Emami Agrotech expects e-commerce, modern trade to contribute up to 12% biz

Emami Agrotech Ltd, which is mainly into the edible oil business, expects e-commerce and modern trade channels to contribute around 10-12 per cent of its total sales, a company official said on Thursday.

Emami Agrotech Ltd, which is mainly into the edible oil business, expects e-commerce and modern trade channels to contribute around 10-12 per cent of its total sales, a company official said on Thursday. The Emami group company, which has a turnover of Rs 12,500 crore, launched 'Emami Healthy & Tasty Smart Balance Immunity Booster Oil' to cash in on rising demand of immunity-boosting products amid coronavirus pandemic.

"We are expecting to have a business of Rs 150 crore during this fiscal from this new product launched today," said Emami Group Director Aditya V Agarwal. According to him, there is a rising concern of family wellbeing in general in the post-COVID 19 worlds.

"Consumers are in search of food products and supplements to enhance their family's immunity. Amidst this, our Research & Development team has developed India's first Immunity Booster Cooking Oil," he said. Presently around 8 per cent of edible oil business is coming from e-commerce and modern trade. "The company wishes to take it up to 10-12 per cent by FY 21," he said. Emami Agrotech is India's second-largest edible oil producer having a turnover of over Rs 12,500 crore.

While talking about the sale in April-June quarter, particularly during the lockdown, Agarwal said: "We have seen sales drop, a marginal sales drop because all the restaurants, hoReCa and out of home eating was stopped. So a large consumption has come down but at the same time, we have seen a new surge in consumer pack consumption. "As far as brands are concerned, they will grow. Brands selling in 5 Litre packs and below will grow by around 15 to 20 per cent, where overall sales loss was around 10 per cent," he added. The company has reported a profit of around Rs 150-200 crore for FY 2019-20 and expects to maintain that in the current fiscal. "At Emami Agrotech, we will not see any hit on our profitability or not see any huge surge. We would maintain our last years' profit for this quarter," he said adding the company had a business of Rs 12,500 crore and "profitability figure would be around Rs 100 to Rs 150 crore" for FY 2019-20.

However, he also added that the company has not yet finalised the accounts of the last fiscal. "I think we should be able to maintain this year, despite the rough times," he added.

The company is having a capacity utilisation of 70 to 80 per cent and expects to ramp up near festive season..

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)