Zydus Wellness Ltd

We are not just creating products, we are creating possibilities for guilt-free indulgence, joyful nourishment and for everyday self-care that's backed by science and innovation. It is indeed a sense of gratitude and satisfaction knowing that our products are helping people feel their best and this is what drives us every single day!

Dear Shareholders,

Our journey as a wellness Company began with a simple but powerful mission: to meet evolving consumer preferences and choices in the wellness domain and inspire healthier lives. That was the cornerstone of our foundation. We always strived to nudge consumers towards personal well-being through differentiated product offerings that nourish, nurture and energise them. Our aim is to let consumers make thoughtful choices, have varied experience through wellness-driven products in their journey to better health and wellness. As expectations evolve, so does our commitment to make wellness more accessible, more inclusive and more sustainable for all. Such commitment is reflected in our attempt to penetrate deeply into not only urban markets but also into rural territories through our low unit priced packs. We also embarked upon an exciting journey of growing our presence in the evolving and rapidly growing channels like quick commerce, making our products instantly accessible to our consumers at a lower cost to serve. The FY 2024–25 marks a significant milestone as we unveil our first Integrated Annual Report, an important step in our journey towards greater transparency, stronger governance and deeper responsibility. But beyond what we report, what truly matters is why we do what we do. And the reason is clear: we want to make wellness simple, delightful and an integral part of people's daily lives.

This year, we also reimagined our visual identity - with two hearts, intertwined, representing our deep connection with everyone we serve. 'Us' is more than a brand expression - it is our belief that real progress comes from collaboration and collective well-being. Dynamic Teal and Purposeful Purple, the new colours of our logo, symbolise our bold embrace of innovation, science, empathy and trust.

The past year was marked by a complex macroeconomic environment and inflationary pressures, shifting consumer preferences, especially in rural and traditional channels. Driven by this passion, we delivered double-digit growth in both revenue and profitability. Our wellness brands now touch the lives of over 70 million households–a leap from previous years and a testament to the growing trust consumers place in us.

Our financial performance in the FY 2024–25 reflects this momentum. Our revenue from operations stood at C 27,089 million, with an EBITDA of C 3,797 million and a net profit of C 3,469 million. We strategically invested C 663 million in capital expenditure to enhance innovation, infrastructure and automation. The all-round operational performance was supported by healthy operating cash flows of C 3,800 million.

This year, we took a significant step forward in our wellness journey with the strategic acquisition of Naturell (India) Private Limited, a company with a strong presence in the healthy snacking segment. This strategic move aligns with our vision of offering comprehensive wellness solutions that cater to the evolving needs of today's health-conscious consumers. With a growing demand for high-protein and performance-oriented products, this acquisition expands our footprint in the active lifestyle and preventive wellness space.

Our core brands–Sugar Free, Nutralite, Glucon-D, Nycil and Everyuth–continue to lead in their categories, not just because they perform well, but because they resonate deeply with our consumers. This year, we launched 12 (twelve) new products spanning across two key segments: Food & Nutrition and Personal Care. Every launch reflects our commitment to meeting evolving needs in day-to-day lives, shaped by the stories that inspire us and guided by our desire to create products that genuinely support and elevate everyday moments. These new offerings are designed to deliver enhanced well-being, greater convenience and more personalised care, re-affirming our commitment to helping individuals lead healthier and more balanced lives.

Our robust manufacturing network, including four company-owned manufacturing sites and 18 contract manufacturing sites, enables us to meet this growing demand with quality and agility. We have embedded digital capabilities across our operations - from AI-led personalised content and marketing automation to nutritional recipe - ensuring we stay close to consumer needs and ahead of trends.

At the heart of our growth are our people. With 1,247 permanent workforce and also wider network of on-ground partners and vendors, we continue to foster an inclusive, innovative and value-driven culture that places employee well-being and growth at the core. We are proud to have been certified as a Great Place to Work? for the third consecutive year, with a 23% improvement in our Trust Index. We have also maintained zero incidents of human rights violations and safety-related incidents. Our culture encourages open communication, continuous learning and collaboration across all levels, ensuring employees feel valued, heard and motivated to contribute their best. We ensure robust training and development programmes, health and safety initiatives and well-being measures that support both professional and personal growth of our employees.

Sustainability is central across our operations - from reducing our carbon footprint and increasing solar power to minimising plastic and promoting circularity. In the financial year, the Green Fuel contribution in Manufacturing Operations was 88.27%. In parallel, we achieved a 22.18% reduction in specific energy consumption through continued focus on energy efficiency across our operations. We also improved water efficiency, recording a 7.35% reduction in specific water consumption through focused conservation initiatives. All our manufacturing facilities are ISO 14001:2015 (Environmental Management) and ISO 45001:2018 (Occupational Health & Safety) certified, reflecting our strong adherence to global best practices. We undertook climate and biodiversity assessments at all facilities, forming the basis for a Company-wide biodiversity management plan and a long-term climate strategy.

We are building a digitally savvy and evidence-based portfolio that leads in its categories and resonates with evolving consumer needs.

Powered by youthful energy and a shared sense of purpose, our people are the driving force behind our innovation, agility and sustainable growth.

Looking ahead, our strategic priorities are clear - drive growth through innovation, scale sustainably and serve consumers with differentiated, evidence-backed, wellness products.

As a part of our deep-rooted commitment to inclusive growth and social responsibility, we contribute to the health and well being of our communities through our CSR efforts. During the FY 2024-25, we have contributed C 6.41 million to Zydus Foundation ("ZF"), the CSR arm of Zydus Group. Through, ZF we support Zydus Medical College and Hospital ("ZMCH") in Dahod, Gujarat, which stands as a beacon of transformation in rural healthcare. Established through a Public-Private Partnership with the Government of Gujarat, ZMCH addresses the critical medical needs of tribal and underserved populations across Eastern Gujarat and neighbouring districts of Madhya Pradesh and Rajasthan. Since its inception in 2017, the impact of hospital on the local community has been truly transformative. The hospital now treats over 5 lakh outpatients annually, ZMCH has expanded to 1,034 beds and provides advanced medical services entirely free of cost to tribal and rural populations. The Zydus Medical college, the first in the district, is creating a pipeline of healthcare professionals rooted in community care. Our focus remains on empowering communities through improved healthcare and meaningful opportunities, contributing to long-lasting progress and a healthier future. Our commitment to accessibility is enabled by an extensive and growing supply chain, comprising approximately 370 suppliers and more than 1,950 distributors. This robust distribution network ensures our products reach a wide spectrum of markets–from major urban centres to remote rural areas in India and beyond. With an expanding international presence, we remain committed to nurturing wellness at a global scale, guided by sustainability and ethical business practices.

We want to be a Company that is ahead of the curve - not just in meeting consumer needs, but also in developing the products and platforms that serve those needs through affordable and reachable access points. To navigate growing complexity and opportunity, we are strengthening our risk frameworks, expanding into digital health and personalised wellness, exploring scalable and sustainable business models.

To our shareholders, thank you for your unwavering support. To our consumers, you are the reason we innovate–thank you for letting us be part of your wellness journey. And to our people at the Company, your belief and energy are what turn our mission into action more purposeful.

As I look ahead, I feel a profound sense of responsibility and excitement. We are not just creating products, we are creating possibilities for guilt-free indulgence for joyful nourishment and for everyday self-care that's backed by science and made with heart. It is indeed a sense of gratitude and satisfaction knowing that our products are helping people feel their best and this is what drives us every single day! It's truly heart warming to see our community growing stronger, healthier and more inspired together.

Together, we are shaping a bold, responsible and passionately consumer-centric wellness Company. One that not just ready for the future but shaping it with confidence and purpose.

Chairman