RSH Global Aims INR 750 Crore Revenue In FY25, GMV To Surpass INR 1,000 Crore Joy Personal Care (RSH Global) is focusing on strengthening the categories where it is already present, instead of putting in too many launches into the system
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Riding on the back of scorching summer heat, Joy Personal Care (RSH Global), reported a huge surge in its sunscreen and face wash categories. Sunscreen has grown around 30-35 per cent year on year (YoY) and face wash has been growing 35 to 40 percent YoY. "The overall target growth for the first quarter of FY25 has been around 28 to 30 per cent over last year," said Sunil Agarwal, chairman, RSH Global.
The company is aiming at a revenue of INR 750 crore in FY25 and gross merchandise value (GMV) to surpass INR 1,000 crore. After posting a promising growth in the first quarter, "We are weary about Q2, which is already on and expecting a promising winter this year," the chairman added.
The FMCG firm is focusing on strengthening the categories where it is already present, instead of putting in too many launches into the system. "We basically focus on four categories in the entire skin care portfolio, which is body lotions, face creams, sunscreens and face washes. These four categories we have identified to invest in and we are going deeper instead of wider. Instead of doing fresh launches, we are eliminating some of the existing products from the ecosystem in order to be more focused on what we really want to promote and what the consumers really need," he explained. Out of the 45 products which it launched recently, 10-15 are not doing great and are identified to be eliminated.
With the penetration of Internet and social media, consumers have become educated and there is a shift towards premiumization of products, "Post Covid-19, we have launched targeted products which we never thought could exist five years back. As a mass brand, we also started exploring the possibilities of launching premium products for our consumers and it worked well," he said, adding that mass category products contribute around 75-80 per cent, but these new launches contribute around 20 per cent sales.
Talking about Internet first brands, the chairman said that the vertical was started last year, in a niche category for pregnant women. The company is thinking of launching another premium brand, "Joy is our mass brand and in the next 15 months we plan to launch another premium brand." The firm is not very bullish on expanding its online presence and wants to keep it at 15 per cent of overall sales. The other ratio of sales is split as 25 per cent from modern trade and 60 per cent from general trade. In terms of revenue, 50-55 per cent comes from Tier III, IV, rural and around 45 per cent from Tier I and II.
Currently RSH Global's direct retail presence is about 200,000 outlets and it is expanding to 5,00,000 outlets direct distribution by 2027. "We are constantly innovating to keep up with customer expectations."
With a current capacity of around 13,000 tonnes annually from two of its manufacturing units in Baddi, Himachal Pradesh, RSH Global has additionally invested around INR 100 crore in its new facility, which has a capacity of more than 36,000 tonnes. Around 70 per cent of its sales come from Hindi heartland and currently, the company has chosen Gujarat, Bihar to be its next focus and has no immediate plans to venture into the Southern market.
