Letter From The Chairman

Dear Shareholders, FY 2021-22 has been a great year for Mirza International in many ways. While our brands, products and business model were always strong, the challenges in the last two years allowed us to introspect and rethink our approach to unlock value creation potential. And this was made possible by our passionate team whose commitment helped us emerge stronger from the pandemic and deliver a record performance.

“Our total revenue increased by 60% to an all-time high of 1,677.26 Crore in FY 2021-22. Profitability increased sharply despite the persistent challenge of high input costs, assisted by optimization measures and improved capacity utilization at 65.85% as against 38.91% in the previous year.”

Our growth has been broad-based as all segments posted robust performance. The Revenue from domestic business grew 62.38% from 715.20 Crore in the previous year to 1,161.37 Crore in FY 2021-22. The growth was assisted by improved economic and consumer sentiments, considering which we expanded our presence from 119 to 188 cities and added 72 exclusive RedTape stores.

Striving to unlock value

Perhaps one of the most significant developments is the strategic scheme of arrangement to demerge RedTape business, aimed at driving value creation. Pursuant to this arrangement, the RedTape business will be spun-off into a new entity RedTape Limited, which will focus on branded footwear and apparel in the Indian market. The company Mirza International Limited, will focus on manufacturing and export of leather-based footwear and accessories, which has been its mainstay since inception. It will undertake leather exports, white labeling and private label, in the global markets for both men’s and women’s footwear, upholstery, furniture and accessories.

We are confident that this measure to separate domestic and international businesses will help drive a more focused growth strategy for the respective businesses, thereby unleashing their true potential. I thank the shareholders who have whole-heartedly supported this decision and voted in favor of it.

Positioned to deliver

Going into FY 2022-23, we expect the domestic business to be strongly led by a flourishing economy. We are already witnessing good momentum led by our widened presence, and will continue to work our way to gain market share. As for the global economy, we see some headwinds in the short-term.

Our key markets of the UK, Europe and the US are faced with the challenge of high inflation and economic recession. The Russia-Ukraine war has especially pushed back the Euro area economies. That said, we are confident of the long-term in these markets. Being a well-established and preferred supplier to leading brands, we are better placed to consolidate our position. We further expect to stand benefited as global companies aggressively pursue supply chain diversification in near future, driven by disruptions due to persistent lockdowns and a weak macro in China.

Sustainable growth:

Sustainability has been a cornerstone of our business. We have continuously adopted best practices and technologies at our manufacturing units. This has earned us a global reputation as one of the most environmentally-conscious players in this segment having low emissions and natural resource consumption and effectively managing wastes. We are proud to have one of the best safety performances, which is one of the many ways that we care for our people. We also actively consider the welfare of the nearby communities with efforts around education, healthcare and rural infrastructure.

Final comments:

On behalf of the Board, I thank all our stakeholders for the faith reposed in us through this difficult phase. Today, as we stand better and stronger, I am confident that with your continued support, we will deliver sustainable performance to create value for all.

Rashid Ahmed Mirza

Chairman