It is a delight to address you on the completion of another eventful and successfulyear. The world economy has witnessed slowdown this year. The Indian economy in tandem isalso experiencing a slowdown due to global and domestic economic slowdowns having adepressing impact on consumer discretionary spending. Matters have been further aggravateddue to elevated crude prices, weakening rupee and the resulting inflationary stress onconsumers.
After a difficult trading year, I am pleased to be able to tell you about theenhancements we have made in our business. Many of the initiatives we have taken arebeginning to show interesting results and while it is still early days, we see goodprogress and feel that we are moving in the direction of growth.
The slowing retail market has been a major challenge for the industry, besides thedifficulties posed by high cotton fabric prices. Our counter-strategies of distributionexpansion and product range increase, coupled with margin protection have enabled us todeliver satisfactory results.
I am glad to report that your Company has been able to sustain operational stability,thanks to our strong market position, geographic spread of scale and low-cost but highquality products. Our ability to deliver in difficult times is attributable to ourstrategic positioning as a Branded consumer play. We are consolidating our position byfocusing on higher value added products, developing newer products for need gaps andexpanding market boundaries. Your Company has always focused on building strengths for thefuture and continued to invest in building capabilities. We will continue to invest ourresources in taking these initiatives forward.
Customer focused product:
Our product ranges are now being developed within a revised framework designedto meet the aspirations and value perceptions of our core customers more accurately;
Our design team created new designs which are more customer focused and willprovide great value;
The new collection has been well received by our Wholesale customers and ourrenewed sales team is confident that we are going forward with the right product;
Given the scenario above, the Company's focus continues to be on growing the Business.Our position in terms of product quality and fashion content is at par with the bestglobal benchmarks.
The Board had declared a final dividend of Rs. 2/- per equity share for the year2011-2012. Considering the profitability of the Company during the year, as well as to bein line with best practices vis-a-vis dividend payout ratio, your Directors are pleased todeclare a final dividend of Rs. 2/- per equity share of the face value of Rs. 10/-.
Your Company has always believed and practiced high standards of professionalism,maintaining the standards of corporate governance, integrity and transparency and wouldcontinue to do so. It is these values which have shaped the character of your organizationand helped in building wealth for all stakeholders. We have further professionalized theorganization, instituted better Appraisal mechanisms and improved systems and processes.
We are continuing to build our distribution network with additional store numbersenhancing significantly during the year.
We are managing the business cautiously in order to increase full-price sales volumes,limit discounting, manage inventory levels, control cash and build confidence with ourcustomers.
I would like to record my appreciation to all my colleagues in the Company for theirdedication and commitment to the Company in all difficult times. There is no doubt in mymind that the same spirit and commitment will enable the Company to take its rightfulplace in the industry as one of the most Top-of-mind branded, stylish, comfortable andcost-efficient lingerie manufacturers as the supplier of choice in the market it serves bydifferentiating itself, its products, its processes and its service to the customer.
My grateful thanks to our eminent Board of Directors for their valuable guidance andadvice, which have steered the Company's progress and profitability over the decades, andhelped sustain highest standards of Corporate Governance.
My deepest appreciation and thanks to our employees at all levels for their excellentperformance, ethics, teamwork, solidarity and commitment to the Company at all times,which has contributed to our consistent profitability in challenging times. We assure youwe remain as committed as ever to the Company's goals.
L Vinay Reddy
Chairman & Managing Director