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FMCG

Emami to double rural coverage by FY24

Leading FMCG product manufacturer Emami plans to double its rural coverage in three years with a goal of reaching 60,000 tier-3 towns by the end of FY24
Emami to double rural coverage by FY24
Emami to double rural coverage by FY24

Leading FMCG product manufacturer Emami plans to double its rural coverage in three years with a goal of reaching 60,000 tier-3 towns by the end of FY24, the company’s managing director SK Goenka said in the company’s annual report. It is undertaking the endeavour as part of Project Khoj. Emami had 32,000 towns within its non-urban reach as of FY21.

Goenka stated in the company’s annual report for 2021–22, “In a country as huge and as populated as India, the issue is not so much in branding and manufacturing as it is in positioning the product right where the consumer wants it.”

“In three years”, Goenka stated, “We plan to expand our rural reach to 60,000 tier-3 cities in 13 states, broadening coverage and seeding regions with Emami products for the first time.

Emami plans to sustain high profits in FY23 thanks to strict cost control and volume-driven growth. It intends to offset the rise in raw material costs by improving operational effectiveness and making strategic price hikes.

Regarding the outlook for FY23, Emami stated that the business “would like to invest actively in new launches as well as its key brands for growth potential.” Emami is increasing the area it covers for distribution, putting the product exactly where the customer wants it.

The corporation, which has its headquarters in Kolkata, will also address the changes occurring in its urban markets as a result of the Coivd-19 pandemic because consumer buying habits are shifting. For 10–12,000 independent modern trade stores, a unique marketing and distribution network has been developed. E-commerce has also been included in this focus.

In FY22, Emami’s modern trade revenues increased by 17%, while its e-commerce strategy doubled revenues and increased its domestic business by 5.5%. Online sales channels made up 2.8% of total revenue in the prior year. Sales via e-B2B (Business-to-Business) and D2C (Direct-to-Consumer) channels are increasingly receiving more attention. “Emami products are anticipated to be available in all major forms (aside from online markets like eGrocers and fast commerce accounts),” Emami asserted.

All of the company’s major brands will benefit from a strengthened digital-first portfolio. Emami has introduced products under the Zandu, Navratna, and Kesh King brands that are exclusively digital. According to the annual report, the company’s modern trade business will introduce digital-first brands through omnichannels, bringing Zandu Ayurvedic Healthcare’s portfolio’s share of the entire modern trade business to 10%. Emami’s revenue for the fiscal year that ended on March 31, 2022, was Rs 3,192 crore.

Read more: OSM partners with Agri Junction to deploy 10,000 electric vehicles in rural India

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The Changing Face of Rural India