The past year has been a year of renewed efforts towards turnaround and sustainability.Continued focus by the management team to strengthen the fundamentals of the business bytracking the fast-changing customer needs and industry structure led to improvedperformance indices despite pressure on margins. Due to improved operational performancethe company gained a higher order book from key growth customers for the current year.
The strategic initiatives the Company has begun in 2014-15 for a healthier product andcustomer portfolio mix with focus on on-time delivery has now fortified leading tohealthier mix of products from the earlier dominant outwear centricity.
After the recent central government initiatives to improve the Indian textile industrycompetitiveness for apparel exports we have noted positive outcomes. However the apparelexport industry continues to face challenges of higher cost and lower margins.productivity and rationalisation of cost structure across the value chain remainscritical.
In this direction the company initiated restructuring of its operational facilities bymerger / consolidation of smaller factories into bigger factories besides setting up newfacilities in low cost zones in Karnataka. The company has also initiated setting upfactories in Andhra Pradesh by acquiring 10 acres of land near Madanapalle borderingKarnataka to avail the attractive incentives given by the Andhra Pradesh Government. Theseinitiatives of restructuring improved product mix higher order book higher productivityand lower lease rentals will have a positive impact for the year 2017 -18.
The company has invested in Yepme International UK which shall provide exposure todigital sales channel fast fashion design & procurement and online marketing toolsalong sides efforts to revitalise its "Wearhouse" Brand to explore possiblegains in India Retail.
On behalf of the team I thank our valued Customers who continue to support us. We trulyvalue the trust and confidence the customer has reposed in the company and we willcontinue serve and strive towards creating value for them and all the stake holders.
We thank our business partners vendors business associates. We depend on theircontinued support as key enablers to overcome the existing challenges. These relationshipsare strong pillars of our business architecture.
I thank the outstanding Board for their guidance on governance and strategic direction.At last but not the least I wish to thank you all stakeholders including employees forcontinued unstinted support confidence encouragement trust in the company.
With the recent change in Share holding on behalf of the Board and Management I wishto acknowledge the remarkable support your company obtained from "The BlackstoneGroup" and its dedicated team in India and assure all shareholders of the utmostcommitment to create shareholders value consistently and sustainably.
Richard B Saldanha