Emami reports 48.6 per cent Q1 growth in turnover

Emami, the Rs2,000-crore FMCG group, has notched up a consolidated turnover of Rs187.1 crore for the first quarter of the fiscal year ended 30 June, up 48.6 per cent. This included an inorganic growth of 25.3 per cent.

Profit after tax (before minority interest) in the first quarter was Rs14.9 crore, against Rs11 crore in the same quarter last year. The consolidated EBIDTA stood at Rs33.8 crore, a jump of 194 per cent, which included an inorganic growth of 120 per cent.

Emami has recorded substantial growth from its power brands like Fair and Handsome and Navratna. New products growing handsomely during the quarter include Navratna Extra Thanda Oil and Navratna Cool Talc, it said.

Emami's stand alone net sales recorded a growth of 21.4 per cent at Rs149 crore during the quarter and EBIDTA grew by 59.5 per cent at Rs18.1 crore during the quarter, the release added.

The company has added 15,000 new retail outlets, taking the total network of outlets to 4.15 lakh. The company has also initiated super stockiest network for rural coverage with a pilot project in six states.

The company's international business grew by 21 per cent in the period. The growth is mainly from the Middle East and Africa. While development of new products and new markets continues, the thrust is on distribution and penetration in existing markets and on initiating development of global brands, the company said.

The Kolkata-based company, which recently acquired a controlling stake in Zandu Pharmaceutical Works, has also engaged management consultant Ernst & Young to leverage value out of the company's supply chain, sales, distribution and human resource capabilities.

The company's rural marketing strategy includes sales through its over 7,500 mobile traders and 2,200 small village shops covering West Bengal, Chhattisgarh, Madhya Pradesh, Andhra Pradesh, Orissa and Karnataka, it said.