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Mahindra Holidays & Resorts India Ltd.

BSE: 533088 Sector: Services
NSE: MHRIL ISIN Code: INE998I01010
BSE LIVE 15:40 | 15 Dec 333.80 -0.65
(-0.19%)
OPEN

339.60

HIGH

340.00

LOW

332.30

NSE 15:40 | 15 Dec 334.05 -0.45
(-0.13%)
OPEN

335.95

HIGH

339.00

LOW

333.05

OPEN 339.60
PREVIOUS CLOSE 334.45
VOLUME 3189
52-Week high 469.00
52-Week low 257.37
P/E 33.82
Mkt Cap.(Rs cr) 4,448
Buy Price 334.00
Buy Qty 163.00
Sell Price 0.00
Sell Qty 0.00
OPEN 339.60
CLOSE 334.45
VOLUME 3189
52-Week high 469.00
52-Week low 257.37
P/E 33.82
Mkt Cap.(Rs cr) 4,448
Buy Price 334.00
Buy Qty 163.00
Sell Price 0.00
Sell Qty 0.00

Mahindra Holidays & Resorts India Ltd. (MHRIL) - Chairman Speech

Company chairman speech

MAHINDRA HOLIDAYS AND RESORTS INDIA LIMITED ANNUAL REPORT 2010-2011 CHAIRMAN'S REPORT Dear Shareholder This is the second annual report of your Company since its successful IPO in July 2009, and my second letter to you as the Chairman. Let me start by sharing with you some facts about Mahindra Holidays. At the end of 2004-05, your Company had 28,491 vacation owners in its fold. On 31 March 2011, the membership stood at 125,169. That translates to a 25 per cent compound annual growth rate (CAGR) over six years - a creditable achievement by any yardstick. Six years ago, your Company had one product - vacation ownership under Club Mahindra Holidays. Today, while Club Mahindra Holidays continues to dominate, it has various other products and offerings such as Zest, Club Mahindra Fundays, Mahindra Homestays, clubmahindra travel and the newly launched rugged camping vacations called terra. Each provides differentiated offerings for various types of clients. And each has a high growth potential. Today, your Company has a selection of 35 resorts across hill stations, beaches, backwaters, wildlife, forts and heritage, as well as international destinations. In addition, Mahindra Homestays provides the experiences of authentic India by guests living in carefully vetted Indian homes - ranging from palaces and heritage properties, to plantations as well as rural and farm homes. On 31 March 2011, Mahindra Homestays was affiliated with 282 homes comprising 750 rooms across 60 locations in India. I could go on. The point of these examples is to illustrate the phenomenal growth and goodwill that your Company has enjoyed over the last six years. Simply put, we have understood the needs of an increasingly better off set of consumers who desire to have vacation experiences with a difference; and, in the process, we have grown the business in different directions through attractive offerings; all united by the power of the Mahindra brand - a name associated with trust, credibility and transparency. Rapid growth, such as what has been witnessed by your Company, occasionally requires review and consolidation, lest it unwittingly gets out of hand. In the first half of 2010-11, the senior management of Mahindra Holidays asked a simple question: 'What are the improvements that we must do today so that Mahindra Holidays is even better prepared to benefit from future market opportunities?' This led your Company to initiate measures to further improve productivity and create an even stronger foundation for growth. There were several initiatives. Let me name a few. The first involved strengthening the process of customer acquisition, so as to build a more robust customer portfolio. The second was to standardize and further upgrade the quality and processes of customer interface - from the point of initial contact to sales to member relations and resort service. The third was to implement processes based upon best in class TQM principles across the organization. The fourth was to further focus on building a seamless, enterprise-wide information technology backbone to handle exponential growth in volumes while increasing customer satisfaction. Thus, the tasks for driving the next phase of growth were to build a more robust customer base; standardize and improve all customer facing experiences; make quality the watchword of the organization; and create a world class IT system to facilitate all aspects of the business. It was time to pause; to re-focus on the key drivers; to create an unmatched customer experience; and move on to the next phase of growth. These initiatives were identified and put in place in the first half of 2010-11. While they put a pause on growth and somewhat dampened your Company's financial results, I have no doubts that Mahindra Holidays is again getting itself into a position to rapidly and profitably leverage the growth opportunities in India's leisure hospitality market. As a Chairman of a listed Company, I am expected to be circumspect about 'forward-looking' statements. Nevertheless, I believe that the next year should see a significant growth in room inventory. Moreover, I expect the management to achieve its improved quality and productivity goals. If these were to occur, one should presume that your Company ought to generate higher shareholder value along with higher revenue growth. I am, therefore, optimistic of the foreseeable future. In January 2011, the Mahindra Group launched a new brand positioning spanning all industries, companies, and geographies. It is expressed by the word 'Rise'. I am sure that you have seen this in various advertisement and media releases. 'Rise' articulates a core group purpose: 'We will challenge conventional thinking and innovatively use all our resources to drive positive change in the lives of our stakeholders and communities across the world, to enable them to Rise.' Mahindra Holidays, too, shall 'Rise'. We will keep raising the bar; re-define and expand opportunities; innovate products and processes for the customers; and drive change, not just through greater shareholder value but by bettering the environment and the lives of our communities. Thank you for your support. We treasure it. With regards A K Nanda Chairman