RSH Global plans to ramp up health and hygiene category portfolios

Abhishek Law Kolkata | Updated on May 28, 2020

Sunil Agarwal, Chairman, RSH Global

The makers of Joy brand skincare products to include hand washes, hand creams, moisturisers, germ kill sprays in portfolio

Kolkata-based RSH Global, owners of the ‘Joy’ brand, will look to strengthen its play in the health and hygiene segment. The company, which recently extended the brand to hand sanitisers will look to ramp up the portfolio to include hand washes, hand creams and moisturisers, germ kill sprays and others.

Health and hygiene offerings will be ramped up under the flagship ‘Joy’ brand.

According to Sunil Agarwal, Chairman, RSH Global, the company is eyeing a “long-term play” in the category with focus on the mass segment. A major challenge will be for the company to leverage its distribution channels and ensure availability of offerings across modern retail and traditional mom-and-pop stores / kirana shops.

“We are looking at a long-term play in the category with focus on the mass segment. Nearly ₹15 crore has been spent on ramping up the existing facilities. Some third-party sourcing from registered pharma manufacturers is also being done for items like germ kill spray and so on,” he told BusinessLine.

Launches have seen some delays because of the coronavirus-induced lockdown and supply chain hurdles like non-availability of workers or transport.

Factories in Himachal Pradesh and Maharashtra have resumed production.

RSH Global’s ‘Joy’ focuses on skin care in the mass categories through face washes, moisturisers, sun-screen lotions and body lotions. It had recently roped in actor Kriti Sanon as brand ambassador.

Incidentally, most FMCG companies have, since March, focused on launches in categories like hand sanitisers, hand washes, disinfectant sprays, germ killing air freshners and so on. Some companies like Marico have also launched vegetable cleaning liquids.

Analysts say FY21 could see all FMCG companies innovate in the health and hygiene category leading to product extensions (adjacencies) and increased offerings across newer categories.

FY21 outlook

According to Agarwal, RSH Global is expected to end the previous fiscal (FY20) with product offtakes worth around ₹490 crore.

With an economic slowdown affecting consumer spends, the company is expecting to clock a 5-6 per cent growth in FY20 (over previous years).

“However, making any prediction for FY21 is tough at this point in time,” he says, adding that it will take at least six months for economic activity to get some semblance of normalcy.

“We will be happy at 80 per cent of our FY20 turnover. Even that is a very dynamic and difficult forecast,” Agarwal added.

Capex plans on hold

The company will “go a bit slow” on capex plans as a part of its efforts to conserve cash. It has a ₹100 crore capacity expansion plan, which Agarwal is willing to “push back by a year”.

“We have purchased the land, but will not take a call on beginning construction till about December of this year. We may have to push back expansion plans by a year,” he said, adding that existing capacities of the company can cater to “increased demand for at least three years”.

There are no immediate plans to list, at least for another three years; and there are sufficient internal accruals.

Published on May 28, 2020

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