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Kewal Kiran Clothing Ltd.

BSE: 532732 Sector: Industrials
NSE: KKCL ISIN Code: INE401H01017
BSE LIVE 13:50 | 22 Sep 1690.00 -30.00
(-1.74%)
OPEN

1680.00

HIGH

1690.00

LOW

1680.00

NSE 15:40 | 22 Sep 1693.65 -11.55
(-0.68%)
OPEN

1689.90

HIGH

1707.65

LOW

1680.05

OPEN 1680.00
PREVIOUS CLOSE 1720.00
VOLUME 30
52-Week high 1993.15
52-Week low 1575.00
P/E 29.43
Mkt Cap.(Rs cr) 2,084
Buy Price 1690.00
Buy Qty 2.00
Sell Price 1699.00
Sell Qty 15.00
OPEN 1680.00
CLOSE 1720.00
VOLUME 30
52-Week high 1993.15
52-Week low 1575.00
P/E 29.43
Mkt Cap.(Rs cr) 2,084
Buy Price 1690.00
Buy Qty 2.00
Sell Price 1699.00
Sell Qty 15.00

Kewal Kiran Clothing Ltd. (KKCL) - Chairman Speech

Company chairman speech

DEAR SHAREHOLDERS

It is my pleasure and privilege to present the 24th Annual Report of the Company to allof you.

With total income surpassing Rs. 400 crores in FY 2014-15 the Company has crossed amilestone in its journey of growth. EBITDA increased to Rs. 96.51 crores and Profit afterTax stood at Rs. 66.25 crores despite deferment of accounting of other income. The Companycontinues to be debt free and the total amount in mutual fund investments and cash andcash equivalents stood at Rs. 214.32 crores. The total dividend for the year includinginterim and final dividend stands at Rs. 25/-per share. 'Killer' – the 3agship brandachieved sales of Rs. 216 crores decisively exceeding the Rs. 200 crores mark. There hasbeen all round sales growth across brands products geographies and channels. Retailfootprint of the Company continues to grow with more than 300 stores including brandspecific EBOs and K-Lounges across the country. The Company further augmented the BusinessProgressive Fund with an amount of Rs. 10 crores. This is a unique and pioneeringinitiative taken by the Company to create a dedicated reserve to counter sluggish marketconditions and volatility in consumer sentiment.

'Change is the only constant' . . . these are just a few words but can make thedifference between success to those who understand and follow it and failure to those whoignore it. And nowhere is this more relevant than the fashion industry which has to notjust meet changing consumer expectations but also exceed them by constantly keeping aheadof the curve. Very few industries require companies to deliver its customers with newproducts every season as well as ensuring a great shopping experience at various touchpoints. This requires huge and continuous investments in product development designmanufacturing processing quality and sourcing on one hand and distribution supplychain advertising and brand building on the other. Precisely for these reasons in thisindustry only those companies can succeed that have a long term creative mindset alongwith the financial strength and discipline to build a sustainable and scalable business.

Within these challenges lies the long-term growth opportunity in the fashion apparelindustry especially so in denims and casual wear as it has as a strong and naturalconsumer pull because of its ts unique unique characteristics characteristics of offeringoffering a relaxed and refreshing refreshing experience experience.

Comfortable timeless easy easy going going cool youthful youthful etc. –these these are just some of the ways consumers relate to jeans. The versatility of denimand its ability to connect with all people has ensured that jeans is truly a democraticproduct and are a staple in wardrobes across the world irrespective of culture race orreligion. And therein lies the true potential of this industry and a well-establishedplayer like Kewal Kiran Clothing Limited

The new Central Government has introduced a slew of reforms that are progressive andinclusive. Some of these are like bitter pills to be swallowed upfront but result in ahealthier and more sustainable recovery. With subdued in3ation the RBI has also takensteps to lower interest rates and is judiciously supporting recovery initiatives. A pickup in the capital and investment cycle will further boost sentiment and improve vibrancyin the market.

During the year there is one question that has been asked continuously and that is– What will be the impact of e-commerce? Every new channel that has emerged over thelast decade has helped in growing the market and enhancing penetration of organizedretail. It was not long ago when the entry of organized large format retailing met withreactions forecasting doom for smaller unorganized players. There was a rapid rise in thenumber of malls and retail footprint across the country but this was followed by a phaseof consolidation. Today the balance retailing ecosystem continues to exist and grow andmalls have become one more channel for engaging with consumers. Similarly e-commerce willemerge as an additional channel available for brands and will co-exist with otherchannels. This channel is an added platform for the Company and provides an opportunityfor our brands to gain visibility and sales. Sales through e-commerce stood at Rs. 8crores showing good growth of more than ten times over the previous year.

The Company has over the years strengthened all the core building blocks of thebusiness i.e. innovation creativity in design world-class manufacturingstate-of-the-art processing stringent in-house quality checks tactical outsourcingdiversified selling and distribution across India professional and ethical work culturehigh corporate governance standards financial strength a robust balance sheet and mostimportantly strong brands that straddle key market segments. Indian consumers are alreadyhighly fashion conscious and as the Indian demographic evolves along with higheraffordability there is potential for volume and value growth.

I would like to extend my gratitude to all my distinguished fellow board members fortheir guidance and to all the stakeholders for the valuable trust they have reposed in theCompany and seek their continued support as we scale greater heights.

With best wishes

KEWALCHAND P. JAIN

CHAIRMAN & MANAGING DIRECTOR