Harsha V Agarwal notes that the company’s portfolio will be much sharper and future-proof in three to five years
Emphasising that the company operates in the niche spaces where household penetration is still low, Harsha V Agarwal, Vice Chairman and Managing Director of Emami, has stated that they are not here to play in overcrowded categories.
“Most of our brands are still underpenetrated. We are not here to play in overcrowded categories. We have established leadership in high-margin, high-potential spaces where others have yet to gain meaningful traction,” Agarwal said in the company’s annual report.
The urban-rural equation is shifting as well. He noted that while rural was under pressure and urban was booming about one and a half years ago, now, rural is bouncing back. Looking ahead, the company remains confident in the improving consumption outlook
“With inflation tapering, interest rates moderating and rural sentiment on the mend, we believe the operating environment will become more conducive. Add to this a strong forecast for monsoons and income tax benefits for the middle class, we expect to see a revival in demand in the coming quarters,” the MD highlighted.
The MD pointed out that Emami is building a future-ready consumer business, one that leads across categories, channels and geographies. “We have the capital, the capability and the conviction,” he added, while stating that the company operates at the intersection of personal care and healthcare.
“In urban India, there is a growing demand for clean label, eco-conscious products, while in rural markets, the shift from generic to branded personal care is accelerating, fuelled by affordable sachet and pouch formats of premium offerings,” Agarwal explained.
There is also a growing convergence between nutraceuticals and FMCG, as health and wellness become central to everyday consumption. Quick commerce platforms are transforming access and convenience, leading to a rethinking of traditional general trade and modern trade strategies, he stated.
“We are also working on building new engines of growth, segments that will define tomorrow. Health foods, nutrition, pet care and aloe vera-based fruit juices, each one a deliberate strategic bet. In three to five years, our portfolio will be much sharper and future-proof,” the MD noted.
Noting that strength of Emami today lies in the quality of its revenue mix, he shared that nearly 45 per cent of their revenues now come from high-growth and strategically important areas, modern trade, ecommerce and institutional channels, strategic subsidiaries like The Man Company and Brillare and its advancing international business.
“Yes, we are ambitious on topline. But we are equally aggressive on efficiency,” he highlighted, adding that in the last fiscal year, the company’s core portfolio posted strong growth despite external challenges such as a slowdown in urban discretionary demand and a delayed winter.
