MR. ANIL KUMAR JAIN
Today the world is working its way through the turbulent times while adapting to thenew normal. At Indo Count we continue to strive on the growth path and fulfil stakeholderexpectations.
In the year 2019-20 our strategic priorities were driven by value focus anddiscipline. Despite challenging business environment the year concluded on a good notewith your Company recording one of the highest turnover along with 7% volume growth.
The revenue from operations registered growth of 10% while EBIDTA was higher by 43%.Our net debt to equity ratio has also improved from 0.31x to 0.20x. We have continuedrewarding our shareholders who have instilled faith and trust in us with final dividend of' 0.60 per share (subject to approval of the members of the Company). YourCompany's marquee customer base wider geographic reach and penetration throughinnovative modern aesthetic products have led to improved performance during the yearunder review.
The year 2019-20 was a challenging year for the global economy with rising tradebarriers geopolitical tensions and weakened economic activities. Just when severalmeasures were being introduced to revive the growth the world was hit by the
global COVID-19 pandemic. This led to worldwide lockdowns and complete discontinuationof inter-geography commercial activities.
The present situation is complex and fluid. The US and EU nations dominate the largerchunk of textile and apparel imports. India continued being among the top three exporters.With extensive lockdowns across the globe the consumer spending has taken a major hitbusiness operations across sectors have paused and exports have declined. This has led toan obvious impact on the textile industry demand and supply. However it is estimatedthat Developed markets will recover faster.
IMPACT OF COVID-19
The COVID-19 pandemic has affected every aspect of business and life. The world may notbe the same again with the lasting impact of pandemic. But testing times bring out thebest in mankind. The real need of the hour is to remain resilient to the continuouslyevolving situation while ensuring health safety and wellness of our employees and allstakeholders.
As the world fights this situation collectively we at Indo Count are responding tothis unprecedented disruption with our commitment and unwavering focus to serve ourcustomers in an efficient effective and sustainable manner. The health and safety of allour staff and workers was top priority to us. Appropriate actions were taken at each stepto ensure safety and security of our team in the best possible way including adoption ofremote work. We resumed partial manufacturing operations after ~30 days of temporaryclosure of factories due to the pandemic. We diligently followed the SOPs laid down by theGovernment to run the plants.
Value-driven growth has always been the primary ingredient of our strong andsustainable foundation. It is the key enabler of our resilience and responsibility. It hasfurther helped us in navigating through the challenges and stepping into the 'new normal'.
As we move ahead our value system will further build our reliability and stabilityultimately strengthening our relationship matrix with all our key stakeholders.
Last five years have witnessed India's market share in home textile exports rising from9% to 11%. The Indian manufacturers are gaining traction as brands seek to de-riskthemselves from single geography supply chain. India is in a favourable position on thebasis of its superior quality products and capability to grow. Apart from these variousother factors like availability of raw material expertise across the value chaincompetitive manufacturing costs and access to skilled labour continues to favour India.
ACTIVE AND ADAPTIVE
Just like the strength of a tree is known by its firm roots an organisation's strengthlies in its foundation. Over the last decade we have emerged as the leaders in offeringinnovative bedding solutions from India. Apart from our
sound balance sheet our service expertise experience and capacities have played animportant role in bringing stability and agility to the organisation.
Our innovation R&D knowledge capital and superior quality have helped us carve aniche in building a portfolio of value-added modern and functional products. We are on aconstant endeavour to understand the evolving trends of our customers.
We strive to actively adapt the changes required in our product portfolio and launchproducts that resonate customer demand. This has helped us gain a competitive edge andengaging relations with our marquee global customers.
Our growth is spearheaded by our strong brand recalls as we make a steady progress. Ouraspirational brand 'Boutique Living' provides premium bedding and superior comfort throughmore than 500 stores across India.
Risks and uncertainties form an inherent aspect of any business. We have a robustgovernance and risk management framework to alleviate the risk at the time of itsoccurrence. It also helps in evaluating and analysing various factors of volatilitypertaining to our business. This approach of
understanding and evaluating the environment is a core value at Indo Count. It helpsunderpin our plans and strategies and empowers us to make better and well-informed choicesin terms of decisions.
Sustainability is one of the most important agenda globally. At Indo Countsustainability is a part of our core culture and we have adopted it in every action andactivity of our organisation. Right from procurement to processes from people toenvironment every step across our value chain is done keeping sustainability in mind. Weinitiated a program in the agricultural sector - Project GAGAN - aimed at improvingsustainability in cotton farming for farmers. The other objective of this project is toensure supply of sustainable fibre.
We partnered with Walmart in Project GIGATON where suppliers set goals for reducingemissions across six pillars (energy waste packaging agriculture forests and productuse) and have i received Walmart's recognition being a Giga-Guru partner.
Our various sustainability initiatives have always been leading and guiding us bysetting standards through HIGG Index. HIGG is a global online platform wherein the Companydiscloses its performance across 8 different modules to customers. Your Company's hometextile facilities have achieved Level 3 which is a superior Verified score in HIGG Index.
Your Company has collaborated with the School of Design of the University of Leeds arecognised leader in textiles and sleep research. This will enable us to enhance ourinnovation capabilities to deliver new and exciting products into the home textile sector.Further we have adopted various measures viz. state-of-the-art multi-effect evaporatorto ensure: zero-discharge effluent treatment plant a reverse osmosis (RO) plant forrecycling waste and water facilities for rainwater harvesting and solar power as a partof sustainability measures.
CSR-EVERY SMILE COUNTS...
Indo Count is committed to create a larger societal value. It stands as a responsiblecorporate citizen to serve towards the greater purpose of prosperity in the society itgrows.
During the year our focus areas continued to be Education and Healthcare benefitingmore than 50000 students and 300000 people. The Company initiated sustainable cottonfarming in Warora Taluka of Chandrapur District in Maharashtra state to help farmersincrease the yield and earn a sustainable livelihood. This program has benefited more than1500 farmers across 10 villages and we aim to extend this benefit to 30 villages. We alsocontributed towards this pandemic by way of distribution of masks provision of food etc.
In adversity lies opportunity and as we navigate through the crisis we are quiteoptimistic to see opportunities generating in the near term. I remain confident that weare well positioned with appropriate strategies and resources to continue delivering valueto all the stakeholders and contributing to the broader vision of growth. We will continueto emphasise on increasing utilisation levels and growing the share of value-addedbusinesses.
The market requirement and consumer mindset may not be the same post easing of thelockdown. As a proactive response we are continuously studying the consumer landscape andoverall markets and thereafter quickly adapting to the changed dynamics.
We believe in serving our customers globally by offering them the right product at theright time and place thus fulfilling their aspirations and needs.
Strengthened with a diverse portfolio financial prudence robust governance along withaspiring innovations we are well placed to address all challenges and materialiseopportunities.
We are well-equipped with all the competencies to satisfy our customers and togetherwill mutually help businesses revive and maintain our market share.
VOTE OF THANKS
I take this opportunity to acknowledge and thank our Employees for their dedicationcommitment and contributions which have enabled us to achieve the results. I also thankour customers vendors bankers Central and State Government and all other stakeholdersfor their undeterred confidence trust and support. I thank all our colleagues for theirguidance during the year.
As I conclude I would like to place on record appreciation for all the efforts takenby the COVID warriors for bravely fighting this pandemic. I urge everyone to stay safetake care and continue to follow all precautionary measures.
|With regards |
|Anil Kumar Jain |
|Executive Chairman |