NSE Symbol: | BSE Code: | ISIN: | Sector:
- Add to Portfolio
- Add to Watchlist
- Add to Alert
I am delighted to share that with the ongoing support and confidence reposed by all of you, Vaibhav Global has rapidly evolved into a vertically integrated electronic retailer of fashion jewelry and lifestyle accessories in the US, UK and Canada. Today, we directly access well over 100 million households in these countries on our own home TV shopping and e–commerce platforms, which is leading to significant long–term growth opportunities.
During the year 2012–13, the company's consolidated total income grew 38% to ? 931 crore. Profit after tax (before exceptional items) remained stable at ? 78 crore as we invested significantly in creating organizational competencies which, we believe, will deliver sustainable value over the coming years. The year was the third consecutive one of substantial cash flows that we have used to rationalize debt and strengthen our balance sheet.
Our transformational achievements have come in the backdrop of a global economy that continues to grow moderately, with much of the developed world still recovering from the economic collapse of five years ago. The Company's business model is now designed around creating value perception through lowest price guarantee, which essentially means delivering a high quality, deep value proposition to the discount seeking buyer. This has led to market share expansion on the back of rising value consciousness across customer categories in the prevailing economic scenario.
Behind our strong customer proposition is a robust supply chain infrastructure that marries manufacturing operations in Jaipur with outsourcing operations in Asia. We source a wide range of fashion jewelry and other lifestyle fashion products from micro–markets in China, Indonesia and Thailand by closely monitoring the latest fashion trends to deliver directly to the homes of our Home TV and Web customers.
Last year, we shipped close to seven million products to our customers or 19,000 on an average every single day of the year. Volumes increased 72% in 2012–13 and have
increased by nine times over the last three years, a measure of our success in transitioning the business model to fashion jewelry and lifestyle products.
TV constituted 75% of the retail volumes, the rest coming from web. Three years ago, over 90% volumes were from our TV platforms, so the mix is getting more balanced which we see as another positive. In addition, over the years, the company has transformed from a completely B2B sales outfit to one with 87% retail contribution in 2012–13.
Last year, we have hired several senior and middle level managers. We now have Colin Wagstaffe to head the UK business, Michael Raisbeck to head global HR and Gaurav Vishal Soni as Chief Operating Officer here in Jaipur. We have invested in strong management resources both at operational and strategic levels, backed by a robust middle management layer and a customer relationship mechanism, to enable our expansion into a more significant player in all our key markets.
Going forward, we will leverage our organizational strengths to deliver capital efficiency across every facet of our organization. We believe that last year's return on net worth of 49% and return on capital employed of 34% can be significantly improved upon in the coming years by remaining focused on our core proposition.
Looking ahead, we will continue to invest in expanding marketing, operations, facilities, people development, and hardware/software technologies, to build the critical infrastructure needed that refines our execution capabilities and our customer experience. We see these initiatives enabling us drive further shareholder value.
We will also continue to follow the highest standards of corporate governance as an ethical requisite, and remain uncompromising on organization integrity, social obligations and regulatory compliance.
On behalf of the Company, I take this opportunity to thank all our key stakeholders shareholders, government agencies, employees, bankers, partners and vendors for their continued support. In the years ahead, we see exciting opportunities for your Company, as we work towards realizing our vision.