Emami aims to grow sales in the fast trading segment five times in the next two years, says Vice President Harsha V Agarwal

Emami, a homegrown FMCG company, expects a four- to five-fold increase in sales through fast-trade channels in the next two years, the company’s vice president and CEO Harsha V Agarwal said on Monday.

In addition, it is also looking for greater acquisition opportunities in D2C (direct-to-consumer) segments in sectors such as nutrition, animal care and healthy food.

The Kolkata-based company is quite buoyed by the good monsoon this season and is “upbeat” about good sales during the festive season, even in rural markets that have lagged.

Emami recently acquired the remaining 49.6% stake in Helios Lifestyle, which owns the men’s cosmetics brand ‘The Man Company’.

In addition, it acquired a 26% stake in Axiom Ayurveda, thus starting its entry into the packaged juice market, and increased its stake in pet care products maker Cannis Lupus.

“…we have been very aggressive with acquisitions and even in the future we are looking at acquisitions, whether they be full acquisitions or partnering with D2C companies on their growth and co-development path,” Agarwal said.

In its latest annual report, Emami said that 45% of its revenue in FY24 came from acquired brands, while non-seasonal brands contributed 56% of its revenue.

The company, which owns brands such as Navratna, Boro Plus, Kesh King and Fair And Handsome, is “cash rich and has zero debt”, increasing its ability to invest in “acquisitions and entry into new categories” at moderate risk, in addition .

“There are many areas in the D2C space, be it nutrition, animal care or healthy food, in which we have already invested and are looking for more good and better opportunities,” Agarwal said on the sidelines of an event organized by industry body FICCI.

When asked about high-speed trading, Agarwal said FMCG companies are seeing “very rapid” growth through this channel.

“Even for us, we expect to see four- or five-fold growth in the fast trading space over the next two years,” he said, adding that the excessive growth of the channel is due to providing buyers with “convenience and flexibility” options.

This is a “pretty important” area for consumers to stick to, Agarwal added.

“So as a company, we’re looking at more opportunities through this channel for more products that are relevant to them, and we’re leveraging the benefits of that,” he said.

As for demand for the holiday season this year, he said, “We’re pretty optimistic.” “The monsoon is good and even the demand in rural areas during the festive season will be good. We can’t wait,” Agarwal said.

Agarwal expects the premiumization trend to continue in the FMCG sector as people look for more specific and niche solutions and are even willing to pay for them.

For the financial year ended March 2024, Emami’s revenue from operations was Rs 3,578 crore.