Honasa Consumer Ltd., the parent company of popular brands such as Mamaearth and The Derma Co., announced that its Chief Business Officer, Master Zairus, has resigned. According to a regulatory filing on January 2, Zairus will leave the company on February 28, 2025, citing personal reasons.
Zairus’s resignation is the second significant leadership change at Honasa in recent months. In November 2024, Chief Product and Technology Officer Jayant Chauhan also left the company. These changes come as Honasa navigates restructuring efforts aimed at optimizing its financial and distribution strategies.
Zairus’s Contributions at Honasa
Master Zairus joined Honasa Consumer in August 2021. Prior to that, he had senior positions at Airtel, Nokia, and Shine.com, where he was the CEO. Like Honasa CEO and founder Varun Alagh, Zairus began his career at Hindustan Unilever, bringing a strong foundation in FMCG operations and strategy.
At Honasa, Zairus played a significant role in molding the company’s growth. He managed investments in key categories and expanded multiple brands such as Mamaearth, The Derma Co., Aqualogica, BBlunt, Dr. Sheth’s, and Staze. During his tenure, Honasa concentrated on innovative product launches and category growth.
However, the company discontinued its ayurvedic beauty brand, Ayuga, in Q1 FY25. The company has strategically shifted its focus to high-growth segments such as face washes, sunscreens, and serums.
Financial Challenges and Restructuring
Honasa Consumer has seen much financial stress over the last one year. The company’s net loss for the quarter ended September 30, 2024 has been at Rs 18.6 cr though this was better than the loss of Rs 29.4 crore during the same quarter of the previous year. Revenue from operations stood at Rs 461.8 crore, down 6.9% from the year-ago period.
Despite these setbacks, Honasa’s EBITDA loss narrowed to Rs 30.7 crore, compared to Rs 40.1 crore in the corresponding quarter last year. The company attributed this improvement to better cost controls and an increasing focus on high-performing categories.
What’s more, the newer brands of Honasa such as The Derma Co., Aqualogica, BBlunt, and Dr. Sheth’s have grown with promise. In fact, all these brands posted more than 30% year-to-date growth, with good demand in niche categories. While focus segments face washes, sunscreens, and serums grew by over 28% in the first half of FY25.
Changes in Leadership in the Face of Challenges
Zairus’s resignation is during a transition time for Honasa. The company is repositioning itself according to changing consumer preferences and the increasing competition in the beauty and personal care segment.
Jayant Chauhan resigned in November 2024, which is a big blow to the product and technology leadership of the company. Now with Zairus’s exit too, Honasa will have to deal with issues of leadership succession while not deviating from growth and innovation.
Honasa Consumer did not reveal any intentions regarding the CBO position. However, the company highlighted its interest in expanding its portfolio and consolidating its presence in the beauty and personal care market.
Honasa’s Growth Story
Honasa Consumer has strengthened its presence in the Indian FMCG market with Mamaearth as its flagship brand, and later diversified into newer brands under The Derma Co. and Aqualogica, catering to distinct consumer needs.
These younger brands have gained significant traction, contributing to the company’s overall growth. For instance, The Derma Co. focuses on science-backed skincare, while Aqualogica promotes hydration-based products. Such targeted positioning has helped Honasa tap into growing trends in the beauty and skincare market.
While Honasa’s revenue from operations declined this year, efforts at improving profitability and focusing on high-growth categories mark a strategic shift. Dropping underperforming brands such as Ayuga also indicates a willingness to realign resources for better returns.
Future Outlook
Honasa Consumer leadership transitions and financial restructuring mark a critical phase in the company. Zairus’s departure is significant but has come at a time when Honasa is stabilizing its core operations.
Such momentum from innovation high-growth segments might help it recover in coming quarters. Second, Honasa’s focus on younger brands and niche categories leaves it well-equipped for future growth in a very competitive FMCG market.
Honasa continues to be optimistic about its ability to overcome challenges as it expands its product portfolio. Whether this optimism will translate into sustained growth and profitability will depend on the company’s ability to adapt to market dynamics and manage leadership transitions effectively.
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