M. P. Ramachandran
Chairman Emeritus
Dear Shareholders,
For us at Jyothy Labs, being responsible is not just the philosophy
that guides our Corporate Social Responsibility (CSR) agenda. Our sense of responsibility
and accountability goes beyond, to touch the lives of millions of people who put their
trust in our products and faith in our brands. It is driven by our unmitigated efforts to
bring happiness to our consumers and a shine to the lives of every stakeholder who engages
with the Company in any way.
The evolution of our brands, over the past 40+ years, manifests the
fortification of these efforts, and our unwavering focus on ensuring sustained and
sustainable inclusive growth and value creation.
Brand Jyothy today stands out in India's FMCG industry as a name
synonymous with quality and goodness. It epitomises the strength of our deep- rooted
understanding of the evolving market trends and consumer needs. It reflects the robustness
of our credentials as the manufacturer of best-in-class products, designed to match the
deepest aspirations of our consumers. It is the outcome of our investments in creating an
enviable bouquet of distinctive and differentiated products, each of which boasts of
unmatched attributes and personifies total excellence.
Shining light during FY 2023-24
More light, more happiness, more delight and more value. This, in
short, sums up the excellence of our journey during the year gone by. In a year of high
inflation, reduced consumer spending, competition intensity and rural demand slowdown,
Jyothy Labs delivered sustained double-digit growth, with every offering dazzling
consumers with the brightness of its unique attributes.
With the single-minded goal of adding a new shine to the life of every
consumer, our R&D and manufacturing teams worked harmoniously together throughout the
year to create an exceptional portfolio that resonated with consumer expectations. Our
distribution and sales force pushed their capacities and capabilities to reach out to the
last consumer in the remotest corner of the country. Our brand and marketing teams came
out with impactful and engaging campaigns to catalyse consumer interest and boost sales. I
would like to take a moment here to thank each one of them for driving the Company's
growth during the year.
Complementing these efforts were a host of investments and initiatives
designed to further augment the Company's industry and market edge. Technological
upgradations, automation and digitisation, geographical expansion, strengthening of the
distribution network, operational and cost optimisation, new product launches, people
skill development and ESG initiatives were some of the core areas in which we invested
strategically for
the realisation of our vision and accomplishment of our goals. I am
happy to say that the fruits of these investments are visible on the ground and making a
difference to all those whose lives we touch in any way.
Geared to brighten the future
The value proposition that, we, at Jyothy Labs, have built over the
years, was strengthened manifold during FY 2023-24. Led by our ethos, expertise and
experience, we continued to make inroads into new consumer segments and geographies. Our
high decibel ad campaigns, backed by our on-ground activations, sent sparkling waves of
excitement across the market. We climbed several notches higher in our growth trajectory,
and expanded our product and consumer base to new horizons.
As we move forward, our efforts will be oriented towards strengthening
our focus on enhancing experiences and creating memories for the consumers. We shall
continue to target new and existing opportunities with our innovations, while raising the
technological bar of our operations, systems and processes. New investments in building
our human, manufacturing intellectual and natural capital will drive further enhancement
of our financial capital, leading to greater value creation for our stakeholders.
We shall also continue to deepen our social and stakeholder relations
to propel holistic growth for all of us, and for the nation at large. Connecting with the
consumers and their latent desires will remain a key priority for us, and we shall build
on the same further through more vibrant branding and marketing efforts. Sustained
expansion of our reach and presence will be a major driver of our business strategy, which
we will continue to align with the changing business reality.
Concluding remarks
At the core of our long-term growth strategy lies our unyielding focus
on lighting up lives and ushering in a brighter future for every Indian. I believe that
this focus will get sharper, going forward, with the continued trust and support of all
our consumers, employees, partners, vendors and shareholders.
Let us move ahead with greater dedication and commitment to add a
bigger and brighter sparkle to every life.
| Warm regards, |
| M. P. Ramachandran |
Message from Chairperson and Managing Director
M. R. Jyothy
Chairperson and Managing Director
Dear Shareholders,
Creating value is a critical indicator of business growth for any
company. At Jyothy Labs, we also prioritize consumer happiness and stakeholder
satisfaction as key metrics of success. To align with these principles, we have designed a
business model aimed at enriching the lives of everyone affected by our operations.
We have, over the years, deepened our consumer connect to reach out
effectively to the last-mile of this large and diverse country, with our wide and
differentiated product portfolio. We have become a part of the homes of millions of
Indians, ushering light into their lives every step of the way.
Shining through challenges during FY 2023-24
FY 2023-24 was a challenging year for the FMCG industry, which reeled
under the impact of high inflation, decline in consumer spending, and a growing
competitive intensity. Rural markets in India were particularly subdued, causing demand to
be further affected. As evidenced in the lowering of growth estimates for the FMCG sector
- to 4.5%-6.5% in 2024 from the robust 9.3% growth experience in 2023.
Amid this backdrop, Jyothy Labs continued on its path of double-digit
revenue growth, backed by an increase in our market share. Our net sales posted value
growth of 10.9% and volume growth of 9.0%, with some minor price cuts across the
portfolio. The margin growth was an impressive 28.7%, leading to an Operating EBITDA
margin of 17.4% for the year. PAT went up 54.0% over FY 2022-23, underscoring the strength
of our healthy debt-free balance sheet. I am happy to share that the growth momentum has
been spread across brand categories, underlining the strength and success of our overall
strategy.
The Board has proposed a final dividend of ' 3.50 per equity
share face value of ' 1 per share showcasing our ability to continuously brighten
the lives of our shareholders year-on-year through shared value.
| Excelling across categories |
| ? Fabric Care - ' 1,189 Crore |
| ? Dishwashing - ' 937 Crore |
| ? Personal Care - ' 308 Crore |
| ? Household Insecticides - ' 212 Crore |
| ? Others - ' 111 Crore |
Enablers of our sparkling performance
The performance excellence that shone through the adversities of the
year was the outcome of our strategic focus on the right levers of growth. Regular
investment in all the growth initiatives identified by the Company contributed to the
strengthening of our franchise. It gives us the competitive edge needed to stand out amid
the continuously evolving industry landscape.
Our investments during the year were directed towards strategic brand
building, which remains the key to our business success. The differentiation that we have
continuously built into our product portfolio, through technology-led innovations backed
by our deep understanding of consumer aspirations, proved once again to be the biggest
engine of our sustained growth momentum. Our category approach, supported by the
multi-channel presence of our products, aided us in capturing growth through both
premiumisation and sales of low-unit packs.
In addition to direct distribution expansion and manufacturing capacity
augmentation, we continued to boost our A&P spends to enhance brand visibility and
recall. Coupled with focussed execution, this strategy enabled us to stay ahead of the
curve in the market and the preferred choice for a growing network of consumers across the
country.
Our ability to leverage our expanded distribution platform of direct
reach of 1.2 million outlets (and counting) helped us mitigate the slowing consumption
environment. Our extensive distribution reach enabled us to drive the sales of our
existing product portfolio in newer geographies while helping us to scale up our on-ground
activations and BTL activities. It also aided us in focussing on relevant SKUs for each
market. Supported by our overall agile business operations, this led to growth in market
share across the portfolio.
We believe that we are on the right track of long-term growth and value
creation and intend to build further scale by focussing on execution across all business
parameters with a healthy balance sheet. Our Cash
We believe that Indian FMCG industry is poised for a multi- decade
growth phase. To harness the demand growth sustainably, we shall continue to invest in
digital and ESG initiatives. Our focus will be on building a future- ready organisation,
geared to capitalise on our brand strength and our product innovations to strengthen our
presence in the FMCG industry. This will be enabled through continued investment in our
brands, both in terms of distribution and media investment, backed by prudent capital
allocation. Our strong credentials, track record of excellence, sustained consumer trust,
strong stakeholder relations and responsible growth strategy will remain the pillars on
which we will build a shining future for the nation.
& Bank balance including investments of ' 618 Crore and net
operating working capital of 5 days will enable us to be more agile in our operations, and
we will aim for consistent healthy revenue and profitability growth in the future.
Delivering sustainably & responsibly
A vital aspect of our growth strategy is our enhanced focus on
sustainability, driven by investments in the key metrics of our ESG performance. While we
are proud of our operational and financial performance, we strongly believe that the real
parameters of
meaningful growth in today's global business environment are linked
with sustainability. We have, accordingly, centred our business strategy around product
and process innovation that drives sustainable development by minimising the negative
impact of climate change.
Our ESG focus is manifest in our initiatives to reduce the carbon
footprint of our operations, enhance our green energy portfolio, and ensure judicious use
of natural resources. Besides our environmental focus, we have also embedded social
responsibility and ethical governance into our sustainability ethos, and continue to
strengthen these pillars through targeted interventions.
Towards a brighter future
At Jyothy Labs, we have progressively strengthened our core to steer
our journey towards a better and brighter future. The expertise and experience we have
developed over the years has equipped us to raise the bar of our performance in our quest
to drive greater growth and value creation. Our efforts, going forward, will be directed
towards continued focus on volume-led growth to achieve higher scale of business
operations. With rural recovery a key for sustained category growth, we shall continue to
invest in expanding our last-mile reach and distribution.
We believe that Indian FMCG industry is poised for a multi-decade
growth phase. To harness the demand growth sustainably, we shall continue to invest in
digital and ESG initiatives. Our focus will be on building a future-ready organisation,
geared to capitalise on our brand strength and our product innovations to strengthen our
presence in the FMCG industry. This will be enabled through continued investment in our
brands, both in terms of distribution and media investment, backed by prudent capital
allocation. Our strong credentials, track record of excellence, sustained consumer trust,
strong stakeholder relations and responsible growth strategy will remain the pillars on
which we will build a shining future for the nation.
I extend my gratitude to all of them for their unending faith in Jyothy
Labs. I deeply appreciate the Board members for their invaluable contributions to our
organization's growth. Together, with our collective efforts, we are well-equipped to meet
future challenges and thrive.
On a concluding note
The optimism that prevails in the organisation today will continu? to
be enhanced, going forward, with the sustained support of our stakeholders, including our
consumers, distributors, vendors, employees, partners and shareholders. I extend my
gratitude to all of them for their unending faith in Jyothy Labs. I deeply appreciate the
Board members for their invaluable contributions to our organization's growth. Together,
with our collective efforts, we are well-equipped to meet future challenges and thrive.
| Warm regards, |
| M. R. Jyothy |