It is my privilege to present before you the 8th Annual Report of SuumayaLifestyle Ltd for the year ended March 31 2019. The Company has shown good all-roundgrowth amidst numerous business challenges. It is my privilege and pleasure to talk aboutour Company's performance and the achievements during the previous financial year 2018-19.
In its very own humble manner the Company has been playing a very important andresponsible role in growing and giving shape to India's Readymade Apparel Sector. Thedomestic textile industry is one of the very important sectors of the Indian economy andwithin this the apparel segment is very crucial to our economic growth both from thedomestic perspective as it is one of the largest employment generating sector as well asfrom the perspective of earning valuable foreign exchange. For the company the year goneby has been a phenomenal year in many ways as after a successful IPO the Company hasembarked on a journey to scale new heights in several spheres - manufacturing marketingselling and distribution and employees strength.
The Company is primarily a player in the manufacturing and marketing of designer womenapparels - ethnic wear indo western wear and western wear under the brand name"Ekka" "Ira" and "Tag 9" respectively. In recent years thereadymade garment segment has seen vertical growth of 20%.
The largest consumer segment includes the age-group of 16-35 years that is brandconscious gives priority to latest design and quality and has high spending potential. Ifone were to think in terms of opportunity the domestic readymade garment market is stillin a budding phase. As far as the women apparel segment goes it is the second largestsegment constituting 38% of overall demand. The robust growth in this segment can beattributed to growing urbanisation rising income levels increased brand consciousnessrising number of working women and more college going females. Also the changing consumerpreference increased influence of media publicity and easy availability of apparel invarious colours size and patterns are the other drivers of demand in this segment.
The Company has been able to leverage this rising demand effectively this isattributable to our strength in sourcing quality fabric excellent in-house fabric designand production capabilities besides enduring quality and end-product finish. The brandphilosophy of the Company is to assure customer satisfaction by providing high qualitydesigner garments at affordable prices thus bridging the gap between quality products andaffordable fashion which is admired by the ever growing middle class. Eco-friendlygarments crafted from sustainable fabrics like organic cotton have created a niche inincreasing awareness in friendly consumer market. The Company has pioneered andestablished its foothold in organic cotton which gives it an edge over its peers. TheCompany aims to launch western wear for women and kids wear during the current fiscal tobe a one stop shop for women apparels.
During the financial year 2018-19 the Company's total income was Rs. 175 crore asagainst Rs. 377.43 crore in FY 2017-18. Taking into account the long term sustainabilitya strategic decision was taken of discontinuing trading business which had lower marginsand was highly working capital intensive. Although the total income reduced the netprofit soared by 150.34% to Rs. 3.45 crore for FY 2018-19 as compared to Rs. 1.45 crore inFY 2017-18. The healthy growth of bottomline is achieved due to channelizing resources onmanufacturing business of own brand with better margins establishing of a Pan-Indiapresence and penetrating in different markets.
Pragmatic business policies and strategies have enabled the company to be on thedesired path as envisioned by the management right from the outset. Some of thesignificant being continuous emphasis on scaling market penetration in virgin marketsreduction of costs and enhancing operational efficiency focus on developing andmaintaining long term sustainable relationships with our stakeholders manufacturingquality end-products and constant innovation in designs and prevailing trends. Furtherthe Company has incurred considerable expenditure in brand building positioningactivities during the year the benefits of which will be reaped going forward. All ofthese have reinforced our ability to stay ahead in the dynamic women apparels segment.
The Company raised funds through an Initial Public Offering by way of fresh issue andOffer for sale of Equity Shares during the financial year 2018-19. The incremental fundshave enabled the Company to escalate the scale of operations. Further to support thesustainable growth in various verticals like kids wear and women western wear the Companyproposes to raise further funds by issue of equity shares on preferential basis during thefinancial year 2019-20.
During the year the Company's employee strength has risen from 18 to 34 mainly thesales and marketing team. We are committed to provide continuous training to the skilledand unskilled manpower in a way that our human capital becomes an accelerating force inenhancing the productivity & profitability.
The Company has a promising future; especially the fruits of the efforts put in by thevarious teams will be visible by the end of FY 2020. Our employees are co-partners in ourprogress and constitute an irreplaceable resource. The Board of Directors and Managementare a unique and eclectic blend of millennial and seasoned senior generation who havestrong vision and execution capabilities. They understand the needs of variousstakeholders and incorporate ingenious ideas in various operations of the Company toachieve newer milestones relentlessly. During the previous year the hard work of themanagement got recognition in the form of "Jewels of Gujarat" Award foroutstanding entrepreneurship skills.
Credit is also due to the in-house design production team and research team - all ofwhom work relentlessly to create trendsettng and high quality merchandise. The Company hasexpanded the manufacturing capacity to fulfill the growing demand of the market. And ourSales & Marketing team which has worked untiringly to build awareness about our brandson various forums - B2B retail trade fairs corporate sponsorships and social mediaduring the year. The Company now has strong and expansive network of distributors agentswholesalers and retailers across India. The Company has sponsored outfits of the leadingcharacter in a famous Gujarati' Play. The Company has also started its Exclusive retailstores and "Store in Store" in
Metros and Tier II cities like Mumbai Surat Bhopal and Aurangabad where the saleshave been robust. As is the order of the day we have recently also set up our presence one-commerce platforms to sell products online. All these measures have contributed to thesoaring top line brand visibility and brand trust.
We are eagerly looking forward to a year of achieving new milestones and unlockingshareholders value.
On behalf of the Board of Directors I once again express my gratitude to all ourstakeholders viz customers investors suppliers partners and especially our people.