On its path to profitability ahead of the planned public market debut on Diwali next year, The Good Glamm Group has been streamlining its operations over the last year or so and that has resulted in an internal rejig, which led to a reduction of around 150 employees, or about 15% of its workforce.
The company, which has recently named Kamal Lath as its chief financial officer, elevated several existing employees to senior roles, including Manan Jain, who is now the group chief operating officer and Ashish Jadhav, who is now the group’s product head.
“Our focus in this financial year is to get to profitability. We have been doing a lot of cost cutting over the last six to 12 months, including cutting discounts, which has made us CM2 (contribution margin 2) profitable in FY24. Then we went about cutting fixed costs as well, which we hope will get us to Ebitda profitability in FY25,” the group’s CEO Darpan Sanghvi said in an interaction with FE.
The Good Glamm Group houses beauty and personal care brands such as MyGlamm, Moms Co, St Botanica, Sirona and Organic Harvest, most of which have been integrated through acquisitions in 2021-22. But, unlike most beauty startups, Good Glamm Group has been doubling down on celebrity partnerships to create its range of premium products.
Over the years, it has launched make-up lines in collaboration with designer Manish Malhotra and filmmaker Karan Johar, and recently with American Tennis player Serena Williams. The company also has tie-ups with production houses such as Karan Johar’s Dharma Productions and Vashu Bhagnani’s Pooja Entertainment.
“Celebrity lines have become our premium lines, and our premium portfolio is about 20% of the business here. We want to eventually take our premium portfolio to 30-35% of our business,” Sanghvi said, adding that he plans to take these celebrity make-up lines to the Indian diaspora in other countries.
The company ended the financial year 2022-23 with a topline of Rs 640 crore, compared to sales of Rs 110 crore in the year before that.