Kolkata, July 11 (IANS) FMCG major Emami Ltd will launch more weather-agnostic products to protect itself from the effects of erratic weather which have affected its sales, the company’s annual report said.
“… a majority of our products are seasonal, erratic weather also affected our sales. In view of this, we balanced our portfolio through the introduction of non-season (perennial) products,” company’s Managing Director S.K. Goenka said in its annual report released on Friday.
“Over the next few years, we expect to launch more weather-agnostic products to de-risk ourselves from meteorological vagaries,” he said.
The company remains bullish in the rural market and rural business contributed nearly half of its revenues in the last fiscal (2015-16).
“The contemporary rural consumer is aspirational, conscious about looking good and living healthy. Hence, we believe that rural India is going to make a weightier contribution to our numbers in times to come,” said Goenka.
According to the report, the company will remain keen on acquiring brands or businesses, which fit well with its strategy and have synergy with its business operations.
During the last fiscal, it acquired the hair and scalp care business under the Kesh King brand along with allied brands of ayurvedic medicinal products.
Withstanding apprehensions about the increase in borrowings following the Kesh King acquisition, Goenka said prior to acquisition, the company had net cash in excess of Rs 800 crore on its books.
“The acquisition was therefore a premeditated one with only half of the Rs 1,684 crore (including duties and taxes) acquisition being financed through borrowings.
Company’s focus has been in the ayurveda segment. Goenka said when the company’s sectoral peers promote ayurvedic products, they raise the level of water for entire category by enhancing consumer awareness.
“The company’s future plan includes putting greater emphasis on ayurveda science to deliver innovative and effective products,” the report said.
The company would focus on increasing its overseas business in the coming years.
“We are working to increase the share of international businessAin our overall revenues, even as global markets could remain challenging in 2016-17,” company Director Prashant Goenka said in the report.