This has been a very gratifying year for the operations of Mirza International Ltd. andI am proud to tell you that the Company has surged ahead in one of the most importantemerging markets of the world: our very own India.
We are delighted to celebrate 20 years of our iconic brand REDTAPE it has beengoing strong overseas and is poised to capture new territory in the most influentialmarkets of the United States and Europe while already being a market leader in the UnitedKingdom. The best news is that Mirza Internationals overall sales of REDTAPE brand(Footwear Garments and Accessories) in India rose 26.6 percent in the year under reviewmainly spurred by a rising demand from the new generation of consumers for the quality andvalue that come with the REDTAPE name.
We have worked hard to reach this place. Thirty-five years of learning striving andaggressively going where no one has gone before has put us at the top - as the topexporter of leather footwear from India; the top Indian supplier to global footwearbrands; the top Company in integrated manufacturing operations; and the mostenvironmentally responsible Company in the leather industry.
"THIRTY-FIVE YEARS OF LEARNING STRIVING AND AGGRESSIVELY GOING WHERE NO ONE HASGONE BEFORE HAS PUT US AT THE TOP - AS THE TOP EXPORTER OF LEATHER FOOTWEAR FROM INDIA;THE TOP INDIAN SUPPLIER TO GLOBAL FOOTWEAR BRANDS; THE TOP COMPANY IN INTEGRATEDMANUFACTURING OPERATIONS; AND THE MOST ENVIRONMENTALLY RESPONSIBLE COMPANY IN THE LEATHERINDUSTRY"
The Mirza philosophy is in sync with the idea behind Make in India we are an Indian company and we can conquer the world. Also we are winning at home asmuch as we are winning abroad. While 75 percent of our total sales come from overseasmarkets we have maintained an impressive compound annual growth rate of 19.82 percent inthe domestic market over the past five years.
There is no reason why we should not capitalize on our national advantages. India isthe worlds second largest producer of leather and leather footwear behind China. Asthe Chinese economy cools and the Indian economy clocks the fastest growth globally thisyear and possibly the next year too a GDP growth rate of 7.5 percent in FY16 andFY17 as per IMF estimates the market for consumer goods especially stylish andgreat-value footwear should see a corresponding growth.
Our inherent strengths have stood us in good stead despite some market turbulence.While our exports dipped slightly by around 2.21 percent in the year underreview it was a far stronger performance than the leather industrys overallsignificantly high double-digit export drop. Moreover the way the Indian consumer hastaken to REDTAPE helped push our net profit up by 52.64 percent from Rs. 51.16crore in FY15 to Rs. 78.09 crore in FY16.
In order to retain the leadership position we have in overseas markets and to growfurther in India MIL made some significant moves in the past year. The three markets infocus for us in the near and mid-term future are the US UK and India. REDTAPE will bemade available in more retail stores through our tie-up with five US retail giants. And inIndia we plan to have 170 REDTAPE stores in the next two years.
REDTAPE is now a full-fledged lifestyle brand with garments and accessories under itsumbrella. MILs in-house design and integrated manufacturing facilities give us fullcontrol over intellectual property and supply chain efficiencies. With thesemarket-leading advantages we have very ambitious plans to take our name to still greaterheights.
On behalf of the entire MIL family I take this opportunity to thank all our associates Board of Directors shareholders bankers all the Company staff at every leveland of course the consumers who have shown their appreciation for our ceaseless effortsto deliver world-class quality. With your support this Company will go from strength tostrength.