MAM
Bata decides to walk with DDB Mudra
MUMBAI: Footwear retailer Bata has appointed DDB Mudra Delhi as its integrated marketing and communications agency to shoulder marketing communication responsibilities starting December.
The agency will be responsible for strengthening the Bata brand and highlighting its contemporary and youthful product range. The Delhi branch of the agency will be in charge of the account.
Bata India plans to maintain an aggressive momentum on retail expansion, having added 168 new stores so far this year and will be launching new styles for the entire family.
Group Managing Director Bata India Limited Rajeev Gopalakrishnan said, “DDB Mudra’s robust experience in media, OOH, retail and experiential lifestyle retail has positioned them as our preferred choice. Their understanding of our brand integrated seamlessly with our foreseeable plans. Given the complexities of the retail marketplace and our diverse portfolio of products, it was crucial to select a creative and passionate team to partner Bata in our growth endeavour.”
DDB Mudra Group group CEO and managing director Madhukar Kamath said, “I am elated about this new win for DDB Mudra Delhi. Bata, is one of the oldest and most respected brands in India and represents a very special addition to our list of clients. I am confident that our team in Delhi, consisting of Vandana Das, Talha Mohsin, Mahesh Parab, Xavi Bech and Radhika Das will do an excellent job partnering and building brand Bata.”
DDB Mudra Group president Vandana Das said, “Bata is one brand we all have grown up with. Needless to say that it’s a prestigious business and it delights us even more to win it particularly at a time when the brand is going through an evolution. There are a host of new offerings planned for the year ahead and we are all geared up and excited.”
Brands
Honasa’s Varun Alagh targets next Rs 500 crore brands as profit doubles
Profit doubles as Mamaearth rebounds and new labels race to scale
MUMBAI: Honasa Consumer’s co-founder and chief executive officer Varun Alagh has set his sights on building the company’s next crop of Rs 500 crore brands, as the beauty and personal care firm delivered record revenue and nearly doubled its profit.
The Mamaearth parent reported revenue of Rs 602 crore, up 21.7 per cent year on year, with volume growth of 30 per cent. Ebitda rose to Rs 66 crore at a margin of 10.9 per cent, while profit after tax reached its highest-ever quarterly level.
“We have delivered our highest-ever quarterly revenue and almost doubled our PAT,” Alagh said. “The fundamentals we have rebuilt over the past few quarters are clearly delivering outcomes.”
With Mamaearth back to double-digit growth and The Derma Co sustaining strong momentum, Alagh believes the next wave of brands is ready to step up.
“It’s a race to become the next Rs 500 crore brand,” he said. “Reginald Men, Dr. Sheth’s, BBlunt, even Staze in colour cosmetics, each of them has the right to win in its category.”
Honasa’s portfolio of young brands grew more than 25 per cent during the quarter. The Derma Co, its science-led skincare label, has now achieved double-digit Ebitda margins and continues to gain share in sunscreen and actives-based skincare.
Mamaearth, once the company’s sole growth engine, has returned to the teens in year-on-year growth after a strategic reset.
“We focused on superior formulations, sharper communication and six core categories,” Alagh said. “We are seeing strong share gains, not just growth riding the market.”
Importantly, over 90 per cent of Mamaearth’s growth came from existing distributors and large retail partners, reflecting stronger consumer pull rather than mere expansion of reach.
From a channel perspective, e-commerce grew over 20 per cent, while general trade and modern trade delivered more than 25 per cent growth in secondary sales. Direct distribution now contributes nearly 80 per cent of revenue.
Honasa has also made a calculated entry into men’s skincare with the acquisition of Hyderabad-based Reginald Men. Alagh believes the category is at an inflection point.
“In the last two to three years, we’ve seen searches for ‘sunscreen for men’ and ‘face wash for men’ grow multi-fold,” he said. “Men want multi-benefit products without complicated regimes.”
Beyond category expansion, the acquisition strengthens Honasa’s footprint in South India and broadens its talent base.
The company reiterated its target of expanding Ebitda margins by around 100 basis points annually.
“Our endeavour is to unlock at least 100 basis points every year through a mix of A&P efficiency and overhead leverage,” said chief financial officer Raman Preet Sohi.
While advertising spends in absolute terms have risen, improved effectiveness has driven percentage efficiencies. Gross margins remained broadly stable, with guidance to maintain levels above 70 per cent.
With legacy FMCG giants sharpening their digital play and acquiring new-age brands, Alagh remained unfazed.
“Competition is not new to us,” he said. “We were born in categories where much larger players existed. The real value gets created when you focus on the consumer and where the consumer is moving.”
For Honasa, that focus now extends beyond one hero brand. As Alagh put it, the company is not content with a single success story. It wants a stable of them, each marching towards the Rs 500 crore mark.
