Saraswati Saree Depot Ltd. (SSDL), a well-established name in the wholesale saree market, has roots dating back to 1966. Over the decades, the company has grown into a prominent player in the women’s apparel industry, with sarees making up over 90% of its revenue. In the fiscal year 2024, SSDL served more than 13,000 unique customers, offering a vast catalog of over 300,000 different SKUs.
The saree, a traditional Indian garment, remains a staple in both casual and festive wardrobes across the country. The industry has seen a shift in consumer preferences, with an increasing demand for quality and premium sarees over value options. This trend is driving growth in the market, which is expected to expand at a CAGR of 5-6% from fiscal 2024 to 2029.
Historically dominated by small, unorganized retailers, the saree market is now witnessing a surge in interest from organized players who are tapping into the growing aspirations of India’s middle class and their rising disposable incomes. These organized retailers are focusing on mid to premium range offerings, catering to a population increasingly drawn to branded apparel.
In 2002, SSDL launched its signature "Utsav" event, timed around Diwali, where it showcases exclusive collections and offers special deals to loyal customers. This event has become a significant part of the company’s strategy, contributing 13-15% to annual revenues. The company further expanded its operations by moving to a new 169,120 sq. ft. complex in Kolhapur in 2015 and diversifying into ready-made garments, including Kurtis and other women’s apparel. This diversification has paid off, earning SSDL several industry awards.
As SSDL prepares for its initial public offering (IPO), it aims to raise INR 160.02 crore by issuing 10,000,800 equity shares at a price band of INR 152-160 per share. The proceeds will be used primarily for working capital, with the rest allocated for general corporate purposes. The IPO, which opens on August 12, 2024, and closes on August 14, 2024, represents 25.25% of the company’s post-IPO paid-up equity capital.
With a unique business model, a vast product range, and a strong customer base, SSDL is well-positioned for growth. While the IPO is fully priced, investors may find long-term value in the company’s established market presence and continued expansion.
Read More: Weekend Read: Master the Mind with “The Disciplined Trader”
X (formerly, Twitter) - Aayush Khanna