By Companies
In FY24, Emami entered the health juice category through a strategic investment in Axiom Ayurveda Pvt Ltd, acquiring a 26 per cent equity stake.
Kolkata-based fast-moving consumer goods (FMCG) firm Emami said at its annual general meeting on Tuesday that its business in Bangladesh was being impacted but expressed hope for a return to normalcy with political stability.
Responding to queries from shareholders on the impact of the political turmoil in Bangladesh, N H Bhansali, chief executive officer – finance, strategy, business development, and chief financial officer, said, “Currently, the business is getting impacted – in fact, last month was very turbulent.”
However, he added that the situation had stabilised. “Our factory has started operations, and the market has reopened. We are hopeful of getting this stabilised,” he said, adding that the company does not foresee a significant impact on its overall business from Bangladesh.
“We do not expect any market share or any loss there,” he added. Emami has a company-owned manufacturing unit in Bangladesh.
Responding to a query on the experience in Sri Lanka post-crisis, Bhansali said that business in the island nation was back on a growth trajectory. “We are hopeful that Bangladesh will also return to the same growth trajectory over time.”
Despite geopolitical issues, 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.
Overall, the company is aiming for double-digit growth. Addressing shareholders, R S Goenka, chairman, Emami, said that the company was committed 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 said that the company would continue exploring opportunities for inorganic and strategic investments.
Emami, which started its journey in 1974, has largely grown through acquisitions. Its first acquisition, Himani, dates back to 1978. Zandu Pharmaceuticals was acquired in 2008, followed by Kesh King in 2015, Creme 21 in 2019, and Dermicool in 2022. Around 45 per cent of Emami’s topline is generated from acquired brands.
In FY24, Emami entered the health juice category through a strategic investment in Axiom Ayurveda Pvt Ltd, acquiring a 26 per cent equity stake. Axiom markets beverage products under the “AloFrut” brand. Bhansali said the company expects “good growth” from this business.
He also mentioned that ample funds were available for the “right acquisition or strategic investments.”
First Published: Aug 27 2024 | 7:00 PM IST