Zydus Wellness: Nurturing Wellness
Headquartered in Ahmedabad, Zydus Wellness enjoys a pan-India marketing presence through a distribution network comprising over 1,700 distributors and 24 integrated warehouses
Zydus Wellness commands a broad spectrum of health and wellness brands, each holding strong market positions. The portfolio includes popular names like Glucon-D, Complan, Sugar Free, Nycil, Everyuth, and Nutralite. Notably, Glucon-D holds a 59.5 per cent share in the glucose powder category, while Sugar Free leads with 95.9 per cent in sugar substitutes, and Nycil dominates prickly heat powders at 35 per cent. Additionally, Everyuth Peel-Off masks hold an impressive 80.2 per cent market share, reinforcing Zydus’ position as a leader in wellness essentials.
In FY24, Zydus Wellness products were leading in five of six categories, strengthening its market position through distribution, innovation, and campaigns, reaching over 50 million consumers annually via online and offline channels.
Strong Performance
In FY24, Zydus Wellness reported Rs 2,327.8 crore in revenue, marking a 3.2 per cent increase year-over-year. Despite challenges within the FMCG sector, particularly in rural areas due to irregular monsoons and slow agricultural growth, rural demand eventually picked up in Q4. Within its portfolio, the personal care brands Everyuth and Nycil experienced robust double-digit growth, while food and nutrition saw modest gains.
Zydus Wellness’ personal care segment achieved remarkable double-digit growth for FY24, showcasing strong market momentum, while food and nutrition recorded a more modest performance. Some brands in this segment encountered external challenges, impacting their sales. Proactively addressing global regulatory concerns regarding non-nutritive sweeteners, the company launched informative campaigns in regional languages to assure the public about Sugar Free’s safety, coupled with conferences featuring veteran doctors and thought leaders. “Aspartame remains safe when consumed at recommended levels,” they reassured. Additionally, unseasonal rains across India dampened Glucon-D sales during the year, highlighting the company’s resilience amid unforeseen climate impacts.
The stabilisation of inflation in commodities, combined with efficient pricing and hedging strategies, allowed Zydus to improve its gross margin by 193 basis points to 50.8 per cent of net sales. “As a leading wellness company, our mission is to empower consumers in their wellness journeys. Through ongoing research and innovative products, we aim to make a tangible difference in people’s lives,” remarked Sharvil P. Patel, Chairman of Zydus Wellness.
With a workforce comprising 1,000 employees, supported by an extensive partner network of 4,000 off-roll workers and 30,000 farmers, the company emphasises inclusivity, boasting a young, diverse team that drives its wellness vision.
Growing Overseas
Zydus Wellness continues expanding its international footprint, reaching over 25 countries, with Sugar Free and Complan comprising around 80 per cent of its international revenue. The company targets 8-10 per cent of revenue from international business within 4-5 years, with South Asia and GCC regions leading in growth. Key product extensions include Sugar Free D’lite Granola Bars, coffee, hot chocolate mixes, and Complan Young Champs, further reinforcing its global reach.
ESG Commitments
Zydus is committed to achieving impactful ESG goals by FY29. These targets include a 15 per cent reduction in Scope 1 and 2 emissions, a 15 per cent increase in renewable energy, a 20 per cent energy intensity reduction, and a 15 per cent cut in water intensity, compared to FY22. The company also embarked on a 25-year solar power agreement for its Aligarh plant, aiming to reduce its carbon footprint. In packaging, Zydus is on course to transition to fully recyclable multi-layer plastic by FY28 and reduce packaging material by 1,000 tonne over the next three years.
