The Financial Year 2016-17 was exciting and eventful at Indo Count. We started gainingacceptability across three new segments which comprise of Fashion Utility andInstitutional bedding across geographies. During the year we launched high qualitylifestyle brands primarily focusing on premium customers and their evolving aspirations.
Indo Count is not just a name but an emotion we cherish. For over 25 years we havemeticulously nurtured a culture of innovation and quality excellence leading to superiorbrand experience for our global customers. This business philosophy has been responsiblefor our sustainable growth momentum. FY2016-17 saw a continuation of this trend.
I am pleased to share with you that the financial year 2016-17 was exciting andeventful at Indo Count. We started gaining acceptability across three new segments whichcomprise of Fashion Utility and Institutional bedding across geographies. During theyear we launched high quality lifestyle brands primarily focusing on premium customersand their evolving aspirations. All this has been possible owing to our unique approach toHome Textiles which has helped us create our strong presence across the globe.
We felt forward integration would make us stronger and more competitive. Such astrategy helps us stay close to the customer and understand market trends better. Deepinsight into market trends and behavioural patterns of customers drive our innovation.
Innovation and Branding counts
At Indo Count we always seek to provide functional benefits through our differentiatedproducts which are outcomes of continuous innovation. We are working diligently ondifferentiating ourselves from our peers to establish top-of-mind recall for our customersand clients. Our major thrust has been on innovation and development of new products. Inour quest to deliver a refreshing sleep experience and providing complete beddingsolutions we focus on giving the customers an extraordinary brand "sleep"experience.
In 2016 we introduced three lifestyle brands Boutique LivingRevival and The Pure Collection in the US Market. TheBoutique Living showcases four innovative design categories. Besides threenew licensed brands - Harlequin Sanderson and Scionwere introduced in North America. We also forayed into Indian market with the launch ofour domestic aspirational brand Boutique Living in October 2016. Our BoutiqueLiving collection is geared to set new benchmarks for inspired living for customers inIndia.
Innovation cannot be an end in itself. It has to reach customers across geographies andfulfil their needs. To meet the growing demand for innovative products from our globalcustomers we have aggressively focused on scalability. Technology and Automation areamong our key business differentiators which allow us to be nimble resilient andinnovative. Our expansion is divided into two phases. We completed the Phase I with anexpenditure of around Rs 175 Crores which included increase in our capacity from 68million metres to 90 million meters set up of a state-of-the-art reverse osmosis (RO) andwater effluent treatment plant automation of cut-and-sew operations and warehousing.
We have also lined up a capital expenditure of around Rs 300 Crores for Phase II. Itwill be invested in additional weaving capacity (with specialised looms) advancedequipment for the delivery of fashion and utility bedding and modernise existing spinningfacilities.
Committed to Deliver
I am happy to share that our performance reflects the inherent fundamental strengths ofour business. We achieved encouraging numbers during 2016-17. The consolidated revenuesenhanced to Rs 2258 Crores in 2016-17 compared to
Rs 2111 Crores in previous year. Net profit for FY 2016-17 stood at
Rs 232 Crores and Earnings Per Share at Rs 11.76.
The Board has paid interim dividend @20% per equity share of face value of Rs 2/- eachand recommended final dividend @20% for the year 2016-17 subject to approval of members;total dividend outflow would be 40% (i.e. Rs 0.80 per equity share of face value of Rs 2/-each)
We grow; our community grows
We believe businesses have the capacity to create developmental models for communities.We direct our efforts to elevating the lives of the underprivileged in and around thelocal areas where we operate. Indo Count Foundation primarily focuses on the spheres ofEducation Women Empowerment Healthcare Water & Sanitation and Rural Upliftment.
Going forward we will continue to focus on cost efficiencies quality control marketpenetration and technology upgradation. We will also concentrate on expanding thevalue-added product portfolio by focusing more on innovation in line with changingaspirations of society. We will also enrich our brand experience by improving existingbrands and introducing new brands.
Our multi-cultural and dedicated workforce has a significant role to play in makingIndo Count a global leader in the markets in which it operates. Our teams passionfor excellence takes us further despite challenges.
Lastly I take this opportunity to thank all our employees loyal customers dedicatedpartners global teams committed shareholders and stakeholders for helping us translateour ideas into encouraging outcomes for our business and for continued trust andconfidence in Indo Count.
ANIL KUMAR JAIN