Honasa Consumer Ltd.

[00:00:00] Hello everyone! Welcome to the latest episode of Her Stock Kuch Kehta Hai, presented by Angel One. A podcast where we will know and understand how a company's journey is. I hope you enjoyed listening to our previous episodes. If you are listening to this podcast

[00:00:21] for the first time, then we would recommend that you do check out our previous episodes where we talked about Tata Motors, Raments, Indigo Airlines and Gillette India Limited companies. My name is Rohan and let's start today's episode.

[00:00:45] Today we will talk about Honasa Consumer Ltd. Honasa Consumer Ltd, which most people know as Mama Earth. It started in 2016. The company introduced its flagship brand Mama Earth in the market. Honasa is India's first and biggest digital beauty

[00:01:04] products company in terms of revenue from operations. Honasa has always focused on making toxin-free, wellness products. She uses more than natural ingredients in her products and therefore their products look good on consumers. After Mama Earth's success,

[00:01:22] Honasa launched the Dharma in 2020 to provide solutions for skin and hair problems. Then in the end of 2021, Honasa launched AquaLogica, which specifically was for Indian skin types. After a while, the company rolled out its first Ayurvedic product, Ayuga.

[00:01:43] Ayuga was an easy-to-use product for Indian millennials. Due to Mama Earth's success, Honasa was successful in scaling its other brands quickly. The consumer-centric strategy of the company, such as digitalized Omni-Channel Distribution Technology, data-driven marketing and customer interaction models, is its biggest strength.

[00:02:05] Then in March 2022, Honasa bought its stake in Beblanc Salon and Beblanc Products. By Beblanc Salons, they offer hair care, grooming and styling services for men and women. The company's integrated supply chain is brand-agnostic and consists of 13 warehouses,

[00:02:25] which are located in 7 different districts in India. Today, the company's presence is more than 500 cities. Its online distribution network covers 18,000-plus pincores nationwide, with products accessible in 715-plus districts. Apart from this, there are many retail stores

[00:02:45] in different cities. Not only that, Honasa has also increased its offline presence. Today, the total sales of offline sales is 36%. Mama Earth's increasing visibility, the main reason for increasing, is the participation in Shark Tank India, a co-owner of Gazal Alak,

[00:03:04] and aggressive social media marketing. The major campaigns of the company, like Beautiful Hotum and Product Specific Initiatives, have also increased the brand presence. So, let's talk about the company. Let's look at their competitions. Honasa is a company that has 5% more market share than India's

[00:03:23] Indian-wanted Digital First Beauty Products and Care, which has a 5% more market share in less time. Its major competitors are Wow Skin Science, Purple, Plum, Body Cupid, SkinCraft, Juicy Chemistry, Sugar Cosmetics, The Moms Company and Lotus Herbal. From 2016 till today, the company has transformed into a portfolio of brands,

[00:03:49] both organic and M&A-led expansions, with the help of product innovation and emerging trends. Honasa is different from her competitors. Now let's talk about this industry. India's overall skincare industry was valued at Rs 15,800 crore in the year 2023. This category has main contributors,

[00:04:13] moisturizing creams and face washes. Fairness creams approximately hold 25% market share. India's skincare market is changing. Consumers' birthday aspirations and technology adoption have increased this industry. Let's quickly look at Honasa's financial performances. In Q3 financial year 2023-24, Honasa consumers reported a 250% year on

[00:04:40] year increase in net margin, which is Rs 26.1 crore. This increase was due to major leave, festive and wedding season's birthday demand. In this quarter, the company's operating revenue increased by 28% to Rs 488.2 crore. In the same quarter last year, the company's net margin was Rs 7.4 crore

[00:05:00] and operating revenue was Rs 382.1 crore. So now let's talk about Honasa's CSR initiatives. Mava Arth's Plant Goodness initiative is quite popular. This initiative focuses on forestry and supports farmers' livelihoods. Honasa has collaborated with Sun Kalp Taru Foundation to plant 5 lakh trees and empowers more than 580

[00:05:30] farmers. Due to this initiative, there are many environmental advantages like sequestration of 2.5 lakh tons of carbon, production of 5 lakh tons of oxygen per year and the greening of 3,500 acres of land. Mava Arth's Plastic Positive initiative also recycled 8,311 metric tons of plastic. The Dermaco

[00:05:55] collaborated with Gumi NGO to start the Young Scientist Program for underprivileged children. Honasa's initiatives show her utter dedication to make the future better and brighter with sustainability, transparency and faith as its guiding values. The company wants to better the environment and

[00:06:17] people. So this was the story of Honasa Consumer. Thank you so much for listening to us. We hope you liked this episode. If yes, then please do share it with your friends and family. We bring you a new story every week

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