SPECIAL EDITORIAL FEATURE

Gadoon Textile Spooling Infinity

April 2021

Gadoon Textile, by the grace of Almighty Allah, has been moving on a growth trajectory. With the help of an improved product mix and better quality, the Company has managed to increase its revenue targets over the years and boost its export sales.

The Company has set its aims high and remains consistent in providing maximum returns to its stakeholders. It places strong emphasis on:

- Better quality products
- Fulfillment of commitments with suppliers; and
- Market competitive remunerations, plus a healthy work environment for employees

Like many other industries which were impacted by the COVID-19 pandemic, the textile industry was one of the hardest hit.

In response, the Company tactfully managed its production and, Alhamdulillah, was able to minimize the impact of COVID-19. The Company’s timely decision to procure raw material helped it to manage its results to a quite considerable level in the post-pandemic period.

Being a recipient of the Top 25 Companies Award 2019 by the Pakistan Stock Exchange, the Company feels honoured.

Despite the challenging business environment, the Company’s strategic investments in diversified avenues, including its knitting and dairy segment, offered better returns as compared to previous periods, providing a cushion from risk exposure in any particular segment and positively impacting the Company’s profitability.

Social distancing requirements for the safety of Company employees were ensured by working with reduced staff, as alternate days and work-from-home policies were implemented. Conducting most operations online and avoiding unnecessary traveling was also encouraged.

The Company’s performance in the COVID-19 pandemic can be attributed to the reflective thinking, swift planning, and adoption of the new normal by the management, enabling the management to smoothly steer its way to its set targets despite the hindrances.

During this period, the Company benefitted tremendously from the strong long-term relationships it had built with its stakeholders over the years.

Moreover, the Government’s policies and support program for different segments of the economy directed the Company towards stability and provided relief to our business operations while contributing to improvements in our economic standing.

Being a recipient of the Top 25 Companies Award 2019 by the Pakistan Stock Exchange, the Company feels honoured and takes pride in the consistent efforts of its dedicated workforce, which has allowed it to come up with a remarkable performance and win recognition. The management feels responsible for remaining consistent with good corporate governance practices that it has adopted and aims to bring further improvement. It plans to maintain healthy relationships and trust with its stakeholders by promoting transparency in its dealings.

The management believes that this award would promote the Company’s brand image and subsequently help expand its footprint, both locally and globally.

After a long period of slow economic activity, a relaxation in lockdown conditions, and adaptation of new norms to discharge business operations as defined by SOPs, has positively impacted the economy. Pakistan, with the help of relief programs of the Government and relaxation in repayment schedules by international bodies, has been able to revive from the situation and has become a first-mover in penetrating global markets.

The management of this Company feels that the overall business environment, both in the short and long-term, would greatly improve. With an expected increase in exports and improvement in the current account deficit, foreign investment is expected to strengthen Pakistan’s economy and will eventually allow the country to capture a sizeable share of the global market in the long run.

Keeping in view the overall boom in the economy as discussed here, the Gadoon Textiles management intends to focus on sustainability of its business operations, thus achieving economies of scale. The management aims for further Capital expenditure in more advanced machinery in the coming times to add value and improve the quality of its products.

The Company seeks to enhance untapped sales potential in the existing markets. The Company also intends to explore new avenues for expansion of its international footprint.