Dear Shareholders,
NURTURANCE – THE WELLNESS WAY
The year that was: Continuing with our mission to Nurture Wellness
The year gone by was a test of our resilience, with the entire sector
grappling with rising inflationary trends. Despite subdued demand, especially in the rural
markets, and lower festive spending, we stood strong. The year witnessed a perceptible
consumer shift towards online and modern trade, and as a result of this, the general trade
channels faced disruption as they looked at newer avenues of sales. The subdued rural
demand in general trade also led to an increased cost to serve.
Despite these headwinds, the positive note was the increase in the
demographics of young consumers with rising disposable incomes. We live in times where
there is a lot of anxiety about health. In this context, we would like to support
consumers with health—and wellness-centric choices. Today's health-conscious
consumers are making informed choices based on the current global wellness trends and are
driving demand for differentiated solutions. Zydus Wellness is well-placed to cater to
these demands in line with its mission of nurturing wellness with its portfolio of
Good-for-You products.
Making headway: Nurturing brand excellence
Zydus Wellness takes pride in the continued success and growth of its
iconic brands, which have been trendsetters and leaders in their respective categories.
The Sugar Free brand, for instance, maintained its leadership in the sugar substitute
category, a testament to our commitment to quality and innovation. We also celebrated the
launch of a new brand, I'mlite, a unique formulation of sugar blended with stevia to
offer consumers 50% fewer calories than regular sugar. Sugar Free Green, our natural
stevia-based sweetener, capitalized on the environmental concerns surrounding artificial
sweeteners and posted significant sequential growth, further bolstering our brand
portfolio.
Glucon-D continues to maintain its number one position. During the
current year, we entered the ready-to-drink beverage category with the launch of Glucon-D
Activors Electrolyte Energy drink in some key states and have received an encouraging
response.
In the personal care segment, Nycil, Everyuth scrub and Everyuth peel
off are continuing to perform well. Nycil continues to lead the prickly heat powder
category. Everyuth Scrub has maintained its number one position in the facial scrub
category. Everyuth Peel off has held on to its number one position in the Peel off
category. Everyuth is amongst the top 5 brands in the facial cleansing segment.
In the health foods drink category, there has been an increasing demand
for smaller packs. Based on consumers' preferences, Complan is now available in a 700
gm pouch.
Our products are available across 3 millions outlets today and have
become part of 50 millions households. From bustling cityscapes to rural countryside to
offshore outlets, Zydus Wellness products have won the trust of people in over 25
countries.
Opening up new paths: Nurturing innovation and customer centricity
As a leading wellness Company, our aim is to support people in their
quest for good health and well-being. In pursuit of this, our researchers are bringing new
ideas and concepts to enable access to products which can make a difference in the
consumers' lives. As we continue to focus on innovation, we will look at new concepts
and approaches to offer consumers multiple choices and new experiences. After tasting
great success in the global market, we will be introducing Sugar Free D'lite range of
chocolates in the Indian market. We will also launch an exciting line of guilt-free
indulgence foods catering to evolving consumer preferences, which promises to be a
game-changer.
Shaping a bold enterprise: Nurturing talent
As a Company, we continue to create an environment which encourages
creativity and imagination. We provide equal opportunities for individuals of different
genders, backgrounds, capabilities and perspectives to come and nurture their careers at
Zydus Wellness. We are powered by a dedicated workforce of 1,000 strong employees and are
supported by 4,000 off-roll employees and nearly 30,000 farmers through its partner
ecosystem. Championing D&I, currently, 14.3% of senior management/leadership positions
are held by women. Women in the age group of 25-30 years comprise almost 30.0% of the
workforce at Sikkim and around 20.0% at Ahmedabad. It's a young team full of youthful
energy that gives life to bold ideas and powers their execution to achieve the larger
vision and purpose of the organisation.
Way Forward
We see encouraging signs of industry recovery, with inflation
stabilising and margins poised for improvement. Green shoots of demand pick-up have been
observed, further fuelling our confidence. We're not just waiting for the tide to
turn; we're actively driving growth by exploring the launch of product concepts both
in India and globally. Being passionate about making a difference in the lives of the
people, we would like to create more choices for the consumers. Leveraging the growing
power of online media to stay ahead of the curve, we will be focusing on digital
marketing. As we pursue our goals as a responsible Company, our constant endeavour is to
minimise environmental impact, reduce waste and create reusable and recyclable options. We
will also engage with the farmers in the food chain, nurturing communities in our
eco-system.
I'd like to thank our shareholders for trusting us. We are
confident of sustaining profitable growth across the medium term, enhancing value for our
stakeholders. I'm also thankful to our consumers, who have made us a part of their
everyday lives. We will continue to bring you new reasons to cheer. Most importantly, our
young team at Zydus Wellness is creating exciting possibilities for the future.
Dr. Sharvil P. Patel Chairman