Emami expecting revival of demand in coming months, to focus on new channels of growth

New Delhi, Aug 29 (PTI) Home-grown FMCG major Emami expects a revival in demand in the coming months, helped by a favourable macro-economic environment such as moderation in inflation and good monsoon, its Chairman R S Goenka said on Friday.

"With inflation tapering, interest rates moderating and rural sentiment on the mend, we believe the operating environment will become more conducive. Add to this a strong forecast for monsoons and income tax benefits for the middle class, we expect to see a revival in demand in the coming quarters," he said addressing shareholders at the 42nd AGM of the company.

The Kolkata-headquartered firm is investing in the right enablers -- technology-driven efficiency, strategic capital allocation, and building a strong pool of human resource talent, said Goenka.

"Early strategic investments in high-potential FMCG startups—ranging from premium male grooming and professional skincare to pet care, nutrition, and aloe vera-based fruit beverages —have become key drivers of our growth, reflecting our belief in emerging consumer trends," he said.

The company which owns popular brands as Navratna, Dermicool, BoroPlus and Zandu said though its roots keep grounded, future grows through the new ventures it nurtures today.

Brands as 'The Man Company' and 'Brillare', in which Emami had invested and are now fully owned by it have emerged as breakout brands, contributing more than 5 per cent to the topline, said Emami.

"Since FY21, these brands have scaled 4 times, validating our early bets and reinforcing our long-term conviction. This success story extends beyond numbers; it represents our ability to identify tomorrow's winners today," said Goenka.

According to Goenka, Emami is committed to driving strong revenue growth by deepening its consumer connect, especially in high-potential health and wellness segments.

"Today, about 45 per cent of our revenues come from high-growth areas —Modern Trade, E-commerce, Institutional Channels, Strategic Subsidiaries like The Man Company and Brillare, and International Business—providing scale and resilience," he said.

Now Emami has doubled its presence in aspirational channels like modern trade and e-commerce, growing organised channel contribution from 12 per cent in FY20 to 28 per cent in FY25.

Besides domestic market, Emami also plans to "speed up" international growth by entering new markets and strengthening its presence in existing ones.

"We will focus on constant innovation, launching unique products, expanding into high-potential untapped areas, and using local insights to create region-specific solutions," said Goenka.

Emami's International Business witnessed modest growth in FY25 despite economic and geopolitical challenges in key markets like Bangladesh, the Middle East, and Africa.

"The company continues to focus on these regions with targeted portfolios and local innovations to drive long-term growth," he said.

While talking about India’s Fast-Moving Consumer Goods (FMCG) industry, Goenka said it had a modest growth last year, driven by changing consumer habits, supported by wider access to e-commerce, deeper reach in rural areas, and rising demand for convenience-focused products.

However, "rural markets have shown resilience. In recent quarters, their consumption has even outpaced urban areas, helped by good monsoon seasons and higher agricultural productivity. On the other hand, urban markets have been weighed down by high inflation, increased interest rates, and slower wage growth," he said. PTI KRH ANU