Key Highlights

Overall wholesale market still continued to remain under pressure due to GST. However on QoQ basis, the market revived. Despite on a lower base of Dec 17 quarter, where market was significantly suppressed, no YoY recovery was visible. Expects the segment to recover in next 12 months time frame.

The urban market was more or less remained unaffected due to GST and the same was visible in Dec 17 quarter as well. However the market itself was more or less steady.

Channel distribution market has also improved on QoQ prospective, but its difficult to predict.

Overall, hair oil market has grown, but growth has come down and is volatile. Thus while growth is visible and direction is clear, but the pace is very difficult to determine due to lot of uncertainties and overall market yet to pick up.

Raw material prices are on rising trend. LLP prices have already risen. The company has to look at market conditions and accordingly increase the prices of finished goods or to adjust ad spends.

The company has taken various initiatives on marketing front and on product introduction for No Marks which is showing healthy results. NoMarks recorded a 33% volume growth in Dec 17 quarter. While growth was across the nation, UP market has grown the fastest.

Going forward, the company expects to reduce the number of depots and synchroise the way of doing business. The total number of depots have already come down from 28 to 24 as on Dec 17.

Wholesale channel has to adjust its way of doing business and it should pick up going forward.

Company is also bringing in direct distribution for retail business. Basically, the market has to adjust itself to the current business environment.

Company expects to introduce more products in end of FY 18 as compared to last year and expects better growth going forward.

However rising input costs will be a challenge for FY 19.