Stronger through adversity
My dear fellow shareholders
I believe being resilient during unprecedented circumstances whilestaying committed to the principles of innovation and ESG is a hallmark of sustainablebusinesses. In this regard the strong operating and financial performance delivered byWelspun India Ltd (WIL) despite all headwinds makes your Company truly sustainable.Despite historically high levels of commodity prices logistics disruptions persistenceof the pandemic and onset of the Ukraine-Russia conflict WIL delivered revenue growth of27% with the core business of Home Textiles alone crossing the billion- dollar mark.
FMCG of home textiles is now a reality
While the core B2B continued to be strong it is heartening that theemerging businesses of Brands E-commerce Flooring and Advanced Textiles together grew by44% during the year and contributed 26% to overall revenues. Our brands have beenwitnessing a rapid increase in awareness and acceptance with revenue growth of 40% with astrong traction in the international and domestic markets. Two of our brands in thedomestic market - SPACES and Welspun have independently gained recognition. Our expandedretail footprint in 6642 stores across 482 towns resulted in the Domestic Retailbusiness delivering a growth of 66% during the year and recording its highest-everrevenue. The recently launched Flooring business too registered new milestones with over100% growth on the back of considerable investments in the state-of-the-art plantexpansion into new geographies and two patent filings. On an overall basis WIL has 35patents filed globally the largest for any Home Textiles player enabling our unwaveringfocus on innovation as a key value driver.
Shaping equitable inclusive and sustainable growth
At Welspun we believe in creating shared value and pursuing the pathof inclusive growth with circularity embedded across our entire value chain. In line withthis objective
WIL has set benchmarks for the industry through its differentiatedefforts in all areas of Environmental Social and Governance (ESG) where severalsignificant outcomes have already been achieved. This has been reflected in the rating byDow Jones Sustainability Index (DJSI) one of the world's foremost sustainability indicesas part of its corporate sustainability assessment 2021 where the Company secured an ESGrating of 48 which is 62% higher than the average industry score. Another significantrecognition during
FY22 came from the Government of India with WIL being ranked 1st under'Best Industry' category at the National Water Awards by the Union Ministry of Jal Shaktifor its water stewardship. The Company was also recognised with a Jury Special MentionAward for its STP to recycle and reuse domestic sewage at the Frost & Sullivan andTERI's Sustainability 4.0 Awards 2021 which honoured companies embedding Sustainabilitywith Economic Value Creation.
Your Company has been industryleading driven by its unparalleledcompetitive edge that comes from a highly-differentiated business model investments innew-age technologies like Blockchain and unique value proposition to customers. Some ofthe macro headwinds do continue to persist and even rise in intensity inflationarypressures being a major one. We are seeing inflation particularly in Western economiesrise to levels not seen in several years. This is likely to affect business and consumersentiment in the medium term. As a business however we remain focused on strengtheningour journey as a manufacturer to 'FMCG of home textiles' with increasing contribution froma set of trusted brands enabled by investments in innovation and technology and thesuccess we are already seeing in our business-to-consumer (B2C) and direct-to-consumer(D2C) initiatives globally.
Our progression and accomplishments could not have been possiblewithout the sustained support and contribution of all our stakeholders. I express mysincere gratitude to all Welspunites as well as to our customers shareholders Board ofDirectors Bankers and all other institutions and individuals who have stood by us throughour journey. I look forward to the future with great optimism.
B. K. Goenka