Selling Time, Compounding Trust
With over 60 premium boutiques and partnerships with the world’s most coveted watchmakers, this company is quietly owning the face of India’s luxury retail transformation.
Ethos Ltd
The Timekeepers of Indian Luxury – An Ethos Ltd. Story!
You know, every now and then, you stumble upon a company that isn't just selling products, but curating experiences. And recently, listening to the folks at Ethos Ltd., I felt that exact spark! Ever wondered who's behind India's gleaming luxury watch and lifestyle boutiques? Let's dive in!
Company Overview: More Than Just Watches!
Imagine a journey that began with the tick-tock of exquisite timepieces, evolving into a grand narrative of luxury. Ethos Limited, led by Mr. Pranav Saboo, isn't just a retailer; they're the architects of aspiration in India's luxury landscape. For FY25, they clocked a revenue of ₹1,252 crores, a solid 25.3% year-on-year growth, with EBITDA up 23.5% to ₹161 crores and Profit Before Tax rising 21.3% to ₹141 crores. Truly impressive!
They successfully expanded their empire to 73 boutiques across 26 cities in FY'24-'25. And get this – their long-term vision is to grow revenue 10x over 10 years! Talk about setting your watches to ambition!
Ethos Ltd. Business Segments 📊
⌚ Watches (Core Business)
This remains the heart of Ethos's operations. They are a leading retailer of luxury and premium watches in India, representing a wide array of international brands. They even have a specialized focus on "Ethos Haute Horology" for high-value timepieces above INR 20 lakhs, catering to serious collectors and connoisseurs.
💎 Luxury Jewellery (New Venture)
Ethos has made a significant foray into the international luxury jewelry segment. A notable highlight is the successful launch of their first Messika boutique in New Delhi. This marks a crucial step in their strategy to become a comprehensive luxury lifestyle partner.
✈️ Premium Luggage
The company has successfully ventured into premium luggage with Rimowa boutiques. There has been strong performance in this segment, with plans to open a second Rimowa boutique in Delhi and a third location already identified. There are also intentions to expand this segment into e-commerce. The Mumbai Rimowa boutique alone achieved a billing value of ₹20-24 crores, showcasing the strong potential of this category.
♻️ Pre-Owned Luxury (Second Movement)
Ethos operates a thriving pre-owned luxury watch segment known as "Second Movement." This segment has shown impressive growth, increasing over 30% year-on-year. The focus here is on building trust and ensuring robust processes for authentication and quality, reinforcing consumer confidence in pre-loved luxury timepieces.
Ethos's overall strategy is to be category-agnostic, aiming to partner exclusively with any premium global brand that aligns with the tastes and demands of the Indian luxury consumer.
Manufacturing Units: The Retail Maestro, Not the Maker!
Now, if you're wondering where these exquisite pieces are made, it's worth noting that Ethos operates as a pure retail partner. Their expertise lies in distributing and retailing luxury products, building an unparalleled experience for the Indian connoisseur, rather than manufacturing them. They focus on controlling the retail experience, not the production line.
Financial
Future Outlook: The Road Ahead is Paved with Luxury!
The future for Ethos isn't just bright; it's dazzling, with strategic moves to cement its leadership:
Boutique Blitz: They are on track to cross 100 boutiques this financial year, a testament to their aggressive expansion strategy. More doors, more luxury!
Global Footprint Exploration: Ethos has established a wholly-owned subsidiary, Ficus Trading LLC, in the UAE. This exploratory move aims to tap into Dubai's thriving pre-owned market, enhance after-sales service for Indian customers, and potentially retail brands like Favre Leuba.
Strategic Brand Partnerships: Expect to see more global luxury brands entering their portfolio through exclusive partnerships. They are actively seeking to deepen their reach in the luxury retail ecosystem.
EFTA Agreement & Inventory Management: The India-Switzerland EFTA agreement, expected by the end of this year, could bring significant benefits. As duties are lowered over 6-7 years, it could lead to more Sale or Return (SOR) arrangements with brands, improving inventory efficiency.
Innovative Sales Models: They're exploring bringing in high-value display pieces (CARNAER) that can be shown to customers to secure orders, without requiring heavy inventory investment for ultra-luxury items. Think of it like booking a luxury car!
Franchising on the Horizon: While currently maintaining tight control over the customer experience, Ethos is actively exploring franchising options for the future, with a detailed study underway.
Risk & Strengths
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We are SEBI registered Research Analyst (with Registration No. INH000019789)
Disclosure
This article is for educational purposes only and does not constitute investment advice. Readers should consult a SEBI-registered advisor before making investment decisions.
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