As always it is my privilege to present to you the Integrated Annual Report of KitexGarments Ltd.
Join me in the journey as I walk you through the financial year 2021-22 which hasbeen a testimony to the pandemic as well as the geo-political skirmishes evaluatingproductive and economically viable alternatives and redefining ways in which businessesare conducted in the coming decades.
Sneak peek at history
As the Greek philosopher Epictetus says "The trials you encounter will introduceyou to your strengths. Remain steadfast and one day you will build something thatendures."
The saga of Kitex is undeniably an expression of this quote as the company hasgradually evolved to today's state-of-the-art 5500 plus employees manufacturing planthaving a global influence. Kizhakkambalam a small Village near Kochi where we arelocated has endorsed our progression in terms of both economic growth as well as socialresponsibility. Encountering various impediments with a tough stance has been our forteand we have always dealt with challenges with a bottom-up approach.
Business - Excellence in Execution
Kitex Garments Ltd. has earned the title of being the world's second largestmanufacturer of cotton and organic cotton garments for infants and children with onemajor principle - Excellence in Execution. And with excellence comes a holistic approachtowards business. Our fully vertically integrated unit which exemplifies the phrase 'Yarnto garments' is equipped to cater to the demand from international retail brandstraversing across the globe.
We have always invested in robotic technology which has raised the bar for accuracy andquality as well as efficiency and higher output. Some of the salient features of ourproducts include the use of chemical free hypoallergenic and sustainable materials useof stain resistance materials and child safe dyes. The company imports majority of itschemical requirements and manufactures all fabric requirements in-house to adhere tostringent safety norms.
As a step further we have gained grounds in forward integration by having ourproducts available for the customers of USA on the company's own e-commerce websitethrough our own brands like Little Star
Lamaze apart from other retail giants like Gerber Childrenswear LLC Carters Cartersbrands H & O Fashions Buy-Buy Baby Ross Stores Amazon Target Sam's Club andWalmart.
Business - Expansion project
During the year under review board of directors have decided to implement Rs. 2406crores expansion project in the state of Telangana for which your company has floated asubsidiary company with joint investment by company with its sister concern i.e. KitexChildrenswear Ltd in the ratio of 70:30. The said expansion project will be at KakatiyaMega Textile Park Warangal District and at Integrated Textile Cluster SitarampurRangareddy District which involves setting up of a vertically integrated fibre to apparelcluster constituting manufacturing unit related to spinning knitting processinggarments manufacturing packing and associated activities. I expect that first phase ofexpansion would be completed by June 2023. For more details you may please refer ourDirector's Report under head "future prospects".
Quality defines us
Since our production is focussed on new-borns and tiny tots quality standards areuncompromised unconditionally. The yarn and other raw materials are sourced keeping inmind the quality sensitive nature of the products. There is massive emphasis oncleanliness hygiene and efficiency adhering to world standards. Complying with stringentsafety standards all our products pass the 'saliva test' in any international lab.Comfort is another feature that we factor in our products considering the end users.
Care in the DNA
With the concept of "care" embedded in our DNA care for its workforce carefor the environment and care for the society are the driving forces behind our businessmodel which is clearly the secret ingredient for success in our endeavour.
Care for our people - Vision without people is irrelevant
Infant garment manufacturing business is an extremely people-intensive process hencemanaging our human capital effectively is of prime importance. The company has had arealistic and sensitive approach towards people issues and believes that the comfort ofeach of the staff members associated with us is of utmost importance. They are paid thebest emoluments in the Industry and all social security benefits. The company providesfree accommodation and medical basic shopping ATM and recreation facilities to alloutstation staff as an extension of the staff accommodation. Our state-of-the-art kitchencaters to our employees by providing them free nutritious food.
For Kitex human resources are an invaluable asset and as an organisation there is adeliberate attempt made to be receptive and accordingly respond to trends determining thefuture of work and hence the workforce. Workforce health and safety are of primeimportance and this has resulted in lower attrition with higher productivity.
I am saddened that Mr. E M Paulose our board member is no more. We are indebted to himfor his valuable contributions during his tenure. May his soul rest in peace
Care for the Goviroomeot - EoviroomGotally compliant eoterprise
Today as I speak with you I am extremely proud of the fact that Kitex meets therigorous international norms for anti-pollution and environmental protection. We maintainan Environment Management System which helps to minimize the impact of our operations andprocesses on the earth's ecosystem. Reduce recycle and reuse is our mantra for all theresources we consume. With the usage of energy efficient equipments water conservationschemes and the green belt system within the factory premises to cite just a few of themultiple initiatives we are all geared up to contributing to the bigger task ofpreserving the home of the entire human race - Earth!
Care for the society - CSR - the mainstay
Kitex measures growth not just economically but also socially. Transforming lives iswhat Corporate Social Responsibility means for Kitex. Over the years we havemetamorphosed the village we are based in improving livelihoods food security programseducational initiatives housing infrastructure health plans and many more.
Rural employment and women empowerment are at the heart of our CSR activities inaccordance with the Government of India's key initiatives. Gender diversity being a highpriority 54 % of 5524 employees are women thus reflecting a gender sensitiveorganisation and a work environment oriented towards women.
Weaving and Knitting numbers through the year
Operating revenue at Rs. 7883 Mn rose by 73% whereas EBITDA at Rs.1707 Mnincreased by about 70%. This increase was the outcome of scaling up of production andsubsequently sales on the back of revival in exports in the post pandemic environment.PAT is at 1282.83 Mn increased by 114%.
Mapping our success with that of India's
Infant and children garment industry is an evergreen one given that world populationis constantly growing. With a strong clientele having international presence Kitex hasbeen reshaping the contour of infant garment exports from the country. Having a 'preferredsupplier status' for our global clients is a jewel on the crown especially since it is arural India grown brand reaching all corners of the world representing "BrandIndia" globally.
It is a pleasure when an Indian brand is being demanded globally thereby reinforcingthe fact that in the not-so-far future the Indian story will be the torch bearer for theworld.
Mr Sabu M Jacob
Chairman and Managing Director.