In retail segment, the modern trade division which includes supermarkets, hyperm,arkets, and convenience stores attained market share of 7% while traditional trade including kirana shops and small independent retail shops, attained significant market share of 18%, highlighting the durable importance of these retail chain concepts. Moreover, the Indian retail segment has observed strong growth among various divisions that highlights the countries evolving consumer landscape, impacted by increasing incomes, modern technology, improvement in lifestyles.
Indian FMCG Market – The Indian Fast Moving Consumer Goods is 4th largest segment increasing at stable rate over the years due to increasing disposable income, improvement in lifestyle, increasing young population, rise in e-commerce platforms, rising awareness. As per Market Research Futures Study, the FMCG sector is projected to rise from $121.8 billion to $230.6 billion in FY-2023 to 2032 with a CAGR of 8.3% from 2024-2032. It is divided into 3 main divisions such as food and beverages (19%), healthcare (31%, and household and personal care (50%).
Indian BPC market – A report presented by Redseer forecasts that India’s BPC market face one of the rapid increasing rates of 11% CAGR between 2022 and 2027 in the sector and it wil reach $33 Billion by 2027. The BPC users in online will rise from 67 million in 2022 to 150 million+ in 2027, observing a growth of 2 times.
Indian BPC market by 2027 – In this segment, India has specific increment in consumer spending and growth in market, as shown data from Redseer and Kantar Worldpanel. An average spending by Indian is Rs 1,214 over 6 months on beauty and personal care segment whereas as women doing business or job spends Rs 1,942. This expense is very low compared to China’s Rs 3,172 and Indonesia’s Rs 2,436 for 6 months period.
Average spending on BPC products in India over 6 months – The BPC market in India is going major change due to demographic dividends, combination of technology, and increasing consumer desire. It is forecasted to increase at quicker rates among FMCG companies in FMCG segments. With increasing incomes, the BPC sector is projected to follow S-curve. The diversification in BPC industry is huge, including various sub-segments such oral care, hair care, skincare, makeup, bath & shower, fragrance, cosmetics fulfilling needs of women, children, and men. The diversifcation has led to major rise in number of BPC brands.
Rising incomes – As disposable incomes increase in rural and urban areas, there is increment in spending towards beauty and skincare products. This demographic shift is not only increasing consumer base but also led to increasing requirement of premium and best beauty products. In this article, you will learn interesting information about Honasa Consumer share price target, market cap, ROCE, ROE, sales, net profit, promoter holding, EBIDTA.
Honasa Consumer Ltd – Key Points
Established
2016
Industry
FMCG and Beauty and Personal Care (BPC)
Headquarters
Gurgaon
Chairman and CEO
Varun Alagh
FMCG retail outlets
1,88,377
Exclusive brand outlets
111
Stores across 30+ Modern Trade Chains
8000+
Honasa Consumer Ltd – Statistics
Market cap
Rs 6,760 crores
ROCE
17.1%
Book value
Rs 35.5
Districts served
719
PIN Code coverage
97%+
Volumes from Tier 2+ cities and towns
56%+
About Honasa Consumer Ltd
Honasa Consumer Limited is largest first beauty and personal care segment in India’s with wide range of product portfolio of brands providing unique propositions to fulfill customers’ requirement. In past few years, the company has developed “House of Brands” architecture with product baskets of seven brands. After huge growth of Mamaearth, the company has build repeatable brand-building playbooks that have encouraged it to increase new brands at rapid speed. These playbooks are supported by consumer-centric strategy among various aspects of business model which includes innovative engine, omnichannel distribution, modern technology, data-based marketing, and consumer interaction.
The company is India’s largest virtual native, pureplay beauty and personal care (BPC) FMCG company, taking the benefit of FMCG company and science to build products that present unique requirements of Indian consumers. By gaining deep experience in building the popular brand Mamaearth that rapidly developing BPC brand to hit annual revenue of Rs 1,000 crores. The company has observed that consistent strategy that focuses on requirements of customers, efficient consumer interaction gives brand disruptive power, encouraging durable business growth. The company has used this strategy for developing brand, attaining success many times. Modern technology and machine learning-based platforms help us to observe evolving trends, build unique products, and increase growth of our brand. This rapid and consumer-based strategy assures that company consistently improves, disrupts the market, attains stable growth, and repeats the process by managing proper competition.
Honasa works with full focus on customizing best quality beauty and personal care products. The company is building new generation of brands that has specific purpose, supported by technology, and give response as per customers requirements. The brand provides unique value that gives diversified tastes, choices, and habits. Some products has taken inspiration from nature taking benefit of traditional knowledge or science based skincare. The brands is aware of Indian skin types and climate requirements. The company’s product are available through omnichannel distribution connection by online and offline consumer touchpoints improving their convenience and accessibility.
Online channel
The online channel of company includes Direct-to-customer (D2C) platforms and main e-commerce market places which includes vertical and horizontal BPC based market places, multiple category online platforms, and growing platforms like Quick Commerce. With the help of its online channel, the company fulfilled 97%+ overall pin codes during FY 23-24. The 56% of units purchased were from Tier 2 or Tier 3 cities supported by e-commerce platforms that have deep penetration in these markets. The company made use of D2C platforms for trial purpose among early adopters for all new launches of product and initial stage brands.
The “House of Brands” providing unique propositions in rapidly growing categories, Honasa consistently made disruption on online platforms. For ex. the company has attained 30% market share in sunscreen through online platforms.
House of Brands
The Derma Co. – It was founded in 2020, the mission was to encourage consumers to embrace their beauty, unfiltered. The brand offers science based skincare solutions customized to fulfill requirements of skin. The products are designed by Dermatologists and formulated with best quality raw materials such as Vitamin C, Niacinamide, Salicylic Acid, and Kojic acid solving certain skin problems such as pigmentation, dark spots, acne.
BBLUNT – The company was acquired in 2022, BBLUNT provides the Salon like hair at home. The brand has made strong commitment to provide to offer modern hair-care and hair styling products, encouraging consumers to attain best quality results. The products fulfill different requirements in hair care such as hairfall, hydration, damage repair, dandruff, shine.
Aqualogica – The company was launched in 2021 to present main skincare requirements for Indian tropical climate which does not require heavy, oily creams. Each product has mix of fruits to fulfill requirements of consumers. It has Unique Water Lock technology and strong combination of natural fruit extracts help to trap moisture. The brand is available in various skincare segments such as facewash, sunscreen, serum, and moisturiser.
Dr. Sheth’s – The company was acquired in 2022 and build by 3 generations cosmeteologists with 90 years of deep experience. The formulations are unique mixture and nurturing botanicals, providing balanced skincare.
Offline Channel
The company has developed offline presence through both modern and general trade which has been scaled, improving consumer access and widening network. The growth is visible by rising market value share gains among main approach. Mamaerth has developed strong footprint in offline to increase with presence among 1,88,377 FMCG retail outlets among general and modern trade formats. The brand has also observed that counter has been rising in retail outlets. The penetration of Brand’s modern trade outlet increased to 8000+ stores in 30+ modern trade chains, including more than 5000 stores of Apollo Pharmacy and 1000+ stores of Reliance Retail’s Smart Bazaar. As of March 2024, the brand has 111 Exclusive Brand Outlets (EBOs) which has developed strong equity brands in a retail atmosphere by encouraging a more customized experience. The company has strong distribution channel of 600+ distributors, sub-stockists, and super distributors plays an important role in offline outlets.
Expand distribution and Brand awareness
The purpose of company is to maintain the loyalty of important consumer base as company has shown growth in past 7 years and grab new users. This includes investing in creative development of brand and marketing ideas to spread awareness, offer free samples, and increase consumer reach. The company has adopted all strategies to interact with customers through unique media, which includes traditional and digital.
The company brings genuine interaction through marketing and consumer interaction framework; the company precisely uses different media including traditional and digital media, to guide our offline scalability objectives to hit larger consumer network. The offline channel has grown at huge level, and the company wants to take benefits by learning from Mamaearth’s growth expansion by systematically increasing its presence in general and modern trade retail channels.
The company also has purpose of developing new channels and building strong omnichannel strategy to improve consumer interaction and brand experience, which includes scaling Mamaearth’s exclusive brand outlets (EBOs) and stepping into professional channels through BBLUNT.
Incubate or Acquire New Engines of Growth
The company has the vision to acquire or launch new brands that provide genuine value and fulfill different price points, taking advantage of “House Of Brands” architecture and repeatable playbooks that contain strategies and procedures to generate revenue income and control costs. The company has explored new opportunities across three axes of price, proposition, and category and built new-age brands and propositions, forecasting consumer requirements and taking benefits of new trends. India is the primary market where the company should focus; the company is looking to scale into identified preference markets such as Nepal, Bangladesh, and UAE, both organically and with strategic acquisitions, suggested by scope in the market, identity of brand, and develop brand strategies.
Strengthen Business Efficiency Drivers
The focus of company to improve efficiency in business has purpose to scale operations and bring scale advantageous. As explained earlier, the company will consistently unlcok efficiencies in different levers of P&L which includes advertising and other expenses.Moreover, the company is properly planning to make better channel mix bys systematically increase Mamaearth’s presence in offline channel by also launching other brands like The Derma Co. and Aqualogica at offline mode. The purpose of company is to take benefit of offline sales channel which is profitable, by improving overall margin.
Moreover, the company wants to take benefits among all features of business including logistics, warehousing and customer relationship management which has already began to increase our margins. Moreover, the company has developed strong technology and data capabilities which helps us to improve customer interaction, build strong cross- brand synergies and rebuild our personalisation engine to offer customized experiences.
Honasa Consumer Ltd – Revenue and Net profit
Particulars
FY-23-24 ( Rs. In crores)
Sales
1,764
Expenses
1,634
Operating profit
130
Other income
58
Interest
7
Depreciation
3
Profit before Tax
158
-Tax (%)
(-24%)
Net profit
121
EPS in Rs.
3.73
Shareholding Pattern (Dec. 2024)
Promoters
35.03%
FIIs
15.44%
DIIs
18.45%
Public
31.07%
Honasa Consumer Ltd Share Price Target – 2025 to 2040
Year
Minimum price (Rs)
Average price (Rs)
Maximum price (Rs)
2025
207
220
233
2026
238
259
280
2027
286
311
335
2028
340
376
412
2029
415
447
479
2030
485
506
526
2035
970
998
1025
2040
2910
2974
3037
Honasa Consumer Ltd Share Price Target – 2025
If market faces bearish sentiments, the minimum projected price is anticipated to hit Rs207. The average trading price is projected to hit Rs 220 at the mid of the year. If market observes bullish sentiments, the maximum forecasted price is estimated to touch Rs 233. Under the observation of Chief Innovation Officer, the in-house team has done deep research at amazing innovation centres, from developing unique idea and building concept to clinical trials, formulation, batch testing, maintaining quality, proper packing, pricing, and proper position. As required, the team enters into the research and development resources of third-party raw material suppliers to constantly produce unique products based on detailed customer information.
Honasa Consumer Ltd Share Price Target – 2026
If market faces bearish sentiments, the minimum forecasted price is expected to reach Rs 238. The average trading price is projected to reach Rs 259 at the mid of the year. If market observes bullish sentiments, the maximum projected price is anticipated to hit Rs 280. The asset-light contract production model assures proper growth and effectiveness in production, which leds to quicker adoption as per market dynamics which benefits from economies of scale. At Honasa, the company manages strict quality procedures. This ensures detailed audits of contract manufacturers facilities, batch-lecvel testing, production capabilities, and stability testing. The company has performed more than 20,000 test in last year, observing products on different framework which includes odour, colour, texture.
Honasa Consumer Ltd Share Price Target – 2027
If market faces bearish sentiments, the minimum projected price is anticipated to hit Rs 286. The average trading price is projected to hit Rs 311 at the mid of the year. If market observes bullish sentiments, the maximum projected price is anticipated to hit Rs 335. The manufacturing partners are given guidance to ensure proper guidelines are followed with specific formulations strict quality control methods are followed, with constant checking and testing processes across all manufacturing plants. Moreover, innovation team conducts visits to manufacturing plants to make sure proper standards of quality are maintained. Additionally, the company 3rd party quality laboratories to manage proper inspection, assuring proper quality across all products.
Honasa Consumer Ltd Share Price Target – 2028
If market faces downward sentiments, the minimum forecasted price is anticipated to reach Rs 340. The average trading price is forecasted to hit Rs 376 at the mid of the year. If market observes bullish sentiments, the maximum projected price is anticipated to hit Rs 412 at the end of the year. The company has used modern machine learning tools for demand projection, managing stock, replenishment, which helps us to give faster response as market changes. The online sales data shows developing demand of building products. The Enterprise Resource Planning and Order Management System manages streamline operations from purchase to delivery. The company manages offline distribution through network of 600+ distributors, sub-stockists, and super-distributors.
Honasa Consumer Ltd Share Price Target – 2029
If market faces bearish sentiments, the minimum projected price is anticipated to reach Rs 415. The average trading price is projected to hit Rs 447 at the mid of the year. If market observes bullish signals, the maximum projected price is estimated to hit Rs 449. The company has implemented Distributor Management System (DMS) and Sales Force Automation (SFA) across our offline distribution channel to improve control and in-market implementation. The company has 11 warehouses, the distribution channel provides delivery on time to direct distributors, customers, sub-stockists, and super-distributors. The company is transforming to direct distributorship in the top 50 cities for improvement in connection with retail chain, good in-store execution, and realize cost control.
Honasa Consumer Ltd Share Price Target – 2030
If market faces bearish sentiments, the minimum forecasted price is anticipated to reach Rs 485. The average trading price is projected to reach Rs 506 at the mid of the year. If market observes bullish signals, the maximum forecasted price is expected to reach Rs 526. The company has developed its brand at unique level and scale-up model, the company first launch all products and brands at online platform. The online platforms helps us to get feedback from consumers and develop strong interest for brands and products. Once the product has developed strong presence in the market and the products has achieved huge growth on online platform. The products are launched systematically on offline channels in a targeted way.
Honasa Consumer Ltd Share Price Target – 2035
If market observes downward signals, the minimum projected price is expected to hit Rs 970. The average trading price during the mid of the year is projected to touch Rs 998. If market observes bullish sentiments, the maximum projected price is estimated to hit Rs 1025. The company has supported forward-looking market approach to bring huge reasonance in the market. The company has developed brands for growing and aspirational Indian consumer, backed by contextualised, relevant, data based marketing that supports to interact with customers at each stage of their product discovery. The brands are unique in their communicaton. The Mamaearth’s campaign promote the concept “Goodness makes you beautiful”.
Honasa Consumer Ltd Share Price Target – 2040
If market observes downward trends, the minimum forecasted price is anticipated to reach Rs 2910. The average trading price is projected to hit Rs 2974 at the mid of the year. If market faces bullish signals, the maximum projected price is anticipated to hit Rs 3037. Honasa’s extensive marketing approach interacts with users through entire marketing funnel, from building awareness to building consideration and conversion of brands. The company has developed strong community of influencers on social media, using in-built tools to interact with many influencers and improve brand awareness. By building customized, interactive content with in-house studio and influencer network.
FAQs
Q1) Who is CEO of Honasa Consumer Ltd?
Ans – The CEO of Honasa Consumer Ltd is Varun Alagh.
Q2) What does Honasa Consumer Ltd do?
Ans – The Honasa Consumer Ltd is engaged in business of Beauty and Personal Care (BPC) and FMCG products. The company has network of 600+ distributors.
Q3) Who are the competitors of Honasa Consumer Ltd?
Ans – The competitors of Honasa Consumer Ltd are: Hindustan Unilever Ltd, Varun Beverages, Britannia Industries, Dabur India, Emami, Nestle India.
Q4) What brands are under Honasa Consumer Ltd?
Ans –The Derma Co., BBLUNT, Aqualogica, Dr. Sheth are covered under Honasa Consumer Ltd.
Q5) Is Honasa Consumer Ltd a debt-free company?
Ans –Yes,Honasa Consumer Ltd is a debt-free company.
Q6) What is turnover of Honasa Consumer Ltd?
Ans – The turnover of Honasa Consumer Ltd in FY-19 was Rs 19 crores which has increased to Rs 1,764 crores in FY-24.
