The ₹1,525 crore Jyothy Labs, which has traditionally been a South-focussed company, now makes 60 per cent of its revenues from other regions.
The acquisition of Henkel’s portfolio with pan-India brands like Margo and Pril has helped it tide over the slow growth of its own brands like Ujala and Maxo this quarter.
Jyothy Labs Joint MD Ulhas Kamath told
Weak consumer sentiment in the rural markets with the slow start to the monsoon has taken its toll on the mosquito repellent segment. “The rural markets were bad this quarter as the summer set in fast while monsoons came in late,” said Kamath.
However, the intense summer heat did help.
“While consumers used less of our Maxo brand of household insecticide, it was compensated by more of our consumers taking a bath during summer, and Margo sales grew in double digits this quarter,” added Kamath.
However Margo has failed to make any impact in the face wash segment.
Added investment Henkel’s dishwash brand Pril also grew at 17.4 per cent while the company’s flagship brand Ujala posted nearly flat growth at 2 per cent this quarter. There would now be more investment on Ujala and a new variant of Crisp & Shine in the post wash segment.
Intense competition in the deodorants category had led the company to keep Henkel’s Fa brand in the backburner. It is now planning to re-launch it next summer.
Besides, the FMCG firm is planning to monetise land owned by it to garner about ₹100 crore. It is looking to sell its less than 2 acre land in Ambattur, Chennai, for ₹50 crore.