Do you know how many Sarees does Nalli sell in a year?

The chain has over 35 stores with almost 32 in India and the remaining across Singapore, UK, Canada and USA.

The company possibly does over Rs 700 crores of sales currently, which means ~18 crores of revenue per store p.a.

Imagine the average saree sells for about 5k, that’s 100 sarees per store per day, and a potential of 3500 for the entire chain every single day!

In FY22, the company had a Net Profit of just 4%, so I’m assuming the EBITDA would probably be around 8-10%.

By comparison Pothy’s does over Rs 1600 crores in annual revenue from just 16 stores... and an EBITDA of 18.5%

Out of the 70 crore women in India, half of them are expected to spend Rs 4000 on sarees every year as an average...

That could possibly be a USD 15 Bn market at the very minimum.

No wonder all of Tata (Taneira), Reliance (Avantra) and Aditya Birla (Navyasa) have launched their saree stores over the past 5 years.

Just weddings and festivities alone contribute to over 40% of this market... but if you think about it, there are no D2C brands that really own mindshare for this space for millennials and Gen Z.

-------------------------------------------------------------------------------------------------------------------------
Click here to subscribe to my YouTube channel: bit.ly/3cpTleK
-------------------------------------------------------------------------------------------------------------------------

Like, Share, Subscribe for more!

Follow me on my other social media handles for all updates, events and live sessions-
Instagram: / casarthakah. .
LinkedIn: / sarthak-ah. .
Website: www.casahuja.com/
-------------------------------------------------------------------------------------------------------------------------

A Chartered Accountant with about 10 years of experience in areas of Tax Advisory, Startup Consulting, Fundraising, Audits, Deal Advisory, Business Modelling and contract CFO services.

Winner of the ISB Young Leader Award 2017 and the Best All Rounder, PGP Class of '17, Sarthak has also been published about in the leading financial newspapers such as The Financial Express as possibly the youngest Indian to have completed the courses of CA, CS and CMA along with a graduate degree in Financial & Investment Analysis from University of Delhi, all by the age of 23 years.