Bajaj Consumer Care Ltd (BCCL), India’s leading FMCG brand, is targeting a scale-up of its diversification strategy, aiming to double its non-ADHO portfolio to ₹500 crore over the next three years from ₹225 crore in FY26, as it reduces dependence on Bajaj Almond Drops Hair Oil (ADHO).
“The growth portfolio is already profitable and will be expanded through a mix of scaling existing brands and launching new products,” said Bajaj Consumer Care Managing Director Naveen Pandey during an earnings call.
Diversification gains traction
He indicated that the company’s push to diversify beyond ADHO, across both portfolio and channels, is beginning to gain traction, providing a base for the next phase of growth.
Within the portfolio, Bajaj Coconut and Banjara’s are expected to be key drivers. Banjara’s, in its first year under Bajaj ownership, recorded double-digit growth with low-teen margins, with the management expressing confidence in scaling the brand further through distribution expansion and portfolio augmentation.
On coconut, he said that it remains to be an important part of the strategy, though not the only growth lever, pointing to a broader multi-brand approach.
Cost pressures persist
Pointing to the geopolitical tensions in the Gulf, he said it led to volatility in linear low-density polyethylene (LLP) and packaging material prices, while delaying the expected correction in mustard and copra prices, which have remained at pre-war levels.
BCCL is monitoring the situation closely and may undertake pricing actions along with cost optimisation measures. Despite the volatility, it expects to maintain margins in the current range, while continuing to fine-tune its strategy as conditions evolve.
Milestone year, mixed global performance
For FY26, BCCL reported 21% growth in its net revenue of ₹1,153 crore over the corresponding period last year and also crossed the ₹1,000 crore mark for the first time, marking a turnaround year.
In international business, performance remained uneven. While overall business declined during the quarter, Nepal and Bangladesh recorded growth, with Bangladesh achieving breakeven and Nepal reporting improved margins.
The management indicated that leadership changes and renewed focus on Rest of World and middle East and North African markets are expected to drive a turnaround.
Category resilience, strategic focus
Pandey said that hair oil continues to remain a resilient category for BCCL, estimated at over $2 billion with over 90% penetration and 20% margins, offering headroom for growth despite its maturity.
The company plans to step up brand-building initiatives, including higher advertising and digital spends, alongside expansion of its digital footprint and execution of programmes such as Aarohan across new States.
“We will continue to focus on brand building and focused execution in the market, which we believe will unlock the next layer of growth for us,” he said.