Jyothy Laboratories Ltd is rationalising its trade margins with retailers to bring it on par with the rest of the FMCG industry players.
Trade margins for its flagship brand Ujala have been reduced from 14 per cent to 10 per cent followed by the rest of its brands such as Exo and Maxo (at 10 per cent each).
“We have brought down trade margins to make it comparable with the rest of the industry. At the same time, we are helping stockists build a returns on investment model which would help them get returns between 20 per cent and 24 per cent,’’ stated Ullhas Kamath, Joint Managing Director.
The FMCG company has been able to reduce trade margins with a bigger product portfolio due to its merger with German multinational Henkel last year.
Net profit up 22%
During the quarter, JLL has posted a 22.30 per cent increase in net profit to Rs 15.27 crore compared with Rs 12.49 crore in the previous quarter.
Net sales for the same period rose 15 per cent to Rs 177.83 crore against Rs 154.65 crore in the corresponding quarter of last year.