'Covid fast-forwarded demand for Emami’s ayurvedic products’

Considering the earlier period of unlocking, when sanitiser, hand-rubs and personal hygiene offerings were in demand, the intensity has gone down quite a bit. The panic over non-availability of such products is also down. Alternatively, people have become more conscious about their health. Offerings in ayurvedic or natural solutions are doing well.

The pandemic has accelerated the acceptance of these products. With growing consciousness, ayurvedic products were previously gaining popularity. The pandemic fast-forwarded the demand by three-to-four years. For instance, offerings like chawyanprash are no longer seen as seasonal products; immunity boosting ‘kadhas’ are popular, and so on.

In personal hygiene, sales are expected to be much higher than what they were at pre-Covid levels. But the intensity of purchase may go down. This means that there will be some slowdown in demand and sales, but since the overall market-size of these offerings has increased, the numbers will be higher on a comparative basis. Habits like washing hands or using sanitisers will stay, even if people panic less.

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Healthcare though is the segment with tremendous potential, especially ayurveda-based solutions in wellness and immunity-boosting categories. As lifestyles change, people will be more conscious about health, lifestyle diseases and the natural solutions (ones without side-effects) surrounding these ailments or issues.

Emami entered the home hygiene category through Emasol brand in November. It is early days and pan-India launches are happening. Home hygiene is a growing market that will see increased acceptance in the coming months.

In the healthcare segment, the near 100-year-old Zandu brand has created a name in ayurvedic products and we have extended it to different categories (within ayurveda) in the last few years. In fact, between April and September, there were 18-19 launches in the healthcare vertical; some of them being digital first ones.

Our plan is to expand the healthcare portfolio, including the Zandu brand. More offerings in wellness and immunity-boosting offerings will be launched soon. We are also looking at overseas markets where ayurvedic offerings are now gaining popularity.

Our e-commerce sales have more than doubled and the trend continues in this segment. There have been digital first launches across categories too. In 2021, we will continue with the momentum (on digital channels) and focus on e-commerce.

Most offerings here will be through our mother brands – which already have a good traction in the market. There could be online specific sub-branding or new category specific branding depending on customer needs.

There has been a month-on-month increase in discretionary category item sales like premium and value-added hair oils and deodorants. In the initial period (post Unlocking) sales were low. But over the last four-odd months they picked up.

As we enter new categories, there will be advertising and branding initiatives. At present, ad-spends are at pre-Covid levels.

Margins are expected to expand over last fiscal. We witnessed margin improvements in both Q1FY21 (June quarter) and in Q2FY21 (September quarter). Cost-cutting measures adopted over the last few quarters will help (improve margins) further.

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