Spice Islands Industries Ltd Management Discussions

1) Industry structure & developments

The Textile & Garment Industry is booming - there are excitements all around and new opportunities to surge further ahead.

2) Opportunities and threats

Market is growing both locally and internationally. Theres an unprecedented retail boom on domestic front and the possibilities are immense although with consequent keen price war.

3) Segment wise or product wise performance

Mens and Ladies Tops still dominate the market although bottom wears also have made deep inroads. A lot of young fashion wears are surfacing to form a major block in between.

4) Outlook

Its a bright future ahead. The young fashion segment will dominate a fair segment of the emerging market.

5) Risk and concerns

Compliances are very much in place for overall required international expectations.

6) Internal control systems and adequacy

As an extension of above, there is a machinery function to regulate and control the expected parameters to ensure a first class work situation and consequent quality output.

7) Discussion on financial performance with respect to operational performance.

Against an emerging market and consequent changes of product movements, we too have had to go through a different product mix to flow along with. The impact, financial and/or otherwise, is being investigated.

8) Material development in Human Resources/Industrial relation front including number of people employed

In the field that we are in it is a must that we tune well with the changes around us which not only mean changes in product lines as required but also realignment of the human resources available in order that the Company moves ahead in the competitive environment.