The fiscal 2014-15 was a satisfying one for Mandhana Industries as we delivered happyreturns to all our stakeholders. The numerical growth reported by Mandhana Industries washeartening considering that Indias economic environment and consumer confidence wererelatively subdued. However what was more satisfying was that we strengthened the qualityof our financials. For instance our debt-equity ratio improved from 0.93x as on March 312014 to 0.66x as on March 31 2015; our interest service coverage ratio strengthened from2.15x in 2013-14 to 2.21x in 2014-15 creating a stronger foundation for deliveringhappier returns across the foreseeable future.
Estimates suggest exciting times for our business based on credible estimates ofIndias population growth and demographic dividend.
Population growth: India adds more to its population each year than any othercountry. Between 2001 and 2011 India grew by 181 million people nearly the entirepopulation of Pakistan. Based on this extrapolation India will have overtaken China asthe worlds largest country by 2025.
By 2020 India is expected to emerge as the worlds youngest country 64% of itspopulation comprising working age individuals. The average age of the 1.27 billion-strongIndian population would be 29 years in 2020 younger than China and the US. The populationin the age-group of 15-34 increased from 353 million in 2001 to 430 million in 2011 and isprojected to rise to 464 million by 2021. Around 12 million young Indians are likely toenter the job market each month for the next 20 years.
As a prudent strategy
Mandhana Industries caters to the fashion aspirations of this growing youth cluster.
Business focus: We are increasing the share of the high-margin garment business asa proportion of our overall revenues strengthening our profitability.
Garmenting focus: We progressively expanded our garmenting capacity; our 1mn-piecegarmenting facility at Baramati commenced operations in March 2015 which will helpincrease garment exports.
Brand focus: We intend to launch 650 selling points over two years through a mix offlagship stores store-in-stores (SIS) franchise formats and a distributor-based model.Following our successful alliance with Myntra in the e-commerce space we will increaseour online Being Human presence.
Geographic focus: Even as India promises to provide sizeable opportunities we willwiden our global footprint.
Message to shareholders
The big message that I wish to send out to our shareholders is that Mandhana Industriesis confident of generating attractive volume-led and value-influenced growth translatinginto happier returns for stakeholders across the foreseeable future. Warm regards
Purushottam C. Mandhana
Chairman & Managing Director