Companies

FMCG firm Emami extends BoroPlus to health and hygiene segment

Abhishek Law Kolkata | Updated on June 18, 2020 Published on June 18, 2020

Priti A Surekha, Director, Emami Ltd

Will launch hand sanitisers, soaps and liquid hand washes

Home-grown FMCG company Emami Ltd is extending BoroPlus, one of its largest power brands, to its health and hygiene offerings. This will include products such as hand sanitisers, soaps and liquid hand washes. The move comes even as the Kolkata-based company tries to de-risk its seasonal portfolio and have “all weather offerings”.

The entry into the personal hygiene segment has been fastracked by nearly a year keeping in view the changing consumer habits and rising demand for products in this segment, in a post Covid-19 scenario.

According to Priti A Sureka, Director, Emami Ltd, initial plans were to launch offerings in the first quarter of FY22. This has, however, been advanced. Moreover, considering that BoroPlus as a brand enjoys “strong equity” and a “right-to-play” in the antiseptic cream and moisturiser segments, its extension into health and hygiene is logical.

Apart from this, the company could explore offerings in home-care segment, if required.

“We are expecting some ₹80-100 crore additional turnover in domestic market with the new products,” she told BusinessLine.

BoroPlus is amongst the largest power brands, after Navratna and Zandu, with Kesh King, Fair and Handsome and Mentho Plus being the other ones. It contributes to around 17 per cent of the company’s revenues.

Recent launches under the brand include hand sanitiser and aloe vera gel.

For Q3 FY20, the company reported an over 7 per cent increase in standalone net profit to ₹148 crore on a year-on-year basis and a marginal 1 per cent dip in revenue in operations on a year-on-year basis to ₹748 crore.

De-risking portfolio

Market sources say Emami has been trying to shore up its product portfolio and reduce dependence on seasonal offerings. It is looking to expand in categories such as hair oils, pain management, antiseptic creams, facewash and so on.

The company has already pointed out that even before implementation of the nationwide lockdown (from March 25) “restrictions on movement by various States affected the supply chain from mid-March”.

Operations until the first fortnight of April witnessed significant disruptions in the business thereby “affecting the pre-season sale of summer products”.

According to Sureka, “discretionary and personal care products are now slowly witnessing a recovery (in demand). “There is also a strong demand for healthcare products and we are witnessing a steady demand for immunity boosting products. We are ramping up there too,” she said.

“Distribution channels are witnessing a recovery faster than what we had expected. Moreover, rural India and smaller towns are normalising ,” Sureka added.

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Published on June 18, 2020
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