Factory ops resume in Bangladesh, Emami pins hope on political stability

Emami is targeting double-digit growth in its international business in FY25. In FY24, international business grew by 12 per cent in constant currency and 9 per cent in INR terms

Kolkata-based fast-moving consumer goods company Emami reported at its annual general meeting on Tuesday that its business in Bangladesh had been impacted but expressed optimism for a return to normalcy with political stability.

Responding to queries from shareholders about the effects of political turmoil in Bangladesh, N H Bhansali, chief executive officer — finance, strategy, business development, and chief financial officer, said, “Currently, the business has been impacted — in fact, the last month was very turbulent.”

However, he added that the situation had stabilised. “Our factory has resumed operations, and the market has reopened. We are hopeful for further stabilisation,” he said, noting that there was no major impact on the overall business from Bangladesh.

 

“We do not foresee any loss of market share,” he added.

Emami operates a company-owned manufacturing unit in Bangladesh.

Regarding the after-crisis situation in Sri Lanka, Bhansali mentioned that business there was back on a growth trajectory. “We are hopeful that Bangladesh will also return to a similar growth trajectory over time.”

Despite geopolitical issues, Emami is targeting double-digit growth in international business for 2024-25. In 2023-24 (FY24), international business had grown by 12 per cent in constant currency and 9 per cent in rupee terms.

Overall, the company is aiming for double-digit growth. Addressing shareholders, R S Goenka, chairman of Emami, underscored the company’s commitment to achieving around double-digit growth in the new financial year.

“The company’s focus will be on growing revenues with robust margins, generating adequate cash flows to reinvest in our business, and strengthening our sustainability.”

He also mentioned that the company would continue exploring opportunities for inorganic and strategic investments.

Since its inception in 1974, Emami has largely expanded through acquisitions. Its first acquisition, Himani, was in 1978. Subsequent acquisitions include Zandu Pharmaceuticals in 2008, Kesh King in 2015, Creme 21 in 2019, and Dermicool in 2022. Around 45 per cent of Emami’s top line is generated from acquired brands.

In FY24, Emami entered the health juice category through a strategic investment in Axiom Ayurveda, acquiring a 26 per cent equity stake. Axiom markets beverage products under the AloFrut brand. Bhansali expects “good growth” from this investment.

He also observed that ample funds were available for the “right acquisition or strategic investments”.