ZYDUS WELLNESS Chairmans Speech

Dear friends,


At Zydus Wellness, we are optimistic about stepping up the pace of growth.


Optimism


Our optimism is based on a number of positive realities. While India is one of the biggest consumption markets for sugar in the world, the sugar substitute market is highly under-penetrated. With growing consciousness of health & wellness, this category provides a significant opportunity to grow over a substantial period of time. Also, with consistent education and awareness being built about the usage and versatility of sugar substitutes, the depth of consumption also offers significant opportunities in the future.


Similar opportunities exist in every other business space in which we are present; either the penetration of the product within India lags the global average or a sub segment of that product accounts for a negligible share of the product penetration. As a sectoral leader, Zydus Wellness'''' responsibility is not only to address existing market size but to grow it, in the process accounting for a disproportionately large share of the market expansion. In an India that is passing through unprecedented increase in discretionary incomes on the one hand and enhanced lifestyle aspirations on the other, we believe that the market is at the cusp of unprecedented brand-led growth. The reality is that Zydus Wellness is at the right place with the right products in the right segments.


Growing the market


Zydus Wellness is not merely waiting for the market to evolve. The company has embarked on a number of initiatives to evolve and enlarge market spaces. In the health products segment, where we possess long-established products like Sugar Free and Nutralite, we are extending their relevance from obesity and diabetes-centricity to mass appeal products through the launch of new products/variants. In the sugar-substitute space, we have drawn out a two-pronged strategy. One, we are focusing on new users by introducing products aligned with customer aspirations. An example of this, is the launch of Sugar Free Green which is targeted at consumers with a preference for natural products, a trend that is growing stronger Pan-India. Two, we are building usage across a range of culinary options through strong experiential marketing marked by tasting sessions for consumers in metros during festivals and regular grocery buying visits. In the butter-substitute space, we have expanded our product offering with new variants which is enabling consumers to experiment with a range of options for their families at home. The Institutional segment also offers a significant opportunity in the future; we have also widened our product basket through the introduction of mayonnaise for institutional customers.


Overview


At Zydus Wellness, these are exciting times. We have arrived at a critical mass; our brands continue to be market leaders; we will create a new spark in each business category; we expect to climb into new orbits. In doing so, we are confident to sustain profitable growth across the medium-term, enhancing value for our stakeholders.


In the skin care space, we have relaunched clinicaly tested Tulsi-Turmeric face wash addressing the largest consumer segment in facial cleansing with first-of-its-kind ingredients combination. Similarly as a market leader in face scrub, our new campaign addresses the myths and barriers amongst the non-users in the segment. We believe, Everyuth with its superior formulation is best equipped to grow the category it operates in.


Dr. Sharvil Patel


Chairman, Zydus Wellness Ltd.

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