Emami Uses AI, Automation and Agile Manufacturing to Reshape FMCG Operations

Indian consumer goods manufacturer Emami is expanding the use of AI-driven forecasting, utility automation and warehouse digitalisation as it reshapes its manufacturing operations around faster production cycles, lower resource consumption and greater supply-chain resilience.

The company is adapting its production network as consumer demand shifts towards faster fulfilment, smaller batch sizes and more diverse sales channels, according to Dilip Kumar Jha, AVP-Operations and lead operations at Emami.

At its Guwahati manufacturing facility, personal care, healthcare and cosmetics products are produced within the same site despite very different production cycles and packaging requirements.

Manufacturing Shifts From Scale to Agility

Emami is adjusting its manufacturing model to respond more quickly to changing demand.

Traditional FMCG production has typically relied on high-speed lines and large batch sizes, but growing e-commerce and quick-commerce demand is creating a need for smaller quantities and shorter production cycles.

Emami is therefore planning shorter-batch manufacturing capabilities alongside existing high-volume lines, including operations that can currently run at up to 600 units per minute.

The approach is intended to give the company greater flexibility to serve customers seeking fresher products and smaller order quantities without compromising its larger-scale production requirements.

AI Supports Seasonal Demand Forecasting

Artificial intelligence is also being introduced into Emami’s planning processes.

The company uses AI-driven demand forecasting to manage seasonal variations across products such as Boro Plus, which experiences stronger winter demand, and Navratna cooling oil, which peaks during warmer periods.

The system helps production teams respond when seasonal demand begins earlier, lasts longer or changes from historical patterns.

Greater forecasting visibility is becoming increasingly important as consumer demand moves across general trade, modern retail, e-commerce and quick-commerce channels.

Utility Automation Cuts Energy Consumption

Digital technologies are also supporting energy and resource efficiency across Emami’s manufacturing operations.

At the Guwahati plant, utility automation and energy optimisation helped reduce electricity consumption by 10% despite production increasing by nearly 9%.

Water-conservation initiatives have also reduced consumption by around 13%.

The plant’s energy-management efforts received the Green Tech Energy Management Excellence Gold Award.

Emami is additionally using acoustic imaging technology to detect compressed-air leaks, allowing maintenance teams to identify energy losses that may otherwise remain difficult to locate.

Warehouse Digitalisation Improves Inventory Visibility

The company is also digitising warehouse operations.

Emami is introducing RFID-enabled warehouse systems designed to provide real-time visibility of inventory and improve tracking across manufacturing and distribution operations.

The wider objective is to connect traditionally separate operational systems more closely.

Jha expects ERP, manufacturing, quality, warehousing, procurement and logistics systems to increasingly operate through an integrated AI-enabled digital environment.

The shift is intended to improve visibility across the production and supply-chain process while supporting faster operational decisions.

Supply-Chain Resilience Becomes a Manufacturing Priority

Recent disruptions have also changed how Emami approaches supply-chain planning.

The company has increased supplier redundancy by sourcing from multiple vendors across different geographies, reducing the risk that disruption at a single supplier or location could interrupt production.

Geopolitical pressures, including the Russia-Ukraine war and tensions involving Iran, have contributed to higher input costs and greater uncertainty across global supply chains.

Emami has responded by placing greater emphasis on operational agility, cost competitiveness and alternative sourcing.

Distribution has also become more segmented as general trade, modern trade, e-commerce and quick-commerce increasingly require different fulfilment models.

Sustainability Extends Across Manufacturing and Sourcing

Emami’s sustainability strategy covers three main areas: operations, packaging and responsible sourcing.

Within manufacturing, the company is focusing on energy efficiency and water conservation.

Packaging initiatives are being evaluated not only for environmental performance but also for whether they can be produced consistently and efficiently at commercial scale.

Responsible sourcing efforts extend beyond Emami’s own factories, with the company using digital tools to strengthen supplier traceability and monitor performance across its supply network.

Digital Operations Shape the Next Phase of FMCG Manufacturing

Emami expects the next phase of FMCG manufacturing to require closer integration between digital systems, factory operations and human expertise.

The company is combining AI-based forecasting, automated utilities, RFID inventory management and more flexible production models as it adapts to faster-changing consumer demand.

For Emami, the shift is moving manufacturing away from a model built mainly around scale towards one that also prioritises agility, sustainability, visibility and resilience.

As FMCG supply chains become more complex, the company sees digitally connected operations as increasingly important to maintaining production efficiency while responding faster to customers and market changes.