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News18
5 days ago
- Business
- News18
Emami bets on new engine of growth, confident about improvement in consumption
New Delhi, Aug 5 (PTI) Emami is working towards building 'new engines of growth" that will define its future as it takes a strategic bet on segments such as health foods, nutrition, pet care, and aloe vera-based fruit juices, according to the latest annual report of the home-grown FMCG major. The company expects its portfolio to be 'much sharper and future-proof" in three to five years, said its Vice Chairman and Managing Director Harsha V Agarwal. Emami, which had gone for a change of its corporate identity with a redesigned logo last week, will also scale up its play in the premium segment 'very aggressively" as the segment is soaring in urban India. However, this will be done 'without losing sight of the real India, the rising middle and lower-middle income consumers where our brands carry weight", said Agarwal, while addressing the company's shareholders. In urban India, there is a growing demand for cleanlabel, eco-conscious products, while in rural markets, the shift from generic to branded personal care is accelerating — fuelled by affordable sachet and pouch formats of premium offerings. Moreover, Emami which has power brands such as BoroPlus, Navratna, Zandu Balm, Kesh King, Fair and Handsome in its fold, is also confident about improvement on the consumption front. 'Looking ahead, we remain confident in the improving consumption outlook," said Agarwal, who is also the current president of the industry body FICCI. 'Add to this a strong forecast for monsoons and income tax benefits for the middle class, and we expect to see a revival in demand in the coming quarters," he said. FMCG companies are facing a slowdown in consumption in the urban market, which contributes significantly to their revenue. Rural, which is mainly a value-based offering market, is growing ahead of the urban market for over last six quarters. However, in the June quarter earnings, listed FMCG makers have reported a sequential improvement in sales from urban markets. While sharing the trends, Agarwal said now consumers are moving away from 'chemical-laden products and embracing Ayurvedic, natural and herbal alternatives, pushing these categories firmly into the mainstream. 'There is also a growing convergence between nutraceuticals and FMCG, as health and wellness become central to everyday consumption. Quick commerce platforms are transforming access and convenience, leading to a rethinking of traditional general trade and modern trade strategies, and sparking innovation in packaging and impulse-driven product formats," he said. This is forcing large players to acquire 'agile, high-growth startups', recognising their speed, relevance and adaptability, which are now 'key to staying ahead". 'We are also working on building new engines of growth — segments that will define tomorrow. Health foods, nutrition, pet care and aloe vera based fruit juices — each one a deliberate strategic bet. In three to five years, our portfolio will be much sharper and future-proof," he said. According to Agarwal, now nearly 45 per cent of its revenues come from high-growth and strategically important areas — modern trade, e-commerce and institutional channels, strategic subsidiaries like The Man Company and Brillare and its growing international business. 'These verticals, alongside our core portfolio, provide both scale and resilience to our growth engine," he said. Emami's focus is not in categories like soaps or toothpaste but operates in 'niche spaces" where household penetration is still low — single-digit, maybe low double-digit at best. 'That is not a weakness. That is headroom. That is opportunity. Most of our brands are still underpenetrated. We are not here to play in overcrowded categories," he said. Emami has established leadership in 'high-margin, high-potential spaces" where its rivals have yet to gain meaningful traction. 'The belief that Emami is overtly reliant on seasonal categories does not reflect the depth of our portfolio," he said, adding, 'while seasonal products like Navratna and Dermicool continue to thrive — and will always be part of our strength. We are equally anchored by robust, nonseasonal brands such as Zandu, Kesh King, Smart And Handsome and 7-Oils- in-One." PTI KRH HVA (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Economic Times
03-08-2025
- Business
- Economic Times
Dabur, Nestle, Emami shelve brands, prune staff & stall launches amid slow demand & D2C pressure
Packaged goods companies are either discontinuing non-performing brands, shelving expansion plans in slow-moving categories, or pruning manpower costs, amid challenging demand conditions, and in expectation of demand revival in core businesses over the next two quarters. Nestle India has phased out select variants of Maggi noodles such as Maggi chatpata and teekha, while homegrown Dabur India said last week it has exited diaper, tea, and health drink businesses as part of a portfolio rationalisation and to sharpen focus on core categories. Facing "mixed reaction" to its Sting Gold energy drink, PepsiCo's bottling partner Varun Beverages Ltd (VBL) said it is evaluating "traction among consumers"."We are rationalising manpower costs. Sales of large packs declined due to unseasonal rains, since there were less outdoor events and functions," said Varun Jaipuria, executive vice-chairman, VBL, on a quarterly earnings call last week. "We also couldn't add temporary shops particularly in rural markets in summer, which we do otherwise."Almost all makers of summer-centric products such as soft drinks, cold juices, and ice-creams, who tend to set up temporary small shops, especially in small towns and rural markets to cater to seasonal demand, had to abort their plans this year following unseasonal and consistent rains since March. The weather office predicted that India is likely to receive above-normal rainfall in the second half of the monsoon season during August and September. The first half saw above-normal rainfall, with some regions like Himachal Pradesh reporting flash floods and landslides. Distributors noted that previously companies would test market products for at least 12-15 months before discontinuing them if sales lag expectations, which has since narrowed to only a few months."At least two dozen low-performing sub-brands are going off shelves across tea, Ayurvedic creams and oral care, toothpaste, and soap, owned by large-listed companies, something that's unprecedented within a short phase. These companies have told us that after the present stocks are exhausted, there will be no future replenishment," said an executive at a prominent distributor of FMCG products in New Delhi. "Taking up shelf space, transportation of such packs all add to costs," he said, asking not to be named, citing confidentiality clauses. Emami's hair oil business led by the Kesh King brand declined 5% year-on-year, particularly impacted by direct-to-consumer (D2C) or online-only brands, while male grooming fell 9% year-on-year. The company is currently revamping these businesses with "strategic transformations". Emami, which also makes BoroPlus cream and Dermicool talc, said it will relaunch the Kesh King hair oil franchise in the current quarter to improve brand relevance and future growth. "The Man Company is undergoing a brand revamp with a sharper positioning," Emami said in the management commentary of its June quarter highlighted the emergence of D2C competitors "as a significant challenge, particularly in the male grooming category."Most listed FMCG companies have provided guidance of high single-digit growth for FY26, on the back of sequential demand recovery, aided by a better-than-expected monsoon, easing food inflation, rural momentum and green shoots of urban revival. Research firm Numerator, formerly Kantar, said in a report last week that demand for groceries, and household and personal care, slowed to 3.9% by volume year-on-year in the June quarter, impacted by unseasonal rains.
Time of India
17-05-2025
- Business
- Time of India
Emami Q4 profit up 10.5% to Rs 162 cr
HighlightsEmami Limited reported a 10.5 percent increase in consolidated profit after tax, reaching Rs 162.17 crore for the March quarter of FY25, driven by a robust 11 percent growth in its core domestic business. The company's total income rose by 6.9 percent to Rs 3,877.30 crore in FY25, with organized trade channels contributing significantly to domestic revenues, expanding by 140 basis points year-on-year. Emami Limited's board approved a special interim dividend of Rs 2 per equity share for the 2024-25 fiscal year, while the company celebrates its 50th anniversary. Homegrown FMCG firm Emami Ltd on Friday reported 10.5 per cent increase in consolidated profit after tax at Rs 162.17 crore for March quarter FY25, helped by a volume growth in its core business. The company had posted a PAT of Rs 146.75 crore for the January-March period a year ago, according to a regulatory filing from Emami. Revenue from operations was at Rs 963.05 crore in the quarter as against Rs 891.24 crore in the year-ago period. Total expenses were at Rs 743.61 crore, up 9.3 per cent year-on-year. Total income, which includes other income, was up 9.12 per cent to Rs 984.21 crore. "Despite tepid urban mass demand, Emami demonstrated resilient performance, leveraging its strategic brand portfolio, agile execution, and omni-channel distribution capabilities with the company's core domestic business delivering robust double-digit growth of 11 per cent," Emami said in an earning statement. This was "coupled with a healthy volume growth of around 7 per cent led by key brands such as Navratna, Dermicool, BoroPlus and Healthcare range," it added. Emami's international business posted a 6 per cent growth in Q4FY25, demonstrating resilience in the face of geopolitical volatility across Bangladesh, the Middle East, and parts of Africa. It had a strong momentum across SAARC, SEA, CIS, and African markets, said Emami. In FY25, Emami's PAT increased 10.85 per cent to Rs 802.74 crore from Rs 724.14 crore a year ago. Total income rose 6.9 per cent to Rs 3,877.30 crore. Organised trade channels, comprising Modern Trade, e-Commerce, and Institutional Sales contributed 27.6 per cent to the domestic revenues in FY25, expanding by 140 basis points over the previous year. "Growth in these channels outpaced overall domestic growth, clocking 13 per cent YoY growth," it said. Commenting on the result, Vice Chairman and Managing Director Harsha V Agarwal said, core domestic business continued to demonstrate strong momentum in Q4FY25, supported by healthy volume growth of 7 per cent. "Our input costs broadly remain under control and do not pose any major challenge in the near future. Going forward, we're focused on strengthening our core brands and unlocking new growth through brand extensions, premium offerings, and sharper channel strategies," he said. For the strategic subsidiaries, Emami is scaling marketplace and quick commerce presence, while driving cost efficiencies as well as launch new products in the next 3-6 months to tap into evolving consumer trends. "We expect a gradual pickup in consumption, supported by easing inflation, recent income tax benefits, higher government capex, and a more accommodative monetary policy, including potential rate cuts," he said. On the outlook, Emami said it remains confident of navigating short-term macro uncertainties through portfolio premiumisation, innovation acceleration, enhanced channel productivity, and strategic international expansion. The board of Emami also approved payment of a special (interim) dividend of Rs 2 per equity share of face value of Re 1 each for 2024-25, while celebrating 50 years of the company. Shares of Emami Ltd ended at Rs 637 apiece, up 1.07 per cent on the BSE.>
Time of India
16-05-2025
- Business
- Time of India
Emami Q4 Results: Profit jumps 10% to Rs 162 crore
Homegrown FMCG firm Emami Ltd on Friday reported 10.5 per cent increase in consolidated profit after tax at Rs 162.17 crore for March quarter FY25, helped by a volume growth in its core business. The company had posted a PAT of Rs 146.75 crore for the January-March period a year ago, according to a regulatory filing from Emami. Revenue from operations was at Rs 963.05 crore in the quarter as against Rs 891.24 crore in the year-ago period. Total expenses were at Rs 743.61 crore, up 9.3 per cent year-on-year. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cracks in Concrete? Repair Methods Most People May Not Know About Concrete Crack Repair | Search Ads Search Now Undo Total income, which includes other income, was up 9.12 per cent to Rs 984.21 crore. "Despite tepid urban mass demand, Emami demonstrated resilient performance, leveraging its strategic brand portfolio , agile execution, and omni-channel distribution capabilities with the company's core domestic business delivering robust double-digit growth of 11 per cent," Emami said in an earning statement. This was "coupled with a healthy volume growth of around 7 per cent led by key brands such as Navratna, Dermicool, BoroPlus and Healthcare range," it added. Live Events Emami's international business posted a 6 per cent growth in Q4FY25, demonstrating resilience in the face of geopolitical volatility across Bangladesh, the Middle East, and parts of Africa. It had a strong momentum across SAARC, SEA, CIS, and African markets, said Emami. In FY25, Emami's PAT increased 10.85 per cent to Rs 802.74 crore from Rs 724.14 crore a year ago. Total income rose 6.9 per cent to Rs 3,877.30 crore. Organised trade channels, comprising Modern Trade, e-Commerce, and Institutional Sales contributed 27.6 per cent to the domestic revenues in FY25, expanding by 140 basis points over the previous year. "Growth in these channels outpaced overall domestic growth, clocking 13 per cent YoY growth," it said. Commenting on the result, Vice Chairman and Managing Director Harsha V Agarwal said, core domestic business continued to demonstrate strong momentum in Q4FY25, supported by healthy volume growth of 7 per cent. "Our input costs broadly remain under control and do not pose any major challenge in the near future. Going forward, we're focused on strengthening our core brands and unlocking new growth through brand extensions, premium offerings, and sharper channel strategies," he said. For the strategic subsidiaries, Emami is scaling marketplace and quick commerce presence, while driving cost efficiencies as well as launch new products in the next 3-6 months to tap into evolving consumer trends. "We expect a gradual pickup in consumption, supported by easing inflation, recent income tax benefits, higher government capex, and a more accommodative monetary policy, including potential rate cuts," he said. On the outlook, Emami said it remains confident of navigating short-term macro uncertainties through portfolio premiumisation, innovation acceleration, enhanced channel productivity, and strategic international expansion. The board of Emami also approved payment of a special (interim) dividend of Rs 2 per equity share of face value of Re 1 each for 2024-25, while celebrating 50 years of the company. Shares of Emami Ltd ended at Rs 637 apiece, up 1.07 per cent on the BSE.
