Raymond Consumer Care on expansion spree, aims to be dominant player in fragrance, sexual wellness

Raymond Consumer Care, the FMCG arm of the Raymond Group, which sells private grooming objects corresponding to deodorant and fragrance underneath Park Avenue model, is doubling down on its enterprise.The firm, which reported a income of Rs 600 crore in FY20, is now on an expansion spree and is getting into new classes underneath each its Park Avenue and Kamasutra manufacturers.The focus for the corporate now’s on increasing its perfume, grooming and sexual wellness classes because it targets a development of 17-19 % over the subsequent three years. Raymond Consumer Care at the moment will get round 80 % of its income from fragrances merchandise and condoms.Also learn: FMCG sector income development to proceed in Q4FY21; margins might hit on excessive commodity costs”Our core is a excessive development area. The penetration of fragrances is just 13 % in this nation and industrial condoms is just 4 %. So, the sport plan is to be a dominant perfume and sexual wellness player,” Sudhir Langer, CEO of Raymond Consumer Care informed CNBC-TV18.Under Park Avenue, which has been a males’s grooming model till now, the corporate is ready to foray into ladies’s fragrances the place it’s going to launch merchandise focused in the direction of ladies as a buyer base.”Similarly, sports activities has been an area the place we’ve not been focusing on. So, we’ve got some exercise deliberate on that entrance as nicely that we’ll scale up on,” Langer mentioned.Also learn: Fresh COVID curbs: Consumer items corporations see stocking up indicatorsRaymond Consumer Care can also be trying to launch a portfolio of males’s grooming merchandise as what Langer says is the ‘subsequent stage of evolution’ for the model that at the moment sells soaps, after-shave lotions, hair gels, and so on. This will see the corporate launching premium merchandise corresponding to face washes, premium after shave lotions and beard and hair grooming merchandise.”It’s a digital ahead sport plan to enter the exploding males’s grooming area. Also, merchandise that work nicely and turn into profitable in on-line and fashionable commerce area will get prolonged to kirana shops as nicely.” Langer mentioned.Under its different main model Kamasutra, the corporate is planning to enter the sexual wellness dietary supplements and female hygiene classes. The thought, the corporate says, is to evolve the model into an entire sexual wellness ecosystem.”We have a chemist relationship of two.5 lakh shops, primarily operated with condoms. We plan to enter classes like sexual wellness the place the class itself is 1.5 instances the dimensions of condoms. These will be emergency contraceptive drugs, female hygiene washes, males’s libido dietary supplements, and so on. The thought is to create a whole sexual wellness ecosystem that not solely helps us assist our chemist relationship however set up ourselves as a number one player in this class,” the CEO mentioned.As a part of its expansion plan, Raymond Consumer Care can also be trying to add extra worth factors to its merchandise in a bid to attain extra clients.Also watch: Wallet Watch: Gauging influence of rising commodity costs on shoppers”Our energy is that we have already got a excessive worth brick-and-mortar enterprise and so for a lot of of those classes, we’re not dependent on unit economics to fund the enterprise. So, there are some engaging propositions to supply our merchandise in mass at a worth level that’s affordable and engaging for shoppers in the heartlands of the nation as nicely,” he mentioned.The firm’s expansion plans come after a 12 months the place it took successful through the first quarter of FY21 due to the lockdown restrictions imposed throughout the nation. However, a foray into hygiene merchandise like hand sanitisers and flooring cleaners helped the corporate get again on its ft and add 10 % to revenues.Going forward, regardless of the second wave, the corporate is upbeat about its development in the medium to long run, particularly as entry to necessities continues.“It’s a really dynamic panorama on the market. We are seeing that governments are cautious not to lockdown kirana shops and so long as individuals can entry the shops and therefore our merchandise, we’ve got seen that final analysis of consumption has continued by way of the pandemic. We don’t know when the second wave will finish, however the upside I see is that it received’t be a crippling disruption like final 12 months, and we see a really quick resurgence as quickly as we’re out of the second wave,” Langer added.

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