Mint Interview | Ignore the noise, focus on consumers, says Zydus Wellness CEO amidst stock rally
Subscribe to enjoy similar stories.Shares of health and nutrition products maker Zydus Wellness have climbed more than 25% in the last one months even as the company's profits show the strain of new launches and overseas acquisitions but its CEO's focus is elsewhere: stay ahead of consumer expectations, not lag them.“As long as you are focused on evolving with the brand or ahead of the consumer's expectations, you will stay in touch. If you are only following, you will lose relevance pretty quickly,” Tarun Arora told Mint in an interview.The strategy appears to be resonating with investors, at least in the near term.Shares of the company have risen 25.7% over the past month, significantly outperforming the NIFTY 500’s 3.7% gain.
The stock closed 3.8% higher at ₹508.30 on Monday on NSE, even as the company reported losses in the past two quarters, raising questions about the sustainability of its growth trajectory.Arora is almost nonchalant: “When the share price was going down we didn't lose our sleep. So why should I, when it goes up.”Zydus Wellness has made new launches across categories in recent weeks.In March, it expanded Glucon-D with Glucon-D Recharge, entering performance hydration alongside players like HUL’s Liquid IV.
In January, it launched millet wafers under its protein brand RiteBite. More recently, on Monday, it introduced a chocolate and cherry face wash under Everyuth Naturals, a brand that leads India’s face scrub segment.The company holds dominant positions in the categories it operates with its sugar substitute portfolio (Sugar Free) commanding a crushing 96% share of market and its hydration segment (Glucon D) accounting for 58-60%.But, its recent financial results reflect the cost of expansion.
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