Our brands have headroom: Emami MD on growth outlook

FMCG major Emami Ltd has outlined a roadmap for accelerated growth, innovation and long-term value creation, with the company asserting it has entered a ''phase of acceleration'' across its portfolio.

Overcoming macroeconomic headwinds like the pandemic, inflation, and volatile demand cycles in recent years, Emami has focused on strengthening its core categories and future-proofing its product lines, vice chairman and managing director Harsha V Agarwal said in his address to shareholders in the FY25 annual report.

''FY25 was the year we decisively disproved the notion that Emami's core categories had matured. These brands still have significant underpenetrated headroom, and we are tapping into that aggressively. Emami's strategy revolves around scaling niche, high-margin, low-penetration segments rather than competing in overcrowded FMCG categories like soaps or toothpaste,'' he said.

Flagship brands like Navratna, Dermicool, BoroPlus, and Kesh King have been expanded through product innovation, sachet formats for rural markets, and premiumisation to build mass appeal and relevance, Agarwal said.

To drive innovation and expand reach, Emami has transformed several of its offerings from single-product lines into broader portfolios with multiple variants and formats.

The company has introduced low-unit price packs to boost rural accessibility and rebranded certain products to align with evolving consumer preferences, particularly among younger demographics. The company is also tapping into trends like natural and organic formulations to enhance relevance and appeal.

Emami is also sharpening its focus on premiumisation in urban India, while simultaneously catering to middle and lower-middle income consumers in rural markets.

Agarwal stated that the company is betting big on emerging verticals such as health foods, nutrition, pet care, aloe-vera-based beverages and science-backed skincare. Its direct-to-consumer platform Zanducare has launched over 100 wellness products tailored for online consumers, while its wholly owned subsidiaries The Man Company and Brillare now contribute over 5 per cent of the topline.

''We are debt-free, cash-rich, and agile. If an opportunity aligns with our long-term vision, investment is never a constraint,'' Agarwal stated.

Quick commerce platforms are also driving new packaging and impulse-buy formats, prompting a re-evaluation of traditional retail strategies, he said.

Agarwal said Emami's international business grew at a five-year CAGR of 11 per cent, despite global headwinds.

''Nearly 45 per cent of its revenues now come from high-growth segments like modern trade, e-commerce, institutional channels, strategic subsidiaries, and international markets—adding both scale and resilience,'' he said.

Agarwal expressed optimism for an improving consumption environment, driven by softening inflation, stable interest rates, tax relief for the middle class and a favourable monsoon forecast.

''We are building a future-ready consumer business. This is not just a phase of reinvention—it is a phase of acceleration. And we are only just getting started,'' he concluded.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)