readiness

Diversification

The Company is actively driving diversification in both its domestic and international businesses in order to build long-term drivers of growth and insulate the business from portfolio/geographical concentration risk.

In the domestic business, the visible scale-up of the newer portfolios of Foods, Premium Personal Care and Digital-First segments has led to a shift in their share of domestic revenues from ~8% in FY20 to ~15% in FY23. We expect the share of these portfolios to move to ~20% of domestic revenues in FY24.

In Foods, we have expanded the total addressable market of the brand ‘Saffola’ to H 10,000+ Crores, through a portfolio of healthy value-added offerings. We aspire to scale our Foods business to ~H 850 crores in FY24 as we maintain steadfast focus on market development, brand building, supply -chain excellence, distribution expansion and sustained innovation. In Premium Personal Care, we will focus on growing the portfolio at a CAGR of 20%+, aided by innovation, market insights and strong brand equity. The current portfolio of Digital-First brands continues to scale up healthily and is poised to reach an exit run-rate of ~H 400 Crore in FY24.

The International business has made reasonable progress on both the vectors of diversification – geographical and portfolio. In Bangladesh, we have continued the diversification journey beyond the core Coconut Oil portfolio, through accelerated growth in hair care and baby care portfolios, among others. After having set the business fundamentals right in Vietnam and the MENA region, we are now suitably replicating attributes from the Bangladesh playbook to build a sustained growth momentum in both these geographies. As a result, we expect each of the markets to establish a steady pace of growth and contribute equitably towards sustaining the double-digit constant currency growth momentum in the overall business.

Distribution

We continue our efforts towards expanding our reach through go-tomarket transformation, rural penetration and building a future-ready distribution infrastructure. We have institutionalized a Sales 3.0 framework to strengthen micro market focus and execution, and bring enhanced agility with better on-ground decision-making by leveraging technology and analytics. The new framework represents a shift in our sales operating structure from four divisions to seven clusters, defined basis brand preference, customers buying behaviour and geographical contiguity. We are also scaling up a dedicated Foods Go-To-Market to drive an accelerated growth journey in the Foods business. Likewise, there is significant headroom to drive distributionled growth across all our key international markets of Bangladesh, Vietnam, Middle East and Egypt, and we continue to work towards deepening our reach in each of these geographies.

Digital

We have been investing in building business and organizational capabilities through developing the digital quotient across the value chain. Digital is also one of the core pillars of our talent strategy, as we have initiated multiple initiatives to build digital capabilities of our members. Investments towards building advanced data-analytics (including AI and ML) expertise have enabled real time dataled decision making, which has delivered positive results in several use cases such as spend effectiveness, demand sensing and social listening driven innovations, among others. Our salience in E-commerce channel, remains ahead of the industry and is testament to our focussed investments in developing and growing alternate channels. At a company level, nearly one-fourth (even higher for premium urban-centric portfolios such as Premium Personal Care and Foods) of our media advertisement spends are now on digital platforms.

Diversity

We believe that a positive, enabling and inclusive culture, which promotes association and identification with the organization’s larger vision, will give us a strong and competitive edge over the long term. We are amplifying equal opportunity for all at the workplace, localising talent in our overseas units and taking focused initiatives towards creating a workforce with enhanced ‘Gender’, ‘Differently Abled’ and ‘Thought’ diversity. We are making efforts towards fostering a culture of inclusion through interventions such as:

• ensuring accessibility of infrastructure, policies, and processes for diverse groups;
• driving sensitization and awareness of the right actions, behaviours and practices for an inclusive workplace; and
• monitoring transparency of talent processes to create a sense of ‘quality’, ‘openness’ and ‘belongingness’ within the organisation.