Homegrown personal care brand, Joy, owned by RSH Global, is looking to grow by about 20-25 per cent annually to touch a turnover of ₹1,000 crore in the next three years. The growth would come primarily from strengthening its foray into West Bengal and Maharashtra markets and traction in online sales. The company is likely to close FY23 with a turnover of ₹500 crore.
According to Sunil Agarwal, Chairman, RSH Global, the personal care industry in India, which is estimated to be close to ₹20,000 crore, is growing at 10-12 per cent, while the company has been registering almost double of that growth. The company, which is based out of Kolkata, was initially focusing on the northern markets, as the demand for moisturisers, which accounted for almost 70 per cent of the company’s total sales, is typically higher in the North. It started focusing on West Bengal and Maharashtra a few years back and has been gradually scaling up its business in the region.
“The initial distribution was in North India and some parts of Madhya Pradesh but gradually we moved into the west and then east about four years back. Maharashtra and West Bengal account for almost 20 per cent of the overall sales of skincare products in the country. Our focus will be on these two States for the next three-to-four years and then we will start looking at Bihar and Gujarat,” Agarwal told businessline.
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The company, which is into manufacturing of moisturisers, face wash, and sunscreen, primarily operates in the mass or affordable segment of the market and has been witnessing good traction in demand. With rising affluence and increasing consumer awareness, the demand for such products is expected to go up moving forward, he said.
About 65 per cent of its total sales comes from Tier II towns and cities, while the remaining 35 per cent comes from Tier I and metro towns.
Online sales
Online, which currently accounts for almost 10 per cent of the company’s sales, is expected to go up to 20 per cent in the next three years. According to Agarwal, while there are a large number of players in the mass premium and premium categories operating in the online space, there is a gap in so far as the mass segment is concerned. It expects to be able to fill in the gap with its offerings.
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The company is setting up its third manufacturing facility at Baddi in Himachal Pradesh at an estimated investment of ₹70 crore. This is expected to commence operations by February –March 2024.
Close to 10 per cent of its business comes from international markets. It expects it to increase to 13 per cent in the next three years.