Chairman's Message
"This year we embodied our guiding ethos: Leading with Strength, Growing with
Purpose. Strength was reflected in our ability to outperform the industry, remain
resilient amid uncertainty and stay firmly aligned with our strategic vision. Purpose
guided our bold investments, deeper commitment to sustainability, expansion into new
markets and continued focus on delivering an exceptional customer experience"
- Inder T. Jaisinghani
Dear Shareholders,
It is with immense pride and gratitude that I present to you the Integrated Report for
FY 2024-25. This year has been one of strong, purposeful growth for Polycab
anchored in the resilience of our business model, the trust of our customers and the
unwavering commitment of our people. The theme of this year's Integrated Report, "Leading
with Strength, Growing with Purpose" perfectly captures the spirit of our journey
in FY 2024-25. We have led with strength by outperforming the industry, navigating
uncertainties and staying true to our strategic path. And we have grown with purpose
by making bold investments in the future, sharpening our focus on sustainability,
expanding into new markets and continuously elevating the experience we offer to our
customers.
At Polycab, growth is not merely measured in financial terms. It is about impact, about
building a resilient institution that delivers long-term value while being deeply aligned
with the needs of society and the environment. FY 2024-25 has been a year of acceleration
and more importantly, of alignment between what we do and why we do it.
Year Under Review: Sustaining Momentum, Scaling New Heights
FY 2024-25 will be remembered as a year in which Polycab consolidated its leadership
position and advanced its purpose-driven agenda. We delivered robust growth across key
business verticals, outperforming most peers in the industry. Our revenues grew by 24%,
one of the fastest growth rates among electrical companies, underscoring the strength of
our business model and execution. This exceptional growth has propelled Polycab to become
the largest Company by revenue in the Indian electrical industry.
Polycab is now the largest Company by revenue in the Indian electrical industry
We also continue to be the most profitable player in the Indian electricals ecosystem,
demonstrating the financial discipline and operational efficiency that have become
synonymous with the Polycab name. Our consistent profitability enables us to reinvest in
innovation, capacity building and people ensuring the longevity and sustainability
of our success.
Our market share in the organised Wires & Cables (W&C) segment rose by 1% to
reach the 26-27% range, a significant achievement in a competitive environment. This was
made possible by our relentless focus on quality, supply chain agility and deep market
penetration. Importantly, this gain was not just numerical it reflected a deeper
relationship with our channel partners and end customers.
The FMEG segment, after a subdued performance in recent years, staged a strong comeback
with a 29% growth during FY 2024-25. We achieved break-even in Q4 a critical
milestone that validates the strategic changes made in distribution, product portfolio and
brand building over the past four years. This performance reflects the rising strength of
our consumer business and our ability to respond to changing market dynamics with agility.
Our EPC division also had a standout year, growing 143% on the back of significant
orders under the Government's RDSS scheme. This momentum further solidifies our
credentials as a trusted partner for large-scale infrastructure projects.
While our International business registered marginal de-growth this year due to
geopolitical and trade-related headwinds, we remained resilient. The fundamentals are
strong and the healthy global demand environment positions us well for a turnaround in FY
2025-26.
Throughout FY 2024-25, we led with strength consistently delivering operational
excellence and we grew with purpose, ensuring that each initiative contributed
meaningfully to our long-term vision.
Project LEAP: Delivering Ahead of Time
One of the defining accomplishments this year has been the successful conclusion of
Project LEAP, our multi-year transformation journey launched at the end of FY 2020-21.
Project LEAP was initiated barely two years after our listing a bold move driven by
our belief that transformation should begin not in response to a crisis, but from a
position of strength.
At its core, Project LEAP was about reimagining how we operate, serve our customers and
create value. I'm proud to report that we have achieved our Project LEAP goal of 1200
billion in revenues a full year ahead of our FY 2025-26 target. This outcome is not
just a reflection of top-line performance but of the structural transformation we have
achieved across business units.
Key initiatives under Project LEAP included the merger of HDC and LDC verticals, which
improved operational synergies and enabled more targeted customer engagement. In Wires, we
implemented price laddering, making our offerings more responsive to different customer
segments and enhancing affordability across markets.
On the go-to-market front, we invested in building digital and data-driven capabilities
that now allow us to be more agile and localised in our approach.
The international business saw a continuous expansion of our global footprint, while
FMEG gained momentum through distribution expansion, influencer engagement and new product
development. These initiatives were not standalone they were tied together by a
shared philosophy: to scale responsibly, sustainably and inclusively.
Project LEAP laid the foundation for a stronger, future-ready Polycab. It gave us the
confidence to take bold decisions, build resilience in our operations and align every
layer of the organisation with our larger purpose. It was our first major statement of
intent and its success has encouraged us to aim even higher.
Project Spring: Our Vision for FY 2029-30
With Project LEAP successfully behind us, we have now entered a new strategic cycle
through
Project Spring our roadmap for the next five years. This project is not just
a continuation of LEAP; it is an evolution that reflects our growing maturity, global
ambitions and deeper sense of purpose.
Project Spring is underpinned by a clear and ambitious set of goals to be achieved by
FY 2029-30. The macro environment supports this ambition India is in the midst of a
strong infrastructure upcycle and the W&C industry is expected to grow at 1.5x to 2x
of real GDP growth. We expect this trend to be skewed toward the higher end and Polycab is
well-positioned to capture this upside.
We aim to grow our W&C business at 1.5x of industry growth, continuing to gain
market share and deepen our presence across markets. Our long-term EBITDA margin guidance
stands at 11-13%, reflecting our ability to manage costs while investing in capacity and
innovation.
International business is another critical focus area. We aim to raise its contribution
to more than 10% of the Company's top-line, supported by a sharpened go-to-market
strategy, localised presence and improved distribution infrastructure in key geographies.
The FMEG segment, where we now have a strong operational footing, will be a major
growth engine going forward. Our target is to grow FMEG revenues at 1.5x to 2x of industry
growth, while steadily moving towards an EBITDA margin of 8-10%. Premiumisation, brand
building and channel expansion will be the levers that drive this growth.
We will be investing between K60-80 billion in capital expenditure over the next
five years. These investments will be directed towards capacity expansion, backward
integration, digitisation and ESG-related initiatives.
Importantly, our financial strategy will continue to prioritise long-term
sustainability. Despite this elevated capex, we will fund all investments through internal
accruals and simultaneously increase our dividend payout to 30% or higher. This reflects
the robustness of our balance sheet and our commitment to rewarding shareholders even as
we scale.
Project Spring is our next big leap. It is our way of ensuring that we not only stay
ahead of the curve but also define it.
It is about leading with scale, efficiency and vision and doing so with
integrity and purpose.
ESG: Strengthening Our Commitment to a Sustainable Future
One of the most significant developments in FY 2024-25 has been the formalisation of
our five-year ESG goals. As a responsible corporate citizen, we believe that growth cannot
be sustainable unless it is equitable and environmentally sound. Our ESG roadmap is
therefore not an add-on it is integral to our business strategy.
We have adopted goals across 10 measurable parameters, spanning all three ESG pillars
Environmental, Social and Governance. These include targets around renewable energy
consumption, water recycling, gender diversity, health and safety, ethical governance,
community development and a few more.
To ensure accountability, we have institutionalised governance structures: a
Board-level ESG Committee to provide strategic oversight and an ESG Council to drive
execution. Moreover, we have linked ESG metrics to variable compensation for relevant
leaders, reinforcing the idea that sustainability is everyone's responsibility.
Progress against these goals will be reported annually with transparency, enabling our
stakeholders to track performance and hold us to our commitments.
Our ESG agenda is aligned with the principle of "Growing with Purpose."
Whether it's reducing our environmental footprint, empowering our workforce, or
contributing to community development, we believe that every action counts. As we scale
new heights in business, we are equally committed to raising the bar on sustainability.
Vote of Thanks: Together Toward a Better Tomorrow
As I look back on the year gone by, I feel an immense sense of gratitude. None of our
accomplishments would have been possible without the extraordinary efforts of our
employees, the faith of our customers, the support of our channel partners, the guidance
of our Board and the trust of our investors.
FY 2024-25 has been a defining year one in which we not only delivered strong
results but did so with greater clarity of purpose. The foundation we have laid with
Project Spring, the investments we are making in capacity, technology and people and the
culture we are building across the organisation give me confidence that Polycab is on a
path of enduring value creation.
As we move forward, we will continue to lead with strength through
innovation, execution and market leadership. And we will grow with purpose
by being responsible stewards of capital, of people and of the planet.
Thank you for being part of our journey.
Warm regards,
Inder T. Jaisinghani
Chairman & Managing Director.