MOSL: THE CORNER OFFICE (PAGE INDUSTRIES) — Structural growth opportunity remains high

THE CORNER OFFICE (Page Industries) — Structural growth opportunity remains high; But, channel issues could lead to moderate near-term volumes

 Mr. Sunder Genomal, MD

Mr. Sunder Genomal laid the foundation of Page Industries in 1994 and as Managing Director, oversees entire working and affairs of the company. He holds a postgraduate degree in Industrial Management Engineering from DeLaSalle University, Manila, Philippines and has over three decades of experience in various facets of the textile industry. For his dedicated association with Jockey International, he was a recipient of an award at the 125th anniversary celebrations (2001) of Jockey International.

 We met Mr. Sunder Genomal (MD), Mr. Vedji Ticku (CEO) and Mr. Chandrasekhar (CFO) of Page Industries (PAG). Key takeaways:

 Structural opportunity remains extremely strong

• Industry data suggests that 130m adults in India can afford Jockey products (SEC A+, SEC A and part of B). Considering the company’s current volumes and assuming five pieces per person annually, then of 130m people currently only 20% men and 6% women are existing Jockey consumers. The target market of 130m adults and the company’s volumes are growing in tandem (double-digits). Therefore, despite the pace of growth, the market remains as attractive as before. Page is adding distributors, Exclusive Brand Outlets (EBOs) and improving on design, thus widening competitive advantages.
• Management expects margins to be consistent around 21% as plans are afoot to reinvest operating leverage benefits through lower pricing, which would further boost growth prospects.