Butterfly Gandhimathi Appliances Ltd

Making the most of now to brighten the prospects of tomorrow

The sustainable offtake we have seen in traditional channels gives us the faith that Butterfly can go from strength to strength, and our market share reiterates the faith consumers have in us. We could have performed better compared to our peers. We will take what we learned from this year and emerge as more well-informed and well-prepared. Adaptability and foresight are essential as we navigate industry dynamics. We will reassess our channel strategy and foster a culture of innovation and resilience through talent management and infrastructure investments. This approach will allow us to relay our foundation and turn things around."

Dear Members,

I am pleased to present to you Butterfly's Annual Report for the F.Y. 2023-24.

Before discussing Butterfly's performance, let's consider the electrical appliances sector in India. Despite challenges, the industry has displayed resilience. We witnessed degrowth owing to supply chain disruptions and economic uncertainties. Consumer preferences are gradually shifting towards energy-efficient and technologically advanced appliances.

Consumer at the core

At Butterfly, we consider the consumer, from raw materials to build and accreditations, at every stage. Our track record of getting BIS certifications across categories testifies to the effectiveness of this approach. Our strategy emphasises reaching consumers through diverse channels, balancing traditional and digital platforms. We aim to cater to conventional segments while expanding into rural and urban areas, leveraging our collaboration with Crompton to extend our reach across varied geographies.

Quality and Innovation

Our commitment to quality and innovation is persistent. We identify emerging consumer needs and deliver products that balance functionality and sustainability. We will also bank on Crompton's credentials and legacy, utilising resident knowledge transfer to scale our expertise in Research & Development ("R&D") and strive for industry-first innovation and robust New Product Development ("NPD"). We believe this innovation cycle will be mutually beneficial and will continue extending our product pipelines.

Product focus and sustainability

Our growing portfolio caters to evolving consumer demands while promoting environmental responsibility, fuel efficiency and value for money – from stoves to mixer grinders. We identify niche needs, pain points, white spaces, and latent needs that drive new product development. From offering India's first two-star rated stove, which makes cooking multiple recipes quicker, to promoting healthier lifestyles with our pressure cookers and mixer grinders, we aim to make the time spent in kitchens simpler and easier.

Performance commentary

While acknowledging room for improvement, we remain committed to efficiency and sustainability. Our strategic imperatives align our offerings with consumer preferences and assess channel strategies for sustainable growth. What makes us hopeful is that the acceptance and reception of our offerings is adequate. The initial response to the new releases is positive, and as consumers become more comfortable with purchasing, our prospects will improve.

Innovation and development

We aim to extend product lifecycles through solutions that resonate with consumer needs, such as commercial juicers equipped with a self-servicing toolkit that enhances user convenience by reducing downtime and discomfort. We have demonstrated the brand elasticity across categories and will assess and consolidate to make our non-core categories more profitable in the years ahead.

Supply chain management

Leveraging Crompton's expertise, we seek to expand into Eastern, Western, and Northern parts of India, where our presence is nascent. We intend to leverage active channel engagements with dealers and distributors, tap key accounts, and work in tandem to make the brand accessible and visible, whether through e-commerce or traditional channels. We optimise backend resources in sync with the parent company to lower costs and build our operating leverage.

Leadership and skill-building

We brought in professional talent to uplift the overall capability, infuse skillsets, and adopt a market-first approach. We introduced a new set of values, which we implemented throughout the organisation. As a subsidiary, we aim to live our values by streamlining talent and performance management across the workforce, both front end and back end. We boosted sales leadership and self-learning in the backend by launching a learning tool to make our people self-sufficient. Additionally, we launched Channel Connect app to facilitate the operations of channel partners and understand their needs. A talent transfer journey has begun, and depending on materialising needs and future trends, this collaboration between Crompton and Butterfly will continue.

Looking ahead

The sustainable offtake we have seen in traditional channels gives us the faith that Butterfly can go from strength to strength, and our market share reiterates the faith consumers have in us. We could have performed better compared to our peers. We will take what we learned from this year and emerge as more well-informed and well-prepared. Adaptability and foresight are essential as we navigate industry dynamics. We will reassess our channel strategy and foster a culture of innovation and resilience through talent management and infrastructure investments. This approach will allow us to relay our foundation and turn things around.

In conclusion, our commitment to improving the kitchen space remains firm, led by our brand strength across categories and consumer relatability. Kitchens are evolving. When anyone walks into the kitchen, we aim to make their life easier.

We sincerely thank you, our Members, for your support and confidence in Butterfly.