FMCG company Emami expects the consumer sentiments to pick up in the second half of FY20, driven by a young aspirant population, growing rural incomes, normal monsoon, and increased government impetus.
“Company (Emami) is attractively placed to capitalise the opportunity of the upscaling of the demand momentum that is expected to set in the second half (October to March) of FY 2019-20,” said Chairman RS Agarwal at Emami 36th Annual General Meeting held on August 8.
Founded in 1974, Emami is engaged in manufacturing & marketing of personal care & healthcare products.
Agarwal said Emami intends to grow the revenues of its power brands, launch more innovative products in under-penetrated segments, and also strengthen its healthcare sales by investing in research and development and deepen its focus on international markets.
Power brands include Navratna, BoroPlus, Fair & Handsome, Zandu Balm, and Mentho Plus.
Further, Agarwal pointed out that enhanced focus was given to newer channels like modern trade and e-commerce to drive accelerated growth.
“Emami’s pan India presence has been widened and deepened making products available directly across 9.4 lakh outlets and also across all prominent modern trade outlets and e-commerce platforms,” Agarwal said.
Giving an overview about last financial year, Agarwal said that climatic vagaries along with adverse macro-economic conditions impacted the domestic business of the company in FY19.
While delayed winter resulted in a slow start of the company’s winter portfolio in Q3 (Oct-Dec), the extended winter season continued to dent early summer offtake in the fourth quarter.
With a market cap of around Rs 14,000 cr, Emami is the flagship company of the diversified Emami Group.
In June quarter of FY20, the company’s consolidated net profit shot up 48 percent year-on-year to Rs 39.1 crore.
News Source: MoneyControl