 "Emami targets rural areas, looks to benefit from higher MSP, loan waivers")
Emami is attractively placed to capitalise the next phase of growth where the trigger is in the hands of the rural population, company chairman R S Agarwal said on Wednesday.
Every single industry needs to adopt, transform and reinvent the evolving environment and Emami is attractively placed to capitalize on these evolving opportunities, Agarwal said.
"Emami is thus transforming to 'Naya Emami' ... With handsome annual growth of 14 per cent last year, the company is poised to expand its portfolio in key markets by launching new products," he told the shareholders.
"Companies with rural focus are set to reap the benefits of various reforms like higher MSP, farm loan waiver schemes, direct transfer of government subsidies and so on. The most decisive development in the country has been the wave of digitalization across urban and rural India touching millions of lives," he said at the company's AGM.
GST had an initial impact on FMCG companies that disrupted sales channels particularly in the wholesale channel. Following it Emami had been its direct distribution network, he said.
An additional 120,000 direct retailers will take the total coverage to 850,000, he said adding Emami has lined up Rs 1 billion toward brand building, new launches and investment in distribution network in the remaining part of the fiscal.
About overseas expansion, he said Emami had last year strengthened it by commissioning a third party manufacturing unit in Sri Lanka.