trust all of you are safe and in good health
The Year under Review
It gives me immense pleasure to share that we ended FY21 on a positive note with strongperformance despite the challenging environment posed by the pandemic. Your Companyregistered a record volume growth of 26% to 78.2 million metres. Revenue from operationson a consolidated basis grew by 21% to Rs 2519 crore. EBITDA registered substantialgrowth by 74% to Rs 415 crore and Net profit by 241% toRs 249 crore. Our growth during theyear was driven by an increased demand for home textiles globally. Further ourpersistent focus on enhancing our domestic brand expanding our current capacity cateringtomorelocations globally and creating a sustainable value chain has helped us thrivebetter.
The pandemic propelled our people to deliver to their full potential. Our growthreflects the resilience agility and preparedness of our organisation. Our value-drivenstrategies helped us remain afloat as we navigated through this phase. We primarilyfocussed on two areas: i) Our employees' safety and ii) meeting the increased globaldemand for bedding products. As Work from Home' has become the New Normal'more time is being spent at Home' thereby increasing the consumption of HomeTextile. Home' being the centre stage of life and lifestyle has resulted in tractionin demand for home textile products. I am pleased to inform you that your Company hasachieved the highest level of sales volume in FY21 and we are now actively adding morecapacities to cater to the increasing demand.
Our Expansion Strategy
In March 2021 we announcedabrownfieldinvestment capex plan of Rs200 crore towardsincrease in the bed linen capacity by 20% adding adequate cut & sew facilitiesenhancing the capacity for Top of the Bed (TOB) products and modernising the existingspinning capacity. These investments will lay foundation for the next phase of growth forthe Company.
Introducing New Brands
Your Company launched new innovative brands "Wholistic" "Sleep Rx"and "Pure Earth" in International markets to meet the emerging consumer needs.
In the domestic market we continued to focus on brand and community building for ourdomestic brand "Boutique Living". We launched Layers' a new value drivenbrand in the domestic market. We have increased the reach of our domestic brands throughvarious E-commerce platforms Multi Brand Outlets and Large Format Stores.
The Global Context
The world is still under the effects of the COVID-19 pandemic. However vaccinerollouts have strengthened business confidence boosting the morale as the economygradually moves towards recovery mode. With the easing of lockdown restrictions andresumption of business the industry is gradually returning to pre-pandemic levelsdemonstrating a distinctive change in the market dynamics. Demand suggests a recovery withan increase in both e-commerce and brick and mortar stores. Brands are now selling theirproducts online and offering store pickups to ensure customers' safety.
In the global context the US and EU nations dominate the larger portion of textile andapparel imports. However India retained its position among the top three textile andapparel exporters globally. The Indian economy is now witnessing replacement demandowing to the shift in global sentiments towards China. The same can also be accredited toincreased demand from the global big box retailers. During the pandemic the big boxretailers remained open to sell essential commodities.
We are Capable Adaptable and Reliable
Indo Count's strong foothold places it in a favourable position to leverage on theprevalent opportunities. Our resources capacities and a dedicated team supported us todeliver even amid such difficult times. Our state-of-the-art manufacturing facilitiesglobal supply-chain network a robust balance sheet and liquid financial positionoutlines our capabilities. We are geared up for increased demand and adding the necessarycapacities to fill in the gaps. There is a significant disruption in the industry andconsumer preference is increasingly evolving to value-added categories like health andwellness. Our superior quality innovation and knowledge capital have made us adaptableand helped us carve a niche in the market for value-added products. We have overcome thelogistical issues post the pandemic and are now focussed on increasing sales through theB2C D2C and omni channels. With customer centricity at our core we are expanding ourofferings. As we continue progressing our successful brand recalls are driving oursuccess.
Sustainability is an integral part of our organisation. It helps us to lead withexcellence and create holistic value for all the stakeholders. At Indo Count as a part ofour consistent efforts towards shaping a sustainable future we have been taking variousinitiatives towards energy and water conservation sustainable farming climateprotection. In collaboration with Walmart Indo Count has contributed towards ProjectGigaton for reducing GHG emissions. We have been felicitated with the title GigaGuru' for three consecutive years. We have also been recognised as a top performer in therecent Walmart's Global Sourcing Sustainability Summit. Our various sustainabilityinitiatives have always been leading and guiding us by setting standards through HIGGIndex. We also launched an initiative called GAGAN' to help farmers to cultivatesustainable cotton through Better Cotton Initiative (BCI). Going forward we continue tocontribute to UNSDGs and take a greener approach across our value chain.
CSR - Every Smile Counts...
The key philosophy that drives our Corporate Social Responsibility (CSR) initiatives isguided by our belief Every Smile Counts'... This legacy will continue to thrive ourCSR activities.
The Company's CSR initiatives have touched the lives of more than 400000 people. Ourfocus areas continued to be "Healthcare" and "Education" supported byCSR activities in the areas of women empowerment agriculture and livelihood water andsanitation.
During the year we stood by the communities affected by the pandemic and providedventilators and necessary medical support. We served groceries and meals to daily wageearners the migrant labours poor and marginalised tribal population during the period oflockdown.
Keeping in view the larger SDGs the Company intends to be a significant contributor tothe benefit of underprivileged communities.
We have set ourselves on a brighter path and are optimistic about the opportunities inthe near-term. As the world is recovering from the effects of the pandemic Home'has retained its position as a safe haven among people globally. With this as thebackdrop we are anticipating continued demand from retailers and consumers. We are wellpoised to accomplish the next phase of our growth.
As an organisation we are confident of our position as a global textile exporter. Weare moving ahead with our prudent strategies and resources to continue deliveringsustainable value and contributing to the larger vision of development. Our focus willalways remain towards constantly improving utilisation and expanding the share of ourvalue-added products.
Vote of Thanks
We all went through an unprecedented situation and I would like to thank all ourstakeholders for their continued support during these difficult times. I take thisopportunity to thank and appreciate all our employees for their hard work dedication andsacrifice that have helped us to achieve our goals during such a challenging year. I alsothank my fellow Directors on the Board for their advice and guidance from time to time. Iwould also like to express my deep gratitude to all our customers suppliers bankers theCentral and State Governments shareholders and all other stakeholders for their continuedsupport confidence and trust on us.
|Stay Safe... |
|Best regards |
|Anil Kumar Jain |
|Executive Chairman |