ARVIND KAJARIA
Dear shareholders,
During the last financial year, the world headed towards a new normal.
This offered a degree of stability as the effects of the pandemic began to subside. Even
as the market trended towards the normal, there was a decisive change in the world as we
once knew it. Increased online purchases, higher digital-driven consumption and flexible
work models became the new norm.
The US e-commerce segment continued to grow in 2021. Even as in-store
retail recovered, the online shopping habit of consumers sustained double-digit growth
momentum.
The pandemic was coupled with lockdowns and the restricted movement of
goods and labour, which created a supply chain crisis. When restrictions were lifted,
production could not keep in step with revived consumer sentiment, causing an imbalance in
supply-demand. Port congestion, tight labour markets, scarcity of shipping containers,
increased ocean freight as well as raw material cum finished goods shortages translated
into inflation. The crisis had a deep impact on the e-commerce industry leading to
shipping delays and product availability constraints.
It was in the face of these challenges that your Company leveraged the
value from its operational efficiencies and automation investments.
This helped the Company create distinctive value for its brand
partners, strengthening its recall as a partner that took the business
of brands ahead. The company's e-commerce division's operational cash flows increased from
USD (0.39) Million in 2020 to USD 4.15 Million in 2021 and USD 4.83 Million in 2022, a
validation of its vision and competence.
Your company's end-to-end solution, coupled with consistently strong
marketplace ratings, strengthened the business of our brand partners. Strong capabilities
in sales and fulfilment of long-tail products were distinctive features of the company's
working during the last year. Your company's capability enhanced the visibility of their
products and profitability. The outlook continues to be optimistic; the market opportunity
of the long-tail segment is vast and would be a key focus area.
Going forward, the US e-commerce sector is expected to maintain
double-digit growth, especially as supply chain constraints ease.
We are optimistic as the structural value of the business is based on
long-term investments that will progressively pay off, translating into enhanced
outperformance and value- creation.
The company's e-commerce division's operational cash flow increased
from
USD (0.39) Million in
2020 to USD 4.15 Million in
2021 and USD 4.83 Million in 2022,
a validation of its vision and competence.