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V-Mart Retail Ltd.

BSE: 534976 | NSE: VMART |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE665J01013 | SECTOR: Retail

BSE Live

Oct 19, 13:48
4380.00 -123.60 (-2.74%)
Volume
AVERAGE VOLUME
5-Day
3,750
10-Day
3,489
30-Day
1,894
2,393
  • Prev. Close

    4503.60

  • Open Price

    4620.00

  • Bid Price (Qty.)

    4371.00 (1)

  • Offer Price (Qty.)

    4380.00 (10)

NSE Live

Oct 19, 13:48
4380.65 -115.95 (-2.58%)
Volume
AVERAGE VOLUME
5-Day
59,927
10-Day
48,105
30-Day
35,691
33,707
  • Prev. Close

    4496.60

  • Open Price

    4525.00

  • Bid Price (Qty.)

    4375.05 (1)

  • Offer Price (Qty.)

    4380.40 (1)

Annual Report

For Year :
2018 2017 2016 2015 2014

Chairman's Speech

Dear Share Holders I am delighted to present the second Annual report of the Company after going public. FY 2013-14 was a year that brought much happiness for the Company. Our existing business model with an emphasis on Tier-II and Tier-III cities continues to perform admirably. The Company''s net sales increased by 50 per cent from Rs.383.46 crore in FY 2012-13 to Rs.574.95 crore in FY 2013-14. The operating profit (EBITDA) increased by 36 per cent from Rs.39.97 crore in FY 2012-13 to Rs.54.49 crore in FY 2013-14. The Company posted a PAT of Rs.25.15 crore during the current financial year as against Rs.18.00 crore during the previous fiscal. INDUSTRY TRENDS The Indian retail market in 2010 was estimated to be worth US$353 billion and by 2014-15, as per the industry reports available, it is expected to reach US$543 billion. Further, the current value of the Indian retail market is estimated at US$500 billion and by 2020 its value is pegged to reach US$1.3 trillion. Over 20 percent of India''s GDP is contributed by the retail sector and contributes eight percent to the total employment. India is home to one of the top-five retail markets in the world and in retail, India offers immense scope for growth. Consumerism in India is witnessing unprecedented growth and globally, India is among the top-10 retail markets driven by favourable demographics, a young and working population, rising income levels, urbanisation and growing brand orientation. This, in turn, is reflected in India''s retail market, which in 2013, was estimated at US$520 billion and is expected to grow at a CAGR of 13 per cent to reach around US$950 billion by 2018. The Indian retail sector is set to grow rapidly with a gradual shift toward organised retailing formats. The organised retail market in India is burgeoning and is expected to grow at CAGR of 19-20 per cent over the next five years. Organised retail penetration is expected to increase from 7.5 per cent in 2013 to 10 per cent in 2018 at a robust CAGR of 19-20 per cent during the same period. This will be driven by a combination of demand, supply and regulatory factors, which are expected to be the growth engines of the Indian retail market. Tier-II and Tier-III cities in the country are emerging as the new ''hot spots'' of consumption. Organised retailers are increasingly setting up stores in these smaller cities. Penetration in Tier-II and Tier-III cities and improvement in business models and operations will be catalysts of growth for the organised sector. OPERATION''S The Company continued to strengthen its back-end and front-end processes during the year by under taking various initiatives. The three core focus areas for the Company were: * Supply chain management * Capability building * Investment in infrastructure We believe that an efficient supply chain is the backbone of the retail operations and it is essential to strike a balance between optimum levels of inventory whilst ensuring availability of products at all stores as per customer needs, as well as reducing operational costs. In view of the above, the Company has initiated programmes pertaining to various aspects that will enable us to enhance the efficiency of our supply chain management system, there include - planning, merchandising, procurement, standardisation, vendor management, logistics, quality control, pilferage control, replacement and replenishment. The Company believes that the benefit of such programmes will manifest themselves over the coming years. During the year the Company took on lease premises for a new warehouse and is in the process of consolidating all existing warehouses. Consolidation of warehouses help in efficient logistics management, reduction in order processing and close-to-optimal inventory replenishment costs. At the warehouse products are received, stored, sorted, sequenced and transported to specific stores as needed. The Company with a view to optimise its warehouse operations has retained the services of APL Logistics as a consultant to plan the layout of the warehouses so that goods move efficiently and the Company can focus more on its core competencies. APL being an industry leader in 3PL services, were assigned the task to handle the warehouse operations with defined targets and KPIs. APL also guides us in terms of the industry-best practices and effective utilisation of IT resources. The Company has a pan-India network of more than 1,500 registered vendors and suppliers and we believe that they are an integral element of our growth. During the year, we organised a vendor meet wherein the Company had invited the top vendors. This meet was organised to share with the vendors the changes being planned by the Company as outlined above and also our expectations from them. The category leaders were felicitated for their outstanding performance while others were encouraged to imbibe their best practices. The Company has consistently believed that the growth at the front-end has to be supported by adequate capability building at the back-end for longterm sustainable growth. We have undertaken various initiatives at the back-end including hiring staff with the right experience and qualifications in line with our organisational structure. The Company has initiated an annual training programme to develop the skills of our human resources with minimum monthly training hours based on the requirements of the respective domains. The Company has restructured its Performance Management System for its human resources to include goal setting exercises so that employees have clarity on the parameters for evaluation, Key Result Areas (KRAs) and which form the basis for setting organisational as well as individual goals. At V-Mart, we believe that our customers are supreme; consequently the Company has focused on superior customer engagement. During the year under review the Company organised various customer events so as to be in constant touch with our customers and get a better understanding of their needs. OUTLOOK With a new, dynamic government instated at the centre, the growth projection for India is high. Various measures are expected to be initiated to attract more investments and remove infrastructural bottlenecks to boost development. At V-Mart, we expect that our business model will sustain a 30-35 per cent revenue growth and we project to add about 25 new stores in FY 2014-15. On the back of a growing post-tax bottomline, we look forward to enhance value in the hands of the shareholders. We believe that our existing business model is self-sustaining and not consider any deviation from the same. At V-Mart we wish to make our shareholders, customers, employees, the society at large and other stakeholders happy. We thank them for their unstinted support to our business and the management. Warm regards, Lalit Agarwal Chairman & Managing Director