Managing Director and Chief Executive Officer
Our Consumer Products segment delivered growth of 13.5% during the previous year. This points to clear market share growth on the back of several product launches and ongoing portfolio premiumisation. The segmental PBIT grew from H 226 crores in 2021-22 to H 247 crores. Despite the various challenges on costs as well as competitive pricing intensity, we have held on to our margins.
In the previous year, we carved out Lighting Solutions as a separate business segment, given our planned thrust for that business in the coming years. This segment delivered growth of 4.1% in a period where industry de-grew and the segmental PBIT grew from H 59 crores in 2021-22 to H 87 crores. We shall continue to invest in this segment to make it a strong growth driver for us going forward.
Our EPC segment has delivered a strong turnaround with revenue growth of 29.5% in the previous year and a positive PBIT of H 7 crores on a full-year basis. This marks the culmination of our phase of consolidating this business to put it on an operationally robust path with strong project execution and controls. Going forward, based on its strong order book and the benefit of operating as a separate, focused entity,
I am confident it will deliver strong growth and value creation.
Our strong financial performance is the outcome of several ongoing strategic initiatives, a few of which I will talk about.
Brand: Our brands are our most valuable assets as a company in the consumer space. A couple of years ago we embarked upon defining an overall brand architecture framework that would propel your Company into operating as a ‘house of multiple brands’, each with a distinct identity and positioning. As a part of this we relaunched our flagship brand 'BAJAJ' with the BUILT FOR LIFE positioning. Going forward you will see the multiple-brands with-distinct-identities strategy play out and pivot us into becoming a highly consumer-centric company.
Products: We have developed a strong product development roadmap – with meaningful innovations and consumer value propositions. During the previous year we launched 165 SKUs in the Consumer Products segment and 513 SKUs in the Lighting Solutions segment. These launches have helped plug gaps in our portfolio, drive greater premiumisation and grow market-shares across categories. This is enabled by strong research and development capabilities, which we shall continue to invest in, to build long term perspective competitive advantage.
Operational excellence: We have clearly identified areas of operational improvement. This covers various aspects of sourcing, manufacturing, logistics, go-to market and technology. Each of these is being addressed in a focused manner. During the previous year we embarked upon an ambitious digital transformation exercise that shall culminate over the next 2 years. All of these initiatives will not just provide direct financial benefits but make us a best-in-class company that is far more agile and competitive player.
People and culture: A fundamental aspect of our ongoing transformation has been the revamp of our talent pool and organisational culture. During the year, we have further strengthened our organisation across levels from the induction of our first batch of management trainees right up to the onboarding of senior talent at the leadership level. We were recognised by Great Place To Work ® Institute India for the third time in a row, fostered Diversity and Inclusion through relevant policies and are institutionalising a professionalised and high performance-driven organisation.
Sustainability: Sustainability is a core value that guides our business decisions. We are committed to reducing our environmental impact through sustainable manufacturing processes, optimising resource efficiency, minimising our carbon footprint, and promoting supply chain efficiency. We firmly believe that by prioritising sustainability, we can provide consumers with eco-friendly products while driving circularity, efficient waste management, water and energy conservation, and enhancing community livelihood.
On a personal note, I would like to acknowledge and thank all of you, our shareholders as well as our Board and our Chairman for entrusting me with the responsibility as Managing Director and Chief Executive Officer of your Company. Along with our team, I shall continue to work with the same zeal and commitment as we have so far.
I would like to end with a famous maxim: “People overestimate what they can do in a year & underestimate what they can achieve in 10 years.”
Our future beckons us.
Warm regards,
Managing Director and Chief Executive Officer
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