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<ul><li>In Q4FY21, Marico’s Revenue from Operations grew by 34% YoY to Rs 2,012 crore.</li><li>The company witnessed strong momentum in each of the core portfolios of the India business while steadily strengthening its play in Foods through innovation.</li></ul>FMCG Giant Marico has released its financial statement for Q4FY21. Its advertising and sales promotion grew by 35% YoY as the company invested aggressively mainly on core franchises and the Foods innovations, while continuing to drive spend rationalization and channelize investment towards growing franchises. <br /><br />Saugata Gupta, MD and CEO commented, “With the pandemic in India taking a severe turn, the year has ended on a rather sombre note. Marico stands united and committed to making a difference in the lives of all our stakeholders and the entire community at large, hoping that we overcome these extremely difficult times at the earliest and emerge stronger from it. It is the tremendous grit and fighting spirit of our people that has allowed both the domestic and international businesses to rebound impactfully on a year-on year basis. We expect the India business to remain resilient amidst uncertainty in the near term and see through the transient spike in input costs, while the stability in the International business is also reassuring. Over the medium term, the Company will continue to prioritise maintaining volume-driven growth momentum and franchise expansion even in times of temporary cost pressures by focusing on growing the core, aggressive foods diversification, executional excellence and investment behind capability and brand building.”<br /><br />In FY21, Marico’s Revenue from Operations grew by 10% YoY to INR 8,048 cr. (USD 1.1 billion) backed by volume growth of 7% in the domestic business and constant currency growth of 7% in the international business. EBITDA was at INR 1,591 cr., up 8% YoY and PAT excluding one-offs, was at INR 1,162 cr., up 11% YoY. <br /><br />In Q4FY21, Revenue from Operations grew by 34% YoY to INR 2,012 crores (USD 276 million) backed by robust volume growth of 25% in the domestic business and constant currency growth of 23% in the international business. <br /><br />The company witnessed strong momentum in each of the core portfolios of the India business while steadily strengthening its play in Foods through innovation. Rural continued to lead the way in traditional trade, growing at 1.8x of urban. Ec0m (now 8% of domestic business) and CSD also fared well, while Modern Trade dipped due to pantry loading in the base quarter. <br /><br />Gross margin was down 517 bps owing to the severe input cost pressure, as pricing interventions in the core portfolios were not commensurate to the inflation. Advertising &amp; Sales Promotion grew by 35% YoY as the Company invested aggressively mainly on core franchises and the Foods innovations. EBITDA was up 13% YoY, as tight cost controls and operating leverage kicked in to reduce the impact on EBITDA margins to 300 bps. PAT excluding one-offs was up 17% YoY. Reported PAT was up 13%. <br /><br />As per the company's statement, Saffola Honey has been scaling up faster than their launch expectations. The brand exited FY21 just short of a double-digit market share in key Modern Trade chains and has garnered 25%+ market share in E-Commerce. The brand is on course to touch revenues of INR 100 cr. in the coming year. Expanding its presence in Foods, the Company launched Saffola Oodles, 5-minute ring-shaped noodles, containing no refined flour and with the goodness of whole grain oats, real vegetables and semolina. <br /><br />The company holds its medium term aspiration of delivering 8-10% domestic volume growth and 13-15% revenue growth. The Company would be comfortable maintaining its threshold operating margin of 19% plus over the medium term.<br />

Marico's profit up by 14.1% to Rs 227 crore in Q4FY21; advertising and sales promotion sees a growth of 35% YoY

<br /><ul><li><keyword id="6359432" type="General" weightage="20" keywordseo="britannia" source="Orion">Britannia</keyword>’s net profit plummeted nearly 23% on both quarterly and annual basis in July to September 2021</li><li>The company has been witnessing unprecedented inflation in market prices of palm oil, industrial fuel and packaging material.</li><li>Sunil D’Souza of Tata Consumer Products expects that the food inflation will worsen in the October-December quarter.</li></ul>The higher input costs has been a major pain point for all fast moving consumer goods (FMCG) players — including <keyword id="6361485" type="General" weightage="20" keywordseo="marico" source="Orion">Marico</keyword>, <keyword id="75190" type="General" weightage="20" keywordseo="nestle" source="Orion">Nestle</keyword>, Hindustan Unilever, Britannia and <keyword id="29464" type="General" weightage="20" keywordseo="parle" source="Orion">Parle</keyword> to name a few. The subsequent, rather constant, price increase across product lines has been the only saving grace for this segment to sustain their profits.<br /><br />However, this too may not be working as effectively as the segment may have imagined. The simple reason behind it is the rising inflation. <br /><br />The king of cookies, Britannia, has been increasing the prices of its products for several quarters, yet its profit has been declining. In the July to September 2021 quarter (Q2 of FY2022), the company’s net profit plummeted nearly 23% on both quarterly and yearly basis, despite increase in revenue and sales.<br /><br />  <div type="image" title="Cookie king Britannia is unable to grow its profit despite a price increase" msid="87601047" hostid="261"></div><br />A similar trend was witnessed in April to June quarter of 2021 as well.<br /><br />Britannia, in its quarterly financial statement release on November 8, highlighted that it has been witnessing “unprecedented” inflation in market prices of palm oil at 54%, industrial fuel at 35% and packaging material at 30%. This is leading to an overall inflation in the July to September quarter to 14%. <br /><br />The company — which makes brands like Good Day, Tiger, NutriChoice, Milk Bikis and Marie Gold — initiated “necessary price increases” across its portfolio in order to mitigate the impact of the rising input cost, Britannia’s managing director Varun Berry said. <br /><br />Berry, on a call with analysts on August 2, said, “It’s a very high inflation number that we are currently sitting on. A situation like this, just necessitates [price increase]. Cost efficiency can never take care of this kind of inflation. Two-three percent we can usually take care of, but this necessitates price increase and that’s why we move forward with that.”<br /><br />Neha Khanna, director at investment banking and financial advisory firm Valpro, told Business Insider that apart from the rising input cost there are several other factors that could be leading to Britannia’s reducing profit. This includes stretched out working capital, marketing costs and more. <br /><br />Britannia’s shares fell 3% as of 12:25 p.m on November 9. This was majorly triggered by its financial performance in the last quarter. <br /><br /><strong>From Nestle to Parle — FMCG under stress of increased input costs</strong><br /><br />Britannia is not the only company that has witnessed such a trend. Another FMCG brand Marico — which makes popular products Parachute oils, Set Wet, Livon and Saffola — noticed such a dip in its profit despite the overall increase in sales.<br /><br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Companies<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net Profit (April-June 2021)<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net Profit (July- September 2021)<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Marico<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹365 crore<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹316 crore<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tata Consumer<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹268.04 crore<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹185 crore <br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nestle<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹617 crore<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹538 crore <br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hindustan Unilever<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,100 crore <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,185 crore<br /><br /></td></tr></tbody><tbody></tbody></table><br />The increasing input costs is an issue for all the players in the segment.<br /><br />Companies like Nestle India, Colgate Palmolive, Emami, Tata Consumer Products, Wipro Consumer Care have taken up such pricing practices over the last one year to overcome the inflation troubles.<br /><br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Key products<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Price rise in 2021<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Marico<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Saffola, Parachute, Set Wet, Livon<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Saffola price increased by 50%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hindustan Unilever<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Dove, Lux, Pears, Hamam, Lyril, Surf Excel, Wheel<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.5% hike in price of Surf Excel, Rin, Lux, Wheel Detergent<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nestle India<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nestle, KitKat, Munch, BarOne, Nescafe, Maggie<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1-3% hike in price categories<br /><br /></td></tr></tbody><tbody></tbody></table><br />Sunil D’Souza, chief executive officer (CEO) and managing director of Tata Consumer Products <a href="https://www.businessinsider.in/retail/news/a-third-of-indias-festive-seasons-is-over-whats-selling-and-whats-not/slidelist/87468577.cms#slideid=87468856">expects that the food inflation </a>will worsen in the October-December quarter. <br /><br />The CEO of Nestle India, Suresh Narayanan, in an interview with CNBC pointed out that nine out of the 13 key ingredients that it buys from the market have not been this expensive in nearly a decade.<br /><br />  <div type="image" title="Britannia is unable to improve its profit despite a price increase — what’s next" msid="87601084" hostid="261"></div><br />“... There has been an increase in input prices. That is leading to several price increases and what we really ensure is that their price increase does not go beyond 15% in a financial year,” Parle’s senior category head of marketing B Krishna Rao said, adding that 15% price rise is the point when customer’s demand for a specific product starts dipping.<br /><br />Valpro’s Khanna also noted that the companies could look at changing the pack sizes by selling less for the same price, however that always has the risk of hitting consumer sentiments in some ways. “That’s a classic FMCG tactic to ensure costs are saved,” she said. <br /><br />The other way to increase profit is by cutting employee costs, administrative costs or maintenance costs, she added. <br /><strong><br />SEE ALSO</strong><br /><a href="https://www.businessinsider.in/investment/news/choosing-the-best-cryptocurrency-exchange-your-options-and-how-to-pick-between-them/articleshow/87539690.cms" style="">Choosing the best cryptocurrency exchange — your options and how to pick between them</a><br /><br /><a href="https://www.businessinsider.in/investment/news/illegal-mining-for-cryptocurrencies-remains-rampant-as-miners-look-to-maximise-profits-with-cheap-electricity/articleshow/87505141.cms" style="">Illegal mining for cryptocurrencies remains rampant as miners look to maximise profits with cheap electricity</a><br /><br /><a href="https://www.businessinsider.in/investment/news/cryptopunks-sees-another-bizarre-sale-in-seven-days-this-time-for-an-unreasonably-cheap-price/articleshow/87490463.cms" style="">Another bizarre CryptoPunks' sale in the last seven days — this time for an unreasonably cheap price</a><br />

Britannia is unable to improve its profit despite a price increase — what’s next

<ul><li>Consumer goods company <keyword id="6361485" type="General" weightage="20" keywordseo="marico" source="Orion">Marico</keyword> confesses that it is facing poor demand owing to inflation and weak consumption sentiment among consumers.</li><li>Despite the poor demand outlook, Marico posted a double digit revenue growth in the December quarter due to a strong base.</li><li>Reflecting the poor commentary from FMCG company, shares of several consumer companies were trading lower.</li></ul>Pretty much everything is <a href="https://www.businessinsider.in/newsletter-10-december-2021/binewsletter/88194636.cms">getting more expensive in India</a> and people seem to be cutting down their purchases, even for everyday essentials ⁠like edible oils, latest data from Marico showed. <br /><br />Shareholders of the ₹6,450 crore ($865 million) consumer products maker ⁠— popular for its Parachute brand of hair oil ⁠— woke up to a sobering Tuesday when the company told the exchanges that the volume growth (think of it as units sold) was just about the same compared to the same period last year. The stock fell nearly 3% right after the market opened.<br />        <div type="image" title="marico" height="900" width="1200" msid="88682247" hostid="261"></div>While Marico said that its revenue grew in double digits i.e. anything more than 10%, but it’s commentary on consumer sentiment was much less exciting. <br /><br />The company blamed the “sluggish rural demand”. Rising inflation reduces people’s purchasing power and, on the other hand, it increases the cost of production too, which would shrink the profit. And it’s not Marico, its peer <keyword id="40233" type="General" weightage="20" keywordseo="emami" source="Orion">Emami</keyword> is also <a href="https://twitter.com/CNBCTV18Live/status/1478224943301083138">reportedly</a> facing a similar challenge.<br /><br />And, one can expect this rising trend in inflation to continue for some more time, based on the <a href="https://www.businessinsider.in/bi-newsletter/newsletter-content-10-dec21/articleshow/88189925.cms">projections given by none other than the Reserve Bank of India. </a><br />        <div type="image" title="cpi inflation" height="900" width="1200" msid="88682268" hostid="261"></div><strong>Here’s why the next three months are going to be costly<br /></strong>                <div type="Video" msid="88194748" hostid="261" title="Simply Put: Here's why the next three months are gonna be costly" dataSource="BUSINESSINSIDER" thumbUrl="https://denmark.timesinternet.in/cmslite/api/app/images.jpg?msid=88194748"></div>The same time last year, people were still reluctant to step out of their homes due to the fear of the pandemic. At the time, Marico saw a healthy growth in both revenue and volumes because people were still making more food at home, and so, spending more on edible oils like Saffola, which is a Marico brand.<br /><br />However, in the last three months of 2021, more people were eating out, and more frequently ⁠— at least in urban India ⁠— which meant that some of the sales bump from last year was missing this time. <br /><br />Following the weak commentary from Marico, from the consumer goods company, shares of several other peer companies traded lower.<br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fast moving consumer goods company <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% returns on Jan 4, 10:10 a.m.<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Marico<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.9%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Godrej Consumer Products<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.07%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Dabur<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.42%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tata Consumer Products<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.47%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Colgate Palmolive<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.15%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hindustan Unilever<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.01%<br /><br /></td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table><br /><strong>SEE  ALSO: </strong><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/ongc-appoints-alka-mittal-as-chairperson-and-managing-director/slidelist/88681434.cms">Meet Alka Mittal, the first woman to head oil giant ONGC</a><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/this-smart-collar-lets-you-track-your-dogs-health-and-location/articleshow/88681461.cms">This smart collar lets you track your dog’s health and location</a><br />

Marico is paying the price for rising inflation because its buyers aren’t able to

<ul><li>Despite consistent sales, <keyword id="6359432" type="UNKNOWN" weightage="20" keywordseo="britannia">Britannia</keyword>’s profit margin shrank significantly compared to the Q1 of last year.</li><li>The century-old company has blamed <keyword id="22195" type="COMPANY" weightage="20" keywordseo="Inflation">inflation</keyword> and crude oil prices for its receding profit margins in Q1 of FY2022.</li><li>Just like its competitors, Britannia too is looking to increase its price over the next quarter.</li></ul>Inflation is biting even for some of the country’s largest companies. For instance, even though the $11.3 billion king of the cookies business, Britannia, was able to show some decent sales between April and June this year, its profit margin shrank significantly compared to the same quarter of last year.<br /><br />              <div type="image" title="From cookies king Britannia to soaps titan HUL, inflation is eating profits away ⁠— so, you may have to pay even more for daily essentials" msid="84977168" hostid="261"></div><br />The same has been true for other giants like <keyword id="6361485" type="ORGANIZATION" weightage="20" keywordseo="marico">Marico</keyword>, which makes the edible oil brand Saffola, as well. <br /><br />Varun Berry, the chief executive (CEO) of Britannia, wants to increase prices of Britannia products. The inflation rate has increased to around 6-7% compared to April-June 2021. Meanwhile, fuel prices have increased another 1-2%, which has hit the company’s supply chain. <br /><br />“It’s a very high inflation number that we are currently sitting on. A situation like this, just necessitates [price increase]. Cost efficiency can never take care of this kind of inflation. Two-three percent we can usually take care of, but this necessitates price increase and that’s why we move forward with that,” Britannia’s chief executive officer Varun Berry, said in a call with analysts on August 2.<br /><br />Basically, Britannia managed to offset about half the rise in input prices by cutting costs. <br />              <div type="image" title="From cookies king Britannia to soaps titan HUL, inflation is eating profits away ⁠— so, you may have to pay even more for daily essentials" msid="84977142" hostid="261"></div><br />"While Britannia continues to gain market share, relative market share (versus Parle) has fallen in recent quarters. We believe Britannia needs to step up the pace of new launches and category forays to drive sustained acceleration in revenue momentum," said Kotak Institutional Equities in its report dated August 2.<br /><br />There were two reasons why the Britannia shares rallied on Monday. The 1% drop in revenue from sales was better than the estimated<a href="https://markets.businessinsider.com/news/stocks/britannia_industries_2-quarter-earnings-preview-q1-1030656615"> contraction </a>and that the company wants to improve margin with price revision. And, it has the might to do so. <br /><br />              <div type="image" title="From cookies king Britannia to soaps titan HUL, inflation is eating profits away ⁠— so, you may have to pay even more for daily essentials" msid="84977184" hostid="261"></div><br />In fact, Britannia is not the only company that has witnessed such a trend. Another <keyword id="34523" type="CITY" weightage="20" keywordseo="fmcg">FMCG</keyword> brand Marico — which makes popular products Parachute oils, Set Wet, Livon and Saffola — noticed such a dip in their profit margins despite the overall increase in sales.<br /><br />While India’s biggest FMCG brand <keyword id="6365619" type="COMPANY" weightage="20" keywordseo="hindustan-unilever">Hindustan Unilever</keyword> has managed to pave its way out of this circle with little to no impact, all thanks to its strategic pricing practices taken up last year. The company too has admitted that the inflation and rising input cost has been putting its business under pressure as well.<br /><br />              <div type="image" title="From cookies king Britannia to soaps titan HUL, inflation is eating profits away ⁠— so, you may have to pay even more for daily essentials" msid="84977203" hostid="261"></div><br /><br /><strong>From Britannia to Hindustan Unilever, consumer product set to be more costly<br /></strong><br />Hindustan Unilever has already increased the price of some of its flagship products like Lux soap and Lifebuoy by 9% over the last one year. Lux, which used to cost ₹22 in April 2020, was priced at ₹28 in May 2021. The company had also indicated this price rise in its earning call for April-June quarter of FY2021. <br /><br />“We are taking some judicious price increases in parts of our portfolio. Some of it has already landed and some of it will land in due course because the quantum of inflation is a lot. And also, we'll do it in parts of the portfolio where it makes sense,” Srinivas Phatak, former chief financial officer (CFO) of Hindustan Unilever <a href="https://www.hul.co.in/Images/jq-2020-transcript---final_tcm1255-553839_1_en.pdf">said</a>. He has currently taken up a global finance role at Unilever’s London head office. <br /><br />Even companies like <keyword id="6356830" type="ORGANIZATION" weightage="20" keywordseo="nestle-india">Nestle India</keyword>, Colgate Palmolive, Emami, Tata Consumer Products, Wipro Consumer Care have taken up such pricing practices over the last one year to overcome the inflation troubles.<br /><br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">April-June margin squeeze<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hindustan Unilever<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">950 up<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Colgate Palmolive<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1770 up<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Emami<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9640 up<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nestle<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1100 up<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Marico<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">592 down<br /><br /></td></tr></tbody><tbody></tbody><tbody></tbody></table><em>*bps stands for basis points. 100 basis points make one percent.<br /></em><br />“As the market leaders, we are always the first to take price increases. The market leaders always have to initiate that. We are not ones who believe in price wars or taking advantage of situations like this. We believe in taking the price at the right time and that’s what’s got the entire industry to the situation, where the industry is making a lot more margin than what we have ever made in the past,” said Britannia’s CEO Berry said.<br /><br /><strong>SEE ALSO</strong><br /><a href="https://www.businessinsider.in/business/startups/news/check-out-policybazaar-ceo-yashish-dahiya-salary-and-remuneration-for-other-key-execs-in-paisabazaar-and-pb-fintech/articleshow/84971063.cms" data-type="tilCustomLink">PolicyBazaar’s CEO Yashish Dahiya took home about ₹3 crore ⁠— here’s a look at other top paid execs at the fintech startup headed for IPO</a><br /><a href="https://www.businessinsider.in/business/news/exclusive-indias-largest-zinc-miner-is-eyeing-a-share-of-the-bangladesh-economic-boom/articleshow/84963388.cms">EXCLUSIVE: India's largest zinc miner is eyeing a share of the Bangladesh economic boom</a><br /><a href="https://www.businessinsider.in/tech/news/jack-dorseys-square-agreed-to-buy-afterpay-which-has-a-buy-now-pay-later-service-for-29-billion-in-stock/articleshow/84962218.cms">Jack Dorsey's Square agreed to buy Afterpay, which has a 'buy now, pay later' service, for $29 billion in stock</a><br />

From cookie king Britannia to soap titan HUL, inflation is eating profits away ⁠— so, you may have to pay even more for daily essentials

The Indian economy just clocked its eighth straight quarter of slowing GDP (gross domestic product) growth. Consumer confidence had slipped further after hitting a six-year low late last year. All this had to hurt earnings of companies— Page Industries, Colgate, Dabur, <keyword id="106317" type="CITY" weightage="20" keywordseo="Asian-Paints">Asian Paints</keyword> to name a few— that depend on people spending money on their products.<br /><br />In the last one month, at least ten companies have seen cuts in earnings estimates anywhere between a slight tweak to as much as 10%. <br /><br /><table style="width: 389pt;"> </colgroup>  <tbody><tr> <td class="xl63" style="height:15.0pt;width:132pt">Company</td> <td class="xl64" style="border-left-width: initial; border-left-style: none; width: 257pt;">Cut in earnings estimate in last one month</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Page Industries</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-10.60%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Marico</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-2.40%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Emami</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-2.30%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Titan</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-1.50%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Berger Paints</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-1.40%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Jubilant Foodworks</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-1.40%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Godjrej Consumer</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-1.30%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Asian Paints</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-1.30%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">HUL</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-0.30%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Dabur</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-0.20%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Britannia</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">0.10%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">GSK Consumer</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">0.30%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Nestle</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">0.40%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">ITC</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">0.70%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Pidilite</td> <td class="xl67" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">3%</td> </tr> <tr> <td class="xl68" style="height: 15.75pt; border-top-width: initial; border-top-style: none;">Colgate</td> <td class="xl69" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">3.70%</td> </tr></tbody></table><em>Source: Axis Capital</em><br /><br /><strong>The following is the commentary from analysts on each of the stock that has seen a cut in the consensus earnings estimate.<br /></strong><br /><strong>Page Industries:</strong> “The path to earnings recovery, particularly after the unprecedented margin dip in 3QFY20, is unclear. Category slowdown, weak channel liquidity and competitive tailwinds present significant near-term challenges. Our channel checks across various cities in the country also do not indicate green-shoots of recovery,” Motilal Oswal said in its report on Feb 13 while cutting the target price for the stock to ₹22,250 a piece for the next one year .<br />
  
  
  
  
  
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<br /><strong>Marico: </strong>From a slowdown in rural consumption and drying of cash circulation among dealers and distributors who are looking to cut down on inventory are not the only problems for the company. As economic growth got slower and people got more penny-wise, some of the company’s customers are moving back to unbranded products that are cheaper and can be bought in small quantities as per need. <br />
  
  
  
  
  
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<br />This has led to a cloud of uncertainty for Marico, which has lost over 15% in share value since early December. “The near term pain envisaged, when we released our initiation note on Dec 2, has actually extended by a couple of quarters, with revival now expected from the second half of the next financial year ending March 2021,” according to Nirmal Bang Institutional Equities, which still has a ‘buy’ rating on the stock and a target price of ₹400 that implies a nearly 33% jump from the current value.<br /><br />Aside from being oversold, the only silver lining for Marico is the cheaper price of key inputs.<br /><br /><strong>Emami: </strong>Like Marico, Emami also benefits from cheaper commodities but that is no good when data shows that domestic volume growth contracted for the first time in recent memory. But the fears have already played out and the stock has lost over 35% of its value in the last one year. “Valuations are at about 60% discount to peer average,” cited a Motilal Oswal report while recommending that investors buy Emami expecting a 19% jump in price in the next one year. <br /><br />
  
  
  
  
  
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<br /><strong>Titan:</strong> ‘Growth’ was never under question for Tanishq; ‘Growth + Margins’ was, said the opening lines of a report from ICICI Securities recently. Tanishq is a jewellery chain operated by Titan that also sells watches and eyewear.<br /><br />The company’s jewellery business surprised analysts by growing 11% and making as much profit margin as a year ago, if not better. But watches and eyewear, two other important segments, showed signs of weakness. <br /><br />Over 85% of the company’s revenue comes from jewellery and the recent rise in gold prices may affect buyers’ sentiment. <br /><br />
  
  
  
  
  
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<br /><strong>Berger Paints:</strong> Berger’s revenue growth decelerated further and earnings were 7% below estimates, Kotak Institutional Equities said after the latest quarterly report from the company. One of the biggest stumbling blocks for the company is the sharp slowdown in car sales and production. The fall in crude oil prices as the coronavirus spread is good news but not good enough. Kotak rated the stock as ‘sell’, adding that the fair value for the stock would be ₹430, nearly 25% lower than the current level.<br /><br />
  
  
  
  
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 <br /><strong>Jubilant Foodworks: </strong>The sole franchise holder for Domino's Pizza and Dunkin Donuts in India is faced with a double whammy. Both vegetables and milk are getting expensive shrinking margins.<br /><br />In early 2018, Jubilant’s same store sales ⁠— sales from stores open for at least a year ⁠— were growing well above 20%, today it is down single digits. The same-store sales in the latest third quarter 5.9% and that was the highest this financial year. The ongoing quarter, Jan to March 2020, may see a hit from a rise in violence in Delhi that has led to fewer people stepping out to eat or ordering in for that matter.<br /><br />PhilipCapital’s target price for the stock is ₹1,750 not very far where it is right now.<br /><br />
  
  
  
  
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<br /><br /><strong>Godrej Consumer: </strong>The same PhilipCapital gave a ‘high-conviction sell’ rating for this company that is a king of toiletries in India⁠— from soaps and shampoos to hair colour. <br /><br />What’s helping Godrej is the fact that 45% of business is overseas and in countries that have shown better economic performance. Without the 11% growth (in constant currency terms) in overseas revenue, the total topline growth would have been much worse than the 2.1% clocked in the latest third quarter.<br /><br />
  
  
  
  
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<br /><br />However, a report from Credit Suisse has projected a turnaround in the home insecticides sales and therefore increased the target price to ₹680 a piece a year from now, a 21% rise from Friday’s closing price.<br /><br /><strong>Asian Paints:</strong> As a paint maker, Asian Paints has challenges similar to those of Berger Paints mentioned above. But Asian Paints is a leader in the market and has been focussed on gaining market share by offering competitive prices to beat the slowdown.<br /><br />Asian Paints has expanded its market share (value) from 44% in the financial year ending March 2008 to 53.6% at the end of March 2019. “With the entry of new players, Asian Paints has increased its aggression in trade and is focusing on gaining market shares even in low priced paints / putty &amp; primers,” an ICICI Securities report said citing the risk of action from the country’s monopoly regulator. <br /><br />
  
  
  
  
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<br /><strong>HUL: </strong>Hindustan Unilever, which sells every soaps and shampoos to food items of daily use at home, has been improving its profit margin nine years in a row. The current slowdown has not changed that but the volume growth is abysmally low at 5% for the last three quarters compared to 12% in the first quarter of financial year 2018.<br /><br />
  
  
  
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<br /><br />There is no recovery in sight for at least another two quarters. While rising prices of key inputs are either forcing price hikes or narrower margins, people’s spending power has been eroded by rising inflation and now, rising cost of keeping a mobile phone. <br /><br />There may be some upside after the company’s decision to set up a 100% subsidiary to enjoy a lower tax rate of 15%. However, the street is waiting to see how this plays out and what benefits accrue. ICICI Securities kept its estimates unchanged citing the risk of further slowdown in consumption and irrational competition.<br /><br /><strong>Dabur: </strong>Except for Dabur Amla, Dabur India’s journey so far in the Indian Hair oil sector has been lackluster. Its other key offerings like Dabur Anmol and Dabur Almond has not been able to make a mark till now. Vatika, a key offering positioned in the coconut oil segment has not worked well in India, while has gained good success in international markets, said a report from SBI Caps recently.<br /><br />
  
  
  
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<br />The growth in the modern trade has gradually decelerated as the slowdown catches up and the company is trying to beat that with new product launches. It is expected that the company owned by the Burman family, so far known for its health supplement Chyawanprash and hair oil, may launch fruit-based cold drinks this summer to take on the like of Coke, Pepsi and Parle.<br /><br />The consensus earnings estimate is only 0.2% down for Dabur in the last one month but in the last one year it is down by 8.4%.<br /><br /><strong>SEE ALSO:<br /></strong><a href="https://www.businessinsider.in/business/corporates/news/profit-margin-on-jockey-and-speedo-shrinks-shows-page-industries-q3-earnings/articleshow/74119148.cms" data-type="tilCustomLink" target="_blank">Biting slowdown is squeezing Page Industries' profit margin on Jockey and Speedo</a><br /><br /><a href="https://www.businessinsider.in/stock-market/markets/news/coronavirus-impact-and-other-reasons-why-stock-market-experts-say-dont-buy-shares-now/articleshow/74059150.cms" data-type="tilCustomLink" target="_blank">Coronavirus and beyond— reasons why this is not ideal time to buy stocks in India, according to experts, money managers, and researchers</a><br /><br /><a href="https://www.businessinsider.in/business/corporates/news/for-lic-ipo-to-succeed-the-life-insurance-giant-has-to-dump-a-lot-of-sick-stocks/articleshow/73889676.cms" data-type="tilCustomLink" target="_blank">For LIC IPO to succeed, the life insurance giant has to dump a lot of sick stocks</a><br /><br />

Inside India’s consumption slump⁠— stories from Godrej Consumer to Page Industries to Emami and many more

<ul><li><keyword id="1183472" type="PERSON" weightage="20" keywordseo="male-grooming">Male grooming</keyword> brand <keyword id="6610309" type="UNKNOWN" weightage="20" keywordseo="Beardo">Beardo</keyword> recently onboarded actor <keyword id="6354563" type="PERSON" weightage="20" keywordseo="Hrithik-Roshan">Hrithik Roshan</keyword> to launch its campaign featuring the avatar Don Beardo, while creating a lot of buzz online.</li><li><keyword id="9187978" type="PERSON" weightage="20" keywordseo="sujot-malhotra">Sujot Malhotra</keyword>, CEO, Beardo talks to us about the brand's growth story so far while sharing his optimism about the brand growing by 100% this year. </li></ul>Male grooming brand Beardo recently launched an interesting campaign called Don Beardo featuring actor Hrithik Roshan. The brand created a lot of buzz around the campaign through its social media handles and got people curious. In the past, the brand has worked with influencers and celebrities like Suneil Shetty, BeYouNick, BhuvanBam, Ashish Chanchlani. Currently, along with Roshan, the brand also has cricketer <keyword id="6355454" type="LOCATION" weightage="20" keywordseo="kl-rahul">KL Rahul</keyword> and actor Yash of KGF fame as its face. <br /><br />                <div type="Youtube" id="CgqCIvhjDBY" title="The world of #DonBeardo is here" thumbUrl="https://i.ytimg.com/vi/CgqCIvhjDBY/mqdefault.jpg"></div><br />Since its inception five years back, the brand has witnessed good growth. The direct-to-consumer had started out with products focusing on beards. However, over the years, it has diversified its offerings and has now evolved into a men’s grooming company offering haircare, skincare, merchandise, and lifestyle products. That the brand was on a good trajectory was proven when Marico bought around 45% of its stake in 2017.<br /><br />While it started out as an online brand, with Marico’s support, Beardo now has a good offline presence too. We recently caught up with Sujot Malhotra, CEO, Beardo who spoke to us about the brand’s recent campaign, its growth story so far and what makes him confident of achieving 100% growth this year.<br /><br />Excerpts:  <br /><br /><cmsannotation type="cmsannotation" annotationid="Q) Your recent digital campaign features Hrithik Roshan. Why is the actor a good fit for Beardo?" comment="subhead" text="Q) Your recent digital campaign features Hrithik Roshan. Why is the actor a good fit for Beardo?"><span data-til="noop">Q) Your recent digital campaign features Hrithik Roshan. Why is the actor a good fit for Beardo? </span></cmsannotation><br />As a personality-driven brand, we were sure about Hrithik’s whole persona - his looks and the influence he commands. He is one of India’s sexiest ‘manly man’ and the way he carries his beard is aspirational for many. Everyone wants to sport a beard and if Hrithik can become a Beardo, we can expect a lot more people to sway the Beardo way.<br /><br /><cmsannotation type="cmsannotation" annotationid="Q) Give us a sense of what this campaign entails?" comment="subhead" text="Q) Give us a sense of what this campaign entails?"><span data-til="noop">Q) Give us a sense of what this campaign entails?</span></cmsannotation><br />The idea is to push the character of Don Beardo and create an aspiration amongst men in the country to become one. We have given them a glimpse of what a Beardo’s world would look like. The messaging remains that ‘Anyone can grow a beard but not everyone can be a Beardo.’<br /><br /><cmsannotation type="cmsannotation" annotationid="Q) Apart from the digital campaign, how else are you going to communicate with your consumers?" comment="subhead" text="Q) Apart from the digital campaign, how else are you going to communicate with your consumers?"><span data-til="noop">Q) Apart from the digital campaign, how else are you going to communicate with your consumers?</span></cmsannotation><br />We are a digital-first brand so the majority of our communication with our consumers is through digital avenues such as Facebook, Instagram and YouTube, providing fun and engaging content to our audience along with the right mix of meme marketing, influencer marketing and more. However, we believe that there should be a balance between offline and online marketing. For a holistic 360 degree approach, we will similarly invest in offline channels and ensure that the ‘Arrival of Don Beardo’ is efficiently publicised via collaterals such as brochures available in salons. In order to further amp up the arrival of Don Beardo, we have also handpicked some of our best sellers and curated four Don Beardo combos – Don Beardo Growth Pro Kit with our newly launch Beard Activator, Don Beardo Favourites Combo, Don Beardo Night Out Combo and Don Beardo Signature Combo that can be purchased both online and offline. <br /><br /><cmsannotation type="cmsannotation" annotationid="Q) How has Beardo's journey in the last 5 years been? What have some of your key milestones been?" comment="subhead" text="Q) How has Beardo's journey in the last 5 years been? What have some of your key milestones been?"><span data-til="noop">Q) How has Beardo's journey in the last 5 years been? What have some of your key milestones been?</span></cmsannotation><br />There are many milestones that we’ve achieved over the last five years. The first, we are literally the pioneers in creating a category for Men’s grooming products in the country. We started off as a beard care brand, but over the years have successfully ventured into haircare, skincare, merchandise, and lifestyle products. We are here to provide everything that a man wants in life and we will continue expanding our portfolio to align with that vision. Content has been the hero for us and we’ve churned out many viral campaigns like Such a Beardo, My Mooch My Swag, Hello Beardo and many more.<br /><cmsannotation type="cmsannotation" annotationid="Also, we have worked" comment="inlineshare" text="Also, we have worked with over 300 leading influencers and celebrities like Suneil Shetty, BeYouNick, BhuvanBam, Ashish Chanchlani and now we also have Hrithik Roshan, Yash and KL Rahul on board during different events. Over the last five years, our revenue has approximately grown over 40 times."><span data-til="noop" class="socialannotation"><br />Also, we have worked with over 300 leading influencers and celebrities like Suneil Shetty, BeYouNick, BhuvanBam, Ashish Chanchlani and now we also have Hrithik Roshan, Yash and KL Rahul on board during different events. Over the last five years, our revenue has approximately grown over 40 times.</span></cmsannotation><br /><br /><cmsannotation type="cmsannotation" annotationid="Q) A lot of your sales come from online channels but you now have a good offline presence too. How are you working towards further expanding your offline presence?" comment="subhead" text="Q) A lot of your sales come from online channels but you now have a good offline presence too. How are you working towards further expanding your offline presence?"><span data-til="noop">Q) A lot of your sales come from online channels but you now have a good offline presence too. How are you working towards further expanding your offline presence?</span></cmsannotation><br />When we ventured into the men’s personal care and grooming space, we knew this trend is here to stay and has potential consumers across both online and offline markets. In 2016, we initiated our operations through the website and key e-commerce platforms and then penetrated into the offline space via salons and luxury retail chains. <br />Parallelly, with changing trends, content and influencer seeding became our core marketing objective – we wanted every man in the country to know that Beardo is there to fulfil their grooming, lifestyle requirement and more. Campaigns like <a href="https://www.youtube.com/watch?v=OIJfF2nt6y0">SuchABeardo</a>, <a href="https://www.youtube.com/watch?v=RTCw42ZoY20">Beardo69</a>, WhyFeardoThere’sBeardo, <a href="https://www.youtube.com/watch?v=7E2JyBW7Ypo">Beardo Boss</a>, Dump the Razor attracted many eyeballs. While the content is fun, we also look at educating the audience about the right product and different regimes. We constantly invest in online marketing too – with a focus on Google and Facebook. <br /><br />Eventually, our offline properties like Beardothon, Beard&amp;Mustache competitions also started getting recognition. In order to tap a great audience, the brand onboarded KL Rahul and associated with KXIP.<br /><br />Besides this, we as a brand has come up with many of its first kind of products for men, -- The Charcoal Range, Vitamin C Range, Beard Oils, Beard Serums and Softeners, etc. <br /><br />To ensure quality standards, we are working with an in-house beauty trainer and technical product developer on a professional range of products that are created specially to offer the best Beardo services at salons.<br /><br /><cmsannotation type="cmsannotation" annotationid="Q) What are your plans of taking the brand deeper into Bharat?" comment="subhead" text="Q) What are your plans of taking the brand deeper into Bharat?"><span data-til="noop">Q) What are your plans of taking the brand deeper into Bharat?</span></cmsannotation><br />Beardo is a ‘Bharat’ focused brand – made in India and retailed in India. Our online consumer penetration is massive, which allows us to reach men pan-India with utmost ease. For us tiers do not matter, if there is a passionate Beardo in any part of country, we are there for him.<br /><br /><cmsannotation type="cmsannotation" annotationid="Q) What is the target you've set for yourself for 2021, in terms of revenue and sales and where do you want to see the brand in a few years from now?" comment="subhead" text="Q) What is the target you've set for yourself for 2021, in terms of revenue and sales and where do you want to see the brand in a few years from now?"><span data-til="noop">Q) What is the target you've set for yourself for 2021, in terms of revenue and sales and where do you want to see the brand in a few years from now?</span></cmsannotation><br />We are aiming at a 100% growth this year. Our vision for the brand is to create a desire, where every man feels like an ALPHA - confident, attractive, and sexy. We want every man in the country to become a Beardo and truly embrace the value system that we stand for. Becoming a Beardo is not just a style statement, it is a legacy that we have successfully started, as we believe that once a beardo, always a beardo. Over the next few years, we hope to expand our offerings even more and more heavily indulge in the likes of fragrances, lifestyle products, merchandise and more. <br /><br />

We are aiming at 100% growth in 2021: Sujot Malhotra, CEO, Beardo

<ul><li><keyword id="4548811" type="General" weightage="20" keywordseo="mamaearth" source="Orion">Mamaearth</keyword> parent Honasa Consumer plans to raise as much as ₹1,701 crore via an <keyword id="6354763" type="General" weightage="20" keywordseo="ipo" source="Orion">IPO</keyword>.</li><li>The price band is fixed at ₹308-324, and the IPO will open on October 31 and close on November 4.</li><li>The company intends to use net proceeds towards ad expenses, set-up outlets, and others. </li></ul>House of brands Honasa Consumer is planning to raise as much as ₹1,701 crore from its maiden public offer. The IPO of the parent company of Mamaearth brand will open on October 31 till November 4. <br /><br />The price band for the issue has been fixed at ₹308-324. Investors can bid for a minimum of 46 shares in multiples thereof. <br /><br />The issue is a combination of a fresh issue and an offer-for-sale. Some of its selling shareholders include its celebrity investor and actress Shilpa Shetty, Snapdeal’s Rohit Kumar Bansal and Kunal Bahl; and Rishabh Harsh Mariwala of the Marico family. <br /><br />This is apart from promoters Varun and Ghazal Alagh, Fireside Ventures Fund, Sofina and Stellaris. <br /><br />The company intends to use net proceeds from the fresh issue towards advertisement expenses, to set-up exclusive brand outlets, investment in its subsidiary, BBlunt, general corporate purposes and unidentified inorganic acquisitions. <br /><br />The issue allocates 10% of the offer to retail investors, 15% to non-institutional investors and 75% to qualified institutional buyers (QIBs). <br /><br />Kotak Mahindra Capital, Citigroup Global, J M Financial and J P Morgan are the book running lead managers of the issue and KFIn is the registrar. <br /><br /><strong>Loss on account of impairment<br /></strong><br />The company has reported a progressive growth in revenue for the last three years. It slipped back into losses in FY23, after posting profits in FY22. It was due to an impairment loss it had to take in the last financial year to the tune of ₹154 crore. <br /><br />“This was primarily due to the management decision to scale down the majority of the business verticals of Momspresso, a content platform operating under our subsidiary, Just4Kids Services, and acquired by us in December 2021,” the company said.<br /><br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Particulars<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY23 (consol)<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY22 (consol)<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY21 (standalone)<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue from operations<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,492 crore<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹943 crore<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹459 crore<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Restated Profit/Loss<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">(₹150.9 crore)*<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹14.4 crore<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">(₹1,332 crore) *<br /><br /></td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table><em>Source: RHP</em><br /><em>* it represents a loss </em><br /><br /><strong>A top heavy profile <br /></strong><br />While the BPC D2C brand has a wide array of products, most of its revenues depend on top 10 products. As of June 2023 end, a third of revenues from operations or around 29% of revenues came from these products. <br /><br />“While our dependence on sales of our top 10 products has been declining with increasing contributions from our other products, any decrease in the sales of our top 10 products, whether due to increase in sale of products or market share of competitors with similar products or any other reason, will adversely affect our business, results of operations, financial condition and cash flows,” the company said. <br /><br />Its top products include the Mamaearth brand, the Derma Co, Dr Sheth’s, and Aqualogica brands in the face care and hair care categories. Around 9% of its revenues came from the same two products. <br /><br />Moreoso, the auditor’s report on internal financial controls issued on its standalone financial statements in FY21 contains a disclaimer of opinion. The opinion relates to the auditors’ inability to obtain appropriate audit evidence to provide a basis for opinion on adequate internal financial controls.<br /><br />The company which depends on influencers also sees them as a business risk. “Influencers may use their platforms to communicate directly with our consumers without our knowledge in a manner that reflects poorly on our brands and may be attributed to us,” Honasa said. <br /><br />The company sells its products via its own D2C channel like its brand and mobile websites, and mobile applications. But its third party e-commerce marketplaces bring in the most sales. As of June 2023 end, it derives 64% of its revenue from operations from e-commerce marketplaces. <br /><br /><strong>High ad expenses &amp; heightened competition<br /></strong><br />The company’s ad expenses stood at 34.99% of its revenue from operations as of June end. The company is also in a segment that’s extremely competitive. And some of these competitors are larger and have substantially greater resources than them. That gives them the ability to spend more on advertising and marketing and offer substantial discounts, the company says. <br /><br />Then, there is also the threat of new entrants which may have more flexibility in responding to changing business and economic conditions. “As the BPC products space has a fairly low barrier to entry, these new entrants could potentially heighten the competitive landscape, which may lead to intensified competition on pricing,” the company said. <br /><br />It also said that its subsidiaries acquired in the past, including Just4Kids, BBlunt, B:Blunt Spratt and Fusion, have incurred losses for certain historical periods. There is no assurance that these entities will be profitable in the future,” the company cites as its risk factors. <br /><br />The company has undertaken one criminal and three material civil proceedings. It has two tax and two material civil litigations proceeding against it, where the aggregate amount involved is ₹100 crore.<br />

India’s largest D2C beauty company to raise ₹1,701 crore via an IPO

<ul><li>Investors looking to participate in India’s ecommerce story will need to keep in mind that the valuation will continue to be premium even for those startups that are turning in a small profit.</li><li>For better monetisation, <keyword id="3480589" type="General" weightage="100" keywordseo="meesho" source="Orion">Meesho</keyword> is also entering categories where brands tend to do well. It currently offers brands like Decathlon, Marico and Nivea on its platform.</li><li>It is also exploring a low-cost grocery model in some smaller cities, which it plans to scale if unit economics justify the investments. </li></ul><br />Meesho, a horizontal ecommerce player that caters to unorganised sellers, has its task cut out before its public listing 12-18 months down the line. The marketplace will not repeat the mistakes some of its new age peers made while tapping public markets. The marketplace may be the first horizontal ecommerce platform to turn profitable, but it is just the beginning of an arduous journey, given that many investors have burnt their fingers by investing in IPOs of new age companies. Share prices have not kept up with the hype that surrounded these companies, which suggests that investors will not chase such pricey companies no matter how fast they are growing. So how different will Meesho be from the other new age tech platforms that tapped public markets?<br /><br />In conversation with Business Insider, Meesho’s chief financial officer Dhiresh Bansal said they have reflected on the experiences of investors who participated in IPOs in 2021 and 2022. The key takeaway is that valuations were high because there was a lot of free money floating around. He says: “But public market investors are focused on profitable growth. Our point of view is that we want to make sure we run a decent track record of profitable growth if we aspire to get listed. We are targeting to grow revenues by 40% and accelerate it a little more by putting investments back, but we will continue to be profitable.”<br /><br />Clearly, the new mantra for startups today is to be profitable but the size and scale of the profit pool will not impress if compared to the larger companies. Investors looking to participate in India’s ecommerce story will need to keep in mind that the valuation will continue to be premium even for those startups that are turning in a small profit. Call it a scarcity premium, if you will. Explains Bansal: “The investment phase of the company in the new age world is slightly longer but they generate very large pools of cash over a period of time. This is true for unprofitable or small profit companies.”<br /><br />Bansal cites examples of some companies in the US that had a small profit pool to report when they got listed a decade ago. But now these companies churn out large amounts in profits. Therefore, these new age companies cannot be compared to traditional companies. Bansal says that even as fixed costs remain the same over a period of time, on a higher base these companies tend to generate a lot more in profits. Currently, Meesho has 140 mn users who visit the app every month and 40 mn, who open the app everyday. With a revenue growth target of 40% year-on-year, Meesho believes it can earn more without fixed costs going up.<br /><br />In addition to controlling costs and boosting operational efficiency, Meesho is also tweaking its categories and model to earn more in some categories. Even though it continues to largely be a platform for unorganised/small sellers from across India, you can find some brands too as the platform provides a differentiated experience to branded players too. Says Bansal, “Our business is largely unbranded, but we have introduced brands in some categories. We have brands like Decathlon, Marico, Nivea and other D2C brands in the marketplace other than brands in the beauty and personal care category.” Monetisation in these categories is much better than the unbranded segments.<br /><br />The cashburn may have slowed and Meesho’s business may be cashflow positive, but a public listing will not just look at raising fresh capital. The issue will be a mix of fresh issue of shares and offer for sale by existing shareholders. Explains Bansal: “We don’t need fresh capital for growth as we have almost $400 mn in the bank. People will decide whether they want to exit or remain on for a longer period— but It will be a mix of primary and secondary offering at the IPO but it will be largely towards secondary.” This suggests that existing investors will look at a partial exit whenever Meesho hits the public market.<br /><br />The platform is also experimenting with other categories as it looks to diversify from its existing mainstay – apparel, beauty and kitchenware. Meesho wants to sell consumers everything but smartphones, electronics and groceries. Adds Bansal: “We have been experimenting with groceries and beyond the convenience model that works in metro and Tier 1 cities but there is a low priced model of groceries that can work in Tier1 and Tier 2 cities. We are running pilots and once we are sure about the unit economics we will scale the business.”<br /><br /><br /><br />

Key facts to know before Meesho’s IPO hits the market

<ul><li><strong>Healthtech startup <keyword id="10704064" type="General" weightage="100" keywordseo="padcare" source="Orion">PadCare</keyword> bagged a joint deal from four sharks on <em>Shark Tank India</em> at ₹1 crore for 4% equity.<br /></strong></li><li><strong>One sanitary <keyword id="791337" type="General" weightage="50" keywordseo="napkin" source="Orion">napkin</keyword> takes 500 to 800 years to decompose and 98% of sanitary napkins go into landfills and water bodies, claims the founder.<br /></strong></li><li><strong>PadCare, which works to create a menstrual hygiene management ecosystem, offers three products- <keyword id="16342957" type="General" weightage="50" keywordseo="padcare-bin" source="Orion">PadCare bin</keyword>, PadCare X and PadCare Vend.<br /></strong></li><li><strong>The startup’s PadCare bins’ clients include Facebook, Capgemini and Goldman Sachs.<br /></strong></li></ul><keyword id="16342956" type="General" weightage="50" keywordseo="rekha-dhariya" source="Orion">Rekha Dhariya</keyword>, a mother from Mhasla, a small village in Maharashtra, did not neglect her eight-year-old son Ajinkya’s question about what a sanitary napkin was, after he had watched a television ad. The boy went on to found PadCare Labs- a startup that develops sustainable sanitary disposal technologies. On the business reality show S<em>hark Tank India Season 2, </em>PadCare bagged a joint deal from four sharks – securing ₹1 crore for 4% equity. <br /><br /><keyword id="544908" type="General" weightage="50" keywordseo="namita-thapar" source="Orion">Namita Thapar</keyword> (executive director, Emcure Pharmaceuticals),<a href="https://indianexpress.com/article/entertainment/television/shark-tank-india-2-peyush-bansal-floored-by-broomees-founders-video-8415980/"> Peyush Bansal</a> (co-founder, CEO Lenskart), <keyword id="246967" type="General" weightage="50" keywordseo="vineeta-singh" source="Orion">Vineeta Singh</keyword> (co-founder, CEO of Sugar Cosmetics) and <keyword id="127971" type="General" weightage="50" keywordseo="anupam-mittal" source="Orion">Anupam Mittal</keyword> (co-founder of Shaadi.com) were the sharks who invested in the startup. <br /><br />“One sanitary napkin takes 500 to 800 years to decompose and 98% of sanitary napkins go into landfills and water bodies. They are also burnt at 800 degrees with a process called incineration, producing hazardous waste, toxic smell and smoke,” said 26-year-old <keyword id="16342958" type="General" weightage="50" keywordseo="ajinkya-dhariya" source="Orion">Ajinkya Dhariya</keyword> on <em>Shark Tank India</em>. <br /><br />Earlier while working for ISRO as an R&amp;D engineer, Dhariya visited a landfill in Pune, and saw rag pickers picking up sanitary waste and diapers with their bare hands. This is how healthtech startup PadCare was born. <br /><br />“A woman spends 5 days a month and approximately five to six years of her life experiencing a menstrual cycle. She consumes over 7,500 sanitary napkins in a lifetime. Our rag pickers pick these up with their bare hands. But in embarrassment, in villages, these are either buried or burned. 1,200 crore sanitary napkins are used every year in India,” Dhariya, who is also the CEO of PadCare. <br /><br />To solve this, Padcare offers three products – PadCare bin (stores hazardous waste for 30 days without bacterial growth or smell), PadCare X (recycles 15,000 sanitary napkins into wood pulp and high quality plastics) and PadCare Vend (a sanitary napkin vending machine). The Padcare bin is also India’s first 5D-technology-based patented sanitary napkin disposal and recycling system, the founder said.<br /><br />“The wood pulp and plastic is sold in the market to paper and packaging industries. These can be converted into creating a PadCare bin as well,” he added. <br /><br /><strong>Scaling Padcare across India</strong><br /><br />With the help of earlier clients State Bank of India and Praj Industries, PadCare installed 3 PadCare bins in the beginning. Today, the company has 150 clients including Facebook, Capgemini and Goldman Sachs and has installed over 5,500 PadCare bins. <br /><br />PadCare is currently present in 6 cities across over 100 organisations and its products are being used by 1 lakh women, conserving 15 metric tons of carbon emissions, as per Dhariya. US, Canada, Singapore and African countries have expressed interest in using PadCare products, he said. <br /><br />The startup was also supported by Tata Trust, Infosys Foundation and additionally received a ₹2.25 crore government grant to develop the PadCare X machine. In FY22, the startup had sales of ₹1.05 crore. <br /><br />Dhariya was part of the <a href="https://www.forbes.com/profile/ajinkya-dhariya/?sh=5851d146717c">Forbes</a> Asia 30 under 30 list under healthcare and science category in 2021. <br /><br />However, the journey to create a sanitary disposal system, especially by a man, is not a common sight and Dhariya faced a lot of ridicule. But his family became his support system. <br /><br />“Sanitary pads were needed everyday for research. I thought I would have to seek the help of my friends. He is my brother so I gave him my pads. Ajinkya is a brother to all the women out there,” Aishwarya Mapara, Dhariya’s sister said. <br /><br />Moved by the social cause Dhariya was tackling, Lenskart’s Bansal offered a blank cheque to Dhariya. <br /><br />“He is the Padman of 2022,” said shark Aman Gupta referring to the Bollywood movie <em>Padman</em> and its lead character played by Akshay Kumar, who resolves to address social stigma associated with menstrual hygiene. Kumar’s character is based on real-life hero Arunachalam Muruganantham, a social entrepreneur and the inventor of a low-cost sanitary pad-making machine.<br /><br />While Dhariya’s ask was ₹50 lakh for 2% equity at valuation of ₹25 crore, he ended up getting ₹1 crore for 4% equity, for the same valuation. <br /><br />SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/marico-q3-net-profit-falls-5-to-333-cr-revenue-up-2-6-to-2470-cr/articleshow/97581307.cms">Marico Q3 net profit falls 5% to ₹333 cr, revenue up 2.6% to ₹2,470 cr</a><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/mens-apparel-brand-snitch-sews-all-sharks-together-gives-king-of-bling-anupam-mittal-his-own-fashion-line/articleshow/97576836.cms">Men’s apparel brand Snitch sews all sharks together – Gives ‘King of Bling’ Anupam Mittal his own fashion line</a>

‘Padman of 2022’: Shark Peyush Bansal offers founder of women’s hygiene startup PadCare a blank cheque

<ul><li>The 25% fall in first-quarter revenue, and a small 5.3% growth in profit, for Escorts— shows that the bottomline needs more than optimism. </li><li>Mahindra and Mahindra, the other major player in the <keyword id="9652441" type="UNKNOWN" weightage="20" keywordseo="tractors-segment">tractors segment</keyword>, is yet to declare its earnings but the stock took a dive right after Escorts released its earnings. </li><li>The fact of the matter is auto sales in India were sharply down even before COVID-19 struck. So, a recovery back to the levels seen before the lockdown will hardly be a solace. </li></ul>The 16% rally in India’s benchmark stock index Sensex since May-end relied heavily on the supposed strength of India’s rural economy. The optimism was reinforced when tractor sales in June jumped over 22% compared to last year. <br /><br />However, the 25% fall in first-quarter revenue, and a small 5.3% growth in profit, for Escorts— a nearly $2 billion firm that primarily makes tractors⁠— shows that the bottomline needs more than optimism. <br /><br />Mahindra and Mahindra, the other major player in the tractors segment, is yet to declare its earnings but the stock took a dive right after Escorts released its earnings. <br /><br />        <div type="image" title="Escorts share (1)" msid="77200814" hostid="261"></div><br />It is true that rural India has, so far, seen fewer COVID-19 infections and farming has continued largely unabated. Fertiliser sales spiked while every other industry dawdled.<br /><br />However, that’s not enough. “Agriculture has certainly done well, but it constitutes only around 25-30% of total income of a rural household. The rest usually comes from the services sector,” Benjamin Mathew, Partner &amp; Head of Strategy, <keyword id="9652442" type="COMPANY" weightage="20" keywordseo="mart-global-financial-solutions">MART Global Financial Solutions</keyword>, reportedly said in a recent conference held by the broking firm <keyword id="106252" type="PERSON" weightage="20" keywordseo="Nirmal-Bang">Nirmal Bang</keyword>. What this means is, agriculture alone can’t sustain the rural economy and consumption in those parts. <br /><br />A farmer from Sirsa Mohan in Amroha district of western Uttar Pradesh told<a href="https://indianexpress.com/article/india/milk-demand-down-festival-season-offers-no-hope-in-ups-buffalo-belt-6526535/" data-type="tilCustomLink"> The Indian Express</a> that for the first time in summer the milk prices fell, despite the buffaloes producing less milk. He said from August onwards buffalo’s calving season would begin and production will go up, peaking in the winter and remaining high till March-April. And if the situation continues like this, he said the festival demand isn’t also going to be good either.<br /><br />While the rural consumption in India is being loosely described as ‘strong’ or as ‘pent-up demand’, Nomura showed that it was still 64% of pre-pandemic level in June. This was reflected in the volume growth clocked by Hindustan Unilever, India’s largest consumer products maker, in the last three months. <br /><br />        <div type="image" title="HUL volume  (1)" msid="77200877" hostid="261"></div><br />The weakness in consumption can be explained by the return of unemployment in rural India. Factories in industrial areas are not able to resume work fully because migrant workers have gone back to the villages, while farms have no more space to employ the migrants who have returned home.<br /><br />The general assumption is that if the rural economy is doing well, then the sale of two-wheelers will spike. But, unlike tractors, two-wheeler sales fell over 40% in June 2020 compared to a year earlier. It should have been a warning sign for the optimists.<br /><br />        <div type="image" title="Two wheelers" msid="77200886" hostid="261"></div><br />Similarly, Escorts too paid the price as other business segments came to a grinding halt. “While we have witnessed faster revival in our agriculture business this quarter, our construction and railway business have been impacted because of lockdown and related issues across geographies,” Chairman and Managing Director Nikhil Nanda said in a statement to the exchanges. <br /><br />Railway traffic shrunk, both in terms of passengers and freight. <strong><br />        <div type="image" title="Rail" msid="77200899" hostid="261"></div></strong><br />The slowdown in railway wagons and construction equipment was so sharp that agricultural equipment (including tractors) now make for 90% of Escorts revenue compared to 76% just three months ago. <br /><br />        <div type="image" title="Escorts" msid="77200915" hostid="261"></div><br />While Nanda is going with hopes of a rural recovery, another company <keyword id="415855" type="DOMAIN" weightage="20" keywordseo="Mahindra-and-Mahindra-Financial-Services">Mahindra and Mahindra Financial Services</keyword> ⁠— a company that makes over a sixth of its revenue from tractor loans⁠— is siding with caution. The lender is shoring capital via a ₹3,000 crore rights issue, preparing for the worst and hoping for the best. If its rural borrowers aren’t able to repay the money, the proceeds will keep the company solvent, and if they do, the additional capital can be used for growth, Vice Chairman and Managing Director Ramesh Iyer explained in an interview with Business Insider. <br /><br /><strong>Not everyone is sure of better times in the near future<br /></strong><br />There is a lot of doubt over the much-celebrated surge in demand during the festive season in India that begins in August and peaks during Diwali in October-November. “..firstly, Covid-19 is expected to peak in India around Sept-Oct. Secondly, the economy is weak and hence its impacts like job losses and pay cuts will be visible going forward,” the Nirmal Bang report said.<br /><br />The fact of the matter is auto sales in India were sharply down even before COVID-19 struck. So, a recovery back to the levels seen before the lockdown will hardly be a solace. <br /><br />While it will require more data ⁠— including earnings from the likes of M&amp;M, Marico, Hero Moto, Jain Irrigation, and UPL to name a few ⁠— to get a clear picture of the rural economy, any further delay in economic recovery would bring the recent stock market rally to question. <br /><br />As of now, Nomura expects four straight quarters of economic contraction. <br /><br />        <div type="image" title="GDP" msid="77200931" hostid="261"></div><br />As M&amp;M Financial Services’ Iyer explained, “to expect any growth this year would be out of the question. I think if you look at March volumes, it will be at 50-60% of the previous year. I mean you have already lost a quarter without doing much in the market. And, July and August are not going to be kind of very aggressive. Anything that will happen will happen post-October. Any growth anyone is taking is I guess 2021, 2022, 2023 kind of a story.” <br /><br /><strong>SEE ALSO: </strong><a href="https://www.businessinsider.in/stock-market/news/india-stock-brokers-hit-by-sebi-direct-market-access/articleshow/77198064.cms" data-type="tilCustomLink">India's broking industry just got the shock of its life – SEBI may soon allow investors to trade directly on the exchanges</a><br /><br /><a href="https://www.businessinsider.in/stock-market/markets/news/earnings-of-companies-like-ril-tech-mahindra-hdfc-and-others-are-all-set-to-be-announced-this-week/articleshow/77189938.cms" data-type="tilCustomLink">RIL, Tech Mahindra earnings, options expiry and geopolitical events – top things that will move Sensex and Nifty 50 this week</a>

You Searched For "marico revenue 2021" and got 10 results

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