Vision without Action is merely a Dream. Action without Vision just passes the Time.
Vision with Action can change the World."
- Joel A. Barker
Dear Shareholders,
A vision envisioned by five friends in 1980, put into action over the last four and a
half decades by high performing teams and individuals is the Galaxy we know of today.
It is the sheer will, vigour, determination and clarity exhibited by our founding
members and all Galaxites, past and present, that has ensured we get here. As I take over
the mantle from our founding promoter and managing director, Mr. U. Shekhar, I firstly
would like to express my gratitude and thank him and the fellow founders for the
organisation they have built today.
An organisation built on the principles of the 4C's - Character, Competence,
Competitiveness and Comfort governed by the six pillars which are:
• Innovate to Lead
• Talent to Outlast
• Risk to Grow
• Make Customers Win
• Envision to Excel
• Ethics, Sustainability and Governance
has not only stood the test of time, but grown leaps and bounds ethically, sustainably
and responsibly.
As we move ahead, we, at Galaxy, remain fully committed towards upholding the culture,
ethos and values imbibed within us by our founding members.
Before we dwell into the business performance for FY 24, I also would like to thank my
teams for exhibiting tremendous resilience, determination and resolve despite the
multifold challenges emerging due to the volatile global environment.
As we emerge from the aftermath of the pandemic, restoration was the buzzword at the
start of 2023. While the Russia-Ukraine war did trigger a wave of inflation and
macro-instability across countries; slowdown in demand eventually brought back inflation
to manageable levels. Though this did not revive demand immediately, the seeds for the
same were sown in the first half of calendar year 2023.
The business performance for 2023-24 can be divided into two parts
• Part I - Driven by India which on the back of stable macros, continued
its upward march registering yet another year of double-digit volume growth. It gives me
immense pleasure to share with you all that while the 4 years prior to the pandemic saw
volume growth rate of less than 7%, the 4 years after that have seen a volume growth of
10%. We strongly believe that this is just the beginning. With the 3A's of Accessibility,
Affordability and Awareness; the Indian Home and Personal Care consumption story has just
begun its new leg of growth.
• Part II - The International Markets while remained stagnant in the 1st
half of the year, the 2nd half saw a strong comeback. As the destocking cycle
came to an end in the developed markets and as inflation cooled off, consumption driven by
the mass and masstige categories made a strong comeback. We see this recovery unfolding
and sustaining in FY 25. As normalisation returns, with new launches picking up, the
specialty portfolio should do well in the coming years.
While FY 24 saw the normalisation of volumes, FY 25 should see your Company regaining
its profitability trajectory. While multiple macros as well as supply chain issues along
with an unfavourable mix did impact our profitability trajectory vis-a-vis FY 23; we
believe the structural story remains intact.
Galaxy has always believed in the Long Term. I take this opportunity now to share with
you certain highlights and actions taken by your Company which shall showcase its
long-term commitment to its customers, growth and society at large.
Highlights: Awards won in 2023-24
1. Home Care Clean Future Award 2023 was awarded by Unilever for our groundbreaking
products and technological innovation.
2. External Business Partner Excellence Award was awarded by P&G for Galaxy's
operational, innovation, commercial and relationship performance.
3. Supplier Resilience Award 2023 awarded by Henkel for demonstrating supply resilience
despite the multifold challenges.
With great satisfaction, humbleness and sense of prestige as well as responsibility, I
would like to share with you all that we are the only company globally that has won such
prestigious awards at the same time from all major Home and Personal Care Giants. It is a
testimony to the capabilities, focus and relationship quotient we have built over the last
many decades with all our customers.
Galaxy as a Responsible Citizen - Sustainability, Safety and CSR
As it is said, with progress comes greater responsibility and as we march towards
greater heights, being responsible towards our society, our environment and our people
remain the most important prerogatives for your Company.
Multiple steps were taken by your Company to ensure a safer work environment for its
people, safer planet for our future generations and better living conditions for society
at large.
Starting with the switch to Natural Gas replacing the traditional fossil fuels at all
our plants in lieu of our commitment to achieve 100% waste circularity by 2030 and zero
waste to incineration by 2025-26; your Company through multiple initiatives such as WESAP
(Waste Elimination Suggestion Award Program) has demonstrated its unwavering commitment to
the Planet. Specifically as far as 2023-24 is concerned, your Company:
• Recycled 3,755 MT of Waste and Re-used 1,630 MT
• 18% of Water consumed was recycled
• 14% of our Global operations run-on Renewable Energy and
• 73,648 Trees were planted as part of our CSR Projects Consistency demonstrated
over the years has ensured today your company is not only recognised by the regulatory
authorities but by the stakeholders at large.
Awards
• Ecovadis Gold Medal Award for Environment, Labour Practices & Human Rights,
Ethics and Sustainable Procurement
• Best Sustainability Award by Cavin Kare (Customer)
• National Energy Leader Certification and Excellence in Energy Management Award
by CII
• Best Water Company of the Year Award at the Indian Sustainability Conclave along
with the Best Green 4 R's Award and Best Sustainable Performance in Renewable Energy Award
were some of the major highlights for this year
While Awards are a good measure of progress, we sincerely believe there is lot to be
done to ensure a safer planet for our future generations.
Our people are our Driving Force. They give us the strength, the vigour and the
determination to achieve more. Ensuring a safer and vibrant working environment has been a
key objective since inception. This year saw your Company amend its Values for the first
time since inception to Incorporate "Safety First" as the Topmost Value which
your Company seeks to comply with at all points of time. While Safety has always been part
of our core; given what is happening across the chemical industries; it cannot be
emphasised more. Multiple initiatives were taken by your company to further strengthen its
Core - Safety.
Mission Shunya: Zero Harm Initiative
FY 24 marked a significant step forward in our commitment to our safety practices with
the launch of Mission Shunya: A Zero Harm Initiative. This initiative represents our
unwavering commitment to enhancing safety standards and optimising risk management
protocols to ensure zero harm to people, the environment, and infrastructure. This
includes conducting regular safety audits, implementing advanced risk assessment
procedures, and investing in state-of-the-art safety equipment. Recognising that safety is
an ongoing journey, we proactively identify and mitigate potential risks across our
operations to prevent accidents before they occur. Through Mission Shunya, we are
dedicated to creating a work environment where every individual feels safe and valued.
This initiative not only safeguards our employees but also contributes to a more
sustainable future by minimising environmental impact and infrastructure damage.
While Mission Shunya was launched this year, multiple initiatives launched previously
like Project Abhayatam have not only improved the safety culture but ensured minimisation
of minor incidents. No major safety incident occurred during the year 2023-24.
It is this vigour and focus demonstrated by your Company with respect to Safety that
has ensured awards and recognitions at multiple forums like:
• Gold Award by CII at the National 3M Competition for Zero Incidents and Safety
Improvement
• International Certification for IGC-NEBOSH
Your Company Strongly believes a thriving society is a prerequisite for a thriving
country and a thriving country ensures a conducive environment for businesses. Therefore,
it is critical for businesses to ensure responsible growth and development. To ensure the
same as part of its CSR activities, your Company undertook multiple initiatives in various
fields which favourably impacted close to 4.5 lakh people. Broadly highlighting few of our
initiatives:
• Aarogya Vardheeni (Health & Hygiene)
• Gyan Sanjeevani (Education)
• Samajeek Utthaan (Community & Rural Development)
• Paryavaran Suraksha (Environment Protection)
• Stree Unnati (Women Empowerment)
• Aapda Rahat (Calamity Relief)
Ensuring Sustainable Growth - Investing for the Future
As part of its Growth strategy, your Company believes Intellect (People), Innovation
and Interconnectivity (Digitisation) will play a major role going ahead. While these have
contributed significantly over the last many decades; as Galaxy embarks to greater
heights, adequate investments and capabilities building will hold the key.
Digitisation (Interconnectivity)
As Generative AI and Digitisation takes over, automation, interconnected supply chains
and analytics will drive the next leg of growth. Businesses that miss this bus, may miss
the cycle of sustainable growth. To ensure the same, your Company initiated the Process
for Implementation of Industry 4.0. This will not only ensure we gain an edge over
competition but also ensure we match up of the global standards. Multiple digitisation
initiatives in the areas of supply chain management, lead management and cost analytics
were undertaken this year.
Innovation
Innovation forms the bedrock for your Company. Pathbreaking products and cutting-edge
technologies have played a major role in ensuring sustainable growth, especially in the
last two decades. As the world moves towards greener and sustainable products, your
Company has been investing heavily in these areas. Starting with the multi-purpose plant
which we set up in 2022-23 for the introduction of new products and portfolios.
• Galseer? DermaGreen (100% Natural Oil Soluble Surfactant) - Galaxy's
pathbreaking product launched for the emerging and growing shower oils category recently
won the best ingredient award under the Functional Ingredients category at Incosmetics
Global - The premier forum for Home and Personal Care Ingredients
• Galseer? Tresscon and Galseer? Flexcon launched for the Hair Care segment have
been getting good response. These are sustainable natural solutions designed for cleansing
and conditioning segments. As normalisation makes a comeback and new launches pick up in
the developed markets, we strongly believe our new innovations like Tresscon, Flexcon and
DermaGreen will drive our next leg of growth
People (Intellect)
The achievements of an organisation are the result of the combined efforts of each and
every individual. At Galaxy, we have always believed high performing teams and strong
succession plans lay the foundations for sustainable growth. With this belief, your
Company in FY 24, undertook numerous programmes to cultivate a thriving work environment
while fostering a strong sense of social responsibility. Notably, we have been certified
as a 'Great Place to Work', underscoring our commitment to creating an inclusive and
supportive workplace where employees feel valued and empowered. As we move forward,
investing in people by providing bigger and better opportunities, commensurate rewards and
conducive work environments fostering individual growth and collective impacts will drive
sustainable growth.
Onwards and Upwards
At Galaxy, we have always believed in the long term. As the baton gets handed over,
values imbibed, growth levers created and talent built over the years will ensure decades
of sustainable growth for your company. While the last few years saw sluggish volume
growth; normalisation of volumes growth in FY 24 was the biggest positive. Going ahead, as
developed markets make a comeback and as India marches ahead, premium specialties and
high-end performance surfactants have huge headroom for growth. With strong focus on the
Home and Personal Care space, strong stakeholder relationships forged over decades and
experience built across cycles, decades of sustainable and profitable growth await us.
Regards,
K. Natarajan
Managing Director.