Relaxo Footwears Limited (NSE: RELAXO)

Quick Facts / Company Snapshot

• Official Name: Relaxo Footwears Limited
• Industry: Footwear Manufacturing
• Headquarters: New Delhi, India
• Year of Incorporation: 1984
• Chairman & Managing Director: Mr. Ramesh Kumar Dua
• Revenue from Operations (FY25): ₹2,789.61 Crores
• Net Profit (FY25): ₹170.33 Crores
• EBITDA (FY25): ₹382.00 Crores
• EBITDA Margin (FY25): 13.69%
• Total Sales Volume (FY25): 17.75 Crore pairs
• Manufacturing Capacity: ~10.5 Lac pairs per day
• Number of Manufacturing Plants: 9 (Haryana, Rajasthan, Uttarakhand)
• Retail Presence: 418 Exclusive Brand Outlets (EBOs)
• Distribution Reach: ~70,000+ Retailers and 650+ Distributors
• Key Brands: Relaxo, Sparx, Flite, Bahamas, Boston, Mary Jane, Kids Fun
• Export Presence: 30+ Countries across 6 Continents
• Dividend (FY25): 300% (₹3.00 per share)
• Net Worth (FY25): ₹2,098.07 Crores
• Debt Status: Debt-free (Nil long-term borrowings)
• Stock Exchange Listings: NSE, BSE

Company Overview

Relaxo Footwears Limited is the largest footwear manufacturer in India by volume and a Fortune 500 (India) company. Incorporated in 1984, the company has served the nation for over four decades, establishing itself as a household name synonymous with quality products at affordable prices. Headquartered in New Delhi, Relaxo is ranked among the top 500 Most Valuable Companies in India. The company’s core philosophy revolves around providing “Best-in-Class Footwear,” catering to the diverse needs of Indian families with a portfolio that spans slippers, sandals, sports shoes, and casual footwear.+4

The company operates on a massive scale, with a production capacity of approximately 10.5 Lac pairs per day across its state-of-the-art manufacturing facilities. Relaxo has transitioned from a wholesale-driven model to a strong consumer-centric brand, leveraging deep consumer insights to drive product innovation. Its commitment to quality is reinforced by ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, and ISO 27001:2022 certifications, ensuring world-class standards in manufacturing, environmental management, and information security.+4

Relaxo maintains a robust pan-India distribution footprint, reaching consumers through a network of over 70,000 retailers, 650 distributors, and 418 Exclusive Brand Outlets (EBOs). The company has also embraced digital transformation with the ‘Relaxo Parivaar’ app, connecting directly with its retail partners. Beyond the domestic market, Relaxo has a growing global presence, exporting to over 30 countries and earning recognition as the “No. 1 Exporter” in the Non-Leather Footwear category by the Council for Leather Exports.+4

Business Segments

The company primarily operates within a single business segment as per Indian Accounting Standards (Ind AS 108).

Footwear and Related Products

• Revenue Contribution: 99.61% of Total Turnover
• Operational Scope: Manufacturing and trading of footwear products.
• Description: This segment encompasses the entire value chain of footwear production, from the procurement of raw materials like natural/synthetic rubber, EVA, and PU to the design, manufacturing, and sale of finished goods. The product range includes slippers, canvas shoes, sports shoes, sandals, and school shoes catering to men, women, and children.+3

Note: The company also generates wind power, but this is utilized entirely for captive consumption and is not treated as a separate reportable segment.+2

History and Evolution

Relaxo’s journey began in 1976 with the launch of the ‘Relaxo’ brand, followed by the incorporation of Relaxo Footwears Limited in 1984.

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• 1976: Launch of the Relaxo brand with a revenue of ₹0.12 Crore.
• 1984: Incorporation of Relaxo Footwears Limited as a public limited company. Revenue stood at ₹1.78 Crores.
• 1995: The company went public with an IPO to fund a new plant in Haryana. Revenue reached ₹38.17 Crores.
• 2005-2007: A period of strategic expansion with the launch of flagship brands ‘Flite’ and ‘Sparx’. The company also opened its first COCO (Company Owned Company Operated) store and commenced exports. Revenue grew to ₹235.93 Crores.
• 2010: Commissioned renewable power capacity of 6.00 MW. Revenue touched ₹553.70 Crores.
• 2012-2015: A phase of business transformation involving the signing of top-notch celebrities as brand ambassadors, strengthening supply chain management, and launching an e-commerce platform. Revenue surged to ₹1,480.81 Crores.
• 2017-2018: Corporate identity revamped. Merger of retail entities ‘RRPL’ and ‘MPPL’ with the company. Revenue reached ₹1,948.57 Crores.
• 2022-2025: Acquisition of 30 acres of land in Bhiwadi for future expansion. Manufacturing capacity soared to 10.5 Lac pairs per day. Revenue crossed ₹2,789.61 Crores. The company focused on digital integration and premiumization during this period.

Products and Services

Relaxo offers a comprehensive range of footwear products designed for comfort, durability, and style.

1. Slippers (Open Footwear)

• Revenue Contribution: A significant portion of the “Footwear” segment (Specific % not separately disclosed).
• Description: This category includes the iconic rubber slippers (“Hawaii”) known for their durability and affordability, as well as modern, colorful flip-flops under the Bahamas brand. They cater to the daily wear needs of the mass market.
• Key Brands: Relaxo, Bahamas, Flite.+2

2. Sports and Casual Shoes

• Revenue Contribution: High growth segment driven by the Sparx brand.
• Description: Includes sneakers, running shoes, loafers, and walking shoes. This category targets the youth and fitness enthusiasts, offering “athleisure” products that combine style with performance.
• Key Brands: Sparx.+3

3. Sandals and Floaters

• Description: Offering breathability and grip, these products bridge the gap between formal shoes and slippers. They are designed for rugged use and daily comfort for men, women, and kids.
• Key Brands: Sparx, Flite.+3

4. School Shoes

• Description: Durable and comfortable black and white school shoes designed to withstand the rigorous activities of school-going children.
• Key Brands: Schoolmate.+2

Brand Portfolio

Relaxo operates a “House of Brands” structure, ensuring distinct positioning for each label to cater to specific consumer segments.

1. Relaxo

• Positioning: The master brand symbolizing trust and durability.
• Target Audience: The “Great Indian Middle Class” across all ages.
• Revenue Scale: ₹100-500 Crore range.
• Key Attributes: A household icon known for long-lasting footwear.+4

2. Sparx

• Positioning: A premium, youth-centric brand representing energy, attitude, and a “Can-Do” spirit.
• Target Audience: Youth and fitness enthusiasts.
• Endorser: Akshay Kumar.
• Revenue Scale: ₹1,000+ Crore brand.
• Key Attributes: Sports shoes, sneakers, and sandals that combine comfort with bold style.+4

3. Flite

• Positioning: Fashionable and lightweight footwear with the tagline “Walk with Style.”
• Target Audience: Families and fashion-conscious individuals.
• Revenue Scale: ₹1,000+ Crore brand.
• Key Attributes: Semi-formal slippers and PU footwear popular for everyday wear.+4

4. Bahamas

• Positioning: Fun, vibrant, and cool flip-flops.
• Target Audience: Young trendsetters.
• Endorser: Salman Khan.
• Revenue Scale: ₹100-500 Crore range.
• Key Attributes: Colorful designs synonymous with freedom and modernity.+4

5. Other Brands

• Boston: Formal footwear for the modern gentleman, focusing on finesse and fit.+1
• Mary Jane: Dedicated to modern women, offering fashion-forward and comfortable designs.
• Schoolmate: Durable school shoes offering support and grip for growing feet.+1
• Kids Fun: Character-themed footwear (Disney, Marvel) adding color and joy to children’s feet.+1

Geographical Presence

Relaxo has established a dominant presence in India and is rapidly expanding its international footprint.

Domestic Presence (India)

• Retail Network: The company’s products are available at approximately 70,000+ retailers and 650+ distributors across the country.
• Exclusive Brand Outlets (EBOs): 418 stores (as of March 31, 2025) providing a premium retail experience.
• Regional Focus: Stronghold in Northern and Eastern India, with aggressive expansion strategies deployed for Southern and Western regions.

International Presence

• Exports: Products are exported to over 30 countries across six continents.
• Key Markets: Asia, Middle East, Australia, Africa, South America (Latin America), and Oceania.
• Offices: The company has an operational branch office in Dubai to strategize export plans and expand into newer geographies.
• Contribution: Exports contributed 4.49% to the total turnover in FY25.

Financial Performance Analysis

Despite macroeconomic headwinds and weak consumer sentiment in FY25, Relaxo demonstrated resilience, maintaining healthy margins and a debt-free status.

Profit and Loss Analysis

• Revenue: Revenue declined by 4.27% to ₹2,789.61 Crores due to muted demand in the mid-range segment and price corrections passed on to consumers.
• EBITDA: The company achieved an EBITDA of ₹382.00 Crores with a margin of 13.69%, reflecting strong operational efficiency despite the dip in revenue.
• Net Profit: PAT stood at ₹170.33 Crores, impacted by higher employee costs and depreciation expenses.
• Expenses: Material costs were optimized, but employee benefit expenses rose due to annual increments and workforce expansion.+4

Balance Sheet Analysis

• Liquidity: The company maintains a strong liquidity position with a Current Ratio of 2.74, improving from 2.40 in the previous year.
• Debt-Free: Relaxo continues to be a debt-free company with zero long-term borrowings and nil utilization of working capital limits as of March 31, 2025.
• Net Worth: The net worth increased to ₹2,098.07 Crores, driven by retained earnings.+4

Cash Flow Analysis

• Operating Cash Flow: The company generated robust cash earnings of ₹327.90 Crores, indicating strong cash generation capabilities from core operations.
• Capex: ₹61.64 Crores was invested in capital expenditure (net of grants), primarily funded through internal accruals, to upgrade manufacturing capabilities and infrastructure.+1

Board of Directors and Leadership Team

The Board comprises a diverse mix of industry veterans and independent professionals.

Executive Directors

• Mr. Ramesh Kumar Dua (Chairman & Managing Director): A visionary leader with over 48 years of experience in the footwear industry. He oversees the strategic direction and overall management of the company.
• Mr. Mukand Lal Dua (Whole Time Director): Brings nearly five decades of experience, focusing on manufacturing operations, production planning, and quality control.
• Mr. Nikhil Dua (Whole Time Director): Responsible for supply chain management, manufacturing excellence, and technological integration.
• Mr. Gaurav Kumaar Dua (Whole Time Director): Focuses on sales and marketing strategies.
• Mr. Sushil Batra (Executive Director & CFO): A Chartered Accountant with extensive experience in finance, taxation, and corporate governance. Appointed as Executive Director w.e.f. April 1, 2024.+4

Independent Directors

• Mr. Rajeev Rupendra Bhadauria: Chairman of the Nomination & Remuneration and Stakeholders’ Relationship Committees.
• Mr. Yogesh Kapur: Chairman of the Audit Committee.
• Mr. Raj Kumar Jain: Member of Audit and Risk Management Committees.
• Ms. Richa Arora: Non-Executive Woman Independent Director.
• Mr. Kuldip Singh Dhingra: Independent Director.+4

Subsidiaries, Associates, Joint Ventures

• Subsidiaries: The Company does not have any subsidiary, joint venture, or associate company as of March 31, 2025. All operations are conducted directly under Relaxo Footwears Limited.+1

Physical Properties (Offices, Plants, Factories)

Relaxo owns and operates 9 state-of-the-art manufacturing units located in key industrial hubs.

Manufacturing Facilities

1. RFL-I & II: Bahadurgarh, Haryana.
2. RFL-III: Bhiwadi, Rajasthan (RIICO Industrial Area).
3. RFL-IV: Bahadurgarh, Haryana (Tikri Border).
4. RFL-V: Haridwar, Uttarakhand (SIDCUL Industrial Area).
5. RFL-VI: Bahadurgarh, Haryana (Footwear Park, Sector 17).
6. RFL-VII: Bahadurgarh, Haryana.
7. RFL-VIII: Bahadurgarh, Haryana (Sector 4B).
8. RFL-IX: Bhiwadi Extension, Rajasthan (Kaharani).
   • Capacity: ~10.5 Lac pairs per day.+4

Corporate Office

• Address: Aggarwal City Square, Plot No. 10, Manglam Place, District Centre, Sector 3, Rohini, Delhi-110085.

Segment-wise Performance

• Footwear Segment: The company operates as a single segment entity. The performance mirrors the consolidated financials, with 100% of revenue derived from footwear and related products.
• Sales Volume: 17.75 Crore pairs were sold in FY25, compared to 19.49 Crore pairs in FY24.
• Realization: Revenue per pair improved marginally due to premiumization, despite the volume drop.+4

Founders

• The journey began with the partnership firm “Relaxo Footwear” in 1976.
• Promoters: Mr. Ramesh Kumar Dua and Mr. Mukand Lal Dua have been instrumental in building the company from humble beginnings to a multi-billion rupee conglomerate. Their leadership has steered the company through four decades of growth and transformation.+4

Shareholding Pattern

As of March 31, 2025, the shareholding structure reflects strong promoter confidence and institutional trust.

• Promoters & Promoter Group: 71.27% (Held by 12 shareholders).
• Public Shareholding:28.73%.
  • Bodies Corporate: 9.17%.
  • Foreign Portfolio Investors (FPIs): 3.07%.
  • Resident Individuals: 5.43%.
  • Non-Resident Indians (NRIs): 0.22%.
  • Others: 10.76%.

Investments and Capital Expenditure Plans

• Capex (FY25): The company incurred a capital expenditure of ₹61.64 Crores (net of grants) for upgrading manufacturing facilities and infrastructure. This was significantly lower than the ₹231.80 Crores spent in FY24, as major capacity expansions were completed in previous years.
• Funding: All capital expenditure was funded entirely through internal accruals, adhering to the company’s debt-free philosophy.
• Focus Areas: Investments were directed towards automation (textile cutting, pattern stitching machines), mould manufacturing, and sustainability initiatives like rooftop solar power projects.+2

Future Strategy

The management has outlined a strategic roadmap focused on “Best-in-Class” experiences and long-term growth.

• Premiumization: The company is aggressively moving up the value chain by increasing the contribution of higher-value products, particularly under the Sparx brand (sneakers and sports shoes).
• Retail Expansion: Plans to further expand the Exclusive Brand Outlet (EBO) network to enhance brand visibility and customer experience.
• Digital Transformation: Scaling up the ‘Relaxo Parivaar’ App to deepen engagement with retailers and leveraging data analytics for demand forecasting.
• Global Expansion: Exploring new markets in Latin America and strengthening presence in the Middle East and Africa to boost exports.
• Operational Efficiency: Continuous focus on cost optimization through value engineering and energy-saving measures to protect margins.+4

Key Strengths

1. Market Leadership: Largest footwear manufacturer in India by volume (17.75 Crore pairs sold in FY25).
2. Strong Brand Equity: A portfolio of power brands (Relaxo, Sparx, Flite, Bahamas) covering all price points and demographics.
3. Financial Fortitude: Zero debt balance sheet with strong cash reserves and high return ratios.
4. Distribution Power: Unmatched reach through 70,000+ retailers and 650+ distributors.
5. In-house Manufacturing: Control over quality, costs, and speed-to-market through 9 owned manufacturing units.+4

Key Challenges and Risks

• Raw Material Volatility: Prices of key inputs like Natural/Synthetic Rubber, EVA, and PU are linked to crude oil prices. Fluctuations can significantly impact margins (e.g., a 10% increase in rubber prices impacts PBT by ~₹8.28 Crores).
• Inflationary Pressures: High inflation impacts discretionary spending, particularly in the mass segment (slippers/open footwear), leading to muted demand.
• Competitive Intensity: The footwear market is highly competitive with the presence of unorganized players (70% of the market) and growing international brands.
• Changing Fashion Trends: Rapid shifts in consumer preferences require agility in design and production to avoid inventory obsolescence.+4

Conclusion and Strategic Outlook

Relaxo Footwears Limited has demonstrated remarkable resilience in a challenging fiscal year, maintaining its leadership position and financial stability. With a debt-free balance sheet, a portfolio of ₹1,000+ Crore brands (Sparx, Flite), and a deep distribution network, the company is well-positioned to navigate near-term headwinds. The strategic pivot towards premiumization, backed by the launch of new designs and retail expansion, is expected to drive the next leg of growth. As the Indian economy recovers and discretionary spending improves, Relaxo is poised to capitalize on the immense potential of the domestic and export markets, delivering sustainable value to all its stakeholders.

Official Site: https://relaxofootwear.com/

FAQ Section

1. What are the major brands owned by Relaxo Footwears?

The major brands include Relaxo (Slippers), Sparx (Sports shoes & Sandals), Flite (PU footwear), Bahamas (Flip-flops), Boston (Formal), Mary Jane (Women’s), and Schoolmate (School shoes).

2. Is Relaxo a debt-free company?

Yes, Relaxo Footwears Limited is a debt-free company with zero long-term borrowings and nil short-term borrowings as of March 31, 2025.

3. What is the total revenue of Relaxo for FY 2024-25?

The revenue from operations for the financial year 2024-25 was ₹2,789.61 Crores.

4. Where are Relaxo’s manufacturing plants located?

The company has 9 manufacturing facilities located in Bahadurgarh (Haryana), Bhiwadi (Rajasthan), and Haridwar (Uttarakhand).

5. Does Relaxo export its products?

Yes, Relaxo exports to over 30 countries across Asia, Africa, the Middle East, Latin America, and Oceania.

6. Who is the brand ambassador for Sparx?

Bollywood actor Akshay Kumar is the brand ambassador for the Sparx brand.

7. How many retail stores does Relaxo operate?

As of March 31, 2025, Relaxo operates 418 Exclusive Brand Outlets (EBOs) across India.