Dear Shareholders
In FY24, the global business climate was characterized by a volatile mix of challenges
and opportunities. Major economies grappled with inflationary pressures, supply
uncertainties and geopolitical tensions which collectively impacted global trade and
investment flows. Amidst this complex landscape, India emerged as a beacon of resilience
and growth.
AT V-GUARD, OUR RELENTLESS PURSUIT TO REIMAGINE TOMORROW DRIVES OUR TRANSFORMATIVE
JOURNEY ACROSS MULTIPLE ORGANIZATIONAL FUNCTIONS. RECENT STRATEGIC MOVES, SUCH AS THE
SUNFLAME ACQUISITION AND SIMON MERGER HAVE FORTIFIED OUR COMPETITIVE EDGE IN PRIORITY
CATEGORIES LIKE KITCHEN APPLIANCES AND MODULAR SWITCHES. THESE ACTIONS HAVE NOT ONLY
BROADENED OUR MARKET FOOTPRINT BUT ALSO ENHANCED OUR PRODUCT PORTFOLIO TO EFFECTIVELY MEET
EVOLVING CONSUMER DEMANDS.
The country benefited from a robust digital infrastructure and proactive government
policies aimed at fostering economic stability and innovation.
As a result, India was well-positioned to capitalize on emerging opportunities,
attracting significant foreign investment and strengthening its position as a key player
in the global economy.
FY24 marked a transformational year for V-Guard, characterized by significant progress
in our journey towards reimagining the future and enhancing the experiences of our
expanding consumer base. I am pleased to share with you this period of growth which marks
a new chapter in the Company's evolution as we prepare for future success.
V-Guard achieved a commendable 17.7% increase in revenue over the previous year,
highlighting the organization's inherent strengths and resilience. Each of our business
segments delivered double-digit topline growth year-on-year, reflecting the success of our
transformation initiatives and strategic investments in key growth areas.
NAVIGATING CHALLENGES WITH AGILITY AND INNOVATION
In FY24, India's Consumer Electronics and Appliances Industry encountered significant
challenges, including a weak summer and subdued consumer sentiment amidst inflationary
pressures. Despite these obstacles, the industry is poised for robust growth, projected to
ascend to the fifth-largest globally by 2025. This anticipated expansion stems from rising
disposable incomes, heightened discretionary spending, burgeoning rural demand and
supportive governmental initiatives.
OUR COMPREHENSIVE TALENT MANAGEMENT STRATEGIES FOCUS ON ATTRACTING, RETAINING, AND
NURTURING TOP TALENT, FOSTERING A CULTURE OF CONTINUOUS IMPROVEMENT AND HIGH PERFORMANCE.
At V-Guard, our relentless pursuit to reimagine tomorrow drives our transformative
journey across multiple organizational functions. Recent strategic moves, such as the
Sunflame acquisition and Simon merger have fortified our competitive edge in priority
categories like kitchen appliances and modular switches. These actions have not only
broadened our market footprint but also enhanced our product portfolio to effectively meet
evolving consumer demands.
The expanding digital landscape has profoundly influenced our business operations,
prompting us to embrace digitization across the value chain including product innovation,
channel management, enterprise solutions, and consumer engagement. This transformation
empowers us to deliver seamless consumer experiences backed by data-driven
decision-making. Moreover, V-Guard has also developed a comprehensive security roadmap to
bolster cyber security maturity, integrating process improvements, training initiatives,
and technology adoption to fortify internal security measures.
Central to our business philosophy is consumer-centricity. Our R&D teams leverage
deep consumer insights and advanced technologies to translate consumer aspirations into
innovative products, thereby shaping our intuitive product experience.
V-Guard has significantly expanded its manufacturing footprint to meet escalating
demand, emphasizing production capacity and agility while upholding stringent quality
standards to maintain our reputation for reliability and excellence. Our robust New
Product Development (NPD) process drives continuous innovation, enabling us
to swiftly respond to market needs with timely launches. Simultaneously, an intensified
focus on customer service ensures consistent delivery that exceeds expectations in every
interaction. Coupled with an agile sales and marketing organization, these initiatives
enhance our market presence and capture new opportunities as part of our proactive go-
to-market strategy.
Continued investment in human capital is crucial for delivering a sustainable business
growth. Recognizing that our people are our greatest asset, we have placed a strong
emphasis on Learning and Development, ensuring our employees are equipped with the skills
and knowledge necessary to drive innovation and excellence. Our comprehensive talent
management strategies focus on attracting, retaining, and nurturing top talent, fostering
a culture of continuous improvement and high performance. Moreover, by adopting HR as a
business partner, we align our human resources initiatives with our strategic goals,
creating a cohesive and supportive environment that empowers our workforce to contribute
effectively to the Company's success. This holistic approach to human capital management
underpins our long-term growth and sustainability.
Together, these strategic initiatives position us to bring home a better tomorrow at
V-Guard.
CORPORATE SOCIAL RESPONSIBILITY: A CORE PILLAR IN V-GUARD'S FUTURE
Corporate Social Responsibility (CSR) is integral to V-Guard's journey forward,
reflecting our commitment to creating a positive impact beyond business metrics.
Recognizing that our success is intertwined with the well-being of the communities we
serve, we focus on initiatives that enhance education, healthcare, and environmental
sustainability.
By prioritizing CSR, we aim not only to deliver business value but also to touch and
improve countless lives. Our programs are designed to empower individuals and foster
inclusive growth, ensuring that the benefits of our success are shared widely. This
holistic approach reinforces our dedication to social responsibility, driving sustainable
growth and strengthening our bond with the community.
WE HA VE SUCCESSFULLY NAVIGATED VARIOUS DISRUPTIONS OVER THE PAST FEW YEARS AND LOOK
FORWARD WITH OPTIMISM TO THE COMING YEAR. WE BELIEVE OUR GEOGRAPHIC DIVERSIFICATION
STRATEGY,
BACKED BY PRODUCT EXPANSION AND COMPETITIVE MARKET POSITIONING, WILL
/PROPEL THE COMPANY
TOWARDS NEW HEIGHTS OF EXCELLENCE.
Environment, Health, and Safety (EHS) have always been core values at V-Guard since its
inception. We have established a robust EHS framework grounded in a strong safety culture,
a no-compromise approach to compliance, stringent operating standards, and rigorous change
management.
FY24 marked a pivotal year in our sustainability journey. During this fiscal year, we
defined our ESG strategy. We have already made strides in the Social and Governance areas,
and going forward, there will be an increased focus on the Environment. To guide the
implementation in the coming years, we established a detailed governance structure and
identified 21 material aspects to shape our strategies, policies, and goals, thereby
driving our sustainability agenda forward.
THE WAY FORWARD
Our strategic roadmap for future growth embodies our long-term vision to establish
ourselves as one of India's leading consumer brands. Our business investments are
meticulously crafted to elevate organizational performance while maximizing value for all
stakeholders. The acquisition
of Sunflame in the previous fiscal year aligns seamlessly with this vision, and early
indicators of improved performance validate the strategic foresight behind this decision.
We have successfully navigated various disruptions over the past few years and look
forward with optimism to the coming year. We believe our geographic diversification
strategy, backed by product expansion and competitive market positioning, will propel the
Company towards new heights of excellence. Growth in our in-house manufacturing will drive
margin expansion, while our investments in marketing and trade channels will help extend
our consumer outreach to more parts of the country.
As we make bigger strides in our transformational journey of reimagining tomorrow, we
see V-Guard catalysing bigger opportunities for future growth and value creation. Our deep
consumer insights will continue to steer us towards more impactful actions, with the
dedicated efforts of our passionate team helping us realise our dreams of creating a
better tomorrow. I would like to thank all our employees for their continued trust and
support to the organisation.
I am pleased to let you know that the Board of Directors has recommended a final
dividend of ' 1.40 per equity share of face value ' 1/-, continuing our
consistent track record of dividend payout.
I would further like to express my gratitude to our other stakeholders, including our
consumers, partners, suppliers, shareholders and investors. I also appreciate the guidance
and support of my colleagues in the Board of Directors, who are partnering us at every
step of the way in the transformational journey which will take us all towards bigger
frontiers of success.
Best Regards,
Cherian N. Punnoose
Chairman