page industries ltd share price Management discussions


The global economy’s ebb and flow has been colossal over the last two years with the pandemic acting as a catalyst for extreme decline in economic activity and the world governments stepping up to assist in its rebound. This led to a fair economic recovery in 2021 of about 5.5%. While this was underway, several parts of the world had to fight a surge in Omicron cases along with emergence of newer variants while dealing with vaccine inequity. Just as countries were beginning to rebuild their economies, China came face to face with its worst ever Covid-19 outbreak since the first wave. This along with China’s zero-tolerance Covid policy resulted in severely affected supply chains and disruption, falling production lines and the possibility of staring at its worst economic recession. As the IMF has cut down the country’s growth forecast from 4.8% to 4.4%, it will play a pivotal role in global supply chains and in turn, global economic recovery.

At the start of 2022, the world was ushered into troubled waters yet again – this time, with a serious geopolitical crisis at hand as Russia decided to wage a war against Ukraine. This meant that financial bodies revisited estimates and governments across the global were staring at lowered projections. Besides significant humanitarian impact, the Russia-Ukraine war will severely set back the global recovery, increasing inflation even further. Global growth is projected to slow from an estimated 6.1 percent in 2021 to 3.6 percent in 2022 and 2023. Beyond 2023, global growth is forecast to decline to about 3.3 percent over the medium term.

Overview of the World Economic Outlook Projections (%):

2022 2023
World Output 6.1 3.6 3.6
Advanced Economies 5.2 3.3 2.4
Emerging Market and Developing 6.8 3.8 4.4
Emerging and Developing Asia 7.3 5.4 5.6
China 8.1 4.4 5.1
India 8.9 8.2 6.9


Source: World Economic Outlook, IMF


While research reports predicted growth in India’s GDP for 2022-23 by 8.0-8.5%, the Reserve Bank of India (RBI) stated that India continues to face headwinds from global spill overs from the geopolitical tensions, elevated commodity prices and moderating external demand. In doing so, the RBI slashed the GDP growth from its earlier forecast of 7.8% to 7.2% for the fiscal year 2022-23. While the country is expected to experience a normal spell of southwest monsoon, along with government-led extensive vaccination program and ebbing of the third wave, the persistent supply-chain bottlenecks, rising crude oil prices and the worsening external environment continue to pose a threat.

On the supply side, while agriculture continued to lend an unwavering support to economic recovery, manufacturing and construction exhibited sharp rebound to recover more than 100 per cent of corresponding pre-pandemic output levels. These developments reflect uptick in consumer and investor sentiment, release of pent-up demand, especially in construction supported by growing public capex and housing cycle upturn. Recovery in services sector has improved to reach corresponding pre-pandemic levels at 100 per cent, reflecting gradual adaptability of contact intensive service sectors to the pandemic situation.

On the demand side, the recovery has been broad based. While investment and exports have achieved more than full recovery of corresponding pre-pandemic FY 2019-20 levels, private consumption has also improved to recover 97.8% of corresponding pre-pandemic levels and stands fully recovered in H2 of FY 2021-22. These estimates confirm strengthening of economic recovery on the back of rising capex in public sector, increasing resilience of India’s exports, and improved consumption levels. Growth in income coupled with improved mobility and e-commerce augurs well for higher levels of employment.


Source: Business Today, India Brand Equity Forum (IBEF), Outlook India


The global apparel market shrunk from US$ 1.6 trillion in 2019 to US$ 1.3 trillion in 2020, reflecting a decline of about 22%. However, in 2021, the market recovered by approximately 16% to reach US$ 1.5 trillion and is expected to reach approximately to US$ 2 trillion in 2025, growing at a CAGR of 4% from 2019.

Cotton prices in India increased significantly in 2021. The Cotlook-A index started the year around 77 and peaked at approximately 120 in November 2021, an increase of 55%. Prices of all other major fibers also increased in the range of 35-45%. All year long, the industry su_ered immensely from global container shortage resulting in unprecedented increase in vessel shipping costs, thereby adding to increase in costs.

The Indian domestic textile and apparel market was estimated at US$ 99 bn in 2021-22 and has seen a 30% recovery since 2020-21. The market is expected to grow at 10% CAGR from 2019-20 to reach US$ 190 bn by 2025-26.

The Union Budget 2022-23 presented various incentives to help the textile sector cover losses incurred during the pandemic and grow as a global player. The Pradhan Mantri Mega Integrated Textile Region and Apparel (PM-MITRA) Parks were two flagship schemes announced by the Ministry of Textiles, Government of India. These schemes aimed to support establishment of 7 world-class mega textile parks, while Production-linked incentive (PLI) scheme focused on encouraging large scale projects in manmade and technical textile segments.


Source: Ministry of Finance and Wazir Analysis


The Indian textile industry is one of the largest in the world with a large unmatched raw material base and manufacturing strength across the value chain. India is the 6th largest exporter of textiles and apparel in the world and the textiles and clothing industry is one of the mainstays of national economy. The share of textile and apparel (T&A) including handicrafts in India’s total exports stands at a significant 11.4% in 2020-21. India has a share of 4% of the global trade in textiles and apparel. The uniqueness of the industry lies in its strength both in the hand-woven sector as well as in the capital-intensive mill sector which is the second largest in the world. Traditional sectors like handloom, handicrafts and small-scale power loom units are the biggest source of employment for millions of people in rural and semi urban area. It provides direct and indirect employment and is a source of livelihood for millions of women and rural population. The sector is aligned to the Government’s key initiatives of Make in India, Skill India, Women Empowerment and Rural Youth Employment. Source: Ministry of Textiles

Men’s Innerwear

Men’s innerwear contributed 7 percent to the overall men’s wear category in FY 2020 (USD 1.9 bn) and is expected to grow at 10.3 percent to contribute nearly USD 3.1 bn in FY 2025.

Women’s Innerwear

Women’s innerwear category was estimated at approximately USD 4.4 bn in FY2020 and is expected to grow at a CAGR of 14 percent and nearly double by FY 2025 (USD 8.5 bn).

Kids Wear

The kids wear market in India stood at USD 14 bn (FY 2020) and is expected to grow at a CAGR of 10.5 percent and grow to nearly USD 23 bn by FY 2025. Uniforms, t-shirts/ shirts, and bottom wear are the three biggest categories contributing 37 percent, 24 percent and 18 percent of the overall kids wear market as on FY 2020. Kids’ denims segment is showing the fastest growth rate of 13 percent among all the other product categories (FY2020 - FY 2025).

The innerwear industry in India is emerging as one of the fastest growing categories in over the last few decades. Once known for being merely an essential innerwear has transformed as a trendsetter in the apparel industry and is associated with style, comfort, and a fashion statement. The Indian innerwear market currently estimated to account for ~9 percent of the total domestic fashion retail market. The pandemic fuelled work from home and hybrid work culture along with increasing awareness on health, fit, and personal hygiene coupled with the growing millennials are factors leading to the growth of the innerwear market.


Source: Magzter, Wazir Analysis


The Athleisure category was already growing at a rapid pace even in the pre-Covid times. Today, work from home and hybrid work culture blurred boundaries between casual and athleisure clothing allowing consumers to spend their whole day in a comfortable outfit. This coupled with the growing fitness needs of consumers are contributing to a significant growth of this segment. While the retail fashion industry was severely hit by the pandemic and is slowly making a comeback, reports suggest that there is likely a consumer shift from seasonal fashion to ‘all-year-long’ comfort wear with athleisure fitting the criteria. The Indian men’s casual and activewear category in FY2020 was estimated at USD 7.7 bn and is expected to grow at a CAGR of 13.9 percent to USD 14.9 bn in FY 2025. Women’s casualwear category in FY2020 stood at USD 0.9 bn and is expected to grow at a CAGR of 16.1 percent to USD 1.9 bn in FY 2025.

Boston Consulting Group estimates that despite a 27% drop in size of overall apparel market and will be largely driven by the functional athleisure category.


The Asia-Pacific region, and India and China in particular, is expected to experience a higher growth rate for swimwear than other regions in the next five years. Swimming has gained much popularity in the country both as a sporting event as well as a recreational activity. Increasing expenditure on lifestyle goods, coupled with an upsurge in preference for swimming as a leisure and recreational activity, is driving the growth of the swimwear market. Today, most schools in India recognize swimming as an important life skill and have included the sport as a necessary co-curricular activity. Access to swimming in urban India is witnessing a surge as pools are becoming an integral feature / amenity at most high-rise apartment complexes and gated communities.

In the past, the Company had commissioned the global marketing research firm, AC Nielsen to conduct a comprehensive study on the swimwear category & consumer behaviour of swimmers in India. As per the study, 3% of the urban population classified based on income levels across both gender groups take to swimming twice a week in summer season. The research also shows that 24% of the non-swimmers surveyed, demonstrated ‘likelihood to swim in the future’ which shows that there is a large potential of non-swimmers ‘who are willing to swim’.

Source: Yahoo! Finance, Report Linker


The Indian ecommerce market is estimated to grow by 21.5% reaching USD 74.8 billion in 2022 and is likely to reach USD 350 billion by 2030 with grocery and fashion/ apparel likely to be its key growth drivers.

India’s e-commerce festive season sales clocked in a gross merchandise value of US$ 9.2 billion, an increase of 23% compared 2020.

With the number of internet connections in 2021 significantly increasing to 830 million, internet penetration increased from 4% in 2007 to 45% in 2021. Online penetration of retail is expected to reach 10.7% by 2024 compared to 4.7% in 2019, while online shoppers in India are expected to reach 220 million by 2025.


Opportunities Economic Shift:

• Growth in organized retail providing a larger opportunity for branded play

• Increase in consumption with factors like education, occupation, urbanization, nuclear families, and disposable incomes moving in a positive direction

• Increase in fashion and brand consciousness making consumers more aspirational and discerning

• Increasing urban women population and women corporate workforce


• In-house manufacturing and a robust distribution chain allow the brand to ensure adequate supply.

• Brand footprint expanding across exclusive retail as well as multi-brand retail in 21-22 will provide for an excellent base for its growth in FY22-23

• With the pandemic and lockdown easing out, opening of malls will bring back Large Format Department Stores as a channel of significance

• The new / first time consumers acquired by the brand during the pandemic in categories such as athleisure will provide a base for growth

Consumer Behaviour:

• The ‘stepping-out’ of consumers post lock-down promises a resurgence of offine retail in FY22-23.

• The hybrid work culture provides excellent opportunities for categories like work-leisure to expand and grow


Long Term:

• Several international apparel brands have commenced operations in India realizing that the Indian market is likely to emerge as one of the largest apparel markets in the world in the next few decades

• The emergence of D2C startups in the innerwear and athleisure space in the last few years with aggressive discounting as the key USP to acquire customers


The Company’s value system and success revolves around the pillars of Quality, Comfort, Integrity, Simplicity, Transparency, People and Customer delight.

Key strategic initiatives taken to maintain market position and profitability:

• Ramp-up capacity in both manufacturing and sales

• Expanding channel presence in distribution, exclusive brand outlets, large format stores & ecommerce

• Expanding investments and spends in sales and marketing at point of sale along with traditional and digital advertising

• Enhance investments in R&D, product development andinnovation,automation,anddigitaltransformation


In anticipation of growing demand, the Company is looking at capacity expansion with increased infrastructure and facilities. This will allow scalability and ramp up incremental machinery and manpower to meet the expected growth in demand. The Company has also significantly expanded its presence by opening several Exclusive Brand Outlets (EBO’s) along with large format stores, multi brand outlets, thereby ensuring brand availability and accessibility across the country.


TheCompanyisengagedinthebusinessofmanufacturing garments and there is no separate reportable segment.


The Company’s risk management procedure helps identify and evaluate risks on an ongoing basis. Risks are inherent in business activities and to mitigate these effectively and efficiently, the Company has implemented a SCORE framework: -

Strategic Risks,

Compliance Risks,

Operational Risks,

Reporting obligations and

Environment, Health and Safety Risks

The identified risks are integrated into the business plan and a detailed action plan to mitigate these risks and concerns is put in place.

Risk Management Committee:

The Board of Directors have constituted a Risk Management Committee in Compliance with SEBI(LODR) Regulations. Following are the Members of the Committee:

1. Mr. Sunder Genomal;

2. Mr. V S Ganesh;

3. Mr. Shamir Genomal;

4. Mr. Varun Berry;

5. Mr. Chandrasekar K; and

6. Mr. Minor Ganesan.


The Company has adequate internal control systems commensurate with the size and nature of its business. The Management is entrusted with the overall responsibility of the Company’s internal control systems to safeguard assets and ensure reliability of financial records. The Company has a detailed budgetary control system and actual performance is reviewed periodically to align operating cost with business performance. The Internal audit program covers all areas of activities with periodical reports submitted to the Management. Internal Auditors submit their quarterly report to the Audit Committee and are invited to the meeting to clarify any issues that may be raised by the Committee members. The Audit Committee reviews all financial statements to ensure adequacy of internal control systems. The Company has a well-defined organization structure, authority levels and internal rules and guidelines for conducting business transactions. Software solutions including cloud-based applications, SAP, ARIBA, labelling applications such as NiceLabel, digital supply-chain solutions like Blue Yonder enable the Company to work with disciplined systems, and adopt best practices that improve efficiency, allow smooth planning, monitoring, and control.


The Human Resource Development team strives to empower employees across the Company with required competencies through upskilling, providing role clarity, adequate resources to motivate them and help them realise their maximum potential. We work towards a cordial and harmonious work environment through several welfare, health and safety initiatives across facilities and offices.

Back to Office

As per the guidelines issued by the Government, all Offices and Manufacturing & Operations resumed work with necessary with safety protocols and precautions such as social distancing, workplace sanitisation including individual workstations, regular temperature checks of employees, to name a few. We also distribute masks periodically to all employees.

Employee Assistance Program

Page lays emphasis on the mental health and wellbeing of its employees. We have partnered with a leading Employee Assistance Program (EAP) provider in India to offer Psychological Counselling and comprehensive Wellness Solutions to help employees deal with various work-life challenges like stress, anxiety, parenting, relationship issues, work-life balance etc.

Training and Learning & Development

During the last financial year, the Company has conducted over 241 training programs through multiple virtual and onsite training sessions, to cover 2,34,205 participants resulting into 1,52,969 man-days of training. Our organization training framework includes a standardized induction module structured for every employee category followed by extensive competency and role-based training programs along with need-based training as per business requirements.

The Company launched its online learning platform "Page Academy & Centre of Excellence (PACE)" in partnership with Enthrall as our technology partner in FY 21 for the sales team. With 182 Modules and 4462 minutes of content, the platform has also been extended to all staff members of PAGE Industries Limited, and currently has a total of 5926 users.

The Company also introduced a Leadership Development program through self-paced learning on its Skill Soft platform. The pilot initiative was introduced in December 2021 with the aim to build 50 learning champions (Invest minimum of 8 Hours in learning) and invest 1000 hours towards leadership learning. The portal provides access to E-Learning modules across a range of Leadership Development Paradigms. Given the success of the pilot program, this initiative will be implemented on a full scale from May 2022.

Employee Engagement

Women’s Day Celebrations: At Page Industries, we recognise the contribution of our women workforce in our business as well as everyday life. We strive to provide a safe and nurturing work environment to our women workforce who are significant contributors to the company’s growth. Currently, 81% of our employees are women.

Quality Day Celebrations: World Quality Day is celebrated every year around the world in November and it is observed across all Units at Page. The main purpose of this initiative is to raise quality awareness and adopt high-quality standards.

Safety Day Celebrations: The National Safety Day/Week is celebrated in India every year on 4th of March to build safety awareness. PAGEians across all units observe safety day with events and competitive games on the theme for the year, followed by a safety pledge taken by all employees.

Performance Management for Staff Members and Variable Pay

Variable Pay has transformed several large organizations to improve their performance exponentially. It rewards people based on the company’s performance and provides fair opportunity for key people to take responsibility, deliver results while attracting and retaining talent.

To drive a culture of performance, teamwork, and collaboration among the departments in line with the organisation’s goals, with effect from 1st April 2020, we introduced Variable Pay of 10%-30% of the CTC for Assistant Manager to CEO and the Dy. Managing Director, from their existing CTC. The Variable Pay Program is distinctive as it rewards people based on the overall company performance without any restriction of lower / upper limit. We have distinguished rewards & recognitions for company performance with Variable Pay and individual performance through Salary Revisions, Developmental Programs, Career Growth Opportunities within the company through Talent Management Program and Promotions.

Performance Management System for Non-staff members (Operators)

We continue to nurture the existing performance appraisal systems to evaluate thousands of machine operators across all the Manufacturing Units. The efficiency and skill levels are captured regularly through SAP, evaluated every six months and employees are graded and rewarded based on their performance.

Strengthening Departments / Functions

Management Trainees from Reputed B-Schools: To build our future management talent pool, Page hires MBA - Management Trainee (MTs) from reputed B-Schools and so far, we have onboarded 2 batches of Management Trainees. In 2021, we recruited 6 MTs from three reputed B-Schools for Sales & Distribution and Supply Chain Management functions. The MTs are taken through a detailed training for a period of 1 year where they work closely with department leaders on projects designed to help them understand the organisation and organisational challenges.

Department Trainee Hiring: Page also has a robust campus hiring process from Tier-II colleges. We have added young talent from various colleges across departments. In 2021-22 we hired 21 Sales Trainees across location and 3 HR Trainees in CO.

Lateral Hiring: Page has had a great year in terms of recruitment. We inducted 660 new talents in 2021-22 with a focus on strengthening middle-management capability across verticals to support business growth.

Intern Hiring: Page has introduced a short-term project Internship Policy to offer internship opportunities to suitable students from relevant streams, institutes, and colleges and help impart practical knowledge. This also allows us with employer branding in campuses and adds to a passive candidate pipeline as pre-placement offer can be made against permanent/ long-term approved positions as per the manpower plan.

Job Rotation & Career Growth Policy

Page introduced a Job Rotation Policy to provide cross-functional experience to staff members and enable learning and growth opportunity within PIL. Through this policy, we aim at enabling managers and building future leaders by leveraging those who have the potential to perform and shoulder larger responsibilities across verticals. This policy also aims at increasing the career span of staff members and retain talent.

Page Crucial Care Policy

A unique extended medical leave policy has been introduced at Page to support a Staff Member who is not able to work for an extended period beyond all leaves and is faced with medical liabilities of a large value. Through this policy, a staff member may be eligible to claim 15 days’ salary for a maximum of 6 months.

10 Years’ Service Award

Year-on-year, the Company presents a Long Service Award to all employees and staff members who have dedicated 10 years of service to Page Industries. In 2021, 205 employees were felicitated for their dedication and long-term service to the company.

Wrap Certifications

All our Manufacturing Units, including the new units, have been certified by Worldwide Responsible Accredited Production (WRAP). Based in the USA, WRAP is an independent, objective, non-profit team of global social compliance experts dedicated to promoting safe, lawful, humane, and ethical manufacturing practices around the world through certification and education. Based on ILO conventions and United Nations Universal declaration of Human Rights and American Customs CTPAT program, the WRAP audits on the 12 principles of:

1. Compliance with Laws and Workplace Regulations

2. Prohibition of Forced Labor

3. Prohibition of Child Labor

4. Prohibition of Harassment and Abuse

5. Compensation and Benefits

6. Hours of Work

7. Prohibition of Discrimination

8. Health and Safety

9. Freedom of Association and Collective Bargaining 10. Environment 11. Customs Compliance 12. Security

We are proud to have several of our units receive the below certificates & awards:

• Unit 12: Platinum Certification

• Unit 14: Gold Certification

• Unit 16: Platinum Certification

• Unit 20: Platinum Certification

• Unit 21: Gold Certification

• Unit 22: Gold Certification

• Unit 25: Gold Certification

Industrial relations

The Industrial relations remained cordial throughout the year and the Board records its appreciation for the contribution of all employees towards the growth of the company without which the achievements made, would not have been possible.

As of 31 March 2022, the Company has 27,730 employees on roll.


Particulars 2021-22 2020-21 Change %
Revenue from operations (net) 38,865 28,330 10,535 37.19
Profit before Interest, Depreciation & Tax 8,065 5,460 2,605 47.71
Less: Finance Cost 322 297 25 8.42
Profit before Depreciation and Tax 7,743 5,163 2,580 49.97
Less: Depreciation 655 629 26 4.13
Profit before Tax 7,088 4,534 2,554 56.33
Less: Tax 1,723 1,128 594 52.66
Profit for the year 5,365 3,406 1,959 57.52


S.No Particulars 2021-22 2020-21 Change (%)
1 Debtors Turnover Ratio 25.72 26.87 -4.26%
2 Inventory Turnover Ratio 2.23 1.98 12.56%
3 Net Profit Margin 13.81% 12.02% 14.83%
4 Operating Profit Margin 19.07% 17.06% 11.79%
5 Return on Net Worth 54.37% 39.96% 36.08%

Explanation on Key Financial Ratios:

Return on Net worth: Return on net worth improved significantly due to better profitability during the year.

Note: The company does not have significant debt, hence Interest Coverage Ratio and Debt Equity Ratio are not applicable.


Statements in the Management Discussion Analysis describing the Company’s objectives, projections, estimates and expectations may be considered as "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. The factors that might influence the operations of the Company are economic conditions, government regulation and natural calamities over which the Company has no control. The Company assumes no responsibility in respect of the forward-looking statements herein which may undergo changes in future based on subsequent developments, information or events.