FY25 a redemption year for Emami, where it decisively disproved notion of core categories plateauing: Harsha Agarwal

The fiscal year 2025 was that of redemption for Emami , where it “decisively” disproved a widely held notion in the market that the core categories it is present in have matured—and have little headroom to grow—Harsha Agarwal, Emami’s vice chairman and MD, said in his message in the FMCG major’s annual report.

According to Agarwal, the core portfolio of Emami posted strong growth, even in the face of external challenges such as a slowdown in urban discretionary demand and a delayed winter. One of the reasons why Emami has shown resilience amid a challenging macro environment is its focus on niche segments where household penetration is still in the low single digits, or low double digits, at best. “That is not a weakness. That is headroom. That is an opportunity,” he added.

He also said that Emami is not in the race to sell in overcrowded categories, such as toothpaste or soap. Most of the Emami brands are underpenetrated, Agarwal claims, and it has established leadership in high-margin, high-potential spaces, where others have “yet to gain meaningful traction.” Agarwal highlighted that the biggest challenge for Emami is relevance. “Once we drive relevance and unlock mass appeal, growth will follow. And when it does, scale kicks in fast. And that is exactly where we are headed,” he added.

Emami’s legacy brands are also getting a bold makeover, according to Agarwal, so that they become sharper and resonate with the new-age consumer. He recounts the anecdotal instances of Navratna, which is not just Cool Oil and Cool Talc anymore. It is Gold—a lighter, fragrant variant, and it is Therapy—for stress relief and massage. Emami also introduced a ₹1 sachet for Navratna Talc—which, according to Agarwal, is an industry-first, as it is the only talcum powder brand in a sachet format. Emami is also pursuing this strategy aggressively, especially for rural markets where talcum powder penetration remains low. 

BoroPlus is now beyond creams and lotions, offering aloe gels and soaps. “Kesh King? Still oil and shampoo. But now it has got onion. It has become organic. That is the play. Build on trust—layer on relevance. We know where the market is headed, and we are already there,” he said.

Agarwal also dispels the notion that Emami is overtly dependent on seasonal categories, arguing that it does not reflect the depth of its portfolio. However, Agarwal also conceded that demand for Kesh King has slowed down. “(Kesh King) is being course-corrected with a dual lens—tackling both near-term tactical issues such as pricing and channel mix and longer-term strategic repositioning.” Similarly, the company has also revitalised Fair And Handsome into Smart And Handsome, expanding its addressable market in the male grooming space. “Early signs are encouraging, with the brand returning to growth after multiple quarters of decline,” Agarwal added.

Emami, which operates at the intersection of healthcare and personal care, is actively expanding into new and untapped markets with focused intent. According to Agarwal, Emami is doubling down on key consumer trends such as a shift towards ayurvedic, natural, and science-backed skincare; rising demand for clean-label and eco-conscious products; and the growing preference for clinically tested formulations.