Emami Expects Demand Revival and Growth Opportunities in FMCG Sector Amid Positive Economic Trends

Emami, a leading Indian FMCG company, anticipates a boost in demand in the upcoming months. This optimism is due to favourable economic conditions like reduced inflation and a promising monsoon season, according to Chairman R S Goenka. He shared these insights during the company's 42nd Annual General Meeting.

Goenka highlighted that with inflation easing and interest rates stabilising, rural sentiment is improving. This creates a more supportive environment for business operations. Additionally, a strong monsoon forecast and tax benefits for the middle class are expected to further stimulate demand in the coming quarters.

Strategic Investments and Growth

Emami is focusing on strategic investments in promising FMCG startups. These include sectors like premium male grooming, professional skincare, pet care, nutrition, and aloe vera-based fruit beverages. These investments are key growth drivers, reflecting Emami's confidence in emerging consumer trends.

The company has successfully nurtured brands like The Man Company and Brillare. These brands, now fully owned by Emami, have become significant contributors to the company's revenue. Since FY21, they have quadrupled their scale, reinforcing Emami's long-term vision.

Expanding Market Presence

Emami plans to enhance its international presence by entering new markets and strengthening existing ones. The focus will be on innovation, launching unique products, and leveraging local insights for region-specific solutions. Despite challenges in markets like Bangladesh and Africa, Emami's international business saw modest growth in FY25.

In India, the FMCG sector experienced modest growth last year due to changing consumer habits and increased e-commerce access. Rural markets showed resilience with consumption outpacing urban areas thanks to good monsoons and higher agricultural productivity.

Modern Trade and E-commerce Expansion

Emami has significantly increased its presence in modern trade and e-commerce channels. The contribution from organised channels grew from 12% in FY20 to 28% in FY25. This expansion provides scale and resilience to Emami's operations.

The company aims to drive strong revenue growth by deepening its consumer connections, especially in high-potential health and wellness segments. Currently, about 45% of Emami's revenues come from high-growth areas like modern trade, e-commerce, institutional channels, strategic subsidiaries, and international business.

Goenka noted that while urban markets face challenges like high inflation and slower wage growth, rural markets remain robust. This resilience is attributed to favourable monsoon seasons and increased agricultural productivity.

Emami continues to focus on regions with targeted portfolios and local innovations to ensure long-term growth despite economic and geopolitical challenges.

With inputs from PTI