MUMBAI, Oct. 2 -- Jyothy Labs has Rs.997 crore in cash, no debt, and a portfolio under pressure after German consumer-goods company Henkel AG ended its 15-year licensing arrangement for Pril and Fa in May. Yet the consumer-goods maker is not rushing to acquire brands to fill the gap.

Instead, managing director M.R. Jyothy is betting on new products, stronger existing brands and a larger personal-care business. The strategy is unfolding as crude-linked input costs squeeze margins and competition intensifies across some of the company's biggest categories.

"I don't want to rush into something that could create a problem for us for years to come," Jyothy said.

That approach contrasts with the broader consumer-goods sector, where peers hav...