Emami is looking forward for organic as well as inorganic growth opportunities: NH Bhansali, CFO
NH Bhansali, CFO, Emami Ltd, talks about the Q3FY21 results, degrowth in Navratna brand, organic and inorganic growth opportunities during a candid chat with Swati Khandelwal, Zee Business.
NH Bhansali, CFO, Emami Ltd, talks about the Q3FY21 results, degrowth in Navratna brand, organic and inorganic growth opportunities during a candid chat with Swati Khandelwal, Zee Business. Edited Excerpts:
Q: The company has posted strong results for Q3FY21. What led to this growth and what kind of demand and pricing, if you can provide rural and urban bifurcation? Where did this 13% volume growth come from?
A: There is an overall growth of 16%, which includes volume growth of 12% and 13% domestic and international, respectively. So, it has been an all-round growth. If seen in terms of channels, then growth was seen in every channel, including general trade, rural growth as well as modern trade, which has been subdued, has grown by more than 50%. Also, e-commerce channels have grown by 250%. So, channel-wise growth has been very good. If seen based on brands, then there has been good growth in all the brands, like healthcare, balms, Boro Plus - our winter care brands and Kesh King. Even the Fair and Handsome Radiance Cream which was a bit subdued in skincare in terms of demand have also done reasonably well in this quarter. So, if brand-wise growth is seen then there is growth if seen channel-wise then also there is good growth. If you have a look at the international business, then it has grown by 26% in this quarter. Thus, it is an all-round growth.
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Q: Was looking at your results. It shows 12% degrowth in Navratna brand. Why is it so?
A: If you have a look at the first quarter then the degrowth stood at 26% and this degrowth of the mainly dominated by the summer brands, which included Navratna. So, if there is degrowth in Navratna then the degrowth has happened because the products which were not sold in that season cannot be sold on the later stage because it mainly depends on summer and this is why there was degrowth. But if you have a look at the market share then we have been stronger in terms of market share and it has not reduced.
Q: Tell us about the new launches and product pipeline? Also, you have acquired Brillare Science Pvt. Ltd. recently. So, what kind of revenue uptick the company can bring in your business? Going forward, what kind of acquisitions that company is eyeing at?
A: The last acquisition we did was Cream 21, a German brand. It was an international acquisition and had a presence in the Middle East and elsewhere and it had a grown well. In fact, it grew by 82% in this quarter and that is expected to do very well in the future, as well and is meeting our all expectations. Going forward also, we are looking for an acquisition in India and abroad. We have also given a dividend in this quarter and a lot of liquid resources are available with us. Liquid funds of around Rs 400 crore is lying with us and liquidity is also very good. The first dividend stood at 400% and the second also stood at 400%, which means we have given a dividend of 800% this year, itself. So, there is ample liquidity, and we expect good growth. In terms of organic and inorganic opportunities, we are looking at it.
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