Opportunities

The spectacular growth rate of India’s economy is well noticed. Asia’s fourth largest economy has been growing at an average of over 8% in the last three years and economists predict that it will continue to do so at least till 2010. Increasing organized retail penetration with global giants entering the Indian markets, favourable demographics and rising income levels are driving the domestic textile and apparel consumption demand. Export growth has remained at high levels post quotas and is all set to sky rocket hence forward. Thus, IFL is expanding its capacities across the value chain from yarn dyeing to final garmenting. The Company has envisaged an ambitious Rs.1.6 billion plan, spread over the next two years. It is setting up new apparel plants in Hindupur (Andhra Pradesh), Davangare (Karnataka) and Sangli (Maharashtra). The Company is also moving up the value chain by increasing its sales proportion towards garments. Within garments, IFL is planning to dedicate new production units for the manufacture of high-end garments like lower wear, sportswear, etc. Our expertise, experience, high quality and vertically integrated execution capabilities are factors that will help us leverage the opportunities that lie ahead.

Threats

Like in most other industries, opportunity brings with itself competition. We face different levels of competition in each segment. However, with our Centre of Excellence, lean enterprise business model, vertically integrated execution capabilities, close rapport with global fashion houses, promoters’ proven track records, good management bandwidth and a well established logistics and marketing network; we are in a good position to deal with any kind of competition. Shortage of skilled manpower and technological obsolescence can also affect the Company’s business. However, these are threats faced by the entire industry. IFL has also undertaken a number of human resource initiatives. The Company has started leadership training to improve and empower the team; both to contribute to its business objectives and to help the employees achieve their own personal and career goals. To create a sense of ownership, the Company offers Employee Stock Options (ESOP) to our people, giving them a stake in the company and its growth. With superior methodologies and improved processes and systems, IFL is well positioned to lead a high growth path.