Due to Covid -19 the manufacturing of helmets and other bike accessories are at halt so Studds has decided to channelize its existing manufacturing expertise to earn out of rising social demand and also contribute to the society.Thus company has started manufacturing – “Face Protection Shield”, “Face mask” and “ Protective Googles”.This shows that the company is proactive and has excellent skills in utilizing it resources to its best.These products enjoys high margins and thus shall benefit the topline and overall business performance. The protective glasses are priced at Rs 200, the face shield retails at Rs 300. Studds have clarified that the glasses can shield can be bought directly from the manufacturer through its social media pages, mail or phone. Read More: https://www.financialexpress.com/auto/industry/studds-helmet-protective-glasses-face-shields-covid19-coronavirus-lockdown-pandemic/1920309/ www.greymarketshare.com