Joy Personal Care to step up distribution as it plans to double revenues
Summary
The company will prioritize direct outreach to more outlets and step up its presence through e-commerce.
NEW DELHI : Kolkata-based Joy Personal Care plans to double its revenue to ₹1,500 crore by FY28, driven by an expanded distribution network for its body wash, lotions and creams. Co-founder Sunil Agarwal said the company will prioritize direct outreach to more outlets and step up its presence through e-commerce.
“Over the last two to three years, we have been increasing our direct distribution by one lakh outlets a year. This will continue for the next two years till we reach direct distribution of 5 lakh outlets. We are present in over a million outlets via indirect distribution. We believe in the next two years’ time we will have more than 2 million outlets in indirect distribution as well," he said.
Several major consumer goods companies are increasingly adopting direct distribution, where the FMCG firm manages product sales and delivery directly to retailers (kirana stores, supermarkets, etc.), bypassing wholesalers. Companies like Dabur India and Marico, for instance, have stepped up their direct distribution efforts in recent years. This helps with better stock availability in key markets.
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The over 35-year-old company closed FY25 with revenues of a little over ₹700 crore. Yearly volumes grew 17%, helped by greater demand for its products through e-commerce. It sells personal care products under the Joy Personal Care, Karis and Orimii brands.
The company operates in the Indian beauty and personal care market, which, according to a September 2023 report by Redseer consultants, is projected to reach $30 billion by 2027.
Competitive pricing
Joy Personal Care offers lower prices than companies like Hindustan Unilever, Nivea, and L'Oréal in the lotions, skin products, and body cleanser market.
Recently, major consumer goods companies have noted increased competition at the mass market level, with local and regional players launching competitively priced new products.
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Agarwal said 40-50% of its portfolio has been introduced post-covid. Last year, it on-boarded Shah Rukh Khan as the face of its face cleansing range.
“We majorly operate in four categories—90% of the business comes from moisturizers, body lotions, face wash, and sunscreens. We are strengthening our market share in these categories. We also sell products in six geographies that we have identified—we continue to expand deeply in these markets," he said in a virtual interview with Mint.
Earlier this year, the company announced the setting up of a new ₹100 crore plant in Baddi, Himachal Pradesh; it already operates two units in Baddi. “We have set up a large facility in Baddi, which will be operational in June. That will triple our capacity," he added.
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Commenting on demand, Agarwal said demand in the first six months of the current fiscal year will be starkly better than the previous six months. “April onwards, we are looking at a normal monsoon. This, along with tax reliefs announced in the budget, will aid consumption. Crude oil prices are falling, so a lot of positives," he added.
