The fast moving consumer goods domestic giant recently moved into the male grooming category, with its acquisition of the brand He, and made moves to expand further its other male care range, Fair & Handsome.
The manufacturer has ventured into the light hair oils market with 7 Oils in One, launched in April, and, most recently, acquired female hygiene brand She Comfort. The brand has stated it is now eyeing up further acquisitions.
The expansion confirms the brand is looking to ensure a strong position in the face of slowing FMCG growth in the region, which saw a slowdown in the most recent financial quarter.
Limiting domestic competition?
Overall FMCG growth came down to 6% in this year’s first quarter from 18% a year earlier, cooling industry expectations for a strong 2014 from the off.
Rising domestic competition in personal care has been pulled up as one of the key factors behind the reduced consumer demand, and Emami’s moves to expand are set to lend it greater legroom in the category.
"The acquisition of She Comfort is part of our inorganic growth strategy and is being funded through internal accruals," Naresh Bhansali, CEO of finance, strategy and business development, has said.
Emami recently stated that it plans to launch up to 8 brands in the upcoming year, looking to return to its previous 17% sales growth rate.
"There are several high-growth areas in personal care and healthcare which we want to enter," Harsha V Agarwal, director at Emami, confirmed.
Male grooming
Emami’s focus on male grooming, via its launches with Fair & Handsome and its introduction of He, seems to come as an attempt to counter the traditional dominance of international brands in the men’s skin care segment in India.
“Foreign brands, possessing technical expertise, facilities, and means to support innovation and marketing activities, are expected to capitalize upon these advantages and grow faster than domestic brands,” analysts from Kline state of the male grooming segment.
The category is expected to grow by a CAGR of 11%, to reach Rs 5,300 crore by 2016, according to a recent Euromonitor International study.
Tapping into this category, alongside its other inorganic growth moves of launches, appointments and acquisitions, is a move which looks set to strengthen Emami’s position as a domestic FMCGs leader.