Emami’s Turnover increased by 17%,Net Profit grows by 13%

The Board of Directors of Emami Limited met today to consider financial results of the company for the quarter ended June 30, 2008.

The first quarter of the year witnessed consistent growth across its power brands. While turnover at Rs. 123 crores for the quarter has increased by 17%, Net Profit at Rs. 11 crores has increased by 12% over the corresponding period in previous year. Profit Before Tax at Rs. 13 cr grew by 14%.

Emami has recorded consistent growth for its power brands like Fair and Handsome, Navratna Oil, Boroplus Antiseptic Cream, Menthoplus Balm and other new products. Three new products were launched in this quarter - Boroplus Summer Body Lotion, Navratna Extra Thanda Oil and Navratna Lite Oil – which received encouraging consumer response.

International Business :

International business with revenues of Rs. 15 cr has grown by 42% during the quarter. Growth is coming mainly from Middle East and Africa. While development of new products and new markets continues, thrust is being put on increasing distribution and penetration in existing markets and to initiate development of global brand. Today, Boroplus Antiseptic Cream is the largest selling Antiseptic cream not only in India but also in Ukraine, Russia and Nepal.

Operational Initiatives  :

Management Consultants, M/s. Ernst and Young has been engaged to leverage enhanced value out of our supply chain, sales, distribution and human resource capabilities.

During the quarter, 15000 new retail outlets have been added to the network taking the total network of retail outlets to 4.15 lacs. The Company has also initiated super stockiest network for rural coverage with a pilot project in six states.

A state of the art modern manufacturing unit is being set up at Abhoypur at Guwahati and is expected to commence operations shortly.

Rural Marketing :

Emami’s unique rural marketing strategy includes sales through its over 7500 mobile traders and 2200 small village shops covering few states like West Bengal, Chhatisgarh, Madhya Pradesh, Andhra Pradesh, Orissa and Karnataka. Collaborations with ITC e-choupals and P&T Department of Maharashtra is helping increase its penetration further in rural India. Recently, the Company has also tied up with IOC for distribution in petrol pumps in rural areas.

Strong R & D :

Emami has strong R & D headed by Padamshree Vaidya Suresh Chaturvedi and spearheaded by team of eminent Ayurvedacharyas from India and abroad.

Celebrity Endorsements :

Celebrities like Amitabh Bachchan, Shah Rukh Khan, Kareena Kapur, Sunny Deol, Dharmendra, Chiranjeevi, Rajpal Yadav etc. have endorsed Emami products from time to time. Emami has always followed path of aggressive marketing and Sridevi, Madhuri Dixit, Saurav Ganguly, Zeenat Aman, Manisha Koirala have also acted as Brand Ambassadors for Emami in the past.

Sourced From: Vaishnavi Corporate Communications Pvt Ltd