• ‘It gives me immense pleasure to welcome you all to the 33rd Annual General Meeting of your Company – Galaxy Surfactants Ltd. According to leadership Guru Steven Denning, the life expectancy rate of Fortune 500 companies has reduced from around 75 years in the 1950s to less than 15 years now. As Galaxy enters its 40th year, we believe innovation, creative disruption, consistency, integrity and governance will be the key creators and drivers of value over the next decade.’
  • Right from our inception, Innovation Research and Development of new products and technologies have been one of our key strengths. At Galaxy, Innovation has driven Transformation and Growth and enabled us to create value for our customers.
  • Value has many dimensions and one of them is convenience. Convenience that enriches the experience and enhances the standard of living of the end consumer, convenience that is sustainable, clean and environment-friendly and finally convenience that is customised and innovative.
  • Globally, the Home and Personal Care Industry is witnessing the following trends: 1. Premiumisation 2. Safety, ‘Sulphate Free – Paraben Free’ 3. Natural, Organic, Green & Ayurveda 4. Water-Efficient convenient Home Care Solutions 5. Sensory Feel
  • Galaxy with its existing specialty care products viz. Mild Surfactants, Sunscreens, Non-Toxic Preservatives, Syndet and Transparent Bathing Bars is well equipped to capitalise on the emerging trends. While Mild Surfactants and Preservatives have grown from Rs. 20 Crores in 2009 to Rs. 350 Crores in 2019, major growth for these has come from the developed markets. When it comes to India, these are growing, though the demand is still in its infancy, thus offering your Company significant room for growth.
  • Your Company logged in an 8.8% (adjusted volume) Y-O-Y volume growth with the Specialty Care segment logging in a healthy 18.8% growth. Work done over the last three years along with a diverse customer base across geographies enabled us to outperform the industry.
  • A truly Indian MNC in operation since 1986, Galaxy leverages its ‘Consumer to Chemistry’ value proposition to address the Ingredient requirement of Home and Personal Care (HPC) industry, with its products finding applications across Mass, Masstige & Prestige range of customers. The distinctive portfolio of Galaxy’s offerings is used in consumer-centric Home and Personal Care products like hair care, oral care, skin care, cosmetics, soap, shampoo, lotion, detergent, cleaning products etc.
  • With proven credentials in R&D, backed by breakthrough processes, Galaxy has developed an exceptional portfolio of unique products – spanning Performance Surfactants and Speciality Care – enabling its strong leadership position in the markets of its presence.
  • Galaxy’s manufacturing excellence is powered by seven strategically located manufacturing facilities – five in India and one each in Egypt and US. In-house project execution capabilities, with state-of-the-art equipment and processes, ensure excellence in the manufacture of quality products to service a growing base of clientele.
  • Laundry Care remains a unique proposition in the consumption space, prima facie due to the whole range of laundry solutions the category offers across all income groups globally.
  • Laundry Care as highlighted has products to cater to all income groups. As disposable incomes rise, the trend migration from manual washing using bar soaps, bleach to machine washing using powder detergents, liquid detergents to finally premium washing comprising of fine fabric detergents, tablets and scent boosters is clearly visible. Premium washing slowly is picking up in the developed world given that consumers today are looking for convenience as well as efficacy.
  • 15% of the total laundry sales that happened in China in 2018 was through the internet. Growing internet connectivity, e-commerce platforms, usage of voice-based platforms, emergence of private labels shall not only help improve the reach of the home care products but shall also lead to greater consumer awareness – greater demand for all categories of products – mass/masstige/prestige

My view: This is a proxy consumption play. Recent IPOs usually get disregarded by the street as the trust + conviction takes time to build. Can be a compounder in years to come but there are some red flags for eg. IPO failed in 2011.

 

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