Become a billionaire by selling sneakers under 10 USD

In the midst of volatile stock market, India still has a new billionaire. Hari Krishan Agarwal, the founder of sports shoe company Campus Activewear, has joined the billion-dollar fortune club following the IPO of the Delhi-based company. Campus Activewear stock is listed at 23% above the IPO price. Agarwal’s 74% stake is now worth about $1 billion.

India’s $9 billion footwear industry has spawned three billionaires in recent years. That includes brothers Mukand Lal Dua and Ramesh Kumar Dua, who run Relaxo Footwear – a company that sells everything from affordable to luxury footwear with $350 million in revenue. Next to that is Rafique Malik, who brought Metro Brands – the Mumbai-based company with $107 million in revenue – on the stock market last December.

Agarwal, 66, started trying his hand at business in 1983 when he founded the sports shoe brand “Action”. In 2005, he launched “Campus” sneakers for under $10. The reasonable price helps Campus make big enough strides to compete with global brands such as Nike, Adidas or Puma. These brands of sneakers sell for $35 or more.

“He took advantage of the huge gap in the Indian sports shoe market – in the $10 to $40 price range,” said Campus CFO Raman Chawla.

Hari Krishna Agarwal. Photo: Campus Activewear

An April 2022 report by consulting firm Technopak noted that for the financial year 2021, Campus is India’s largest player in the field of branded sports and athleisure (combination of the “sports” segment). sports” and “leisure”), both in terms of shoe value and quantity. The company holds 17% market share by value and nearly 25% by volume.

Campus sold 13 million pairs in 2021, generating $94 million in sales. That’s down slightly from the previous year’s $95 million in revenue due to the pandemic, but sales are picking up again. The company recorded revenue of $111 million for the nine months ending December 2021.

Analysts expect Campus’s domestic operations to benefit further as athletic footwear is the fastest growing segment in the footwear sector. They also estimate that demand for such footwear will continue to grow. According to Technopak, per capita spending on sports products in India is just $1.9 compared to $33.8 in China and $227.3 in the US.

This growth potential has attracted private equity firm TPG and billionaire Anil Rai Gupta, who controls electronics maker Havells. They invested in Campus in 2018 and now hold 7.6% and 2% shares, respectively, despite selling some shares during the IPO.

“Athleisure is a very little tapped new segment. The company is also expanding into other markets,” said Sneha Poddar, research analyst at investment firm Motilal Oswal. The Campus’s main market consists of smaller cities in northern and eastern India, but the company is now working on expanding into larger supermarkets and laying the groundwork for the brand to expand throughout India. . “Plus, the company is also expanding its product range from sneakers to casual shoes,” Poddar said.

Even though it’s listed, Campus is still like a family company. Agarwal’s son Nikhil Aggarwal, 37, an industrial engineer from Purdue University, started at Campus in 2008 and became CEO nine years later. Nikhil’s wife, Prerna, takes the position of marketing director. The founder’s wife, Vinod Agarwal, joins the board until September 2021.

According to Linh Lam