Chairman
Dear Shareholders,
It is a delight to address you on the completion of another eventful and successful
year. The world economy has witnessed slowdown this year. The Indian economy in tandem is
also experiencing a slowdown due to global and domestic economic slowdowns having a
depressing impact on consumer discretionary spending. Matters have been further aggravated
due to elevated crude prices, weakening rupee and the resulting inflationary stress on
consumers.
After a difficult trading year, I am pleased to be able to tell you about the
enhancements we have made in our business. Many of the initiatives we have taken are
beginning to show interesting results and while it is still early days, we see good
progress and feel that we are moving in the direction of growth.
The slowing retail market has been a major challenge for the industry, besides the
difficulties posed by high cotton fabric prices. Our counter-strategies of distribution
expansion and product range increase, coupled with margin protection have enabled us to
deliver satisfactory results.
I am glad to report that your Company has been able to sustain operational stability,
thanks to our strong market position, geographic spread of scale and low-cost but high
quality products. Our ability to deliver in difficult times is attributable to our
strategic positioning as a Branded consumer play. We are consolidating our position by
focusing on higher value added products, developing newer products for need gaps and
expanding market boundaries. Your Company has always focused on building strengths for the
future and continued to invest in building capabilities. We will continue to invest our
resources in taking these initiatives forward.
Customer focused product:
• Our product ranges are now being developed within a revised framework designed
to meet the aspirations and value perceptions of our core customers more accurately;
• Our design team created new designs which are more customer focused and will
provide great value;
• The new collection has been well received by our Wholesale customers and our
renewed sales team is confident that we are going forward with the right product;
Given the scenario above, the Company's focus continues to be on growing the Business.
Our position in terms of product quality and fashion content is at par with the best
global benchmarks.
The Board had declared a final dividend of Rs. 2/- per equity share for the year
2011-2012. Considering the profitability of the Company during the year, as well as to be
in line with best practices vis-a-vis dividend payout ratio, your Directors are pleased to
declare a final dividend of Rs. 2/- per equity share of the face value of Rs. 10/-.
Your Company has always believed and practiced high standards of professionalism,
maintaining the standards of corporate governance, integrity and transparency and would
continue to do so. It is these values which have shaped the character of your organization
and helped in building wealth for all stakeholders. We have further professionalized the
organization, instituted better Appraisal mechanisms and improved systems and processes.
We are continuing to build our distribution network with additional store numbers
enhancing significantly during the year.
We are managing the business cautiously in order to increase full-price sales volumes,
limit discounting, manage inventory levels, control cash and build confidence with our
customers.
I would like to record my appreciation to all my colleagues in the Company for their
dedication and commitment to the Company in all difficult times. There is no doubt in my
mind that the same spirit and commitment will enable the Company to take its rightful
place in the industry as one of the most Top-of-mind branded, stylish, comfortable and
cost-efficient lingerie manufacturers as the supplier of choice in the market it serves by
differentiating itself, its products, its processes and its service to the customer.
My grateful thanks to our eminent Board of Directors for their valuable guidance and
advice, which have steered the Company's progress and profitability over the decades, and
helped sustain highest standards of Corporate Governance.
My deepest appreciation and thanks to our employees at all levels for their excellent
performance, ethics, teamwork, solidarity and commitment to the Company at all times,
which has contributed to our consistent profitability in challenging times. We assure you
we remain as committed as ever to the Company's goals.
L Vinay Reddy
Chairman & Managing Director