On behalf of our Board of Directors it is a great pleasure to share with you ourFY2017 Annual Report. While navigating through a challenging business environment ourmanagement delivered satisfactory performance during the year. We took affirmative stepsto deliver sustainable financial performance on a consistent basis.
As the market in US and Europe continued to be tough we focused on preserving ourleadership in the business and on strengthening our capabilities. We managed to maintainindustry leading margins
a testament to the proactive and timely decisions taken by our management team.
A Year of Building Brands
We maintained a healthy equilibrium as we focused on growing our product lines andimproving the existing product assortment. We added new customers and geographies wellsupported by our state-of-the-art design manufacturing and retail capabilities and serveddiverse markets and continents. With most of our business coming from exports we aim tobecome the most endearing trusted and inspiring house of jewellery brands.
Our single-mindedness lingers on branded jewellery advancing more latitude in theglobal jewellery market. We are also fortifying our retail trails by leveraging our assetlight franchisee model which is helping us moderate our capital allocation. We continueto scale higher by enriching our aura in the online jewellery market through theE-Commerce model. Our technology and manufacturing capabilities are being capitalised tosupply jewellery at affordable price points. We are now fast transforming into amulti-brand jewellery house supported by several brands targeting different consumersegments.
We are an integrated player in the jewellery industry in India with a portfolio ofstudded gold platinum and silver jewellery. We have been the pioneers in jewellerymanufacturing with our cutting-edge manufacturing facilities and patented technologieswhich have revolutionised low-cost jewellery manufacturing in India. With a range of over50000 designs we cater to a diverse audience across 20 countries in 5 continents. Wecurrently operate our owned stores across metros Tier 1 2 & 3 cities. We derivestrength from our domain expertise and the experience of our promoters in the gems &jewellery industry. We have also established a leading edge in design and creativitypresence across the jewellery value chain and an established global clientele.
Spearheading a Transformation
A vast library of 11000+ IP designs has converted us into a pivot for jewellerycustomisation and forerunners in digitisation. We have catalysed a colossal industrytransformation by moving away from the archaic way of Brick & Mortar format toInternet-based and Made-to-Order be-spoke jewellery through our low-cost and revolutionaryformat of retailing branded jewellery. Our advanced high-tech equipment such ascomputer-aided design (CAD) software and computer-aided manufacturing (CAM) hardware suchas 3D laser printing and patented technologies enables us advance this technologicalrevolution. Our design team uses the latest technology to produce distinctiveexceptional elegant bespoke and intricate jewellery pieces utilising our low-costformat.
We are also experiencing good traction in our overseas business with new customersgeographies and strong brands. We are gradually engaging in 2nd and 3rdlaunches of our products due to the growing disposable incomes and rising aspirationlevels. With the pattern of online buying rising jewellery we sell through the e-Commerceroute is rising. We have signed exclusive manufacturing and supply agreements with severallarge jewellery retailers in US UK and Europe and added design cells in several regions.Our footprint in South Africa and Australia is also surging.
Bullish on Industry Growth
We continue to take advantage of the industry revolution through our brands and cutomerrelationships. We are quite bullish on the growth of organised jewellery. We are embarkingon new initiatives to propel the company into newer dimensions of revenue generation. Ourstrategy continues to be that of growing our cash generating business and strong brandingefforts leading to margin expansion. Our domain expertise in design coupled with worldclass manufacturing facilities puts us in a favourable position to address thesechallenges.
Moving ahead we evolved through a long journey transforming us into a business thatrepresents the pinnacle of jewellery design quality and innovation. We also maintain ourstandards for governance and transparency for shareholders investors and stakeholders.
Throughout the year we continued to take proactive measures to counter macro-economicchallenges and implementing key strategic initiatives. This was done with the aim ofsecuring future continuous growth in revenues and net profit. Considering our initiativesand underlying fundamentals we are in a strong position to continue our long-term growthambitions.
We thank our customers shareholders and partners for choosing Tara over the past year.We look forward to delivering exceptional products and sustainable value for them again inthe next financial year.
Chairman & Managing Director