From the MD & CEO's Desk
Strong Today, Stronger Tomorrow
Anand Kripalu
Dear Valued Stakeholders,
I am delighted to present EPL's annual report for FY 2024, marking my
third year as the MD & Global CEO.
Brazil Greenfield Stabilized and Soaring
At the outset, I am pleased to share that our Brazil plant which became
operational this year, has successfully stabilized. The establishment and stabilization of
our greenfield plant not only enhances our presence in the Americas but also opens
significant opportunities in this large market. We have now met 100% of the demand from
our anchor customer and secured orders from other multinational corporations and local
clients. Our focus now is on further growth in this promising market.
Overall Environment
The global business landscape in FY 2023-24 presented numerous
challenges, including economic instability, inflationary pressures, and geopolitical
tensions. Supply chain disruptions and fluctuating raw material costs added further
complexity, requiring companies to be highly adaptive and innovative. The tightening of
monetary policies worldwide also impacted financial strategies, while evolving consumer
demands for sustainability necessitated significant adjustments in operations and product
offerings. Having said that, the environment was more stable and predictable than in past
years.
Strong Today, Stronger Tomorrow
Within this backdrop of 2023-24, EPL has successfully maintained growth
while expanding margins. Our strategy enabled us to navigate the environment effectively,
laying the groundwork for continued growth and success. Throughout the year, we focused on
leveraging our strengths to improve our products and meet the evolving demands of the
markets we serve. Our commitment to harnessing technology has enabled us to deliver
high-quality, environmentally friendly packaging solutions, reinforcing our dedication to
sustainability.
We have made significant strides in reducing our environmental impact
and enhancing our recycling initiatives, demonstrating our commitment to ecological
responsibility. Our customercentric approach has strengthened relationships with existing
clients and facilitated new partnerships across various industries. By working closely
with our customers, we have tailored our solutions to meet their specific needs more
effectively.
Financially, EPL has shown robust performance, allowing continuous
investment in research and development. By continuously enhancing operational efficiency
and fostering innovation, we are solidifying our current strengths and building a
formidable foundation for continued success and for a stronger tomorrow.
EPL's Business Performance
This year witnessed remarkable resilience and recovery, marked by
strategic focus and operational excellence amidst a challenging global landscape. I am
pleased to report a revenue growth of 6% to Rs 39,161 million, despite negative pricing
impact in the second half of the year. This growth was driven by our efforts to build a
robust sales pipeline and aggressively pursue market share gains. All four regions
delivered revenue growth, with EAP and Americas achieving double-digit growth of 10.1% and
12.9%, respectively. We also witnessed substantial improvement on the margins front.
Absolute EBITDA grew by 19.2%, and EBITDA margins improved by 202 basis points to 18.2%.
This achievement is the result of our continuous, company-wide initiatives to lower costs
and enhance asset utilization. These initiatives include active price management, raw
material substitution, supplier consolidation, and increased manufacturing efficiency
through SKU reductions.
Sustainable and Conscious Growth
During the year, we achieved significant milestones reflecting our
commitment to a sustainable future. We developed tubes with up
to 50% PCR content and doubled our contribution of sustainable tube
volumes to 21% from 10% in the previous year. Additionally, 24 new patents we received in
2023-24 highlight our ongoing dedication to pushing our boundaries.
We have significantly invested in our backend capabilities, making 85%
of our capacity ready for sustainable tubes. We partner with our customers to provide
tailored sustainable solutions, helping them meet their targets with our extensive range
of sustainable products.
EPL made positive progress on all ESG commitments, achieving a Green
rating from the Ellen MacArthur Foundation for the second consecutive year and an
"A" leadership rating in the CDP 2023 Supplier Engagement rating, showcasing our
leadership and engagement in sustainable practices throughout our supply chain.
We prioritize the well-being and development of our employees,
customers, and communities. As a member of the United Nations Global Compact, we integrate
its Ten Principles on Human Rights, Labor, Environment, and Anti-Corruption into our
business strategy and culture. Our CSR initiatives, including Plastic Waste Management,
Community Welfare, and Skill Development, were recognized by the World HRD Congress with
an award for best CSR processes. All our collective efforts helped us earn the Ecovadis
Gold rating during the year.
Business Strategy
Our strategy, anchored by our 4X4 mantra, focuses on driving growth
across Categories, Customers, and Countries, while maintaining a strong emphasis on Costs.
The progress on each has been strong in the year, setting a strong base for the years to
come.
Category: We remain market leaders in Oral Care, and while building on
this momentum, we aim to drive significant growth in Beauty & Cosmetics and Pharma.
This year, our Non-Oral category grew by 8.1%, outpacing the 5% growth in Oral Care. We
have increased our headcount to support new customer acquisitions in beauty and cosmetics
and enhanced flexibility for smaller batch sizes, critical for this sector. Our NeoSeam
technology, which eliminates the side seam impact, is gaining traction across regions.
Customers: We are strengthening relationships with both global and
regional customers by tailoring our solutions to meet their unique needs. This year, we
improved our wallet share with key customers and acquired new beauty and cosmetics clients
in key markets like EAP and the Americas.
Country: We continue to expand our global presence. This year, we added
a new greenfield plant in Brazil, now stabilized and operational, strengthening our
position in Latin America. We also boosted our presence in markets like Thailand and
Australia through exports.
Cost: Our commitment to cost efficiency remains paramount. We are
optimizing expenditures and enhancing operational efficiencies for sustainable growth.
Additionally, we are
undertaking a restructuring exercise in Europe to improve margins to
mid-teens.
Investing in Our People
Our talented workforce is our greatest asset. We are honored to receive
the Best Employers Award by Kincentric, a recognition of our dedication to employee
well-being and development. We invest heavily in training and development programs,
ensuring our team possesses the skills and knowledge necessary to navigate the
ever-evolving packaging landscape. Furthermore, we prioritize diversity and inclusion,
understanding that a workforce that reflects the communities we serve fosters innovation
and creativity.
Our resilient, innovative, and sustainable foundation positions us to
seize opportunities, drive growth, deliver value, and shape a brighter future for
generations.
Looking Ahead: Building a Stronger Tomorrow at EPL
We are in a strong position today, evidenced by our consistent progress
in recent quarters. Our strategic initiatives are guiding us towards achieving
double-digit growth with a 20% EBITDA margin. We are encouraged by our current momentum
and energized by the opportunities ahead.
Continuously refining our strategies and leveraging our strengths
instils confidence in our ability to sustain growth and deliver enduring value to our
stakeholders. This approach strengthens our foundation today and sets the stage for an
even more prosperous future.
Entering a new fiscal year fills us with optimism. The resilient
foundation we have built—marked by innovation and a deep commitment to
sustainability—positions us well to seize upcoming opportunities. We are committed to
driving sustainable growth, delivering exceptional value, and shaping a brighter future
for generations to come.
Looking forward, we value collaboration in our journey ahead. We extend
our hand in partnership to our valued customers, suppliers, and partners. Together, by
leveraging our collective expertise and steadfast commitment to sustainability, we can
foster an environment where innovation thrives and prosperity is shared.
Conclusion
I extend my heartfelt gratitude to our exceptional team whose
dedication drives our success. To our loyal customers - thank you for your continued
trust. To our shareholders, your steadfast support is invaluable. And to our partners, we
eagerly anticipate collaborating as we build a sustainable and prosperous future together.
With everything in place, our path to achieving double-digit growth
remains clear. Let's continue working together towards a stronger tomorrow that benefits
everyone.