I take great pleasure in welcoming you to the Annual General Meeting of MW Unitexx forthe fiscal year 2010-11.
The year 2010 saw growth in all major developed and emerging economies. The globaleconomy recovered to record a growth rate of 5% in 2010 from 2.7% in 2009. On the back ofimproved economic conditions and strong demand, the textile industry too, which wasseverely impacted by the global slowdown, witnessed a smooth and broad based recovery in2010. Orders started flowing in from the developed markets of US and Europe. On thedomestic front too, there has been an increase in demand, as a result of rising disposableincome, rapid urbanisation and changing demographics.
Your company represents the consolidated textile business of MW Corp, bringing togetherthe 63 year old S.Kumars Limited (the market leader in uniform fabrics in India), KlopmanInternational (the largest player in Work Wear and Protective Wear fabrics in Europe) andS.Kumars Unitexx, (the Ready-to-Wear uniforms division) to form MW Unitexx.
Our stellar achievement for the year was the turnaround witnessed by Klopman, whereinKlopman was turned into a profit making entity. Klopman is Europe's largest Work Wear andProtective Wear brand with an enviable market share of over 30% in the European market.The two segments have the potential to grow multifold on the back of revival in theend-user markets such as construction, healthcare and hospitality, rising awareness amongend users about health and safety issues and product innovation. Legislation continues tobe the biggest driver of protective wear sales in Europe.
Klopman is now in the process of expanding its base to cover new international marketslike India, the Middle East, South Africa, Australia and New Zealand. Klopman is alsosetting up an R&D centre in Italy in order to develop multi-protective functionalityin various fabrics. The laundry segment has also successfully achieved 75 industrialwashes of their garments.
We are firmly positioned in the Indian market, with our bouquet of established productsin S.Kumars and S.Kumars Unitexx which together successfully encapsulate all uniform needsat every level in the market. The original uniforms brand S.Kumars that is synonymous with'uniforms' is well established in the Indian market as being the premier choice for highquality, value-for-money fabrics.. S.Kumars Unitexx, the Ready-to-Wear uniforms divisionof MW Unitexx, serves as a one-stop-shop for all uniform needs through its school uniformsbrand 'Medallion' and its institutional uniforms brand 'WorkStarr'.
The Indian uniform market is estimated at Rs 10,000 crores for the school uniformsegment and at Rs 2,000 crores for the corporate/institutional uniform market havingdrivers well in place for rapid expansion. In the corporate sector, with the increasingimportance of corporate branding, companies have been increasingly exploring opportunitiesfor creating an environment that best projects their brand. One of the main aspects ofcreating a brand image is an impressive corporate uniform. In the education sector, anincreasing private K-12 market is likely to boost the demand for branded school uniforms.Moreover, the Government has been taking initiatives to distribute free school uniformstranslating into huge orders for the players of this market. The market, which is largelydominated by unorganised players with a small capacity and inconsistent quality, offerstremendous opportunity for an organised player like MW Unitexx.
During the year, S.Kumars Limited commissioned a new Spinning unit in Pithampur, whichhas enabled us to acquire a Composite Mills status. This will help us further expandgrowth in India and expand our outreach to cover more markets like the Government andMilitary tenders.
S.Kumars Unitexx has successfully received continuous repeat orders from its esteemedclients including Tata Croma, Tata Teleservices, Voltas, Nissan, Plethico Pharma, MeruCabs, Bosch, Siemens and HPCL, among others. Moreover, the company is pleased to announcethe addition of a marquee of new clients including Blue Star, Thermax Ltd, Hikal Ltd,Volkswagen India, Arya Iron & Steel, Bharat Bijlee, Ador Welding, Sai Services,Mahindra Steel, etc, which would add to our growth in coming years.
Our renewed efforts in further expanding our business have started bringing in positiveresults for your company. During 2010-11, your company achieved a consolidated turnover ofRs 943.7 crore. MW Unitexx reported a EBDITA of Rs 82.78 crore and a net profit of Rs 12.5crores in the year under review. The consolidated production capacity of around 70 millionmetres per annum makes MW Unitexx the largest uniform manufacturer in the world.
MW Unitexx, with its inbuilt competitive advantages and well defined strategies, isready to take on the advantage of the expanding opportunities in the uniforms market inorder to grow at a faster pace in the future. Being an organized player in the Indianmarket backed by a six decade old relationship of trust built with our customers, theCompany would continue to strengthen its foothold the domestic front. And with ourdominant position in the promising European market, we are firmly placed to expand inother key international markets with products that come with high quality, consistency,value and durability.
Finally, we would like to thank all our investors, the Board, the management, ourdedicated employees and the community at large for their consistent support andcommitment; as well as our esteemed customers for their confidence in us.
With best wishes