Campus Activewear Limited, a prominent player in the Indian footwear industry, has announced a significant expansion of its manufacturing capabilities. The company has acquired land and building at SIIDCUL Pantnagar for ₹74.75 crore, marking a strategic move to boost its production capacity.

Acquisition Details

The company has purchased land and building from M/s Nainipanel Industries Private Limited. The acquired property is located in the IIE SIIDCUL, Pantnagar Industrial Area, spanning 47,000 square meters. This acquisition is part of Campus Activewear's plan to expand its existing capacity for manufacturing semi-finished goods (soles and uppers) and footwear assembly.

Expansion Plans

Campus Activewear has outlined an ambitious expansion strategy:

• Investment: The company plans to invest a total of ₹230 crore in this expansion project.
• Capacity Addition: The expansion aims to add 7.2 million pairs of additional manufacturing capacity by the close of FY 2027-28.
• Timeline: The proposed capacity addition is expected to be completed within 2.5 years from September 2025.

Current and Future Capacity

Strategic Rationale

The expansion is driven by the need to meet business growth and increase backward integration. This move is expected to significantly enhance Campus Activewear's production capabilities, allowing the company to better serve the growing demand for its products in the Indian market.

Financing and Regulatory Aspects

• The acquisition is being financed through all-cash consideration.
• The company will use internal accruals to fund the ₹230 crore investment for capacity expansion.
• No regulatory approvals are required for the acquisition, except for transfer permission from SIIDCUL.

Campus Activewear's strategic expansion underscores the company's commitment to growth and its confidence in the Indian footwear market. As the company moves forward with this significant investment, it positions itself to capitalize on the increasing demand for quality footwear in India.

Campus Activewear Limited has released its financial results for the first quarter, showcasing a mixed performance with revenue growth but a decline in profitability.

Financial Highlights

The company reported a net profit of 22.20 crore rupees for Q1, down from 25.38 crore rupees in the same period last year, marking a 12.5% decrease. Despite the profit decline, Campus Activewear saw a slight increase in revenue, which rose to 343.27 crore rupees from 339.16 crore rupees year-over-year, representing a growth of about 1.2%.

Operational Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter stood at 48.80 crore rupees, down from 51.70 crore rupees in the previous year. Consequently, the EBITDA margin compressed to 14.24% from 15.26% in the corresponding quarter of the last fiscal year.

Key Financial Metrics

Dividend Announcement

The Board of Directors has recommended a final dividend of 0.30 rupees per equity share, subject to shareholder approval at the upcoming Annual General Meeting (AGM).

Upcoming Corporate Events

• The company has scheduled its 17th Annual General Meeting for September 23, to be held through video conferencing.
• The record date for determining shareholder eligibility for the final dividend has been set as September 10.

Campus Activewear continues to navigate a competitive market environment, focusing on revenue growth while addressing profitability challenges. Investors and analysts will be watching closely to see how the company's strategies unfold in the coming quarters to improve its bottom line while maintaining top-line growth.