Date:12/05/2005 URL: http://www.thehindubusinessline.com/2005/05/12/stories/2005051201810400.htm

Back Emami to launch Ayurvedic products in the North

Latha Venkatraman

Mumbai , May 11

EMAMI Ltd, with an eye on the over-the-counter Ayurveda products market, has recently test-launched a laxative under the brand name `Good Morning' in Bihar, Madhya Pradesh and Uttar Pradesh.

The company has launched localised promotions to position this brand in these States, Mr Mohan Goenka, Director, Emami Ltd, said. During the current fiscal, Emami plans to launch a massage oil, a memory booster, red toothpowder and cold and cough products. According to Mr Goenka, the company would only focus on products whose gross margins are in excess of 50 per cent.

Though the products planned for the launch are niche, their profit margins are expected to be high, he said.

The company has been able to `aggressively' position itself in rural markets through its small unit packs, Mr Goenka said, citing Navratna Hair Oil (a Rs 100-crore brand) as an example.

The company sells around 40 crore one-rupee sachets of Navratna Hair Oil.

Emami had recently entered the capital market to raise Rs 35 crore to fund its growth plans both organically and through acquisitions. "However, at this point, there are not many FMCG brands on sale," Mr Goenka said when queried about potential buying options.

The company is also focusing on exports. The export turnover for the year ended March 2005 has grown by 40 per cent , now accounting for 10 per cent of its total turnover. Emami is due to announce its full-year results next week.