Page 110 - InterloopAnnualReport2020

FORWARD LOOKING STATEMENT

Analysis of Last Year’s Forward Sources of Information and
Looking Statement / Status of Assumptions used for Forecast
Projects
The projections are based on assumptions and analyses
comprising of historical trends, current situation and
With rise in global competition in textiles, including speed to expected factors relevant to the circumstances. Operational
market requirements by retailers and brands, the Company and financial action plans are devised in line with strategic
had to keep an eye on shift in sourcing patterns and work directions of the Board of Directors.
towards mitigating it through efficiency improvements, and
interventions in supply chain thus reducing lead times.
External information factors including macro and micro
economic indicators, market trends, data from regulatory /
The Company focused on improving productivity and taxation authorities, international competition, input costs,
reducing costs and invested in teams’ training for sales prices, etc., constitute the basis of our projections.
manufacturing excellence and in efficient equipment
requiring less workforce and energy, as well as automation Internal information originates from critical functions of the
tools.
Company including marketing, operations, procurement &
supplies, human resource, finance, etc., which is compiled
We progressed on expanding our Hosiery business by along with the data from external sources for preparation
boosting production of Plant 5 Pilot Project to 25% of the of effective and practical forecasts, and implemented as
main plant and aggressive plans are in place to set up the formal plans after approval by the Company Board.
main plant which will be a LEED Certified manufacturing
facility. The newly established Denim Apparel manufacturing For venturing into new projects, an extensive due diligence
plant started commercial operations in Dec 2019 while process including legal, financial, and technical feasibility
the Knitwear and Active wear pilot projects also went studies are carried out, also involving external experts, as
into production in 2019. Unfortunately, due to COVID-19 per requirement.
pandemic and resulting lockdowns worldwide, customers’
orders got cancelled. However, with improvement in the
pandemic situation and opening of retail markets and Forward Looking Statement
stores, production is picking up and we expect to regain
production capacities in due time. Diversification into these The global apparel manufacturing is shifting, with
textile categories would be a key growth opportunity for growing competition for Pakistan from new manufacturing
us, as global apparel supply chains reorganize themselves destinations including Africa, and established apparel hubs
amidst changing tariff regimes and the pandemic. Our like China, Turkey, Indonesia, Bangladesh and Vietnam,
strategy is to build upon our deep customer relationships to GSP plus status award to other manufacturing regions,
become a multi-category partner of choice. shift to MMF (Man Made Fiber), and emphasis on near

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