Emami to re-deploy resources to boost growth, eyes strong summer sales

FMCG major Emami Ltd said it is re-deploying resources to drive growth in rural markets through small sachets and value packs, shifting focus back to its traditional stronghold after a period of concentrated efforts on modern trade and e-commerce.

The company, known for brands like BoroPlus and Navratna, indicated that while digital channels have seen rapid expansion, the rural segment remains a critical priority for volume growth, the company said.

"While our recent focus was on modern trade and e-commerce, we are now re-deploying resources to drive growth in rural markets," the management said during an analyst concall, adding that the strategy involves leveraging small SKUs (stock-keeping units) to improve penetration.

"The next growth driver should come from rural areas, and our focus would be increasingly going into rural markets," the company said.

A central pillar of the company's rural strategy is a renewed focus on small stock-keeping units (SKUs) to ensure affordability and consistent market presence.

The management highlighted that by maintaining products at accessible price points of Rs 1, Rs 2, Rs 5, and Rs 10, the company can protect its market penetration despite macroeconomic fluctuations.

Emphasising this low-unit-pack approach, Emami officials noted that shampoo sachets will be a "big focus" over the next year to aggressively drive volumes across the rural heartland.

The Kolkata-based FMCG major expressed optimism regarding the upcoming summer season, banking on its cooling brands Navratna and Dermicool. This comes despite an extended winter that delayed initial inventory stocking for summer-centric products.

On the operational front, Emami has engaged global consultancy firm KPMG to transform its supply chain. The initiative aims to make the company "future-ready" to meet the evolving demands of omni-channel distribution, including the fast-growing quick commerce segment.

Reflecting the shift in consumer behaviour, the management noted that quick commerce sales have doubled, now accounting for 20 per cent of its total e-commerce business. To align with this trend, digital spending now constitutes nearly 50 per cent of the company's total media expenditure.

Furthermore, following recent Union Budget amendments, the company expects its effective income tax rate for the standalone entity to drop to 25 per cent from the current 35 per cent starting in the 2026-27 financial year.

Meanwhile, for the third quarter ended December 2025, the company reported an 11 per cent growth in net sales to Rs 1,152 crore. Its domestic business grew by 11 per cent, supported by a 9 per cent growth in volumes.

The company's Profit After Tax (PAT) rose by 15 per cent to Rs 319 crores during the quarter.