Powered by momentum, fiscal 2017-18 was a milestone year for Vaibhav Global. As you would have read on the cover of this report, we are inspired by our purpose of delivering joy to our stakeholders and we believe this emphasis is crucial for long-term orientation, direction and eventual value creation.
At Vaibhav Global, we are passionate about delivering joy to our customers. Though trust is an important factor for any brand, it assumes a whole new meaning for an electronic retail brand that is limited in tangibility owing to only a one-way communication with the customer. At Vaibhav Global, in our longstanding years in business, we have built strong levels of trust with our customers, the ultimate reflection of which is evident in rising repeat purchases and average product quantities.
We strive to deliver joy to our customers by offering a strong value proposition that encompasses low-cost, highquality products. Our hosts engage our consumers through compelling storytelling while curating a vast collection of brands that are anchored on fashion relevance, novelty, value and affordability. Our far-reaching TV and online retail platforms have represented a persuasive case in inviting celebrities to showcase their personal line of brands in such lifestyle segments as perfumes, cosmetics, jewellery and handbags, among others. Our Budget Pay feature has created yet another consumer pull that enhances our customers’ purchasing power in terms of opening-up their ability to amortise the payment. Our logistics and backoffice teams work hard to ensure that our products reach our customers on time, ably supported by call centre and other customer-facing teams that are well-trained to respond to customer issues with sensitivity and speed.
At our Company, we have wellstructured and meritocratic human resource policies that serve the purposes of retaining our talent while keeping our workforce engaged and motivated. Operating in a dynamic environment, we believe that knowledge and learning represent the foundations of sustainable growth and have mandated 20 hours of training each year for every member. In addition to helping us enhance productivity, this initiative will open up the scope for our team members to fast-track their careers, while also enabling us to create a management and leadership pipeline. We have also developed a robust employee engagement platform by sharing our success through such value-accretive initiatives as ESOP, profit share, etc. We are a proud equal opportunity employer.
At Vaibhav Global, we look at stakeholder engagement in a holistic way and, for us, community service and engagement is a central part of our business. I am happy to state that our unique ‘One for One’ program is linked to sales volumes in both the UK and USA and donates a hot refreshing meal to a school-going child in India and the UK for every product sold. I am proud to share that we have donated over 14 million meals till date. Besides, this nourishment program, we are also engaged in fundamental community development programs in the realm of education and healthcare in India
I believe that for our shareholders, we have come to represent an investment solution that treads both the technology and consumer spaces and is a rare instance of an India-domiciled electronic retailer that is profitable, scalable and sustainable in highly competitive developed markets.
Powered by the strategic investments of the past, our business gathered momentum with the result that we continued to return positive operating and free cash flow in 2017-18, representing the second consecutive year of these metrics being in the positive territory. Moreover, led by an unmatched value proposition, our products witnessed sustained demand with the result that we were able to clear our inventory faster and optimise working capital despite operating on an expanded base post the launch of our Budget Pay EMI initiative.
With most of the major capital expenditure behind us now, we believe that the benefits of modernised technology, widened household reach, improved customer interface across multiple touch-points and operating leverage have together combined to position us well for continued longterm value enhancement for all our shareholders. In closing, I would like to mention that we have an exciting and opportunityfilled future ahead of us and deeply appreciate the trust that you have placed in us.
With my best wishes,
Chairman and Managing Director