Emami anticipates 4-5x sales growth through quick commerce in 2 years

Kolkata-based FMCG major Emami anticipates a substantial increase in sales through quick commerce channels, projecting growth of four to five times over the next two years, according to Vice Chairman and Managing Director Harsha V Agarwal. As per a PTI report, the company is also exploring acquisition opportunities within the direct-to-consumer (D2C) space, particularly in sectors such as nutrition, pet care and health foods.

Agarwal said that Emami remains optimistic about strong sales during the upcoming festive period, including in rural markets that have previously underperformed.

Recently, the company has completed the acquisition of the remaining 49.6% stake in Helios Lifestyle, the parent company of the men's grooming brand 'The Man Company'. Additionally, it has acquired 26% stake in Axiom Ayurveda, marking its entry into the packaged juice sector, and has increased its investment in Cannis Lupus, a manufacturer of pet care products. "We have been very aggressive in the acquisition and even going forward, we are looking for acquisitions, be it full acquisitions or partnering with D2C companies in their growth journey and grow together," Agarwal told PTI.

As per the company's most recent annual report, Emami indicated that 45% of its revenue in FY24 was generated from acquired brands, while non-seasonal brands accounted for 56% of total sales. For the financial year ending in March 2024, Emami reported operational revenue of Rs 3,578 crore.

While discussing quick commerce, Agarwal noted that FMCG companies are experiencing extremely rapid growth in this channel. "We also anticipate a four to five-fold increase in our quick commerce segment over the next two years," he stated, emphasising that this rapid expansion is driven by the convenience and flexibility it offers to consumers.