BUSINESS SEGMENT
INDUSTRY SCENARIO
The year 2022 proved to be a tumultuous period for the global economy with the ongoing
war still continuing it had huge impact on the world economy and with the rising inflation
across USA & Europe there has been a downfall in the exports of readymade garments to
these countries. Our company took the decision to scale down the embroidery business as
its machines are getting too old and are not in a position and efficient to match the
existing trends and designs in the international market. The decision of the company to
revive the business was proved beneficial for the company and the company in the coming
year will be able to achieve a turnover of Rs 300.00 Lacs in the current financial year.
As the Companys core area of strength is embroidery business and Company has a highly
talented & skilled design development team, which constantly works towards creating
new designs to fulfil the ever-evolving expectations in sync with global fashion trends.
The Company has the positive attitudes towards its business skills. So the Company has
made some strategies for future about the markets drivers, risks, opportunities and
challenges associated with the embroidery business as well as the other business of the
company. GOVERNMENT POLICIES
Taking steps forward towards the vision of an ‘Aatmanirbhar Bharat, Government
led by Honble Prime Minister; Shri Narendra Modi, has approved the PLI Scheme for
Textiles for MMF Apparel, MMF Fabrics and 10 segments/ products of Technical Textiles with
a budgetary outlay of Rs. 10,683 crore. PLI scheme for Textiles will promote production of
high value MMF Fabric, Garments and Technical Textiles in country. The incentive structure
has been so formulated that industry will be encouraged to invest in fresh capacities in
these segments. This will give a major push to growing high value MMF segment which will
complement the efforts of cotton and other natural fibre- based textiles industry in
generating new opportunities for employment and trade, resultantly helping India regain
its historical dominant status in global textiles trade. In addition, priority will be
given for investment in Aspirational Districts, Tier 3, Tier 4 towns, and rural areas and
due to this priority Industry will be incentivized to move to backward area. This scheme
will positively impact especially States like Gujarat, UP, Maharashtra,Tamil Nadu,
Punjab,AP Telangana, Odisha etc. Itis estimated that over the period of five years, the
PLI Scheme for Textiles will lead to fresh investment of more than Rs. : 9,000 crore,
cumulative turnover of over Rs.3 lakh crore will be achieved under this scheme and, will
create additional employment opportunities of more than 7.5 lakh jobs in this sector and
several lakhs more for supporting activities. The textiles industry predominantly employs
women, therefore, the scheme will empower women and increase their participation in formal
economy. OUTLOOK
The textile and apparel sector is a major contributor to Indias total export earnings.
Currently, it contributes to 9% of total export earnings of India. Indias textile and
apparel exports in 2021-22 was US$ 43 billion and is estimated to be US$ 40 billion in
2022-23.With global buyers looking for alternatives to China, India has a good opportunity
to increase its global export share. Indian government is also pushing for more
investments aggressively through schemes like PLI to increase the product basket and
increase exports. Accordingly, Indias exports are projected to reach US$ 100 billion by
2030, growing at a CAGR of 10%. Indias apparel exports are forecasted to reach US$ 45
billion by 2030 growing at [2.1% CAGR since 2021 while textile exports growing at the rate
of 8.2% CAGR is likely to reach US$55 billion by 2030. Indias exports are anticipated to
grow along with the growth in global trade and India is expected to increase its share
from the current 5% to 8% by 2030. Indias economy was also affected by the global macro
factors; however, India has still outperformed the global average due to strong domestic
demand fundamentals. For the textile and apparel industry, manufacturing has declined in
the year 2022 as a result of lower global demand. Subsequently, Index of Industrial
Production (IP) has declined by 21% for apparel and 12% for textiles in the period 21-Dec,
2022. The offtake for apparel in US and EU markets were subdued in 2022 as a result of
high inventory build-up by US brands and retailers caused by supply chain issues. Further;
inflationary pressures have slowed the market causing ripple effect on the supply chain
and manufacturing. As the inflation subsides and interest rates start to decline, the
demand is expected to increase and positively. With the increasing purchasing power and a
flourishing middle-class population in India, consumer confidence index is on a constant
rise and has grown from 63.7 in January 2022 to 84.8 in January 2023.To further meet
demands of global buyers, the Indian government is also focusing on infrastructure
spending and encouraging industries to invest through various schemes like
PLI across industries, which will further facilitate growth in the economy in the
future. The company being into textile business is positive about the growth of the
business in the coming years. OPPORTUNITIES, THREATS, RISK & CONCERNS
The Company, like any other enterprise, is exposed to business risk which can be
internal risks as well as external risks. Any unexpected changes in regulatory framework
pertaining to fiscal benefits and other related issues can affect our operations and
profitability. A key factor in determining a Companys capacity to create sustainable
value is the ability and willingness of the Company to take risks and manage them
effectively and efficiently. However, the Company is well aware of the above risks and as
part of business strategy has put in a mechanism to ensure that they are mitigated with
timely action. The Company has an elaborate Risk Management Framework, which is designed
to enable risks to be identified, assessed and mitigated appropriately RESEARCH &
DEVELOPMENT
Your Company continues to derive sustainable benefit from the strong foundation and
long tradition of Research & Development (R&D), which differentiates it from many
others. New products, processes and benefits flow from work done by the team of in house
designers. This allows us to enhance quality, productivity and customer satisfaction
through continuous innovation. In order to successfully carve a niche of our own we need
to develop a vital competitive edge in the design development to stay ahead of the
competition. ENVIRONMENT, OCCUPATIONAL HEALTH SAFETY
Companys Environment, Health & Safety (EHS) strategies are directed towards
achieving the greenest and safest operations by optimizing natural resource usage and
providing a safe and healthy workplace. Systemic and structured efforts continue to be
made towards natural resource conservation by continuously improving resource-use
efficiencies. PEOPLE HEALTH & WELLBEING CONCERNS
At our company we are committed to their continuous learning and professional growth
which sets us apart as an employer of choice. Our programs are strategically aligned with
our business objectives and are designed to address current and future skill gaps thereby
ensuring our workforce remains agile and ready to embrace the changing landscape. Our
career progression initiative provides employees a transparent and structured process to
help take on larger roles within the company.As part of our organizational assessment
process, we utilize a holistic approach that blends both Machine Learning and Human
Intervention for strategic evaluation of employee performance and potential to provide
critical feedback for employee development. Our progressive policies and practices such as
Flexi-time policy, Equal Employment Opportunity policy. It reflects our deep concern for
health, happiness and wellness of each of our employees. The primary objective of RLF
(“the Company”) is to bring about organizational effectiveness by helping
employees achieve their personal goals in a manner that enhances the overall performance
of the Company. The fundamental driver of any Company is its people and Industry, there
has always been extended focus on the Management of Human Resources. It is widely
recognized that the Companys employees are the most valuable asset to the organization
and will play a pivotal role in helping the business overcome its present challenges. The
belief is that with a well-motivated and energized work force, nothing is impossible.
CORPORATE GOVERNANCE REPORT AND MANAGEMENT DISCUSSION & ANALYSIS REPORT
The Corporate Governance Report, together with the Certificate from the secretarial
auditor of the Company regarding compliance of conditions of Corporate Governance as
stipulated in Schedule V of Regulation 34(3) of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 is included in the Annual Report. A separate
section on Management Discussion and Analysis Report (MDA) is included in the Annual
Report as required under Regulation 34(2)(e) of the SEBI Listing Regulations”
APPRECIATIONS AND ACKNOWLEDGEMENTS
Your Directors place on record their deep appreciation to employees at all levels for
their hard work, dedication and commitment, in particular during this unprecedented year.
The Directors place on record their special gratitude toward the front line employees who
were working in our factories and in the market to ensure that the Companys products
reach to the consumers. For and on behalf of the Board RLF Limited
|
Sd/- |
| Date : 10.08.2023 |
(Aditya Khanna) |
| Place: Gurugram, Haryana. |
Managing Director |
|
DIN: 01860038 |
+91-9892691696
