Jyothy Labs to strengthen brand through networking and new-age digital channels

Seeing a positive outlook for FMCG industry for the rest of the year, Jyothy Labs is looking at strengthening its brands through the distribution network and new-age digital channels. To capitalize on the opportunities, the company is also increasing its spend on marketing and branding to strengthen its brand.

Jyothy Labs is also leveraging new-age digital channels to connect with more audiences and drive engagement besides accelerating digital adoption across the organization. In its latest annual report, the company said its outlook is very positive. “In a consumption-driven economy such as India, with its USD 5 trillion goals, the graph for the FMCG sector can only go north. The potential for Jyothy Labs’s growth is effectively limitless, as we are present in categories where demand will always exist,” said Ullas Kamath, Jyothy Labs Joint Managing Director. “The company is also focusing on improving sustainability by reducing plastic consumption in its products.”

Kamath said this is in line with the recent trend of consumers’ growing preference for sustainable products and companies. Jyothy Lab, which had registered an 11.6% growth in its consolidated net revenue in FY2020-21, has also become net debt-free with a cash balance of Rs 76.9 crore as of March 31, 2021. “During the year, we improved demand planning with the addition of Continuous Replenishment System which was instrumental in reducing pipeline stock with distributors from 22-25 days in FY2019-20 to 8-10 days in FY2020-21,” he said.

Also Read: Amazed and shocked that people still being booked under Section 66A of IT Act: SC

The company said that after the pandemic, the market scenario is changing towards a cash basis, unlike a credit basis, which was prevalent in the market. With the help of technology, distributors and retailers are holding less stock which further enhances their return on investment which further aids the growth of FMCG industry. The Indian FMCG industry is expected to undergo key shift changes because of the internet. Now consumers get the convenience to order in their own time after comparing the product features.

“E-commerce has changed the market paradigm completely. Boost in the FMCG sector has been witnessed due to internet penetration as traditional channels have also adopted digitization in their day-to-day operations,” it said. With Indian consumers looking for the best deals, they have options to choose from newer brands. “Thus, FMCG companies are constantly trying to influence consumers with their promotional deals and many firms are offering combo deals to attract consumers to buy their product,” it said.