Page Industries Ltd Management Discussions.


This has been an unprecedented year for all us in the world. India has once again come under severe pressure with a sharp increase in cases and restricted commercial / business activities owing to the more infectious COVID-19 strains. The start of the vaccination drive in the country did initially lead to a momentary recovery, however, the resurgence of the virus and incidence of new mutants have brought in renewed market uncertainty and unpredictability. The contraction of commercial / business activity in 2020 of (3.3) percent was unprecedented in living memory in its speed and synchronized nature. Although difficult to pin down precisely, IMF estimates suggest that the contraction could have been three times as large if not for the extraordinary policy support. The contraction for 2020 is 1.1 percentage points smaller than projected in the October 2020 World Economic Outlook, reflecting the higher-than-expected growth outturns in the second half of the year for most regions after lockdowns were eased and as economies adapted to new ways of working.

Moving forward, the global economy is projected to grow at 6 percent in 2021, moderating to 4.4 percent in 2022. Much remains to be done to beat back the pandemic and avoid divergence in income per capita across economies and persistent increases in inequality within countries.

Future developments will depend on the path of the health crisis, including whether the new COVID-19 strains prove susceptible to vaccines or they prolong the pandemic; the effectiveness of policy actions to limit persistent economic damage (scarring); the evolution of financial conditions and commodity prices; and the adjustment capacity of the economy. The ebb and flow of these drivers and their interaction with country-specific characteristics will determine the pace of the recovery and the extent of medium-term scarring across countries.

Source: World Economic Outlook, IMF

The COVID-19 epidemic had a major impact on overall business and consumer sentiment globally. The global apparel market shrunk by 22%, coming down from US$ 1,635 billion in 2019 to US$ 1,280 billion in 2020. The consumption is expected to reach to pre-Covid levels over the next couple of years and then retrace its growth path to reach US$ 2,007 billion by 2025.

The Indian economy was also negatively impacted by the crisis in 2020-21 with the highly contagious corona virus (COVID-19) spreading across the country. In response to the pandemic, the government took several proactive preventive and mitigating measures starting with progressive tightening of international travel, issue of advisories for the members of the public, setting up quarantine facilities, contact tracing of persons infected by the virus and various social distancing measures. The government imposed a strict 21 days nationwide lockdown from March 25, 2020, under the Disaster Management Act, 2005, with subsequent extensions and relaxations, to contain the spread of COVID-19 while ramping up the health infrastructure in the country. The lockdown measures, imposed to contain the spread of Covid-19 pandemic in India, ubiquitously affected employment, business, trade, manufacturing, and services activities. The real Gross Domestic Product (GDP) growth is projected to contract by 7.7 percent in 2020-21 as compared to a growth of 4.2 percent in 2019-20. GDP growth, however, is expected to rebound strongly in 202122 owing to the reform measures undertaken by the Government.

With the strict lockdown enforced by the government in March 2020, the retail industry was greatly impacted and witnessed a massive dip in sales in the short term. The sudden lockdown not only impacted their sales but also disrupted the supply chain at the backend.

Indian domestic textile and apparel market is estimated at US$ 75 billion in 2020-21. The market fell 30% from US$ 106 billion in 2019-20. The market is expected to recover and grow at 10% CAGR from 2019-20 to reach US$ 190 billion by 2025-26. Apparel constitutes 73% share of the total T&A market in India.

New consumption patterns are evolving: The sale of knit garments is higher than woven garments as consumption of loungewear and casual wear (mostly knit wear) is recovering at a faster pace. Online apparel sales has recovered to Pre-covid level. Indias e-commerce sale of goods and apparel saw a steep rise in 2020. Work-From- Home drove the demand for casual wear apparel over formals. Sale of kids wear and casual wear recovered faster, while ethnic wear and formal wear were the worst hit segments.

Source: Ministry of Finance, 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. It is the 2nd largest manufacturer and exporter in the world, after China. The share of textile and clothing in Indias total export stands at a significant 12 % (2018-19). India has a share of 5 % of the global trade in textiles and apparel. The textile industry contributes to 7% of industry output in value terms, 2% of Indias GDP and to 12% of the countrys export earnings. The textile industry is one of the largest sources of employment generation in the country with over 45 million people employed directly, and another 60 million people in allied sectors, including a large number of women and rural population.

Source: Ministry of Textiles

Indian Apparel Market

The overall apparel segment size in FY 2020 was estimated to be USD 67 bn. The market is projected to grow at 10 percent and reach USD 107 bn by FY 2025. This growth is expected to be driven by factors such as increased purchasing power driving growth in primary discretionary spend, better access and availability of products, acute brand consciousness, increasing urbanization and increasing digitization.

The branded apparel sector will witness a growth of 13.4 percent CAGR over the next five years as against the 10 percent CAGR projected for total apparel sector.

Penetration of Branded Apparel and Organized Apparel Retail as a % of Apparel Market

Womens Innerwear

Womens innerwear category is currently estimated to be around USD 4.4 bn and is expected to grow at a CAGR of 14 percent and nearly double by FY 2025 (USD 8.5 bn).

As compared with Mens innerwear, Womens innerwear market has more choice of offerings with multiple width (types) and depth (sizes, colours, styles) combinations and this is expected to drive this segment. This segment is also expected to be driven by changing consumers preference from Foundation to function plus fashion plus comfort. Rising popularity of the fashion range is also expected to drive the growth of this segment.

Indian consumer spends on apparel, especially innerwear is significantly lower when compared with other Asian peers, suggesting a significant opportunity for growth, primarily driven by rising per capita incomes and thereby spend on such products.

Kids Wear

The kids wear market in India is currently about 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 at 37 percent, 24 percent and 18 percent of the overall kids wear market as on FY 2020. Kids denims is showing the fastest growth rate of 13 percent among all the other product categories (FY 2020 - FY 2025).

The share of online retail market is currently 4.5 percent of the overall apparel market. The share of online retail market in the overall apparel market is expected to increase in future but it wont affect the share of brick & mortar retail and both the channels will continue to co-exist. The online market has grown manifold in recent years and witnessed the emergence of strong vertical players with widespread geographical reach. However, the large retail houses will also be able to translate the legacy and trust enjoyed by these brands when they move from offline toward online models.

The online apparel retail market in FY 2020 was USD 2.9 bn. Men (50 percent) and women (44 percent) segment contribute to bulk of online apparel market with kids contributing only 6 percent of the market. High share of

mens segment in online apparel market is driven by high penetration of casual wear categories.

Online apparel market is dominated by western wear contributing to 60 percent of share of the market. High share of western wear in online apparel market is driven by high penetration of international and casual wear brands on online platform. Also, online fashion portals have focused on private label in the casual wear category further driving the penetration of casual wear category. These online fashion portals started with catering largely to the younger age audience, but it is increasingly finding acceleration and is expected to be adopted by consumer cohorts across all age groups. Online western wear market is dominated by men which is similar to the trend witnessed in overall fashion category.


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


• Widespread distribution and retailer network drives the brand closer to consumers at a time when commuting for shopping is limited

• In-house Manufacturing and a robust supply chain help the brand ensure adequate supply.

Consumer Behaviour:

• The increasing need to service consumers at their doorstep provides a big opportunity to the e-commerce business.

• With Work From Home becoming the new norm, categories such as lounge wear, leisure wear and athleisure are already witnessing an increased demand

• With the lockdowns in place and schools remaining closed, the demand for home wear for children has picked up


Long Term:

• Many major 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

Short Term / COVID 19:

• The closure of (i) markets, malls and highstreets; (ii) schools & swimming academies, and swimming pools; due to lockdown is affecting retail trade

• Consumers tend to be cautious in their purchase decisions that might affect overall demand

• Certain product categories such as socks, thermals, shapewear, swimwear etc. may see a drop in demand if lockdowns continue


The Companys value system and success revolves around Quality, Comfort, Integrity, Simplicity, Transparency, People and Customer delight.

Key strategic initiatives taken to maintain market position and profitability:

• Ramp-up in 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

• Enhance investments in R&D, Product development and innovation, automation and digital transformation.


In anticipation of growing demand post the pandemic, the Company will continue to invest in increasing its installed capacity. With the ongoing addition of new buildings, infrastructure and facilities, the installed capacity is scalable and can be ramped up with incremental machinery and manpower to meet the expected healthy growth in demand. The Company has significantly expanded its presence by opening many Exclusive Brand Outlets (EBOs) and through expansion in multi brand outlets making the brand available / accessible to consumers across the entire length and breadth of the country.


The Company is engaged in the business of manufacturing garments and there is no separate reportable segment.


The Company has robust risk management procedures to identify and evaluate risks on an ongoing basis. Risks are inherent in business activities and to effectively and efficiently mitigate risks, 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 the identified business risk and concerns is put in place.

Management of key risks and concerns identified by the Company:

• IT Governance & Enterprise Risk Management;

• Management of Risks relating to Sensitive Information Leakage; and

• Business Continuity and disaster recovery.

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. Vedji Ticku;

3. Mr. Shamir Genomal;

4. Mr. V S Ganesh;

5. Mr. Chandrasekar K; and

6. Mr. Minor Ganesan.


The Company has adequate internal control systems that commensurate with the size and nature of its business. Management has overall responsibility of Companys internal control systems to safeguard assets and to ensure reliability of financial records. The Company has a detailed budgetary control system and actual performance is reviewed periodically and decisions are taken accordingly.

Internal audit program covers all areas of activities and periodical reports are 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. Audit Committee reviews all financial statements and ensures 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 SAP, ARIBA and a number of other robust solutions are in use to enable the Company to work with the best structures, disciplined systems and best practices to improve efficiency, smooth planning, monitoring and control. SAP is proving to be an extremely useful and essential tool for the Company as it embarks on its aggressive growth plans. An exciting extension of SAP is the continuously evolving Business Intelligence module that is creating smart and concise management reports, profoundly aiding decision making.


The Human Resource Development team continuously enables the Company, a high performing organization, by empowering all segments of employees with required competencies, skills and providing role clarity, adequate resource to unleash and perform at their maximum potential. We maintain cordial industrial harmony and employee relation with all employees through various welfare, health and safety initiatives across all facilities.

COVID-19 - Prevention & Control

Our Company was quick to identify the threat of Covid-19, well ahead of time and took proactive measures to safeguard employees from infection including setting up mental health and wellbeing programs. Last year, at the outset of the pandemic, our company introduced various initiatives and provided employees a safe working environment and also ensured business continuity.

Resumption of Work Post-Lockdown

As per the guidelines issued by the Government the Manufacturing & Operations resumed with safety protocols, our company resumed operations post-lockdown. All safety measures were strengthened including checking body temperature, social distancing protocols, avoiding in-person meetings, fumigation and sanitization of workplace, including individual workstations, distribution of Jockey masks to all employees, etc.

We also set up Covid-19 Vaccination camps in all units, with the support of BBMP & Health Department Officials, and administered vaccine for all employees of 45 years of age and above. Training and Learning & Development

Training and Learning & Development

During the last financial year, through multiple virtual sessions, we have trained 12,516 participants culminating in 28,306 hours and 3538 man-days of training.

The Company has created an extensive induction program for all new Staff Members to acclimatize new joinees on the culture, values and life at Page.

Our Company has launched our online learning platform "Page Learning Academy" in partnership with Enthrall as technology partner.

Various employee engagement activities have been carried out during the lockdown to keep employees engaged, motivated and provide necessary support during the tough times due to Covid-19.

Womens Day: Every year Womens day is celebrated at the Company to commemorate their achievements. We are proud to have around 80% women employees.

Performance Management and Variable pay:

Staff members: The Company has designed and

implemented a Performance Management System that allows individual Goal/KRA (Key Result Area) setting. This enables a two-way discussion between a Staff Member and his/her Reporting Manager (Coach) which ensures that the organizations objectives are percolated down to teams and individuals. In order to drive a culture of performance, teamwork and collaboration among the departments in line with the organisation goals, with effect from 1st April 2020, we have introduced Variable Pay of 10%-30% of staffs CTC.

Non-staff members (operators): The efficiency and skill levels of machine operators across all manufacturing units are captured regularly through SAP, evaluated every six months and employees are graded and rewarded based on their performance in an objective and fair manner.

Talent Acquisition: As part of talent acquisition, (i)

Management Trainees from B-Schools have been recruited and provided hands-on experience before getting posted for long term role, (ii)Lateral Hire: with a focus on strengthening middle-management capability over 250+ recruits have been on-boarded and over 7000+ associates have been recruited across all manufacturing facilities after lifting of the lockdown (iii) Internal Job Posting: Introduced the Internal Job Posting policy in order to provide opportunities for our staff members to move across functions.

10 Years Service Award

Year on year, the Company presents Long Service Award to all employees and staff members who have dedicated 10 years of service to Page Industries. Last year, 165 employees were felicitated for their dedication and long term service to the company.

WRAP Certifications:

WRAP is an independent, objective, non-profit team of global social compliance experts dedicated to promoting safe, lawful, humane and ethical manufacturing around the world through certification and education. WRAP is Worldwide Responsible Accredited Production certification which is an independent body based out of USA.

Based on ILO conventions and United Nations Universal declaration of human rights and American Customs CTPAT program, the WRAP audits on the 12 principles (i) Compliance with Laws and Workplace Regulations, (ii) Prohibition of Forced Labor, (iii) Prohibition of Child Labor, (iv) Prohibition of Harassment and Abuse, (v) Compensation and Benefits (vi) Hours of Work (vii) Prohibition of Discrimination, (viii) Health and Safety (ix) Freedom of Association and Collective Bargaining (x) Environment (xi) Customs Compliance and (xii) Security.

All our Manufacturing Units, including the new units, have been certified by Worldwide Responsible Accredited Production (WRAP). We are proud to have 4 of our units certified with Platinum standard and all other units are certified with Gold standard.

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 31st March 2021, the Company has 21,280 employees on roll.


(Rs in Millions)

Particulars 2020-21 2019-20 Change %
Revenue from operations (net) 28,330 29,455 -1,125 -3.82
Profit before Interest, Depreciation & Tax 5,460 5,573 -113 -2.03
Less: Finance Cost 297 339 -42 -12.39
Profit before Depreciation and Tax 5,163 5,234 -71 -1.36
Less: Depreciation 629 614 15 2.44
Profit before Tax 4,534 4,620 -86 -1.86
Less: Tax 1,128 1,188 -60 -5.05
Profit for the year 3,406 3,432 -26 -0.76


S.No Particulars 2020-21 2019-20 Change (%)
1 Debtors Turnover Ratio 26.87 29.81 -9.88%
2 Inventory Turnover Ratio 4.45 4.01 10.92%
3 Interest Coverage Ratio 16.25 14.65 10.92%
4 Debt Equity Ratio 0 5/100 -99.90%
5 Operating Profit Margin(%) 17.06% 16.84% 1.31%
6 Net Profit Margin (%) 12.02% 11.65% 3.17%
7 Return on Net Worth 38.49% 41.86% -8.06%

Explanation on Key Financial Ratios:

Debt equity ratio: During the year under review, the Company repaid entire outstanding loans.

Return on Net worth: Due to Covid lockdown during 1st quarter of the year there was slight dip in the profitability during the year.


Statements in the Management Discussion Analysis describing the Companys 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 regulations 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 on the basis of subsequent developments, information or events.