Home / Companies / News /  Emami says e-commerce business contribution doubled in FY22

New Delhi: Packaged consumer goods maker Emami Ltd’s e-commerce revenues doubled and contributed 5.5% to its domestic business in FY22 against 2.8% in the previous year.

The maker of Navratna, Kesh King and Fair and Handsome personal care brands is “increasingly" looking at D2C and e-B2B segments. “We have launched D2C websites for Zandu, Kesh King and BoroPlus. Your Company launched and marketed a range of e-commerce-specific products and digital first brands like Onion Range under Kesh King, Gold and Therapy range under Navratna and more than 20 healthcare products under the Zanducare D2C platform in FY 22," R.S. Goenka, chairman, Emami, said during the company’s 39th annual general meeting held in Kolkata on 9 September.

The catalyst for this move is greater digital adoption via e-commerce platforms not only in metros but also across small towns, the company said.

Meanwhile, Emami has been working on expanding its reach and distribution in India. Under its Project Khoj, the company added 8,000 rural towns to its direct distribution network in FY22, thereby taking the total tally to 40,000 towns.

“We intend to almost double our rural coverage to 60,000 towns by FY24. The company also rolled out Project Sirius as a pilot project in select cities wherein the company launched an up-sell and cross-sell application for the frontline sales team, which empowers our sales representatives through app-driven suggestions," said Goenka.

Goenka said that Emami will introduce more such technology-based distribution initiatives in the near future to accelerate off-takes. “For our healthcare business, we realized that the key to long-term sales sustainability would be derived from relationship-driven sales engagements. The result is that the company added 31,000 outlets for healthcare products, focusing on Ayurvedic bhandars and chikitsalayas taking the total tally to 1.1 lakh outlets," he added.

In FY22, the company’s revenue from operations stood at 3,192 crore.

The company has also been making acquisitions or picking up stakes in homegrown consumer brands.

In March 2022, the company acquired Dermicool from Reckitt Benckiser Healthcare India Pvt Ltd for 432 crore. During the year the company also increased its stake in Brillare Science and Helios Lifestyle Pvt. Ltd (The Man Company), from 34.70% to 57.36% and from 33.09% to 49.53% respectively. In the current fiscal the company again increased its stake to 77.53% in Brillare Science and 50.40% in Helios lifestyle as well.

Meanwhile, it also made investments in direct-to-consumer brands—including a 20.65% equity stake in TruNativ F&B Pvt. Ltd, a D2C business that markets nutrition products under the TruNativ brand. This apart from acquiring a 30% stake in a pet-care start-up Cannis Lupus Services India.

“With the changing times, we have realized the latent potential of new age start-ups and their D2C business models. These promising smaller players are playing a key role in educating consumers and making the respective category more innovative and exciting,“ Goenka added.

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