Studds Accessories is the largest two-wheeler helmet manufacturer of the world, diligently serving their customers with safety, style, and comfort. It is the largest organized player in the industry registered a CAGR of 32% over the last 3 FYs. The company has a strong promoter and promoter group shareholding of 78.73% with Mr. Sidhartha Bhushan Khurana as the Managing Director.

Reach:

The Company has 30% market share in India and has a strong presence in the overseas helmet markets with its brands: Studds and SMK, exporting to over 70 countries. It has 13% market share in Philippines and 5% market share in Europe in just 4 years of launching. The company operates 8 Exclusive Brand Outlets (EBO) in India and has pan-India as well as global dealership network. In the FY20, the company sold close to 7.2 million helmets, out of which 500,000 were exported and the rest were sold domestically. It has over 12,000 SKUs specific to different markets and head shapes.

Associations:

It has a healthy partnership with all the leading OEMs like Hero MotoCorp, Honda Motorcycle & Scooter India, Suzuki Motorcycle India, Royal Enfield and others and is further planning to engage with other global players like Harley Davidson to strengthen their foothold.

Future Outlook and Value Proposition:

Studds recently commissioned a plant in Haryana involving an investment of Rs.180 crores, which is the largest of its kind in Asia taking the total capacity to 14 million bike helmets and 1.5 million bicycle helmets per year and is looking forward to doubling exports over the next 2 years. This is a big step is for companies like Studds to ‘Make in India’ that is expected to provide employment to more than 1500 people and boost overall economic growth. The company has stopped imports of raw materials from China. The market opportunity is substantial as the Centre’s new policy on banning non-ISI certified helmets as well as lifting the 1.2-kg or lower rule on helmet weight limit will give organised players like Studds huge motivation by driving demand. The 30% unorganized sector producing non- ISI helmets is now up for grabs for Studds. Thus, looking at the current needs in the market with growing demand for 2W and in turn 2W helmets, the company decided to increase its capacity. The government is also making sure that along with the rider, pillion riders are wearing helmets as well. There has been a substantial demand for cycles as well due to health-conscious individuals and government norms mandating bicycle helmets, thus Studds has ventured into the same. The company is working towards integrating technology with helmets by making them smarter with the help of Camera, Bluetooth and bone conduction technology for military purposes. The company aims to capture over 40% of the domestic market over the next 3 years. In a recent interview, the MD Sidhartha Bhushan Khurana said that Q1 of FY21 was affected by the pandemic and the company saw a 50% decline YoY but given the quick recovery, they are hopeful to end this fiscal with 10% growth. From FY 22 onwards, it looks forward to grow at 50% YoY along with 4 new product launches in October 2020. The company has plans to open 15 more EBOs in FY21 and spend aggressively on marketing and R&D.