Understanding Emami's Biz On Weekender, CNBC-TV18

You know, Emami, the word actually has its origin in Italian, all right? So, to speak, and if you see the word 'mami', somewhere it's there's a close philology out there. So the meaning basically resides with love, beautiful, the so-called feminine aspects of life, beautiful there. All right, so let's come back to India after the international conversation that we had.

I think the impact of demonetization has reduced gradually over months, but if you ask me whether it has totally gone, I would say no. Still, we see some impact of it, particularly in the wholesale trade, where there's still some impact. That accounts for 55% of your business any which way, right? Yeah, and I would say, you know, yes, we are seeing still, you know, the movement in the wholesale trade is still not back to normal. Not back to normal. How long before it goes back to normal? It's very difficult to predict that, you know, but we hope, you know, it should be in the next one or two months. We hope so.

We've seen a very healthy growth with K King earlier, and right now, okay, we are feeling the pinch out there, but it's just a matter of time and we'll be on a high growth. Yeah, there has been a minor blip, you know, due to the demonetization, but again as I said, you know, we are seeing it going back to normal.

500 crores in a matter of 3 years, I would say. Now, in a matter of 3 years, anytime before that not happening. Anytime before that, market conditions, we will be happy if it happens before that.

Since then, we had decided now as a company, we still believe, you know, there's a lot of potential in the family and hygiene category, but we have other priorities and we have decided to focus on the other priorities in the existing brands. And right now we have decided to defocus the 'She' brand. So that is where it stands. So we will not be doing investment on that brand, and right now no plan to sell it. No, right now we have taken it off the market, so yes, going forward we will see, you know, what we do with the brand.

No, if you see, we've got very healthy growths with Boroplus. The core businesses, so to speak, of Boroplus has seen a very healthy growth. But Navratna and Fair and Handsome have, I think, Nava is picking up. Nava has done quite well early. It is the impact of demonetization which has been there. And if you see, you know, our market share in all our brands has increased, which is a very important parameter to measure the health of the brands. So be it Navaratna oil, be it Fair and Handsome, be it Zandu Balm, be it Boroplus, everywhere our market share has increased. So basically, see, overall, you know, the whole category of FMCG, the growth rate has come down a bit. So that is what we are seeing across categories, across companies, across brands. But yes, we are quite satisfied with the performance of all our power brands. So, going on a sustainable basis, 15% or 12 to 15% growth for the power brands, is that factored in? Yeah, we are very confident. I think also this year we are going very aggressive in our total advertising and the mix also, so I think we are very, I think 12-15% is a reasonable target. And the new core would be 20% plus, 25% at least, your push as well as the other new brands that you have come out with. Panaris in fact has been over CAGR, it has been giving us a growth rate of 30-35%. Exactly, so yes, going forward also we expect healthy growth rate from Punar and the other healthcare products. There's no doubt about that because we see huge potential in the health products, the overall Zandu brand. Absolutely, in fact, you will be seeing a lot of activities around Zandu this year. We are going ahead with revamping the whole brand with the repositioning of the mother brand of Zandu. So those will happen in the second part of the financial year.

So most likely it would be that bad, so, but, yeah, if we need, see, we are very need-based. If we see that yes, the momentum is coming in, then we would up our advertising. So roughly we have estimated almost 19-20% this year.