Piramal Consumer Healthcare targets GenZ; doubles down on digital as ecomm hits 24% of sales in H1 FY26

Piramal Consumer Healthcare (PCH) is intensifying its focus on digital-first execution, innovation and power brands as it navigates a dynamic consumption environment and growing competition across India’s consumer healthcare and skincare segments. In an interview with Storyboard18, Sai Ramana, CEO, Piramal Consumer Healthcare said that the company’s growth strategy is rooted in consumer-centric decision-making rather than fixed budget allocations. “We are extremely consumer-centric, and consumers are evolving very fast. We spend across advertising as well as acquisition costs, and that mix keeps changing every quarter depending on seasonality, category dynamics and platform-led events,” he said.

After six decades, PCH has rebranded the iconic purple Lacto Calamine bottle to appeal to a younger consumer cohort. According to the company, the new identity represents a modern evolution while staying true to the brand’s heritage of trust and proven efficacy.

Alongside the identity refresh, the brand is expanding into new-age skincare formats including facewash, light moisturisers, sunscreens, serums, facial wipes, sheet masks and treatment-led products, reflecting the shift toward regimen-based skincare adoption.

In FY25, Piramal Consumer Healthcare reported 11% year-on-year revenue growth, even as broader FMCG and healthcare markets witnessed demand moderation. Consolidated Piramal Pharma revenue stood at Rs 9,151 crore, registering 12% YoY growth, supported by operating leverage and sustained brand investments.

During the year, PCH spent approximately Rs 125 crore on advertising and trade promotion, equivalent to around 11% of revenue. This rose to nearly 12% of sales in H1 FY26, underscoring continued brand investments despite a challenging consumption environment.

Ramana highlighted a decisive shift toward digital media, particularly for skincare brands. The company’s overall media mix stands at an estimated 60:40 in favour of digital, with certain campaigns skewing as high as 80% digital.

E-commerce accounted for around 21% of PCH revenue in FY25, increasing to approximately 24% in H1 FY26. Notably, over 40% of e-commerce sales are now driven by quick commerce platforms, signalling the growing importance of rapid-delivery channels in discovery and conversion. Traditional trade and modern retail together continue to contribute roughly 79% of sales, reflecting PCH’s strong offline presence.

Skincare has become a critical growth driver, led by brands such as Lacto Calamine. “Nearly half of Indian consumers have oily skin, and globally there is no brand uniquely positioned with oily skin expertise,” Ramana said. “That gives Lacto Calamine a very defensible and scalable advantage.”

The skincare portfolio is growing at nearly twice the rate of the overall business, driven by both legacy SKUs and newer formats across cleansers, serums, sunscreens and treatments. Pharmacy-led credibility is also proving to be a key differentiator. “Brands that come from a pharmacy legacy are being accepted by consumers much more than pure beauty companies,” he added.

Innovation remains central to PCH’s strategy. In FY25, the company launched over 50 new products, with innovation contributing between 8% and 11% of revenue. “Innovation is not a buzzword for us—it’s a revenue engine,” Ramana said, noting the company’s “launch-plus-leverage” approach.

Power brands are another cornerstone, growing over 20% and contributing around 50% of PCH sales. “Our focus is on fewer brands, deeper investment and sharper relevance to Indian consumers,” Ramana said.

Looking ahead to FY26, PCH expects growth to be driven by deeper digital penetration, scaling of quick commerce, continued innovation and data-led decision-making. While H1 FY26 revenue declined 5% YoY due to CDMO inventory destocking, management stressed that this does not indicate structural demand weakness. “We operate with the heart of a startup, but the might of a science-based innovation engine,” Ramana said, signalling confidence in the company’s long-term growth trajectory.