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Home-grown consumer goods company Emami Ltd will enter new categories and expand its product portfolio as part of a strategy to achieve $1-billion (₹6,000 crore) revenue in five years.
The Kolkata-based company, which saw ₹2,000-crore sales in the last fiscal, has been growing at 15 per cent over the last few years, but expects a faster growth rate in the coming years. The company is getting more aggressive and will be entering new categories over the next two years, Harsha V Agarwal, Director, Emami, told BusinessLine.
Besides, it plans to launch more products across its existing brands. He, however, ruled out Emami’s entry into the food and beverage category.
At present, Emami offers around 250 products, including Navratna oil, Boroplus, Zandu and Fair and Handsome fairness cream, across two categories — personal care and healthcare. Its domestic competitors Dabur (₹7,000 crore) and Marico (₹4,500 crore) have a fairly good presence in the food space. Emami is also looking for some acquisitions to enter new categories, with homecare being one focus area, said Agarwal.
Brand extension The company took the first step in the new direction a couple of quarters ago. It has extended its pain management Zandu brand into an energy and vitality product called Vigorex for men. It has also extended its brands Boroplus and Fair and Handsome into the competitive facewash category. Besides, the company has launched a new hair oil brand — Emami 7 Oils.
Recently, it entered the male deodorant space with brand HE, which will soon be extended to other male grooming categories such as soap, shaving cream, hair gels and aftershave lotions.
“We expect HE to be a ₹200-crore brand in two years. Our target is the aspiring rural male population and, hence, we are trying to focus on the male grooming segment,” Agarwal added.
“We expect the industry to grow robustly over the next five years, accounting for a larger share of consumer spending. At Emami, we are positive about outperforming sectoral growth through a growing pipeline of unique and affordable products.”
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