My dear fellow stakeholders''
At the onset'' I am happy to announce that despite challenging
macro-economic environment'' our textiles business demonstrated strong
performance'' further strengthening our position as one of the leading
players in the home textile segment. Recently we have been ranked 2nd
among the Home Textile Suppliers (Source: Home Textile Today (HTT) Top
15 Supplier Giants'' 2nd Jan 2012) in the US. Not only this'' we were
also rated as the largest supplier of bath towels and second largest
supplierofTopof Bed productsin US.
Over the last several years'' we have achieved global manufacturing
scale with integrated facilities and a diversified product portfolio
making us a one stop shop for Home Textiles. The extensive product mix
has enabled us to reach out to a larger consumer base. The
technological superiority along with full fledged Design Studio has
enabled WIL to deliver a wide range of world class quality products to
meet rising consumer needs.
With our sheer determination and Dare to Commit motto'' we have been
able to build an enviable list of clientele like Bed Bath & Beyond''
Macy''s'' Wal Mart''J C Penney'' Target'' IKEA to name a few. We offer our
customers the advantages of economies of scale'' thus enabling them to
offer consistent quality at competitive prices at their stores. Our
focus on superior performance and product quality at affordable prices
makes us a leader in innovative product offerings in the market''
accounting for almost 20% ofWIL''s turnover in FY11'' and approximately
33% in FY12'' with an overall target to reach 35% in the current year. I
am happy to mention here in 2011'' we were ranked a 2nd highest (in
terms of Sales) in the US market with a CAGR of 14.7%'' a healthy growth
rate at a time when most of the companies have shown negative growth
With our expertise'' global manufacturing'' diversified products and an
international presence'' we are well poised to carry on this sustainable
performance. In the current scenario'' the global textile market is on
an uptrend with opportunities in developing economies. Closer home'' the
Indian Market is growing in importance as a result of the increasing
demand for textile products in the country. There is also a favorable
shift in manufacturing conditions from China to India mainly because of
surplus cotton'' cheap labour & demographics and lastly favourable
Government policies in India.
The FY12 has been a transitional year for Welspun''s textile business.
The most significant step was the consolidation of textile business
under a single umbrella'' which has re-created a unified stronger
entity. This simplified structure provides WIL and its stakeholder''s
better control on all manufacturing and branding activities and
presents an opportunity for the company to increase its market share
globally. We have now an increased presence in newer markets like
Canada'' South Africa'' Kenya'' Australia'' Japan'' China'' Korea and Russia.
This entry into newer markets has helped us in diversifying the
geographical risks. The company also exited all the non-performing
international manufacturing and marketing entities'' thereby ensuring
stronger and sustainable business growth and financial performance. The
closure costs are appearing as one-time losses in the financial
Additionally'' we have also taken steps to pare down the retail network
in India by reducing Welhome chain of stores. Going forward'' preference
will be given to shop-in-shop concept rather than setting up our own
retail outlets. We are confident that all the above steps will have
positive impact in the financial performance for FY13.
Further'' seeing the tremendous potential in the Advanced Textiles
market'' we forayed into this segment starting with the Non- Woven
category. The company has put up a new plant which has started
production in October 2012. In a short span of time we are already
certified with J&J'' Covadian'' Rocklin and Reckitt Benckiser. Some of
the specialised products that we are currently manufacturing in
Advanced Textiles are top end baby care wipes'' hygiene wipes''
filtration cloth and automotive nonwovens. WIL is well placed with high
end global scale capacity'' skilled workforce'' product knowledge
expertise and coordinated marketing approach to capitalise on the
technical textile growth. We are thus'' well placed to strengthen our
position as a global player.
In FY12'' we also received quite a few accolades from our customers and
industry bodies. It is a matter of great pride that we won the Golden
Peacock Eco-lnnovation Award for our Eco Dry Towels. The award is a
testimony and recognition to our special thrust on CSR and environment.
We also won six trophies (four gold and two silver) from TEXPROCIL (The
Cotton Textiles Export Promotional Council of India) thus extending our
Finally'' on behalf of my colleagues on the Board of Management'' I would
like to personally thank our employees throughout the world for making
this success possible. It is their dedication and contribution that is
bringing us closer to ourgoals.
B. K. Goenka