Emami bets on brand extensions to enter newer consumer categories

Established FMCG companies are increasingly moving beyond the product categories they are best known for, building on the familiarity of their existing brands to enter new segments and reach a wider set of consumers.

Emami's latest launches reflect this trend. The company is expanding the reach of two of its established brands, BoroPlus and Kesh King, by introducing products in more specialised categories.

Under BoroPlus, Emami has entered the baby-care segment with its new FromMaa range. The launch takes the brand, traditionally associated with skincare, into a category focused on baby-care needs, widening its presence beyond its existing products.


Emami has also launched the Kesh King Scalp First range, taking its hair-care brand into the more specialised scalp-care market. The products have been introduced through modern trade and e-commerce channels.

Both launches reflect a shift towards using familiar brands to enter related categories, rather than building entirely new identities for each product segment.

Beyond its established brands, Emami is also expanding its presence through investments in newer consumer businesses. Its portfolio includes The Man Company, Brillare, Alofrut and TruNative, giving it exposure to a broader range of emerging consumer categories.

The strategy is beginning to show up in its numbers. Emami's strategic investments portfolio grew 73% on a like-to-like basis during the September quarter and accounted for around 26% of its domestic business.

The company said these investments were helping it expand into newer consumer segments and build a more diversified portfolio.

Emami reported consolidated revenue from operations of Rs 1,088 crore for the September quarter, registering growth of 36%. On a like-to-like basis, after considering the previous period's numbers of Axiom Ayurveda and IncNut, revenue grew 24%.

Its domestic business grew 49%, with volume growth of 43%. On a like-to-like basis, domestic business growth stood at 32%, with volume growth of 26%.

EBITDA increased 25% to Rs 222 crore, while profit before tax rose 29% to Rs 194 crore. Profit after tax stood at Rs 144 crore, down 3%, largely due to the normalisation of the effective tax rate following the phase-out of fiscal benefits.