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Published
Oct 30, 2019
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Jyothy Labs to focus on expansion, premiumisation to boost margins

Published
Oct 30, 2019

FMCG major Jyothy Laboratories Ltd as part of its growth strategy amidst the ongoing slowdown has decided to expand its retail reach and focus on premiumisation to boost sales.
 

Jyothy Labs to focus on expansion, premiumisation to boost margins - Jyothy Labs


The company will be expanding its retail reach especially in the rural areas and focus on premiumisation of its products in the urban areas to improve its profitability and margins.
 
Jyothy Labs is hoping for a revival during the second half of the fiscal year after poor results in the first half. The company expects strong growth in the next two quarters and has also increased its advertising budget by three percent to create more demand.

“The company has increased its retail reach in both rural and urban areas to a million outlets, up from the reach of 8 lakh outlets it had three months ago,” Ullas Kamath, joint managing director at Jyothy Labs, told BusinessLine.
 
“Sixty percent of Jyothy Labs’ business accrues from the urban market and the rest 40 percent from the rural market. The only way you can improve the margin profile is by putting more products in the premium segment,” he added.
 
Jyothy Laboratories Ltd had reported a profit of Rs 54 crore ($7.7 million) for the second quarter with sales revenue of Rs 475 crore.

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