I am delighted to write to you as we embark upon the journey of Arvind FashionsLimited asan independent company-demerged from the parent-Arvind Limited. We took thisdecision with your approval as we are quite excited about the medium to long term valuecreation possibilities that this business has in store for all of us.
In March 2018 India's GDP was $1977 per capita-as we cross the $2000 mark we arelikely to see exponential growth in consumption of branded apparel and accessories. Forreference China saw a 3X expansion over a decade starting 2002 Russia grew 2X over asimilar time horizon starting 2001. Brazil and
South Korea have also gone through similar journeys in 1980s. With growing disposableincome young women and men of India are already showing increasing expenditure onlifestyle products. Across the different market segments in apparel Indian consumers areincreasingly becoming brand conscious and display growing awareness of the internationalbrands. Towards the bottom end of the price pyramid as well buyers are increasinglymigrating towards organized value retain chains even in Tier 2 and Tier 3 cities.
I believe that technology will shape the landscape of this industry on multiple fronts.Digital supply chain enablingfast fashion is only the beginning. I expect technology to beused extensively to drive a personalized shopper/ consumer experience seamlessly acrossoffline and online. Bespoke products made to factory finish quality are already here.Apparel and accessories will continue to leverage newer materials designs andconstruction methods to deliver higher functional performance while also meeting theaesthetic needs of the consumers. Finally macro trends of increasing environmentalsustainability will impact the Indian fashion industry as well.
Against this backdrop I feel very enthusiastic about the prospects of Arvind Fashions.We have an industry leading portfolio of brands across all price points -bridge-to-luxurybrands like Tommy Hilfiger Calvin Klein Gant and Nautica premium to mid-premium playwith brands like US Polo Arrow Flying Machine GAP and other category brands and ourfast-growing value retail format- Unlimited. We dominate the branded men's casual anddenim wear segment which is the largest and fastest growing branded apparel segment inIndia. In addition our fast growing innerwear business and our beauty retailbusiness-Sephora are powerful growth engines for the future.
I also believe that Arvind Fashions is best positioned to ride the opportunity wavewith its powerful platform capabilities and proprietary omni-channel approach thatprovides seamless shopping experience to the Indian fashion shoppers.
For the financial year ending March 2018 Arvind Fashions clocked a market leading 19%y-o-y increase in revenue accompanied with a sharp increase in EBITDA from 4.7% to 6.0%.The recent two quarters have been quite challenging forthe industry. Yet Arvind Fashionshas delivered strong growth. While the shortterm market conditions have been difficult Iexpect favorable macro-economic factors will ensure a healthy growth over next 3-5 years.
I trust you will share my optimism and excitement as we embark upon this ambitiousjourney as an independent company at Arvind Fashions.
With warm regards