Honasa Consumer Ltd, the firm responsible for popular FMCG labels such as Mamaearth and The Derma Co, recently announced intentions to broaden its footprint within the beauty and personal care realm by introducing fresh brands. Varun Alagh, the Chairman and CEO, revealed this strategic initiative during Wednesday’s announcement, signifying the company’s aspirations to delve into untapped prospects within the sector.
Alagh highlighted the enduring commitment to Beauty and Personal Care (BPC) as a pivotal focus area. He elaborated on the ongoing investigation into makeup and other niche sectors within this sphere, aiming to pinpoint attractive categories where the company presently lacks representation. This underscores their deliberate strategy to bridge these voids and broaden their market presence.
While overseeing a portfolio of six brands in the beauty and personal care sector, Honasa Consumer aims to pinpoint and rectify the “white spaces” present within the industry. Alagh emphasised that although their current array of brands holds the capacity to fill numerous gaps in the market, specific segments might not fit seamlessly within their existing brand profiles. This has led the company to contemplate the introduction of new brands to address these unexplored areas.
Varun Alagh refrained from providing specific details regarding the upcoming brands or product ranges. However, he stressed a preference for organic expansion strategies in introducing these new brands. Additionally, he hinted at the possibility of acquisitions if appropriate opportunities arise, underlining the company’s commitment to exploring varied growth avenues.
During the preceding financial year, Honasa Consumer experienced remarkable progress, recording a revenue of Rs 952 crore and a net profit of almost Rs 20 crore. The company witnessed a substantial surge in advertising expenses, which reached Rs 391 crore, alongside notable increases in expenditures associated with materials and employee benefits. These escalations signify the considerable investment undertaken by the company to bolster its expansion initiatives and augment its market presence.
During the initial half of the ongoing fiscal year, Honasa Consumer disclosed an impressive revenue of Rs. 961 crore, driven by an extraordinary 35 percent year-over-year surge in volume. This stellar performance signifies the company’s steadfastness and consistent advancement within the market landscape.
