India well positioned to weather uncertain global economic environment: Birla

Kumar Mangalam Birla, Chairman of Aditya Birla Fashion and Retail Ltd (ABFRL), argues that India is well placed to weather an uncertain global economic environment. At the ABFRL’s 15th Annual General Meeting, he said the economy will show a resumption of growth in the medium to long term and that the ABFRL is on track to reach a turnover of 21 ₹000 crore by 2026.

Speaking on the current economic scenario, Birla said India is not devoid of global economic turmoil; however, it is well positioned to navigate through the uncertain environment. “India has a strong pipeline of infrastructure projects. Also, pragmatic government policies such as production-related incentive programs are helpful. Many industries have witnessed new announcements of investment in projects,” he said.

“So while businesses will need to remain vigilant in the face of financial market volatility and cost pressures this year, the economy is expected to show a recovery in growth over the medium to longer term.”

Speaking about ABFRL’s growth over the past year, he said the fashion and retail business has seen a strong recovery in revenue growth, which has translated into improved profitability compared to the previous year. “Several initiatives encompassing cost management, supply chain optimization and smart purchasing were taken by the commercial teams which contributed to the strong improvement in profitability,” he added.

Growth

In FY22, the company’s revenue was ₹8,136 crore, growing 55%, from ₹5,249 crore last year. It recorded an EBIDTA margin of 14.8%.

Birla said he is confident that the company’s growth trajectory will continue. “We had forecast a turnover of ₹21,000 crore for the year 2026 at our annual investor day held in March 2021. I am very confident that we can exceed this target and set even higher milestones for the ‘business in the future,’ he said.

ABFRL is part of a major Indian conglomerate, The Aditya Birla Group. It has a network of 3,487 stores spread across approximately 30,787 multi-brand outlets, with 6,381 department store outlets across India as of June 2022.

The company’s foray into the branded ethnic clothing sector includes brands such as Jaypore, Tasva and Marigold Lane. The company has strategic partnerships with designers ‘Shantanu & Nikhil’, ‘Tarun Tahiliani’, ‘Sabyasachi’ and ‘House of Masaba’.

In FY22, your company also launched a high-end ethnic clothing brand, Tasva, in partnership with Tarun Tahiliani. “The brand has received a stellar response so far. 6 stores were opened in FY22, and the brand is expected to add approximately 70 stores in FY23, making it one of the stories of fastest expansion in the country’s high-end ethnic space,” he said.

Published on

September 05, 2022