Priority is to pass on GST benefits to consumers at the earliest: Emami’s Harsh Vardhan Agarwal

Finance Minister Nirmala Sitharaman on Wednesday announced a sharp cut in GST rates on key daily essentials including hair oil and shampoos. Welcoming the move, Emami Ltd. vice chairman and MD Harsha Vardhan Agarwal said consumption-driven companies should now focus on passing on these benefits to their consumers without delay.

He said that the latest step of reducing the GST rates is set to bolster consumption across rural and urban areas due to the move’s coupling with the income tax rate cuts announced during Budget earlier this year.

“The Government’s proactive step to reduce GST is a game-changing move that will significantly boost consumption across rural and urban India. GST rate cuts, coupled with income tax relaxations, lower repo rates and a good monsoon, create a powerful ecosystem to drive growth. This decisive move by the Government has the potential to spur consumption across all segments in the country,” Agarwal added.

Last month, Agarwal had noted, in its annual report, that during the last fiscal year, the company the portfolio had delivered strong growth despite challenges like weak urban demand and a delayed winter. The strategy for the FMCG major is to now focus on niche, underpenetrated categories rather than overcrowded ones like soaps or toothpaste, enabling leadership in high-margin, high-potential segments.

Additionally, the company is planning for a complete revamp of its legacy brands to remain relevant for younger generations, with innovations such as new variants of Navratna and the launch of a ₹1 sachet for talc, targeting rural markets.

Among key daily essentials that will now be subjected to a 5% of GST rate, in place of the previous 18%, include hair oil, shampoo, toothpaste, toilet soap bar, toothbrushes, and shaving cream. Emami has several products in the skincare and healthcare products including brands such as Navratna, BoroPlus, Zandu, Kesh King, Smart and Handsome, and Dermicool. These brands are set to benefit from the rate cuts, helping the company achieve its goals for upcoming quarters this fiscal year.

In the first quarter this fiscal, Emami reported a 9% year-on-year increase in consolidated net profit to ₹164 crore for Q1FY26 on the back of a sustained growth in the core domestic business, supported by strong performance in categories such as the Pain Management range and BoroPlus Antiseptic creams.