INDUSTRY STRUCTURE AND DEVELOPMENT
Over the recent years, Indian footwear industry has seen a change in perception from
basic consumption to a fashion and style consumption, thanks to an increase in disposable
income, growing fashion consciousness and increase in discretionary spending. This has
helped the Indian footwear industry too, which is now the second largest producer and
third largest consumer of footwears in the world. The Indian footwear industry has
witnessed a metamorphosis growth with the advent of new retail brands in the market. The
industry has grown by leaps & bounds in the last decade with the introduction of new
technology and inflow of investments. Your Company is predominantly engaged in the
manufacturing of Light Weight Hawai Chappals, Canvas Shoes, PVC Shoes, Synthetic Leather
Chappals, Fancy Chappals and also engaged in manufacturing of EVA Injected Footwear. Your
Companys brand name LEHAR has built up a better image over the other brands
available in the local market. The major demand in non-leather footwear sector is of PU
Chappals because it is the cheapest footwear available in India. The PU Chappals have
captured 75% of demand in rural areas, because in rural areas people use this product as
multipurpose footwear.
OPPORTUNITIES
India is attracting various established fashion brands of the world as well as
retailers who are re-orienting their focus on the domestic footwear market, which has led
to a significant increase in the market of retail outlets nationwide. Footwear industry
has growth potential to be a $80 Billion industry by 2030, which means a CAGR of
approximately, 20% in the next 15 years with great potential for exports and a huge
domestic market.
The footwear industry has tremendous potential to create 20 lakh new jobs at the grass
root level primarily for weaker section of society. Women, SCjST, poor and needy in next 5
years, meeting the agenda of the Central Government in job creation.
The identified challenges and threats before the Indian Footwear and Leather Industry
are Indias competitiveness cheap and under invoiced imports, inadequate infrastructure,
largest unorganised sector in comparison to organised, multiplicity of tax indication and
trade regulation, lack of branding, capacity inadequacy, lack of skilled labour &
labour wages, environmental issues and inadequate investment.
The industry operates in a complex regulatory environment and fully abides by law and
regulations of the country it operates in. Any change in the laws and regulations
governing the leather and footwear industry may affect the business and financial
performance of the industry.
SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE
The Company is engaged in the business of manufacturing of Footwear, so the Management
considers "Footwear" as the only business segment of the Company.
INDUSTRY OUTLOOK
There is still lot of potential for growth in the turnover of the Company because the
demand of Companys products in the market is fast increasing. The Company is specially
developing an innovative and different type of product as per requirement of the market.
There is a strong Demand of Eva & PU product in the market hence management has
planned to expand its production capacity to cater the increased demand.
RISK AND CONCERN
Your Company continuously ascertains risks and concerns in the Footwear Industry
affecting its present operations, future performances and business environment. In order
to overcome such risks and concerns your Company adopts preventive measures as considered
expedient and necessary.
MARKET RISK
The Company has quoted and/ or unquoted investments which are exposed to fluctuations
in stock prices. LFL continuously monitors market exposure in equity and, in appropriate
cases, also uses various derivative instruments as a hedging mechanism to limit
volatility.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
The Company has an adequate system of internal controls comprising authorization
levels, supervision, checks and balances and procedures through documented policy
guidelines and manuals, which provide that all transactions are authorized, recorded and
reported correctly and compliance with policies and statutes are ensured. The operational
managers exercise their control over business processes through operational systems,
procedural manual and financial limits of authority manual, which are reviewed and updated
on an ongoing basis to improve the systems and efficiency of operations. The company
places prime importance on an effective internal audit system. The internal control system
is supplemented by internal audit, regular review by the management and well-documented
policies. The Company has an independent internal audit system to monitor the entire
operations and services. The top management and Audit Committee of the Board review the
findings of the Internal Auditor and takes remedial actions accordingly.
DISCUSSIONS ON FINANCIAL PERFORMANCE VIs-A-VIS OPERATIONAL PERFORMANCE
During this Year (2021-22), the company has made net profit of Rs. 250.55 Lakh and
last year (2020-21) net profit was Rs. 97.64 Lakh. This Year turnover of your
company stands at Rs. 13,747.14 Lakh as against last year turnover Rs. 14,712.34
Lakh.
MATERIAL DEVELOPMENTS IN HUMAN RESOURCES I INDUSTRIAL RELATIONS FRONT INCLUDING
NUMBER OF PEOPLE EMPLOYED
The Company always believes that its growth is closely linked with the growth and
overall development of its employees. The Company is committed to upgrade the skill of its
employees and to create an environment where excellence is recognized and rewarded. The
target is to place right people at right position and to enhance the efficiency, working
speed, competency and time management skill of its employees. The Companys endeavour is
to create an environment where people can use all of their capabilities in promoting the
business of the Company. Number of people employed, as at March 31, 2022 is 695 on roll
including contractors.
CAUTIONARY STATEMENT
The report may contain certain statements that the Company believes are, or may be
considered to be "forward looking statements" that describe our objectives,
plans or goals. All these forward looking statements are subject to certain risks and
uncertainties, including but limited to, Government action, economic development, risks
inherent in the Companys growth strategy and other factors that could cause the actual
results to differ materially from those contemplated by the relevant forward looking
statements.
BY THE ORDER OF THE BOARD
for Lehar Footwears Limited
Sdf-
(RAMESH CHAND AGARWAL) CHAIRMAN
DIN: 00108287
Date: 10.08.2022
Place: Jaipur
