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Emami expects sales rebound in post-demonetisation period

The company sees 12-14% growth in FY18

Avishek Rakshit  |  Kolkata 

Emami expects sales rebound in post-demonetisation period

Fast-moving consumer goods (FMCG) company expects sales to bounce back after and has projected a 12-14 per cent growth in 2017-18.

“Growth anywhere between 12 per cent and 14 per cent is what we expect for next year,” Mohan Goenka, executive director, Emami, said in an investor’s conference call. He said the wholesale market had revived after “It is not absolutely back to normal, but in the next one or two months it should be back to normal,” he told analysts.

will focus on increasing its direct retail reach to 800,000 outlets by 2017-18 from 640,000 now. The company will also bank on product launches to drive business. Besides, it is working on information technology to create a direct supply chain.

“The more direct our reach the less our dependence on distributors. We cannot do it overnight because we have to reach villages,” Goenka added.

expects its brands like Kesh King, Boroplus, Fair & Handsome, Navratna Oil and the balms category will drive growth. “We are reworking our strategy for Fair & Handsome. We are trying something new in this category,” Goenka said.

During the quarter ended December, sales of Emami’s portfolio of balms fell in the south, as did sales of Navratna and Fair & Handsome products nationwide. Navratna Cool Oil sales declined by four per cent, balm sales declined by five per cent and Fair & Handsome cream sales declined by 18 per cent during the quarter. Sales of the health care range also fell by six per cent.

Against a net revenue of Rs 724.85 crore during the third quarter of 2015-16, posted revenue of Rs 726 crore in the December quarter. Its net profit remained flat at Rs 134.34 crore.

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Emami expects sales rebound in post-demonetisation period

The company sees 12-14% growth in FY18

After reporting a flattish growth of less than one per cent in the demonetisation period, Kolkata based fast moving consumer goods (FMCG) company, Emami Ltd is expecting sales to bounce back in the coming 2-3 months and has projected a 12-14 per cent growth in the coming fiscal year."We are targeting double digit growth, so growth anywhere between 12-14 per cent is what we expect for next year, but we are expecting a double digit volume growth for next year, that is our biggest challenge and target", the company's executive director, Mohan Goenka said in an investor's conference call.As per Goenka, the wholesale market, although not absolutely back to normalcy post demonetisation, has mostly revived."It is not absolutely back to normal, but I think in the next one or two months it should be back to normal. To give a number is very difficult for me", he told analysts.To drive its business in the remonetisation period, Emami has planned a three-fold strategy. While it will foremost ...
Fast-moving consumer goods (FMCG) company expects sales to bounce back after and has projected a 12-14 per cent growth in 2017-18.

“Growth anywhere between 12 per cent and 14 per cent is what we expect for next year,” Mohan Goenka, executive director, Emami, said in an investor’s conference call. He said the wholesale market had revived after “It is not absolutely back to normal, but in the next one or two months it should be back to normal,” he told analysts.

will focus on increasing its direct retail reach to 800,000 outlets by 2017-18 from 640,000 now. The company will also bank on product launches to drive business. Besides, it is working on information technology to create a direct supply chain.

“The more direct our reach the less our dependence on distributors. We cannot do it overnight because we have to reach villages,” Goenka added.

expects its brands like Kesh King, Boroplus, Fair & Handsome, Navratna Oil and the balms category will drive growth. “We are reworking our strategy for Fair & Handsome. We are trying something new in this category,” Goenka said.

During the quarter ended December, sales of Emami’s portfolio of balms fell in the south, as did sales of Navratna and Fair & Handsome products nationwide. Navratna Cool Oil sales declined by four per cent, balm sales declined by five per cent and Fair & Handsome cream sales declined by 18 per cent during the quarter. Sales of the health care range also fell by six per cent.

Against a net revenue of Rs 724.85 crore during the third quarter of 2015-16, posted revenue of Rs 726 crore in the December quarter. Its net profit remained flat at Rs 134.34 crore.
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Business Standard
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Emami expects sales rebound in post-demonetisation period

The company sees 12-14% growth in FY18

Fast-moving consumer goods (FMCG) company expects sales to bounce back after and has projected a 12-14 per cent growth in 2017-18.

“Growth anywhere between 12 per cent and 14 per cent is what we expect for next year,” Mohan Goenka, executive director, Emami, said in an investor’s conference call. He said the wholesale market had revived after “It is not absolutely back to normal, but in the next one or two months it should be back to normal,” he told analysts.

will focus on increasing its direct retail reach to 800,000 outlets by 2017-18 from 640,000 now. The company will also bank on product launches to drive business. Besides, it is working on information technology to create a direct supply chain.

“The more direct our reach the less our dependence on distributors. We cannot do it overnight because we have to reach villages,” Goenka added.

expects its brands like Kesh King, Boroplus, Fair & Handsome, Navratna Oil and the balms category will drive growth. “We are reworking our strategy for Fair & Handsome. We are trying something new in this category,” Goenka said.

During the quarter ended December, sales of Emami’s portfolio of balms fell in the south, as did sales of Navratna and Fair & Handsome products nationwide. Navratna Cool Oil sales declined by four per cent, balm sales declined by five per cent and Fair & Handsome cream sales declined by 18 per cent during the quarter. Sales of the health care range also fell by six per cent.

Against a net revenue of Rs 724.85 crore during the third quarter of 2015-16, posted revenue of Rs 726 crore in the December quarter. Its net profit remained flat at Rs 134.34 crore.

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Business Standard
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