Ladies and Gentlemen,
I deem it my privilege to welcome you all to the Thirteenth Annual General Meeting of your Company and I am deeply honored by your gracious presence.
The Director's Report and Auditor's Report together with the Audited Accounts for the year ended 31st March, 2005, highlighting the performance of your Company during the financial year 2004-2005, are already with you. A detailed note on the performance and achievements of the Company during the year under review is available in the Management Discussion and Analysis Report, forming part of the Annual Report.
Your Company reached an important milestone during the year under review, as it crossed the Rs 100-cr sales figure for the first time. Pioneer has been able to sustain growth rates and profitability margins over the years, even on an enlarging base.
In what has now become more of a practice, your Company saw another round of capacity addition, this time through acquisition of a complete plant of a South Korean embroidery manufacturer. The move has not only increased your Company’s capacity by almost 33%, it has also put to use for the first time in India, machines which are capable of making high-value added products.
The domestic embroidery business continues to register decent growth rates, and is expected to achieve better results in the coming years. Pioneer serves the domestic sector well because of its huge distribution network, designing capabilities and market feedback on latest trends. Indirect exports of embroidery is also expected to rise on the back of an improved performance of the textile sector as a whole, and ready made garments in particular, as Indian exporters take on the world in the post-quota regime.
I take this opportunity to reiterate the management’s aim of continuous growth through expansions and acquisitions, so that Pioneer further consolidates its position as the leading player in the wholesale embroidery fabric and laces segment. Having integrated facilities and multi-location presence, your Company is ideally placed to cater to the growing demand of embroideries and also take on competition within the industry.
Our retail business of embroiderywear, being done under the Hakoba brand, also continues to grow in size. As I speak to you, plans are already finalized to open the 25th Hakoba retail outlet in New Delhi, and few others are in the pipeline. Thrust is now also on enlarging the product range in ready-to-stitch segment, and launching new offerings in ready-to-wear, mens wear, home furnishings, etc. Higher disposable incomes and aspiration to own branded goods is no longer a metro phenomenon, and Hakoba stands to benefit from this consuming trend.
With support from the stakeholders of Pioneer, I am sure that Hakoba Lifestyle Ltd., a subsidiary of Pioneer, through which the retail activities are being carried, would definitely grow at an attractive pace and attain a sizeable presence in the retail sector.
The theme of our efforts over the past several years has been to increase the competitive advantages of Pioneer, attain better efficiency, and de-risk the entire business model by establishing multiple revenue streams, all based on inherent strengths. Our goal is to establish Pioneer as the premier source for distinctive, innovative fashionable products to the market, and I firmly believe we have in place all the elements needed to reach that goal.
Before I conclude, I greatly appreciate the encouragement and trust shown by all the shareholders, customers, bankers and business associates, as well as our committed employees, and also look forward to a similar support from all in our future endeavors. I would also specially thank Bennett, Coleman and Co. Ltd., India’s leading media house, who have now become our partner in Hakoba, and with whose association I expect that Hakoba’s growth would be even better.
Thank you,
Sincerely
yours,
RAJ KUMAR
SEKHANI
Executive Chairman
