Emami, the home-grown FMCG giant, expects a four to five-fold increase in sales via quick commerce channels over the next two years, according to Vice Chairman & MD Harsha V Agarwal. Additionally,͏͏ the͏͏ company͏͏ is͏͏ exploring͏͏ acquisition͏͏ opportunities͏͏ in͏͏ D2C͏͏ segments,͏͏ focusing͏͏ on͏͏ areas͏͏ such͏͏ as͏͏ nutrition,͏͏ pet͏͏ care,͏͏ and͏͏ health͏͏ food.
Positive͏͏ Outlook͏͏ for͏͏ Festive͏͏ Season͏͏ Sales:
The͏͏ Kolkata-headquartered͏͏ company͏͏ is͏͏ optimistic͏͏ about͏͏ strong͏͏ festive͏͏ season͏͏ sales,͏͏ bolstered͏͏ by͏͏ a͏͏ positive͏͏ monsoon͏͏ this͏͏ year,͏͏ especially͏͏ from͏͏ the͏͏ previously͏͏ lagging͏͏ rural͏͏ markets.
Recent͏͏ Acquisitions:
Recently,͏͏ the͏͏ firm͏͏ acquired͏͏ the͏͏ remaining͏͏ 49.6%͏͏ stake͏͏ in͏͏ Helios͏͏ Lifestyle,͏͏ which͏͏ owns͏͏ the͏͏ men’s͏͏ grooming͏͏ brand͏͏ ‘The͏͏ Man͏͏ Company‘.
Continue͏͏ Exploring:͏͏ Emami acquires͏͏ remaining͏͏ 49.6%͏͏ stake͏͏ in͏͏ Helios͏͏ Lifestyle͏͏ for͏͏ INR͏͏ 177.63͏͏ Cr
Furthermore,͏͏ the͏͏ firm͏͏ acquired͏͏ a͏͏ 26%͏͏ stake͏͏ in͏͏ Axiom͏͏ Ayurveda,͏͏ entering͏͏ the͏͏ packed͏͏ juice͏͏ market,͏͏ and͏͏ increased͏͏ its͏͏ investment͏͏ in͏͏ Cannis͏͏ Lupus,͏͏ a͏͏ pet͏͏ care͏͏ product͏͏ manufacturer.
“We͏͏ have͏͏ pursued͏͏ acquisitions͏͏ aggressively,͏͏ and͏͏ moving͏͏ forward,͏͏ we͏͏ will͏͏ continue͏͏ to͏͏ seek͏͏ opportunities,͏͏ whether͏͏ through͏͏ full͏͏ acquisitions͏͏ or͏͏ partnerships͏͏ with͏͏ D2C͏͏ companies͏͏ to͏͏ support͏͏ their͏͏ growth͏͏ and͏͏ develop͏͏ together,”͏͏ Agarwal͏͏ stated.
Revenue͏͏ Growth͏͏ from͏͏ Acquired͏͏ Brands:
In͏͏ its͏͏ latest͏͏ annual͏͏ report,͏͏ Emami͏͏ stated͏͏ that͏͏ acquired͏͏ brands͏͏ contributed͏͏ 45%͏͏ of͏͏ its͏͏ FY24͏͏ revenue,͏͏ while͏͏ non-seasonal͏͏ brands͏͏ made͏͏ up͏͏ 56%͏͏ of͏͏ the͏͏ total͏͏ revenue.
The͏͏ company,͏͏ which͏͏ owns͏͏ brands͏͏ like͏͏ Navratna,͏͏ Boro͏͏ Plus,͏͏ Kesh͏͏ King,͏͏ and͏͏ Fair͏͏ And͏͏ Handsome,͏͏ is͏͏ “cash-rich͏͏ and͏͏ zero-debt,”͏͏ increasing͏͏ its͏͏ ability͏͏ to͏͏ invest͏͏ in͏͏ “acquisitions͏͏ and͏͏ explore͏͏ new͏͏ categories”͏͏ with͏͏ lower͏͏ risk,͏͏ it͏͏ mentioned.
“There͏͏ are͏͏ several͏͏ areas͏͏ in͏͏ the͏͏ D2C͏͏ space,͏͏ including͏͏ nutrition,͏͏ pet͏͏ care,͏͏ and͏͏ health͏͏ food,͏͏ where͏͏ we͏͏ have͏͏ already͏͏ invested͏͏ and͏͏ are͏͏ looking͏͏ for͏͏ more͏͏ promising͏͏ opportunities,”͏͏ Agarwal͏͏ stated͏͏ on͏͏ the͏͏ sidelines͏͏ of͏͏ an͏͏ event͏͏ organized͏͏ by͏͏ the͏͏ industry͏͏ body͏͏ FICCI.
When͏͏ asked͏͏ about͏͏ quick͏͏ commerce,͏͏ Agarwal͏͏ mentioned͏͏ that͏͏ FMCG͏͏ companies͏͏ are͏͏ experiencing͏͏ “very,͏͏ very͏͏ fast”͏͏ growth͏͏ from͏͏ this͏͏ channel.
“We͏͏ anticipate͏͏ that͏͏ in͏͏ the͏͏ next͏͏ two͏͏ years,͏͏ we͏͏ will͏͏ grow͏͏ by͏͏ 4X͏͏ or͏͏ 5X͏͏ in͏͏ the͏͏ area͏͏ of͏͏ quick͏͏ commerce,”͏͏ he͏͏ said,͏͏ noting͏͏ that͏͏ the͏͏ rapid͏͏ growth͏͏ in͏͏ this͏͏ channel͏͏ is͏͏ due͏͏ to͏͏ the͏͏ “convenience͏͏ and͏͏ flexibility”͏͏ it͏͏ offers͏͏ to͏͏ buyers.
Continue͏͏ Exploring:͏͏ India’s͏͏ quick commerce sales͏͏ surge͏͏ 280%͏͏ in͏͏ two͏͏ years,͏͏ expected͏͏ to͏͏ reach͏͏ USD͏͏ 9.95͏͏ Bn͏͏ by͏͏ 2029
Agarwal͏͏ added͏͏ that͏͏ this͏͏ is͏͏ “a͏͏ very͏͏ relevant”͏͏ area͏͏ that͏͏ consumers͏͏ are͏͏ likely͏͏ to͏͏ remain͏͏ loyal͏͏ to.
“Therefore,͏͏ as͏͏ a͏͏ company,͏͏ we͏͏ are͏͏ seeking͏͏ additional͏͏ opportunities͏͏ to͏͏ offer͏͏ more͏͏ products͏͏ that͏͏ are͏͏ relevant͏͏ to͏͏ consumers͏͏ through͏͏ this͏͏ channel͏͏ and͏͏ capitalize͏͏ on͏͏ this͏͏ potential,”͏͏ he͏͏ said.
Optimism͏͏ for͏͏ Rural͏͏ Demand͏͏ This͏͏ Festive͏͏ Season:
Regarding͏͏ this͏͏ year’s͏͏ festive͏͏ season͏͏ demand,͏͏ he͏͏ stated,͏͏ “We͏͏ are͏͏ quite͏͏ optimistic.”
“The͏͏ monsoon͏͏ is͏͏ favorable,͏͏ and͏͏ we͏͏ anticipate͏͏ strong͏͏ rural͏͏ demand͏͏ during͏͏ the͏͏ festive͏͏ season.͏͏ We͏͏ are͏͏ looking͏͏ forward͏͏ to͏͏ it,”͏͏ Agarwal͏͏ said.
Agarwal͏͏ believes͏͏ the͏͏ trend͏͏ of͏͏ premiumization͏͏ will͏͏ continue͏͏ in͏͏ the͏͏ FMCG͏͏ sector,͏͏ as͏͏ consumers͏͏ seek͏͏ more͏͏ specific͏͏ and͏͏ niche͏͏ solutions͏͏ and͏͏ are͏͏ willing͏͏ to͏͏ pay͏͏ for͏͏ them.
For͏͏ the͏͏ financial͏͏ year͏͏ that͏͏ ended͏͏ in͏͏ March͏͏ 2024,͏͏ Emami’s͏͏ revenue͏͏ from͏͏ operations͏͏ reached͏͏ INR͏͏ 3,578͏͏ crore.
