With an overall focus on digital business, Emami is now increasingly looking at D2C and eB2B segments: Goenka
With the changing times, we have realised the latent potential of new age start-ups and their D2C business models: Goenka
Ecommerce revenues nearly doubled in FY22, accounted for 5.5% of its total domestic business: Emami
Citing increasing digital adoption, Emami’s chairman RS Goenka said that the fast moving consumer goods (FMCG) major was marketing a slew of digital first brands to capitalise on consumer transition towards convenience-driven platforms.
“Emami is nimble enough to capitalise on this consumer transition towards convenience-driven platforms. With an overall focus on digital business, we are now increasingly looking at D2C and eB2B segments,” he said.
Speaking at the company’s 39th annual general meeting (AGM) Goenka added, ”The catalyst for this move is greater digital adoption via ecommerce platforms not only in metros but also across small towns.”
He further said that the company had launched D2C websites for its popular products such as Zandu and BoroPlus and had also marketed a range of ecommerce-specific products and digital first brands in FY22.
Emami reported on Friday that its ecommerce revenues nearly doubled in FY22, accounting for 5.5% of its total domestic business in the same period. Overall, Emami notched revenues north of INR 3,192 Cr in FY22.
Addressing shareholders, the company’s top executive also noted that the company had taken note of the potential of new age startups and their D2C models.
“With the changing times, we have realised the latent potential of new age startups 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,“ added Goenka.
Breaking down its digital-first strategy, the company said, “Through digital and social media, FMCG companies like us have a ready ground intelligence and are constantly launching new products developed using insights and customer feedback from these platforms, where consumers are constantly looking for innovation.”
Emami Group is one of the major FMCG players in the country, with a market cap of more than INR 22,000 Cr. The company has, of late, ramped up its D2C strategy and invested in a slew of companies to scale its digital offerings. The move is also aimed at diversifying its portfolio amidst an onslaught of conglomerate-owned and standalone digital-first brands in the country.
Other major brands such Marico and Dabur have also ramped up focus on digital brands and have also acquired a slew of D2C brands to gain an edge in the highly competitive space.
In July, Emami acquired a 30% stake in pet care startup Cannis Lupus in an all-cash deal. Prior to that, the FMCG player also picked up a 19% stake in nutrition-focused D2C brand TruNativ in March this year. It also invested another INR 50 Cr in men’s grooming brand, The Man Company in June last year and then subsequently increased its stake from 33.09% to 49.53% earlier this year.
The shift to digital brands and acquisitions also appear to be part of a major succession plan underway at the company. The two cofounders’ sons, namely Harsha Agarwal and Mohan Goenka, took charge of the company in May this year.
According to an Inc42 report, India’s total addressable D2C market opportunity is expected to soar to more than $100 Bn by 2025.