I am pleased to present to you the Annual Report of Iris Clothing Limited for FY2019-20. At the outset I hope you and your family are safe. The year under review hasbeen one of the most challenging the world has ever seen. The outbreak of COVID-19 andeventual lockdowns have brought a new order to the world. While it would take time forsome sense of normalcy to prevail I hope all of you are taking good care during thesepandemic times.
At Iris we swam against the tide and finished the year with a strong financialperformance. Our revenue during the year has been impacted due to COVID-19 and hasdeclined marginally by 2% as compared with last year and stood at ' 60.93 Crores. PATstood at ' 3.94 Crores declining by 22% over the previous year due to first timemigration to Ind-AS and COVID-19 circumstances.
This year we steadfastly focussed on solidifying our business fundamentals scaling upinnovation to cater to the evolving customer preferences. Our
strategic framework leverages our key strengths i.e. manufacturing distributioninnovation and branding. We have been taking big strides and are confident about the nextphase of growth.
From having to push our products in the initial days we are now witnessing a strongpull and DoReMe solidified its position as a reputed and trusted brand. This year weentered the winter clothing segment by developing a whole new range of fleece sweatshirtshoodies and polyfil foam suits for infants and childrens. These new categories willfacilitate us to diversify our product portfolio. Going ahead we intend to launch adedicated infant wear vertical with a wide range of products. Along with this we alsoplan to sharpen our existing product mix under the brand DoReMe to meet the risingdemand for our products.
Our manufacturing excellence is one of our biggest strengths. Steady investments insetting up of new plants and capacity expansion have enabled us to sharpen our edge. Youwould be delighted to know that we commenced production at our new state-of-the- artmanufacturing unit in Uluberia Howrah (West Bengal). The unit will help double ourproduction capacity from 4.2 million units per annum to 9 million units per annum andprovide us definite synergies and economies of scale. I am also happy to confirm that mostof our manufacturing units are back to pre-COVID-19 levels as we are seeing good tractionfor our products.
The thrust this year was also on expanding our distribution network and increasingbrand visibility. We added 80+ distributors across the country. Particularly we focusedon expanding our presence in Tier II and III cities to propel our product reach. Alongwith this we also commenced exports to Africa under DoReMe brand with plans to scale upin the coming years.
At the same time we are stepping up our digital marketing and branding initiatives tobetter mirror the customers' fast-changing needs.
A marked shift is being witnessed in consumer behaviour in terms
of growing preference for online shopping. Against this backdrop retailers will needto continuously innovate to fully tap the opportunities by deploying the best availabletechnologies social commerce and next-generation customer relationship management tools.
We are aggressively expanding our e-commerce sales and are in the process of developinga channel through our website. In addition we are also undertaking activities to enhanceour brand recall and customer connect on social media channels and eventually drivetraffic to our exclusive online store. Plans on the anvil also include partnering withe-commerce marketplaces to drive higher sales and venturing into the fast-growingorganised retail segment.
A key intervention among others has been the improvement in our fabric quality whichhas resulted in significant reduction of fabric wastage. We have also enhanced ourskilling and training process which in turn has resulted in better productivity of ourteam.
Going forward we foresee tremendous opportunities to grow in an otherwiseunderpenetrated organised children's wear market. The long-term demand drivers such asgrowing disposable incomes rapid urbanisation evolving customer preferences greaterbrand awareness and internet retailing remain intact. As the Company transforms itsapproach to customer experience and product marketing enabled by its cost excellence andtalented people I believe we are well positioned to drive high growth and deliverlong-term value to our stakeholders.
Before closing I would like to extend my gratitude to our employees for theirpersistent hard work and support. I would also like to thank our distributors supplierspartners bankers customers and all our shareholders for their unwavering trust andconfidence in us.