The past year has been an exciting and eventful one for the Indian Economy and closer home to the retail & apparel industry with the economy emerging from effects of the Demonetisation and the introduction of the game changing tax reform, the Goods & Services Tax (GST).
India''s macro economic indicators continue to remain strong as ever and the consumption economy is on the rebound. However, there is a visible change in consumption patterns - what with a young, energetic, technology savvy consumer is emerging and who will shape the nature of consumption in the decade to come.
India lives in its villages it was once said. This is changing rapidly as India urbanises with more young men and women getting added to the workforce that will drive the nature of clothing consumption for years to come. Those who have a strong sense of pride in who they are and where they belong and whose need for smart casual style of dressing will only increase.
As one of India''s leading apparel brands for men and now boys in the Smart Casuals, Indian Terrain is well poised to take advantage of this emerging consumer trend. The past two years of strong growth have created a base for the future.
However, as I look into the horizon it is clear to me that what brought us here in terms of business models, channels and strategies will not necessarily take us there. We must see what we need to question and what we need to change. Even as we have grown rapidly with stores, department stores and other forms of retail we haven''t been able to fully leverage the same to reflect in a stronger balance sheet as should have been. This strategy is being reworked to recognize the change in the landscape of retail, the emergence of E Commerce as a dominant channel here to stay and the constant value perception being sought by the consumer.
I am aware that the strengths and the brilliant future I see for the brand as its founder and chairman, may not as easily shine through and reflect themselves to all of you, in a year where some of the metrics for the evaluation of the state of your brand, may not be coming through as clearly as it should.
This was also a year when we had to change to a new standard of accounting for reporting, which had led to a changes to recognition and restatement of revenues in a different manner. It has more truly and contemporaneously reflects the state of our business which has now shifted over the past couple of years to a more retail centric model.
I am also aware that the continuation of the share pledge despite the strong fundamentals of the company does concern many of you. I wish to dispel any concerns that you may have. The prevailing banking environment as you are all well aware is extremely challenged and under these circumstances the banks have sought time for the same. I have taken this up most strongly and am confident of a resolution to the same at the earliest.
You, our shareholders are the bedrock on which, we have been able to build such a strong brand and company. As your Chairman I want to dispel any notion of concern you may have had and assure you that even as we build a strong vibrant brand we will build a stronger, model company.
The coming year will be one of consolidation, one of strengthening every facet of our business and preparing a stronger business model for the next phase of growth which will be in hinterland India, will be driven by E Commerce and Technology and which will be built on innovation and agility in supply chain.
Lastly a word for the passionate people I am surrounded by in Indian Terrain. From the sales staff at our stores to the leaders of our company I am indeed proud of the deeply passionate, energized and committed Terrainers whose only motto daily is to serve our customers and make this the brand of choice for our community. I salute them and am privileged to be leading such a team.
I am indeed very excited about the future of the brand and the company based on where we are positioned today and where our country is going over the next decade.
I am delighted to have you all along with me on this exciting journey and hope the report of your company''s road travelled is interesting and reassuring to each one of you and my placing the explanation for the common fears that may be lurking in the minds helps you all see the way ahead truly through our eyes and see it shining as bright as we do.
Thanking you all for your invaluable trust and belief in us as a brand.
Chairman & Managing Director