Dear Members,
I hope this letter finds you and your families well and safe. In the
context of the COVID-19 pandemic, I am glad to share that your Company successfully
executed vaccination drives for all the employees and continues to maintain a sharp focus
on supporting their health and safety.
Amid a year that continued to be characterised by several headwinds, I
take great pride in sharing that your Company delivered a strong performance. This was
achieved
through focused execution of the business strategy and the perseverance
of the team.
Further, despite the short-term challenges of the pandemic and cost
inflation, your Company?s investments in branding, expanding the distribution
network, and innovation continued unabated. These concerted actions have restrengthened
the business and positioned it well to create better value for all stakeholders.
Performance Review
Just when it seemed that the world was emerging from the throes of the
COVID-19 pandemic, the second wave in several countries once again disrupted global
economic recovery. The Russia-Ukraine conflict towards the close of the financial year
aggravated the pre-existing challenges of excessive volatility in commodity prices,
inflationary pressures, and supply chain disruptions.
Overcoming these external challenges, your Company demonstrated
tremendous growth in terms of revenue and profitability for the FY 2021-22. These results
demonstrate its execution prowess, agility, strategic clarity, and supply chain
resilience.
An important highlight was that the production of sewing threads
increased by 22.62% over the previous year, which resulted in sales increasing by 36.88%
over the previous year. The higher sale also benefitted from your Company?s increased
focus and success in the value- added export segment. During the year, your Company also
implemented various policies, which contributed to its strong performance.
Expanding Boundaries
H.P Cotton Textile Mills had applied for the Performance Linked
Incentive (PLI) Scheme introduced by the Government of India for the promotion of MMF
(man-made fibre) Apparel, MMF Fabrics and Products of Technical Textiles. It gives me
immense pleasure to share with you that your Company got selected for the PLI Scheme in
April 2022. This opens up exciting opportunities for your Company to expand business
boundaries. In accordance with the PLI Scheme, a wholly-owned subsidiary, HP MMF Textiles
Limited, has been established.
Awards And Recognition
Your Company?s various endeavours were duly acknowledged through
marquee awards. In this regard,
I am delighted to share that H.P Cotton Textile Mills was conferred the
Runner-up Award in the category of Best MSME Global Business of the Year? by
ASSOCHAM.
Closing Comments
As a result of all the progress in FY 2021-22, your Company enters the
new fiscal as a far more capable organisation and better prepared to handle the evolving
demand, continuous market volatility and an uncertain economic environment. Your Company
aims to exceed the internal benchmark so that it can consistently deliver value to its
customers, and also perform as a dependable supplier.
My sincere gratitude to our valued customers for their steadfast
support. I would also like to take this opportunity to extend my thanks to our employees,
management, leadership team, investors, partners, suppliers, distribution network and our
shareholders for their unflinching trust and support.
Warm regards, |
Kailash Kumar Agarwal |
Chairman & Managing Director |