homebusiness Newscompanies NewsEmami's next generation bets big on Dermicool to achieve double digit growth
Emami's next generation bets big on Dermicool to achieve double-digit growth
Emami acquired Dermicool, one of the leading brands in prickly heat powder and cool talc category from Reckitt, for Rs 432 crore excluding taxes and duties in March this year.
The next generation of Emami, which took over the reins of the fast-moving consumer goods (FMCG) company in April, is aggressive in launching some of the premium products in its existing product basket with an aim to get to double-digit growth.
“We are very confident of achieving double-digit growth to the tune of about 11-12 percent because we have done Dermicool acquisition very recently, we have invested in some start-ups, which should also yield results,” said Mohan Goenka, VC and Whole-time Director, Emami.
Emami acquired Dermicool, one of the leading brands in prickly heat powder and cool talc category from Reckitt, for Rs 432 crore excluding taxes and duties in March this year.
Betting big on the Dermicool brand, the company expects Rs 140-150 crore of revenues from it in the first year.
"We are working on some Dermicool extensions. It will take a while. Rather, one year we would have to wait for the extensions to come," said Goenka.
According to him, the investments made by the company in the distribution area would definitely yield results in the second half of the financial year.
Emami is still dependent on the rural markets and says it has not seen the kind of recovery expected in the market this quarter.
“If the market’s seasonality is favourable, then we are very confident of achieving 14-15 percent growth,” he said.
The company is hopeful of double-digit growth growing forward with the input costs correcting and inflation moderating.
The stock settled 1.62 percent higher at Rs 492 per share on BSE. It has gained 10.72 percent in the last one month and fallen 17.81 percent in the last one year.
The company also sells brands such as Navratna cooling oil, BoroPlus, Fair & Handsome, Zandu Balm, and Menthol Plus.
Also Read: FMCG companies look to calibrate price hikes to support consumption ahead of festive season
For the full interview, watch the accompanying video
First Published: Sept 1, 2022 7:46 PM IST
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