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Westlife Development Ltd.

BSE: 505533 Sector: Services
NSE: WESTLIFE ISIN Code: INE274F01020
BSE 00:00 | 11 Jun 484.85 -12.60
(-2.53%)
OPEN

496.50

HIGH

499.40

LOW

471.90

NSE 00:00 | 11 Jun 484.65 -13.15
(-2.64%)
OPEN

500.00

HIGH

500.20

LOW

472.00

OPEN 496.50
PREVIOUS CLOSE 497.45
VOLUME 729141
52-Week high 535.00
52-Week low 283.00
P/E
Mkt Cap.(Rs cr) 7,554
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 496.50
CLOSE 497.45
VOLUME 729141
52-Week high 535.00
52-Week low 283.00
P/E
Mkt Cap.(Rs cr) 7,554
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Westlife Development Ltd. (WESTLIFE) - Chairman Speech

Company chairman speech

Our partners

At the core of our ‘retain regain and acquire' approach is the ability to workwith the right partners not just for the moment but perpetually manifested in ourability to attract and enhance our frequency of engagement.

At Westlife we have a fundamental desire to reinforce our recall as the partner ofchoice. We believe that the stakeholder engagement has not merely enhanced organisationalpredictability but has translated into business sustainability through mutual growth andlong-term lease agreements.

This focus was validated during the last financial year when Westlife demonstratedresilience in the face of challenging market conditions and Black Swan events. Westlifestrengthened revenues by 10.4% enhanced Operating EBIDTA margin by 44 bps and increasedrecurring profit after tax 71.9% indicating that the growth we had reported wasprofitable and margin-enhancing. While the last quarter of the FY20 was impacted by theCOVID-19 crisis the Company took agile and bold steps to stay ahead of consumerexpectations and continued to serve them with additional care. I am pleased to share thatin the year under review we strengthened our operational hygiene while maintaining themomentum of our same-store sales. The sales in the fourth quarter were affected by theCOVID-19 crisis. However we are optimistic that the multi-year investments in ourecosystem as well as superior hygiene and quality products will help scale the businessand generate higher profitability in the years ahead.

Our business approach

The core of our business strategy across the last decade-and-a-half was the convictionthat Westlife could be only as competitive as the aggregated competitiveness of itsbusiness partners and constituents. While this would appear to be a business imperativeshared by a number of companies there was perhaps one difference: we invested patientlyin building the long-term strengths of the various partners in our eco-system as opposedto responding with a conventionally short-term perspective. We selected them with prudenceand engaged with them not just with the perspective to transact for the moment but tocreate a multi-year relationship. As we enter the twenty-fifth year of our business thesectoral outperformance of our Company is becoming increasingly evident year-on-year. Webelieve that what we have created in the process is a substantial competitive advantagethat makes us unique within the country's QSR sector. At Westlife we have encapsulatedthis positioning around a simple concept that is now being more visibly institutionalised:‘One for all. All for one'

Our customers

There is a rationale for why the ‘One for all. All for one' positioning isbecoming increasingly relevant. At Westlife one of our principal learnings is that thereis no such thing as a ‘QSR customer'. On the contrary we believe that there aredifferent kinds of QSR customers – there is the morning person who needs a coffeewithin an hour of rising there is another person who comes to have a quick snack or mealand is not particularly selective about what is to be ordered there is the person whowishes to spend leisure time during the day and what better place to do so along withvaried day-part offerings at an affordable price.

At Westlife we enhanced our organisational responsiveness to address all thesecustomers. This flexibility was achieved by engaging with this varied customer set; thisflexibility was achieved through a business model that widened our positioning from being‘one thing to one customer' to ‘a number of things to a number of customers.'This wider positioning was achieved through an inter-connected way of doing business thatensured that we enhanced as much value for our stakeholders as they did for us. In shortwe created an eco-system.

That brings me to a critical point: what does a good eco-system achieve? At Westlifewe believe that a good eco-system enhances inter-connectedness between partners makeseach one dependent on the other builds sustainable value enhances business reliabilityattracts like-minded partners strengthens business shock-absorbers weathers market downcycles empowers the Company to launch new products and conveniences widens the marketand makes stakeholder partners feel good about their association with the Company.

Our offerings

As the inter-connectedness of our business strengthened we introduced new features inour menu ambience and McDonald's experience. For instance we introduced a value priceoffering for burgers our most popular menu item in 2003; ten years later we built onthis leadership with a ‘burger-plus' positioning and kick-started a multi-programmeinitiative. Across the seven years ending 2020 we believe we have achieved a‘Destination for all' platform that should translate into scalable and sustainablegrowth from this point onwards. The result is that the Company raised the standard inIndia's QSR sector. The Company introduced a superior dining experience cooked everything'made to order' for the customer provided a sit-down service curated a superior diningexperience without increasing prices and offered a GST-inclusive menu price (‘Whatyou see is what you pay') – all for the first time in India's QSR sector.

In the process we built a Company that is not just good for customers; it is good forvendors having helped them build businesses; it is good for the earth in that its‘green design' has helped seed an environmentally-centred mind-set from the designstage; it is good for our customers in that it is relevant across all occasions andday-parts; it is good for our employees in that it has helped them build careers; it isgood for our shareholders in that it has enhanced the value of their holdings over time;it is good for the community in that it engages with sensitivity with the less-privileged.In doing so we believe that Westlife has emerged as an industry model. At Westlife weare optimistic about our prospects for a number of reasons. We possess a positive momentumthat has been accelerating for a few years; we are recognised as a modern burger companythat is increasingly preferred; we are democratising global gastronomic preferences inIndia; we already possess a large proportion of profitable stores even as discretionaryspending remains muted; we have built our business in a manner to moderate our new storebreak-even point; as revenues rise for these upfront-expensed stores margins couldstrengthen. We believe that we have re-oriented the way a consumer will perceive QSRthrough initiatives outlined in the preceding paragraphs. We provide a wide complement ofvalue across 319 outlets in West and South India 223 McCafs 264 McDelivery outlets and210 breakfast outlets translating into more occasions to visit our outlets. We expect towiden this scale of presence across the foreseeable future leveraging a fuller value ofour inter-connectedness and strengthening our ability to navigate economic downtrends andrebound faster when spending revives.

Amit Jatia Vice Chairman

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