Latest news with #Dermicool
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.
Mint
07-05-2025
- Business
- Mint
Dermicool soaps? Emami bets on legacy brand extensions to fuel growth
New Delhi: Consumer goods company Emami Ltd, known for brands like Zandu balm, antiseptic cream Boroplus and Navratna cooling oil, is embarking on an ambitious expansion of its core product lines to fuel growth. The move will see the Kolkata-based company extend its established brands, including Dermicool and Kesh King, into new categories such as soaps and wellness, signaling a strategic shift to capture a larger share of India's burgeoning consumer market and ensure sustained growth. Emami recently extended its Smart and Handsome cream into the wider male grooming segment and is chasing similar expansions for other brands to increase their addressable market size and consumer relevance. Also read: Costa Coffee sees India becoming one of its top-five markets 'Our growth strategy is very clear—how do we make our legacy brands bigger. There are two or three areas to make them bigger. One is, how do we make our existing products grow faster. Number two is, how can we extend those brands via premiumization or targeting different sets of audience and selling through different channels," Harsha V. Agarwal, vice chairman and managing director, said in an interview with Mint . Earlier this year, the company renamed its almost two-decade-old male grooming brand Fair and Handsome to Smart and Handsome with plans to tap into a broader male grooming market that is set to expand to ₹ 32,000 crore over the coming years. For instance, it has launched soaps, cooling gels and specialized powders under its talc brand Dermicool that it acquired in 2022. It recently launched a ₹ 1 talcum sachet under its Navratna cooling oil brand, expanding it from oils to powders apart from adding more expensive therapeutic oils under the brand. Also read: Sunscreen wars: and HUL spar in court over ad campaigns 'We are relooking at our entire portfolio of our brands, be it Navratna, Dermicool—brands that are summer-focused. When we took over (Dermicool), it was only one product brand i.e. talcs—now we are doing specializations like active talcs targeting those into sports etc. Apart from that, we have launched a summer gel and soaps. The point is to expand the overall market as well as play to the overall strength of our brands," he added. This aligns with a broader trend among large packaged goods companies that are chasing growth by entering previously untapped categories amidst intense competition. Rivals such as Dabur, Marico and Hindustan Unilever have similarly extended their core brands. For example, Hindustan Unilever now offers peanut butter under its Kissan brand, while Marico has established a significant foods business under the Saffola oil brand. In FY24, Emami reported a 5% increase in revenue to ₹ 3,578 crore and a 13% rise in net profit to ₹ 724 crore. Despite its portfolio of well-known brands like Navratna, Zandu, Boroplus and Kesh King, the over 50-year-old company's overall business remains relatively smaller than domestic peers. 'There is a very clear target, whether we can take Navratna to ₹ 1,000 crore in the next two to three years or can Dermicool reach ₹ 500 crore mark in next three years," he added. Although Emami doesn't disclose individual brand performance, the cooling oil market is estimated at ₹ 1,048 crore, with Navratna cool oil holding a 62.8% share by volume. 'You will see a lot of activities in all our brands, particularly in Dermicool we are very, very aggressive. From the new product perspective, a lot of work is happening in brands like Kesh King, Boroplus, Navartna etc," he added. Also read: Temasek confirms investment in Haldiram Snacks Agarwal also acknowledged greater competition in the market that he said is prompting companies to step up innovation. Emami has all also had a string of acquisitions over the years—in 2015, it acquired the hair and scalp care business of Kesh King for ₹ 1,684 crore. It acquired the Dermicool brand from Reckitt for ₹ 432 crore. Emami has over the years invested in Helios Lifestyle Pvt Ltd, which owns the men's grooming brand The Man Company. In 2023, Emami entered the juice category by acquiring a 26% stake in Axiom Ayurveda. In 2022, it bought a 30% stake in Cannis Lupus Services India, a pet care startup, among other investments. On future acquisitions, Agarwal said the company was 'open to all kinds of acquisitions". Emami Ltd is part of the Emami Group, which operates in healthcare, real estate, cement and retail, among other sectors.
