Emami product prices increase by 4%; Company launches project Khoj

Customers of FMCG major Emami Ltd will now have to pay a bit more for its products as the company has raised product prices on an average by four percent in the current fiscal.

The decision to hike the price has been taken to offset the present input cost pressure that will help the company to retain a gross margin of 66-67 percent, a senior company official said on Sunday.

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Along with the price hike the company has also announced the launch of its most awaited project called Khoj in Uttar Pradesh. The project aims for deeper rural reach to retain profitability momentum, as per a report by PTI.

The project "we had already rolled out got delayed due to Covid-19 disruptions since last year," the official said.

"We have a price hike of four percent so far and this will take care of our existing cost pressure as of now. We will decide accordingly depending upon the situation going forward," Emami Director Mohan Goenka told PTI.

"With the price rise we do not foresee any pressure on gross and EBITA margins as of now," he said.

The categories that have witnessed the price rise are pain and summer brand portfolios.

"Project Khoj is a rural project where we have identified 13 states where we would go very deep into 3,000 population villages, but we would start with only four high potential states as of now. We have just begun our journey with unlock taking place," Goenka said.

The states in the first leg of the projects are Uttar Pradesh in the north, Bihar in the east, Maharashtra in the west and Andhra Pradesh in the South.

"We have tied up with a lot of single standalone stores and we are seeing significant growth there. There also we have hired a new team who would look at this. On chemist outlet expansion, we have identified almost 20,000 chemist outlets with high potential chemists who would be covered by an exclusive team," Goenka said, detailing the marketing focus.