It's been another challenging year but thanks to the support of our stakeholders andthe successful launch of new ranges we've been able to build a solid path for the futureDear Fellow Shareholders Welcome to this year's annual review of Provogue (India) Limited.It's been another challenging year due to strong competition from deep discount e-commerceplayers new international entrants and the short term effects of demonetisation whichhad curtailed general retail demand in the second half.
We've had to take certain steps to reduce the footprint of our retail stores in orderfinancially strengthen our offline platform while at the same time bolstering ourposition in online and other channels.
To ensure that our brand remains strong we've launched a new youth collection"Provogue Sport" a casualwear-centric line that meets the needs of the youthmarket and maintains our strong connect with India's contemporary consumers.
Frankly we are still reeling from the effects of the fire in our Daman factory in2014 and which had such a negative impact on our market share but fortunately with thesupport of our vendor base we have a strong supply chain in place geared for the future.
We continue to realign the business into an omni-channel model and are positioning thebrand firmly on a youth-focused casualwear platform. With 72% of the population under 35and disposable incomes rising year-on-year the latent demand for branded fashion remainsstrong.
Fortunately we have one of the most powerful youth-centric brands in the country andthis will be our key to ensuring a strong future.
We've put in place new fast-to-market supply mechanisms that reduce stocks in thesystem and release working capital for growth and we are increasing our focus online tobroaden the Provogue offer and become available to potential customers in every corner ofthe country.
The strength of our brand has allowed us to develop a commanding position in theCorporate and Institutional sales segment and performance here continues to exceedexpectations year on year.
Opportunities for brand extensions continue to be presented and we are exploring selectareas for both new product categories across both online and offline distributionchannels.
The Provogue brand remains our major asset and the key to long-term value creation. Theinvestment we made in the brand since our inception continues to pay off and will be keyto building a robust future for the Company. I'm grateful for the continued support of ourbankers and our shareholders that is enabling us to weather the current business cycles infashion and retail. I want to also thank our loyal employees our business partners andsuppliers for their support and I'm confident we will come through this period and build asound future together.