ZCCL branded biz sales grows in healthy mid-double digits
31 Oct '07
4 min read
The results for the period ending September 2007 announced by Zodiac Clothing Company Limited (ZCCL) show sustained growth. The consolidated gross revenue for H1-2008 at Rs.14433Lakhs.
The scenario of the distress the industry is facing in the export segment, resulting in several thousand workmen from the industry becoming redundant due to the sharp appreciation of the Rupee against the U.S. Dollar (approximately 12% during the current financial year alone) puts the company's results in true perspective.
Against this backdrop, the performance of the company is extremely healthy. When one considers that India's total exports have risen 17 to 18% in terms of US Dollars, after eliminating the export of petroleum products, non-oil exports have probably grown no more than 11% to 12% in dollar terms, which would mean stagnation in Rupee terms.
The clothing Industry in India has probably fared even worse. The company's exports from India in US Dollar terms have increased by 27%andin Rupee terms by 9%.
Sales in the branded business continue to grow in healthy mid-double digits. The company's focus on aggressively growing its own retail stores continues, with five new stores being opened in H1-2008 and three existing stores being renovated.
The strategy of investing in design, cost control and achieving higher value addition, have begun to yield significant gains for the company.
- H1-07 - The growth in the UAE turnover is of special note, given the appreciation of - The Rupee Vs. the AED of 14% in the comparative period.
These results can be attributed to: 1. Aggressive growth in each segment of the branded business, i.e, company managed stores, large organised retail chains and independent retailers. 2. Balanced diversification of markets in India and overseas. 3. Growing the premium segment in the branded business in India, supplemented with higher value added business in the international market.