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Published
Jun 7, 2021
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Emami increases prices, launches project Khoj in Uttar Pradesh

Published
Jun 7, 2021

Fast-moving consumer goods giant Emami has increased its product prices by 4% on average this financial year in a move designed to retain its profit margin and has launched rural expansion project ‘Khoj’ in Uttar Pradesh.

Emami has increased prices and is expanding into new rural markets to keep up its profit momentum - Emami- Facebook

 
In order to offset the business’ current input cost pressure, Emami has increased its prices across numerous product categories, ET Bureau reported. By doing this, Emami aims to retain its gross margin of between 66% and 67% in the current financial year.
 
“We have a price hike of 4% so far and this will take care of our existing cost pressure as of now,” said Emami’s director Mohan Goenka, the Press Trust of India reported.

“We will decide accordingly depending upon the situation going forward. With the price rise we do not foresee any pressure on gross and EBITA margins as of now.”
 
The business has also launched project Khoj, which is designed to increase its penetration of the rural market and contribute to its profitability momentum, in Uttar Pradesh. The project had been delayed due to Covid-19 and Emami also aims to launch it in Bihar, Maharashtra, and Andhra Pradesh in the first leg of the roll-out. 
 
“Project Khoj is a rural project where we have identified 13 states where we would go very deep into 3,000 population villages, but we would start with only four high potential states as of now,” said Goenka.

“We have just begun our journey with unlock taking place.”

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