FMCG firm Emami on Monday said rural market and demand is picking up post implementation of goods and services tax (GST) regime and promises a good growth trajectory going forward, even though the company said wholesale channel is yet to return to normalcy.
Emami director Mohan Goenka said the company registered satisfactory volume growth in the last quarter. “Retail and rural business have bounced back and growing in healthy double digits though the wholesale channel is still continuing to be under some pressure. International business has also performed well,” he said.
Director Harsha V Agarwal said with GST falling in place, market sentiments are improving, both in urban and rural markets.
“We have delivered satisfactory performance in this quarter led by growth in winter skincare and wellness brands along with the pain management products. Our future growth path would be focused more on strong innovation, wider distribution and on future ready areas such as modern trade and online marketplaces,” said Agarwal.
The makers of BoroPlus antiseptic cream and Navratna hair oil reported 10% growth in sales and profit after tax for the October-December quarter at Rs 757 crore and Rs 147 crore respectively. Emami said major brands like BoroPlus and Navratna grew in double digit. While the domestic business grew by 10%, international business grew by 16%, the company said in a media release.
During the quarter, Emami forayed into the fast growing online male grooming segment by deciding to acquire 30% stake in Helios Lifestyle with an option to buy further at agreed valuation parameters. Helios owns ‘The Man Company’ brand which offers head-to-toe range of premium men’s grooming products in bath and body, beard management, shaving and perfume.