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Emami aims at 8-10 pc topline growth amid headwinds

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Press Trust of India Kolkata
Last Updated : Aug 08 2019 | 7:40 PM IST

FMCG major Emami Ltd is aiming at a revenue growth of 8-10 per cent in the 2019-20 fiscal despite headwinds in the economy, a top company official said on Thursday.

The company had registered a seven per cent growth in revenue in 2018-19 fiscal and clocked a six per cent revenue growth in the first quarter of the FY20.

We are aiming at an 8-10 per cent growth in the current fiscal, director Mohan Goenka said after the company annual general meeting here.

The company hopes to reverse the slowdown by the second half of the fiscal, he said.

The Kolkata headquartered company has also taken a cautious approach in increasing price of its products by just 2.5 per cent as against an average 4-5 per cent hike it had undertaken every year for the last 3-4 years.

Emami Director Harsh V Agarwal said the company was preparing to build a portfolio of products for modern trade channel and online sales after both had grown strongly in FY19.

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Modern trade channel had reported a growth of 43 per cent and increased its contribution from 6 per cent to 8 per cent of the domestic business, Emami Chairman R S Agrwal said while addressing the shareholders.

The e-commerce segment also grew by 112 per cent, he said.

In the coming days, your company intends to grow the revenues from power brands, launching more innovative products in the under-penetrated segments, strengthen its healthcare sales by investing in research and development and deepen its focus on international markets, he said.

At the time, when the group was grappling with high level of debt, Agrwal reposed faith in next generation promoters of the company.

The second generation promoters have well integrated themselves in the companys operations to charter the future growth of the organisation. With their deep understanding of the values, business strategy, culture and heritage of Emami, they bring innovative solutions and competence that will lead your company to greater heights," he said.

The promoters had recently sold 20 per cent stake in Emami Ltd in two tranches which fetched around Rs 2,830 crore and helped them to reduce the group level debt.

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First Published: Aug 08 2019 | 7:40 PM IST

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