I would like to thank you all for your continued faith and belief in our Company, and its sincere and hard-working people. Over the years, we have demonstrated a unique ability to strike the perfect equation to deliver consistent and sustained value for our shareholders. We were able to do this with the right strategy, the right culture, and the right geographical footprint.
Today, we have a unique retail-led mixed-use development model, which we are leveraging to create value within India’s fast evolving market. The “MarketCity” concept has today become a well-accepted business model for extracting optimal longterm value from land, uncovering urban demand and creating a superlative experience for the consumers in the cities we are present in.
As India’s largest mall owners and operators, your Company is evolving into a trusted proxy for the consumption trends of India’s urban class. India’s retail infrastructure has come a long way and PML is at the vanguard of creating fully integrated recreational centres on a pan India basis. Our malls are today the market leaders in their respective cities. The shopping behaviour at our malls serves as a reliable barometer of consumer sentiment.
Conviction. Creation. Excellence. Continuity.
I would like to touch upon our theme for this year’s report, which is “Conviction. Creation. Excellence. Continuity.” Let me explain.
By ‘Conviction’, we refer to our strong belief in our vision of what we wished to become early on. As a result of this conviction, we have built a strong foundation based on a ‘hard to replace’ portfolio of architecturally superior retail assets that are located in the heart of multiple Tier 1 cities in India. Our retail developments are complemented by strong opportunistic and accretive plays in commercial, residential and hospitality assets allowing us to create incremental value at all our developments.
The scale, size and multiplicity of our ambition for simultaneously building out these assets is unprecedented, which establishes our firm foundation for expanding our frontiers. Our conviction on India’s growing consumption story continues to embolden us to take new momentous strides.
By ‘Creation’ we refer to our appetite to keep building new assets. In the last 12 months, We have completed acquisition of 5 assets (3 land parcels and 2 under construction malls) which will enable us to take our operating retail portfolio from current 6 million sq. ft. to 11-12 million sq. ft. over the next 5years we are already on our way to create the next generation, benchmark setting “Malls of the Future”. Our proven project development and construction teams, famed for creating all our 4 MarketCity assets from groundup over the last 5 years, are already at work deploying their talent and experience.
By ‘Excellence’ we refer to our proven planning and execution mettle, that successfully saw the rolling out of multiple, large iconic assets, within a short time frame from each other. These ascendant assets, with an eclectic mix of international, national and local brands, have been consistently delighting and engaging the Indian consumer and delivering strong growth year after year. We are leveraging our operational excellence to build greater scale, strength and market position in more cities of India.
By ‘Continuity’ we refer to our position of solidity that we reached through responsible capital budgeting and planning, building a robust platform of financial strength to further prosper from. Our credit ratings and balance sheet strength has never been more formidable. Our operating ‘annuity’ and ‘for sale’ assets have universally reached a mature point of secular and steady performance. From this vantage point of strength, we look forward to robust and free operational cash-flow generation for years to come.
Our existing assets have substantial further potential for development, which will further bolster finer returns and organic growth. In addition to retail, we see great annuity potential in commercial assets in Tier 1 cities. To support our recurring rental income model, we plan to develop commercial office space on our existing assets as a part of the retail-led mixed-use formula.
Our vision of the future is not limited to our actions on display today. We are continuously evaluating the consumption strengths of India’s key cities and micromarkets for new opportunities. We are continuously exploring alternative new ways and means to establish new channels of growth and value creation. Once committed, our value system dictates that we progress forward with conviction and excellence, to deliver on our promises. In this way, we hope to be an outlier in consistently yielding superior returns.