Anjanmoy Chatterjee
Chairman &- Managing Director
Dear Shareholders,
It gives me great pleasure to welcome you to the 25th Annual General Meeting which
holds a special significance achieving a milestone of 25 years. On this occasion I am
happy to present this Annual Report for the financial year 2023-24, reflecting a year of
both remarkable challenges and significant accomplishments in the Indian restaurant
sector. As we look back, I am proud of our achievements and optimistic about the future
while continuing to navigate the evolving dynamic situation in the industry.
IndiaRSs accelerating Growth Trajectory
With a population of 1.4 billion+ and 100+ languages India is a continent within a
nation. It is an acknowledged fact worldwide that India is poised to be the fastest
growing economy in the world with a GDP growth of 7% CAGR (US$ 3.6 trillion), having
jumped from being the 8th largest to the 5th largest and likely to touch US$ 5 trillion by
2027 thus making it the 3rd largest economy in the world. IndiaRSs demographic dividend,
one of the youngest populations in the world, is a driving force of its future economic
growth.
The potential of the hospitality/food business in India
The F&-B Industry contributes 1.9% to IndiaRSs GDP and is projected to grow to
RS7.76 trillion by 2028 from RS5.69 trillion currently. The food service market of India
from 43.8% organized in 2024 is expected to reach 52.9% by 2028. More than 8.5 million
people in India rely on the F&-B sector for their income and is expected to reach 10.3
million by 2028. This makes F&-B industry the single-largest employer in the country.
In the long run, India holds a strong position as its middle class undergoes rapid
transformation and in the next decade, over 50% of Indian households are expected to
ascend to upper-middle and higher-income levels. The average times of monthly eating out
in India is far below the average number of times in Asia and hence there is a higher
potential for growth.
Our Vision and Potential
Our success story is built on our RSpassion for foodRS. We understand the complexity of
the Indian market with its diverse culture, taste preferences, consumer profile, probably
more and better than anybody else.
Looking forward, we are excited about the opportunities that lie ahead. The Indian
restaurant industry is poised for growth, driven by increasing consumer preferences in
experential dining and a thriving eating out culture. Our strategic focus will be on
expanding our footprint in key markets, exploring new culinary trends, and continuing to
enhance our customer experiences.
We are committed to leveraging our strengths and embracing innovation to achieve our
long-term goals. Our dedicated team, loyal customers, and supportive partners will be
integral to our success as we chart our course for the future.
A Profitable Growth Trajectory
We have achieved a sustained profitable growth in the FY 2023-24 where your company has
achieved a consolidated total income of RS425.10 crores thereby recording a growth
ofRS26.32 crores (6.60%) and profit after tax ofRS30.01 crores, despite a volatile and
high-inflationary external environment. This performance has been particularly satisfying,
considering the challenges the world faces today.
Strategy of Expansion
This year, we have opened a few of Asia Kitchen by Mainland China restaurant at Trade
Centre, BKC; Kohinoor Square, Dadar, Mumbai; Viviana Mall, Thane; Phoenix Mall of
Millennium and at Amanora Mall, Pune. We are also happy to announce the launch of the
first Asia Kitchen by Mainland China restaurant in the Mall of Oman at Muscat in FY
2023-24 and initial responses are very encouraging.
Another significant development has been the launch of our new brand - RSWalters
BurgerRS. ItRSs a gourmet slider (small burgers) with an innovative concept. Made with a
soft bun bread dough and a unique recipe for the patties, the differentiator is the
concept - it can be held in one-hand which eliminates the messiness of Burgers leaving one
hand free for use. ItRSs an experience that prioritizes both taste and convenience with
high-quality ingredients, offering delicious burgers at affordable prices. Walters
BurgerRSs innovative concept is set to appeal to the Indian market, particularly fitting
into the fast-paced lifestyle of todayRSs working professionals and could bridge the gap
of a QSR vertical which could be easily converted into a scalable model later on.
We continue to dominate the market with our leadership status in the Asian cuisine
segment. Our USP is the presence of our brands in multiple formats ranging from Fine
Dining, Casual Dining, Resto Bar, Cloud kitchens and Confectioneries. We will continue to
build on our expertise and also keep innovating with newer formats to cater to the
evolving palate of consumers.
We continue to focus on controlling the costs and enhancing our value proposition for
our guests. Recognising the convenience and importance of home delivery to customers, our
efforts on providing last mile delivery continues as it contributes a significant portion
to our total revenues. Given that our versatile brand portfolio enjoys a strong recall and
customer loyalty, we hope to further strengthen our brand presence in the minds of
customers by continuing to focus on improving the dining experience to all diners.
Navigating a Changing Landscape
The past year has been transformative for the restaurant industry in India. As we
emerged from the shadow of a pandemic, we encountered shifting consumer preferences,
economic fluctuations, and an increased focus on sustainability. Despite these challenges,
your company has demonstrated resilience and adaptability.
We have worked diligently to respond to changing customer taste palate and preferences,
upgrading our digital platforms and refining our service models. Having recognised and
embraced technology as a key to our growth, including online ordering and delivery
systems, it has empowered us to reach out to more customers at home or work place and
providing a satisfying and cosy dining experience.
Commitment to Excellence
Our core mission remains unchanged: to create a dining experience whose uniqueness lies
in elegance and refinement, brought alive by care and personalized service in a warm,
vibrant ambience and making everybody RSfeel specialRS.
We have continued to innovate and refresh our menuRSs periodically, incorporating local
and seasonal ingredients of the best quality, to offer a diverse and appealing selection.
Our culinary teamRSs dedication ensures that every dish reflects our commitment to quality
and excellence.
Our restaurants have also focused on creating environment where guests feel valued and
cared for. This emphasis on exceptional service has been central to maintaining our
reputation as a leader in the industry.
Embracing Sustainability and Social Responsibility
Sustainability is a priority for us. This year, we have introduced several eco-friendly
practices, including waste reduction, sourcing responsibly, and implementing
energy-efficient solutions. Our goal is to contribute positively to the environment while
delivering value to our customers and stakeholders.
We are also dedicated to fostering a positive impact in the communities we serve.
Through various initiatives, we support local suppliers, engage in charitable activities,
and promote fair employment practices.
1 extend my sincere gratitude to all our employees, whose hard work and dedication have
been the cornerstone of our success. Thanking our patrons, for their continued support and
loyalty. And gratitude to our partners, investors and all stake holders for their trust
and commitment. I would also like to thank our Board of Directors for their wisdom,
guidance and unstinted support.
Together, we will continue to build on our successes and pursue new opportunities,
driving growth and delivering exceptional values.
Thank you for being a part of our journey.
| Warm Regards, |
| Anjanmoy Chatterjee |
| Chairman &- Managing Director |