<dhhead-FROM THE CHAIRMAN'S DESK</dhhead-
At Indo Count, we take pride in facing challenges head-on and
transforming them into opportunities that propel us forward, i ensuring sustainable I
success for our team, stakeholders, and community.
^Shareholders.
Adversity is often seen as an obstacle, as something to endure or
overcome; but in reality, it serves as a powerful catalyst for personal and collective
growth. When faced with difficulties, strong individuals and organizations are pushed
beyond their comfort zones, fostering resilience, creativity, and fortitude.
At Indo Count, we take pride in facing challenges head-on and
transforming them into opportunities that propel us forward, ensuring sustainable success
for our team, stakeholders, and community. Through perseverance and vision, we embrace
change, refine our strategies, and continue to elevate our impact in an ever-evolving
world.
A Year of Resilience and Reinvention
The past fiscal year was a demanding period that pushed us to reassess
our commitments to our stakeholders. Despite global uncertainties, we navigated the
landscape with determination, leveraging our transformative roadmap and future-ready
strategy - an approach that continues to validate our long-term vision.
The year unfolded amidst persistent geopolitical tensions, trade
uncertainties, and sustainability- driven pressures. However, disinflation and monetary
easing provided a sense of stability.
The global economy displayed resilience, with robust growth in the
United States fuelled by consumer spending and productivity. In contrast, Europe faced
headwinds due to high energy costs, while emerging markets like India flourished on
domestic demand. China, meanwhile, encountered turbulence within its property sector.
Despite these adversities, the year concluded on a cautiously
optimistic note, marked by steady— though still below pre-pandemic—growth.
However, the evolving global trade environment, particularly the imposition of U.S.
tariffs on Indian textile exports, has introduced a new layer of complexity. These
measures have heightened cost pressures and created uncertainty around sourcing decisions,
potentially impacting export volumes and pricing strategies. As tariff negotiations remain
fluid and geopolitical tensions persist, we recognize the need for agile, scenario-based
planning to navigate this increasingly fragmented and unpredictable economic landscape.
Financial Performance and Future Strategy
I am pleased to announce that Indo Count successfully met its volume
guidance for FY25, achieving sales of 106.4 million meters — a 9.8% year-on-year
growth. Our consolidated total Income stood at C4,191 crores, compared to C3,601 crores in
FY24, despite the global uncertainties impacting India and the volatility in the broader
textile market, we delivered a resilient performance, underpinned by operational
discipline and strategic investments.
• EBITDA: C573 crore in FY25, compared to C603 crore in FY24,
with an EBITDA margin of 13.68%, compared to 16.74% in FY24
• Profit After Tax: C246 crore, down from C338 crore in FY24
• Shareholder Rewards: In keeping with our commitment to value
creation, the Board has proposed a final dividend of C2 per equity share (face value C2
each), representing 100% of face value
We take pride in having maintained strong credit ratings, underscoring
the resilience of our business model and the growing relevance of our strategic roadmap:
• ICRA Ratings: Long Term - ICRA AA- (Outlook: Stable);
Short Term
- ICRA A1+
• CAREEDGE Ratings: Long Term
- CAREEDGE AA- ‘(Outlook: Positive); Short Term - CAREEDGE A1+
‘(Outlook changed from Stable to Positive in September 2024)
The Way Ahead
Having established a robust presence in the United States market, we
are now focused on elevating our position within the value chain.
This includes a commitment to premiumisation, expanding our
manufacturing footprint, and strengthening our team with experienced and dynamic talent.
By leveraging these strategic initiatives, we aim to multiply revenue,
enhance profitability, and write the next chapter of our success.
Strategic Expansion - Investing in Growth and Sustainability
Expanding capacity, strengthening capabilities, and acquiring strategic
assets have been key drivers of
our growth trajectory over the past years. The fiscal year 2025 was no
exception, as we invested US$ 72.2 mn. to reinforce our market position, enhance
sustainability efforts, and accelerate business expansion.
As part of our commitment to growth we invested C85 crore in acquiring
Wamsutta, a well-established nationa brand in the United States with a rich legacy
spanning 175 years. We also acquired the licenses for the brands Fieldcrest and Waverly,
strengthening our brand portfolio. With the acquisition of two manufacturing units in the
U,S., Fluvitex USA and Modern Home Textiles, for C264 crore, we enhanced our capabilities
within the utility bedding segment.
To further reinforce our manufacturing foothold in the U.S., we are in
the process of establishing a greenfield pillow manufacturing facility with a planned
investment of C130 crore. This state-of-the-art unit will support our expansion ambitions
and is expected to become fully operational by the end of FY26.
Our strategic move into the utility bedding segment has garnered
substantial market acceptance, strengthening your Company?s reputation.
Building Market Leadership Through Brand Strategy
Innovation and creative excellence remain at the core of our business
strategy. By leveraging the strengths of proprietary and licensed brands, we continue to
expand our global footprint in the premium bedding category. Our approach focuses on
catering to diverse consumer preferences through capitalisation of each brand?s
unique focus and strength, ensuring a superior product experience through exceptional
design and functionality.
Our goal is to solidify our position as a global market leader by
building trust with consumers by delivering exceptional quality, thoughtful design, and
uncompromising craftsmanship. Our brands are committed to excellence, ensuring that every
product meets the highest standards for those who value sophistication and reliability.
Closer home, our distinct domestic brand identity sets us apart,
ensuring greater recognition and stronger consumer loyalty. This differentiation fosters
repeat business and encourages positive word-of-mouth referrals, strengthening our market
presence. To amplify our reach, we have initiated comprehensive branding and marketing
programs, including in-store branding efforts, extensive hospitality catalogues, and
strategic collaborations with retailers and distributors to enhance brand visibility,
boost product awareness and sales, and solidify our presence within the industry.
Our continued participation in India?s largest textile trade fair,
Bharat Tex, reflects our commitment to boosting our visibility within our domestic
landscape and reinforcing Indo Count?s position as a market frontrunner.
Navigating the Evolving Economic Landscape
The global economy is projected to remain stable yet uneven across
regions in 2025. While advanced economies are expected to thrive, certain emerging markets
may face challenges due to geopolitical tensions, trade disruptions, and tighter financial
conditions. Inflation is likely to ease but will still be a concern for many economies.
The United States is expected to demonstrate resilience, driven by
strong consumer spending
and technological advancements. While easing inflation provides room
for flexible monetary policies, geopolitical uncertainties remain a risk. Robust labour
markets will likely sustain confidence, although housing affordability and fiscal policy
shifts may pose hurdles, demanding careful economic navigation. Tariffs may lead to higher
consumer prices and reduced purchasing power, but strategic trade negotiations could help
mitigate adverse effects.
India?s Bilateral Trade Agreement (BTA) with the UK, established
to accelerate economic collaboration between the two nations, is expected to boost trade
volumes, facilitate market access, and strengthen investments. This agreement positions
India as a key partner in the global supply chain, enhancing opportunities for businesses
across textiles, technology, and manufacturing. While the agreement brings new market
potential, successful navigation of regulatory frameworks and competitive pricing
strategies will be crucial in maximizing its benefits.
In India, economic growth is anticipated to remain steady in FY26,
supported by strong domestic demand and government-led investments. While the services and
agricultural sectors are expected to perform well, manufacturing may face challenges
related to raw material costs. Easing inflation should support monetary flexibility,
encouraging consumer spending. India?s robust exports and foreign investments enhance
economic resilience, though US tariffs and geopolitical conflicts present risks. However,
ongoing trade negotiations, strategic reforms, digitalization, and sustainability
initiatives position our country for steady progress, provided global trade disruptions
are managed effectively.
The Evolving Home Textiles Industry
Global Market Trends
The global home textiles industry is expected to witness steady growth,
driven by the increasing demand for sustainable products. Innovations in eco-friendly
textiles and E-commerce expansion will fuel industry momentum, although challenges such as
US tariffs and rising raw material costs may impact profitability. The Asia-Pacific
region, led by India, is projected to be a dominant player, requiring agile trade and
supply chain strategies to maintain competitive advantage.
United States Market Dynamics
The US home textiles market is expected to expand, fuelled by the
growing preference for sustainable bedding and smart fabrics. Online
commerce will continue to drive sales, but potential tariff increases
could raise costs, impacting affordability for consumers. Innovations in sustainable
textiles will be key to maintaining a competitive edge, although businesses will need to
navigate supply chain disruptions and evolving trade policies effectively to sustain
long-term growth.
India?s Home Textiles Sector: A Growth Story
India?s home textile market is poised for strong growth, driven by
rising domestic demand for bedding, bath and home products. Urbanization and higher
disposable incomes will further boost consumption, while E-commerce platforms will expand
the industry?s reach.
India?s position as a global export hub continues to strengthen,
with
sustainable innovations - such as organic cotton - gaining significant
traction. Government initiatives, including production-linked incentives, support the
expansion of manufacturing activities. However, challenges such as fluctuating raw
material costs, particularly in cotton, and global trade barriers, including US tariffs,
remain critical considerations.
By leveraging digitalization and sustainability, India?s home
textiles sector is well-positioned to maintain its global standing, ensuring longterm
growth through innovation and adaptability.
Commitment to the Environment and Sustainability
Climate change remains a critical global issue, driving conversations
among corporate leaders, consumers, and policymakers—all advocating for urgent
environmental action. Indian businesses, including Indo Count, are swiftly integrating
sustainability into their core values, ensuring responsible growth.
At Indo Count, sustainability is a priority across our entire
operational value chain. This year, your Company has made significant strides in
reaffirming our commitment to a cleaner, greener planet, earning a score of 66 on the Dow
Jones Sustainability Index (DJSI), placing us in the top 10% globally within the Textile,
Apparel & Luxury Goods sector — more than double the industry average score of
30.
This noteworthy achievement is a testament to our dedication to
sustainable practices.
Taking a scientific approach to climate action, we have joined the
global campaign led by SBTi (Science-Based Target Initiative) and are committed members of
the United Nations Global Compact. Through our Business Plan 2030, we have outlined six
key pillars of sustainability and mapped our progress against nine Sustainable Development
Goals (SDGs).
We continue to innovate by adopting plant-based dyes for our Pure Earth
collection, using non-edible
agricultural and herbal waste byproducts. This ensures that edible
portions remain available for use as food while the waste contributes to more sustainable
textile production.
As a new member of the U.S. Cotton Trust Protocol, we have aligned
ourselves with a global network committed to sustainability. This initiative enables
manufacturers like us to demonstrate responsible sourcing practices, assuring customers of
our dedication to environmentally conscious supply chains.
Making an Impact through Social Responsibility
We believe that the true measure of our organization is not defined by
our size, geographical footprint, or the range of services we offer, but by the positive
impact we create, both in the world and in the lives of those connected to us. Making a
difference is a priority at Indo Count, which is why we embrace every opportunity to
create meaningful change. From addressing sanitation and healthcare needs to supporting
education and
inclusivity, our CSR initiatives foster trust, raise awareness, and
inspire sustainable social transformation.
One of our key CSR projects involves providing health services in rural
areas and underserved communities through our mobile medical vans and health check-up
camps, helping individuals and families access quality medical care when they need it.
In a special initiative dedicated to eradicating tuberculosis, our
support for the TB department in Bhilad, Gujarat, has resulted in a significant number of
patients being declared free of tuberculosis.
We are deeply committed to the cause of children?s education in
rural areas, supporting multiple schools with E-learning programs, benefiting students -
including those with special needs - in Kolhapur and Bhilad. These initiatives equip young
learners with digital tools, enhancing their overall academic experience.
Empowering women has always been a priority at Indo Count. We provide
training and career development opportunities in the textile industry, fostering economic
independence and skill-building. Additionally, we proudly support the Indian Deaf Cricket
Association, advocating for inclusivity in sports and creating opportunities for deaf
women athletes.
Recognitions that reflect our Commitment
Over the past year, we have yet again been honoured with various awards
that reaffirm our dedication to excellence, innovation, and sustainability, as we continue
to set new benchmarks in the global textile industry.
Notable among these are three national-level awards from the
Confederation of Indian Textile and Industry (CITI) for our steadfast commitment to
sustainable practices and the Home Excellence Award for Supplier/Manufacturer awarded by
HFPA, New York, in recognition of our outstanding performance in expanding our business
and for our ongoing investments in sustainability and corporate responsibility.
Workforce Empowerment: Building a Culture of Aptitude
At Indo Count, we believe in fosterin a workplace where employees have
a voice, a sense of ownership, and the independence to thrive. This philosophy leads to
greater personal investment and engagement, driving success for both individuals and your
Company.
We facilitate our teams with training, tools, and development programs,
ensuring they have the skill sets required for their roles. By creating growth
opportunities, we encourage employees to take on new challenges, advance in their careers,
and contribute meaningfully to Indo Count?s success.
A strong workforce culture not only enhances job satisfaction and
productivity but also fuels innovation collaboration, and long-term organizational
excellence.
Charting the Path Forward
The outlook for the coming year remains optimistic, supported by trade
agreements and a rebound in global demand, particularly in the USA and India. However, the
introduction of new US tariffs requires careful navigation to ensure sustained growth and
stability.
Our ongoing investments are strategically focused on building a diverse
product portfolio, with a strong emphasis on premium and branded segments while expanding
our omnichannel presence. Our recent acquisitions and Greenfield expansion in the US
provide us with a distinct advantage, helping us mitigate potential challenges from
reciprocal tariff structures and reinforcing our foothold in key markets.
In addition to this, our strategy focuses on maximizing the value of
these acquisitions and accelerating growth in the utility bedding business, allowing us to
capitalize on emerging opportunities. We aim to double our revenue by 2028, driven by
innovation, market adaptability, and forward-thinking expansion efforts. Simultaneously,
we are committed to deepening our domestic market presence, strengthening brand
recognition, and reinforcing our leadership through strategic investments and expansion
initiatives.
A Note of Gratitude
At the close of yet another eventful year, I take this opportunity to
extend my heartfelt appreciation to our dedicated team, whose unwavering passion and
commitment enable our success. To our stakeholders, my sincere gratitude for your trust
and support in our vision.
To our communities, you fuel our commitment to meaningful progress,
driving us to add value outside of profitability, foster sustainable growth, and uplift
lives through empathy and responsibility.
Together, we are shaping a future of excellence, innovation and purpose
in the global textile industry. We look forward to continued success and new milestones
ahead. Thank you all.
Warm Regards
Anil Kumar Jain
Executive Chairman