SETTING THE PACE FOR ACCELERATED GROWTH
Dear Shareholders,
At the outset, let me congratulate each and every stakeholder on this
iconic 25th year of our Company. It is indeed an emotional and nostalgic moment for me, to
address you as your company completes its glorious 25 years of journey through which the
Company witnessed an addition of 149 stores as of today from just a single store. This
period also saw a total transformation from just a neighbouring store to a modern
formidable chain of stores across Bihar, Jharkhand and UP with Aditya
(sun) vision of conquering entire Hindi heartland where previously no
other dared. This period also saw a number of milestones such as launching our IPO and
getting listed on BSE and after 8 years recent fund raising from marquee investors. Your
Company which started with a dream in 1999 to bring exceptional retail experience to the
people of Bihar, has become a household name in Bihar, Jharkhand & Eastern UP, a name
which clearly resonates with its tagline Sambandh Bharose Ka. As
Aditya Vision celebrates its 25th Anniversary, it's now more
focused, formidable and fierce on way to an accelerated era of growth.
We believe that in India we have a lot to look forward to. The strong
economic growth of the last decade coupled with the rising disposable income has created a
huge consumption demand at the grassroot level. There is a paradigm shift in the
aspirations and lifestyle of Rural India which is translating into a higher demand for
lifestyle enhancing products. The country's rural economy is growing at a faster pace
of 7.3% during the past decade, compared to 5.4% in the urban economy.
There has been a visible shift in rural consumption which has moved
towards non-food category from 47% in 2011-12 to 54% in 2022-23. Also, the rural spending
on consumer durables segment has seen a significant from 4.9% in 2011-12 to 6.9% in
2022-23. We at Aditya
Vision have been at the forefront of this change. The world is looking
towards India as new growth engine of economy, so is India looking towards the Hindi
heartland for its sustainable growth.
At Aditya Vision, we have been able to offer customers exceptional
retail experience with a strong brand equity through large presence and highly
customer-centric policies. Our deep understanding of the areas in which we operate and our
enduring relationships with large OEMs further strengthens our position as a preferred
retailer in the region.
This past quarter-century, while marked by steady growth and consistent
progress, we believe has been a canter walk. As we pivot to the future, this canter is set
to transform into a gallop. Reflecting on our history, each year has been a step forward,
building resilience and capability. However, as we look ahead, the intensity of our
journey will increase dramatically. The next five years will encapsulate growth and
innovation that might have taken decades in the past. We are entering into this phase
better equipped, more agile and with a clearer vision than ever before. Our readiness to
embrace new opportunities is unparalleled. We are poised to expand into new markets,
leverage cutting-edge technologies and pioneer sustainable practices that align with
global shifts towards greener economies. The investments we make today in our people and
partnerships will propel us into a future where our past 25 year achievements will seem
modest in comparison.
Together, let's gallop towards a horizon replete with
opportunities, turning what once seemed distant into our immediate reach.
Sirs, it is my privilege to present this 25th annual report
for FY 2024 to you all.
Operational Achievements and Financial Surpluses
Aditya Vision began operations in 1999 with one store in Patna, Bihar
to 150 stores as it stands today in three states of Hindi heartland of India. Retail is a
service business and the fact that we've never closed a store is testament to our
superior customer service. As we continue to cement our leadership position in Bihar, we
also achieved a premier market position in Jharkhand within two years of operation. We hit
a milestone of more than 100 stores in Bihar in all districts and plan to expand further
in sub-division level in Bihar. We are the largest retailer in Jharkhand and in the past
one year have deeply penetrated in Poorvanchal (Eastern UP) with 20 showrooms. We see huge
potential in UP and in this year expand to the central parts of the state. We have
increased our pace of store additions and have almost doubled our stores in the last 2
years.
FY24 was a landmark year in the history of the company. We delivered a
strong financial performance with FY24 revenues growing 32% to 1,743 crores and PAT
increasing 20% to 77 crores. We have doubled our revenues in just two years. We have grown
while maintaining our operating metrics like gross margin, EBITDA margin, and RoCE. This
year also marks our 2nd fund raise of 282 crores from one of the world's
largest foreign institutional investors, after our 1st fund raise of 5.8 Crores
during IPO. These funds have been utilized toward repayment of debt, meeting working
capital requirements and other expenditures related to general corporate purposes.
Consequently, we strengthened our balance sheet and became a net cash debt-free Company in
FY24. To commemorate the silver jublee year of operations, we have declared a special
interim dividend of 5.10 per share of 10/- each.
Long-Term Plans and Strategies to Achieve Them
The consumer durables segment is poised for multi-year tailwinds.
Growth in consumer durables is underpinned by under penetration, increasing disposable
incomes, shortening of replacement cycles, change in perception towards durables form
luxury to necessity and ease in availability of financing. India's Hindi heartland is
particularly enjoying the benefits of improved electricity and an increase in disposable
income. The industry has grown at a rapid pace and will continue to do so, in the light of
very low penetration and we believe that our core markets could continue to outpace the
growth rate of the industry, further boosting Aditya Vision's financial performance.
For example, Room Air Conditioner penetration in China is ~80% while that in India is just
7-8%. Within India, penetration in our core markets is <2%.
Penetration of other durables are also similar. Organised players
continue to gain market share over unorganised players by offering wider assortment,
superior customer service and convenience, and better pricing. People and culture are the
foundation of our success and I'm pleased to share that the company in FY 24 has
rewarded employees with its first stock option plan a portion of which got vested to the
employees in this FY25. Stock options are evenly distributed from senior management
employees to store managers, cashiers, and warehouse keepers at stores. Our employees are
offered several training programmes and through our employees we aim to provide the same
high standards of customer experience across all our stores.
While the growth in the last 25 years have been incredible, we believe
the next 25 years will be exceptional. We move forward with the knowledge that our legacy
is not just what we've built so far, but what we dare to dream and do in the next
five years. Together, we will not just aim for success; we will achieve it with speed and
efficiency.
We thank our stakeholders, employees, Manufacturers, suppliers and
specially our customers for continued support and enduring faith in our persuit,
enthusiasm for our potential and your commitment to our shared future. Our future looks
bright and we look forward to growing together. Please do take care of yourself and you
family.
Thank You!
With warm regards, |
Yashovardhan Sinha |
Chairman and Managing Director |