INDIAN RAYON AND INDUSTRIES LIMITED - Aditya Birla Nuvo, Ltd

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A well-crafted marketing strategy, speedier response to changing customer preferences, through the launch of a slew of innovativecollections and brand extensions, coupled with consistent efforts to ensure sustainable leadership for its brands, have led to this commendableperformance.• Speed of innovation: A constant focus on innovation and design has and contunes to ensure that we are always on the cutting edgeof fashion. To keep in step, in this regard, our design studio at Bangalore has been contemporarised. Additionally for developingnew designs, Madura Garments have allied with leading technical professionals from Italy.Consequent to these initiatives, the Company was able to launch a series of line extensions. Foremost among these have been AllenSolly’s “Uncrushables”, Van Heusen’s “Durafresh”, “Super Permapress” from Louis Philippe and San Frisco’s “Zero Wrinkle”. The“Louis Philippe stretch”, a first in the Indian market, proved a path-breaking innovation as well. Brand extensions such as “Spiritus”from Louis Philippe and “Elements” from Peter England, aided the process.• Focused advertising support: To build a strong brand equity, entailed investing nearly 12 per cent of sales revenues towardsadvertising and retailing. These promotional efforts have enabled our key brands maintain their leadership position and contributesignificantly towards enhanced volumes and revenues.• Launching revolutionary concepts in garment retailing and beefing up of the distribution network aided the Company in attainingsuperior performance. During the year, retail space for its menswear, expanded by nearly 30 per cent.Use of effective, innovative and contemporary retail concepts and strategies such as the launching of “Planet Fashion” and “TrouserTowns” has helped fuel Madura Garment’s growth. Until now 8 “Trouser Towns” and 2 “Planet Fashions” in India, as well as 4“Planet Fashions” in the Middle East have been set up.• Strengthening of supply chain and process management efforts by the Company also enabled it to improve dormancy andreduce idle stock in the supply chain, in turn contributing further towards better divisional performance during the year.• Above all, a distinct people-oriented, performance driven strategy through the nurturing of its intellectual capital has paid richdividends. This is amply demonstrated not only by the superior performance of the Company, but importantly also an impressiveretention rate of over 95 per cent since the acquisition of the business.Improved profitabilityThe garments division’s operating margins before considering the advertising expenses and royalty paid at 18 per cent, comparefavourably with the operating margin of 16 per cent, clocked in the previous year. Apart from investing 12 per cent of its revenues inadvertising, the Company paid a royalty of Rs.8.2 Crores towards technology and know-how supplied by its overseas subsidiary. As aconsequence the divisional operating profit stands at Rs.12.5 Crores. Given the high growth levels in this sector and the steps taken toenlarge the markets for our brands manifold, coupled with heightened efficiency and cost optimisation, we believe that our profitabilitywill gain greater momentum in the years to come.Sector outlookThe outlook for the Garments business is positive. The size of the men’s wear industry is estimated to be around Rs.6,000 Crores, ofwhich branded garments account for a 25 per cent share. Changing customer aspirations and life styles, better purchasing power, theproliferation of brands and the emergence of large scale organised retailing in India has led to a shift towards the branded segment.Industry experts believe that the branded garments sector will grow by 15 per cent annually over the next few years. In their view thissegment will have 40 per cent of the men’s wear industry by 2010. While growth may be more pronounced in the trouser segment, givenits nascent stage, the casual wear shirts markets is also expected to register handsome growth in the foreseeable future.The imposition of excise duty on ready-made garments in the Union budget for 2001-2002 may prove to be an industry dampener,at a time when the economy is in a roil.123 8
On the upside is the structural change, viz., the de-reservation of the industry from the Small Scale Sector. This provides an opportunityto improve productivity, through modernisation of equipments at the supplier companies, which in turn will sharpen the competitive edge.In its wake, it will enable the industry recoup part of the growth, lost due to the imposition of the excise duty.Outlook for Indian Rayon Garment businessTo grow in revenues and earnings and to enlarge its markets in an extremely competitive environment, Madura Garment willleverage its brand equity optimally. Our growth strategy is multi-pronged:• Strengthening of marketing and distribution efforts towards sustainable growth will be our primary focus, going forward.Towards this end, the distribution network will be expanded significantly. The enlargement of our retail space by atleast 30 per centwill be pursued as well. The geographic reach of new retail formats such as Trouser Towns and Planet Fashions into mini-metros andsmaller towns is on the anvil.• Development of the market constitutes the second leg of our strategy. Our intent is to step up growth through acceleratingconversions from the ready-to-stitch mindset to the ready-to-wear customer delight. Intensifying of promotional efforts, launchinga slew of seasonal collections, coupled with brand extensions and innovative designs, will be the route to our ongoing progress.Reinforcing the Peter England brand, through the launch of Peter England trousers and elevating it to a complete wardrobe brand,will take us forward.• Enhancing our presence in the international market is the next leg of our growth strategy. Our efforts to strengthen brandedexports are already yielding results. Acquisition of global rights for key brands will help us push our branded export volumesaggressively. Contract exports will be a focal point. These aid us in fostering excellent relationships with large customers besidesexposure to technology, design and novel product ideas. Additionally, during slack seasons, when demand peters out locally, contractexports will help us in achieving balanced volumes.• Optimising cost is a priority to ensure superior returns from this business. Value analysis, controlling material costs, reduction ofwaste and improved supply chain management will enable efficiency improvements. To zero in on areas of cost improvement, wehave initiated “Project SPARK”, aided by a renowned consulting firm. We are confident that the implementation of therecommendations of their study will lead to achieving superior stock turnouts and cost reduction. To leverage technology for betterlogistics management, we have made investments in hardware and software. Collectively these initiatives should result in theimproving of margins significantly over the next few years.• Finally, towards ensuring growth in the medium term, the Company is tapping new growth segments. Launching Blazers andJackets in multiple brands and price segments, and exploring opportunities in the Women’s formal wear segment in the domesticmarkets is on the cards. These endeavours, will enable Madura Garments achieve superior growth and returns, going forward.VISCOSE FILAMENT YARN (VFY)2000-01 1999-00 % ChangeInstalled Capacity (TPA) 15,000 15,000 -Production (Tonnes) 15,496 12,621 23Sales Volumes (Tonnes) 15,326 13,507 13VFY Net Realisation (Rs./Kg) 148 155 (-) 5Net Turnover (Rs. Crores) 263.5 235.0 12- VFY 226.5 209.3 8- Caustic Soda and Chlorine 37.0 25.7 44Divisional Operating Margins (%) 23 23 -9
Page 1 and 2: BOARD OF DIRECTORSShri Kumar Mangal
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BALANCE SHEET ABSTRACT AND COMPANY
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BALANCE SHEET AT 31 DECEMBER 2000IN
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BIRLA SUN LIFE INSURANCE COMPANY LI
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REVENUE ACCOUNTFor the period 4th A
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MANAGEMENT REPORTIn accordance with
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BALANCE SHEETAs at 31st March, 2001
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BALANCE SHEETAs at 31st March, 2001
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Shareholder Information1. Annual Ge
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Relative Performance: Indian Rayon
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INDIAN RAYON AND INDUSTRIES LIMITED - Aditya Birla Nuvo, Ltd

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