Alok Industries
BSE: 521070 | NSE: ALOKTEXT | ISIN: INE270A01011 | Textiles - Weaving
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Chairman's Speech | Year : Mar '09 |
The financial year that has gone by was probably the most turbulent in recent memory. 2008-09 started with economies witnessing the most concerted and synchronised price rise for all asset categories in more than a century: the prices of agricultural products, minerals and metals, oil, commodities and foodstuffs were all headed north. After more than a decade, India witnessed double digit inflation. And oil prices were hovering around the US $ 147 mark, with pundits predicting that it would breach the US$ 200 barrier. Then came the crash. It started as a housing problem in the US, morphed into a sub-prime crisis and then, triggered by the bankruptcy of Lehman Brothers on 14 September 2008, became a full- fledged financial meltdown. Liquidity was sucked out; banks were closed down and its effects spread to every continent. Banks and financial institutions became wary of lending and funds for expansion or indeed sustenance became hard to access. India was no exception. In the last Annual Report, I had said that Indias growth is being pegged at 8% for 2008-09 – the final estimates came in at 6.8%. The global and Indian textile industry was also adversely impacted in this financial slowdown: exports shrunk, units were shut down or reducing production and cost cutting measures became the order of the day. In the middle of this challenging economic environment, your Company closed the financial year ended 31 March 2009 on a decent note, maintained its exports level and started the new financial year with a healthy order book. Let me share some key numbers, the details of which are available in the accompanying Management Discussion & Analysis. Net sales increased by 37.16% to Rs. 2,976.93 crore. The Apparel Fabrics division reflected growth of 83.65%, driven mainly by domestic demand. Nearly all other divisions also grew by double digits over their previous years performances. - Export income was at Rs. 1,054.50 crore for the year ended 31 March 2009; which constituted 35.42% of sales and were maintained at the previous years levels. In fact, manufactured exports (i.e. not including exports of cotton) actually grew by 32.93% over its previous years levels to reach Rs. 1,004.89 crore - the first time in the history of your Company when manufactured exports have crossed the Rs. 1,000 crore -mark. - Earnings before interest, taxation, depreciation and amortisation (EBITDA) increased from Rs. 591.38 crore to Rs. 822.61 crore - a year-on-year growth of 39.10%. - Profit before taxes (PBT) reached Rs. 284.99 crore (2007-08: Rs. 297.59 crore). - Profit after tax (PAT) reached Rs. 188.37 crore in 2008-09 (Rs. 198.66 crore in 2007-08). - The book value per share for your Company as on 31 March 2009 stood at Rs. 89.10, compared to Rs. 76.47 as on 31 March 2008. - Earnings per share (EPS) wwwww Rs. 8.81. These are not numbers that have been achieved by chance or by good fortune. They are a result of years of planning and execution, coupled with the power of our conviction. We have always believed that scale, technology, integration, quality, product range and diversification wll be and remain the keys to your Companys success, whatever be the challenges that it faces. Let me elaborate a bit on them. Even before the Multi Fibre Agreement (MFA) regime was lifted, your Company was of the view that in order to grow, size and integration would matter. We believed that cutting edge technology will be a key enabler in producing quality textile offerings that would be appreciated by the global customer and would provide your Company with significant advantages. Your Company, therefore, had embarked on a series of capacity expansions, keeping in mind two objectives: (a) to create global scales of operations and efficiencies; (b) to be present in all elements of the textile value chain. Over the past few years, your Company has commissioned state-of-the-art plants at its manufacturing locations, along with world class infrastructure in terms of design and product development capabilities, laboratories, captive power plants and waste treatment and recycling units. These initiatives have made your Company what it is today: among Indias largest integrated textile solutions companies. We believe that your Companys range of products has been and will be one of its most distinguishing features. Your Companys integrated operations make it present across the entire textile value chain; from cotton and polyester yarn to apparel fabrics, home textiles and garments. Your Company, in effect, caters to practically the entire wish list of the customer; not just for small quantities, but in global size and scale. The integration has also made your Company cost and time efficient. Global retailers are now looking for vendors who can supply them with large volumes of high quality products within a short time-frame; they prefer to buy from a few large vendors rather than multiple small ones. This buying consolidation has meant that your Company, which offers large volumes of products across the textile spectrum at competitive prices, has an inherent advantage and acceptability in global markets. But size, scale and range of products are not enough. We believe that the quality of our product offerings is and will continue to remain a key enabler in your Companys growth path. To ensure this, we have, over time, committed your Company to produce the best quality of textile products. Your Company is, among others, certified for OEKO – Tex Standard 100, GOTS / EKO for sustainable textiles, fair trade standards (FLO), ECO CERT and SKAL for its fair trade and organic cotton products. Moreover, I am proud to inform you that your Company, has, during the year, received the IMS (Integrated Management Systems) Certification encompassing ISO 9001:2000 , ISO 14001:2004, OHSAS 18001:2007 and SA 8000:2008 at your Companys units viz., Silvassa, Vapi, Navi Mumbai and HO. I am given to understand that your Company is the only textile enterprise in India to have received this certification. Presence across the product spectrum is one part; we believe that presence across multiple geographies is also a key to success and a major risk mitigator. Today, your Company exports to over seventy countries across the Americas, Europe, Asia and Asia Pacific, Africa and the Middle East. As stated earlier, your Company crossed Rs. 1,000 crore in manufactured exports for the first time in 2008-09; I believe that this upward growth will continue into the future. Your Company believes that long-term growth can come about only if it is sustainable and further, sustainable growth is non-negotiable. To us, sustainable growth means not only growing shareholder wealth, but growing stakeholder wealth. Our stakeholders encompass our customers, our business partners, our employees, our society at large and the environment in which we operate. Your Company is deeply committed to sustainable growth and the initiatives in sustainable development are holistic, based on the simultaneous pursuit of the triple bottom line – social equity, environmental quality and economic prosperity. This translates into abiding commitment for the three Ps: People, Planet and Profits. In its pursuit of social equity, your Company is committed to provide a safe and healthy working environment for its employees, training its people in best manufacturing and safety practices and involving itself in community education initiatives. Your Company has undertaken a number of sustainable measures that ensure that environmental resources are not depleted; these include the quality of raw material resources that your Company uses, recycling waste materials and minimising manufacturing practices that adversely impact climate change. Moreover, your Companys initiatives in organic cotton help towards making cotton cultivation more environment-friendly. On the economic prosperity front, your Company has focused on three segments: local employment, women empowerment and infrastructure development. Your Company helps to raise the quality of life in communities where it operates and be an employer of choice. In Silvassa and Vapi, your Companys presence and investments have contributed to the local economic health and have created significant employment opportunities. Recognising that women empowerment can contribute to social development and local wealth creation, your Company has trained local tribal women for its plants. A large part of infrastructural development, especially in Silvassa, can be ascribed, though not attributed, to your Companys presence. We have also directly contributed to infrastructural development by initiating a slew of measures relating to healthcare, education, meals for schoolchildren and facilitating potable water to surrounding villages. You can read about your Companys initiatives on sustainability in greater detail in a separate section that accompanies the Management Discussion & Analysis. We believe that our initiatives in creating sustainable manufacturing excellence, quality products and stakeholder wealth have been recognised, appreciated and supported by our shareholder community and by our financial partners. During the year, your Company came out with a Rights Issue of 40.87 shares of face value of Rs. 10.00, each with a premium of Re. 1.00, which were offered in the ratio of 83 shares for every 40 shares; the issue value aggregated to Rs. 449.60 crore. The Issue, which opened on 31 March 2009 and closed on 22 April 2009, was oversubscribed 1.15 times. Looking to the near-term future, the macroeconomic indicators are starting to show positive trends. We seem to be witnessing the first signs of recovery from the global downturn, especially in Asian economies; a stronger growth is forecasted for 2010; and your Company is well-positioned to leverage this to the maximum. Therefore, I am confident that your Company will continue to grow and generate greater stakeholder value in the coming years. Let me thank all our business partners, financial institutions and customers for their belief in us and our strategies. To Team Alok, my sincere compliments for the efforts that they have put in during a year that challenged the world. And to you for your support as a shareholder. Yours sincerely, Ashok B. Jiwrajka Executive Chairman |
|
![]() | |
| Source : Religare Technova | |
![]() | |




Online


