Dear Stakeholders,
I hope this letter finds you well. I am pleased to share your Company's journey through
a year of innovation and growth. As a leader in the colorant industry with a rich history,
Heubach Colorants India Limited (HCIL) continues navigating a dynamic environment full of
challenges and opportunities.
Despite facing significant headwinds in FY2024 - such as weak demand, price erosion,
and global supply chaln disruptions - we achieved strong results, reflecting our focused
execution of our strategy and continued operational excellence. The insolvency of the
Heubach Group's German entities in April 2024 temporarily impacted Q1 FY2025, but our
team's resilience is driving a solid comeback for growth and profitability.
Our foundational pillars include growth, innovation, sustainability, and people. I want
to share our progress and reflections on each of these areas.
Growth
As a result of executing our strategy effectively this year, we have achieved
significant milestones despite facing numerous challenges. Our commitment to cementing and
expanding our market presence has led to solid market share gains and robust volume
growth. Additionally, we have grown revenue with our top five customers, driven by our
approach to partnering with them on innovation and providing them peace of mind. By
investing in newer products and expanding our portfolio, we have successfully captured new
market segments and strengthened our competitive position. Our proactive approach to
understanding and meeting customer needs has enabled us to foster long-term relationships,
driving sustained growth even in a turbulent environment. HCIL remains laser-focused on
delivering robust growth.
Innovation
Innovation is at the forefront of our growth strategy.
We continue to invest in developing new products and enhancing our existing offerings
to deliver exceptional value
to our customers. In FY2024, we successfully launched 11 new products - nearly one
product each month - underscoring our commitment to staying at the cutting edge of the
industry. Our relentless focus on innovation fuels our revenue growth and ensures we
remain highly competitive in the market. Collaborative development with customers is
central to our approach. I am proud to share that many customers regularly visit our
Technical Centre to co-create solutions for their evolving needs.
Sustainability
At HCIL, our sustainability practices are comprehensive and deeply ingrained in the way
we conduct business. Demonstrating our commitment, we have significantly invested in
enhancing the use of renewable energy at our manufacturing sites. The Heubach Group, of
which HCIL is a part, is proud to have established the carbon footprint of some of our key
products—an industry first. Our flagship site at Roha exemplifies our ethos,
utilizing 84% renewable energy, while our overall renewable energy usage across all our
plants is 76%. We continue to focus on using renewable and green energy sources to reduce
our carbon footprint, and more efforts are ongoing. We continuously innovate our products
to meet stringent sustainability criteria, such as transitioning to water-based paints and
inks, reducing VOCs, and enhancing energy management through easy dispersibility. Our goal
is to become the partner of choice for industry-leading sustainable products.
These initiatives underscore the integration of sustainability into our core
operations, making HCIL a leader in the industry.
People
Giving back to the community is fundamental to HCIL.
This year, we invested in education, health, and women's empowerment, aiming for a more
equitable world.
To enhance these initiatives, we will continue to uphold our CSR principles, actively
engage with the communities we aim to support, and promote employee volunteering and
engagement, embedding these values into our working culture.
We strongly focus on employee well-being and development, creating a safe,
growth-oriented work environment.
Our employees take pride in being part of the Company, and we communicate frequently
with them to foster world-class engagement.
By creating a supportive, growth-focused work environment, we aimed to retain employee
confidence and inspire them to reach their full potential, reducing the voluntary
attrition rate in FY2024.
As I look ahead, I remain optimistic about HCIL's future.
In FY2024, we significantly strengthened our balance sheet by improving our cash
position, EPS, and EBITDA figures.
Despite the challenges we faced with the group entities' insolvency in Q1 FY2025, we
have demonstrated a remarkable recovery, thanks to our team's resilience and our
shareholders' support.
Our robust financial position, combined with a solid, experienced management team and
the dedication of our entire workforce, sets the stage for an even stronger performance in
FY2025 as conditions normalize. Our renewed focus on innovation and sustainability
reinforces our position as a leading player in the industry.
Before I end this letter, I would like to thank all the shareholders for their support
during my stint at HCIL.
I believe we have navigated some unprecedented situations with clarity, focus, and
passion. As I hand over the baton to the HCIL leadership, I am confident that the best
days for HCIL are ahead.
I sincerely thank all our shareholders and stakeholders for your unwavering support.
Together, we will continue to shape a vibrant and sustainable future.
| Warm regar?s, |
| Bharath R. Sesha |
| Managing Director |
| Heubach Colorants India Limited |