More categories soon: Emami products on display

Purvita Chatterjee

Mumbai, April 11 The Rs 620-crore Emami Ltd is getting ready to acquire brands both in the international and domestic markets. The Kolkata-based FMCG major is currently scouting for mid-sized brands and companies in the area of personal care and health care in the UK, Russia and West Asia.

Speaking to Business Line, Mr N. Venkat, CEO & ED, Emami Ltd, said, “As we already have an international presence, we are looking at mid-sized companies in countries such as UK and Russia, where we would like to consolidate our presence with couple of personal care brands. Any mid-sized acquisition could go up to Rs 500 crore but as a group we have enough money to fund the acquisition.”

With intentions of growing the acquired brands in their respective markets, Emami has no immediate plans to bring these international brands into the domestic market. Mr Venkat says, “We would eventually like to strengthen these brands where they are.”

Emami already has set up two subsidiaries in the UK and Dubai and its export business has been growing at 25 per cent with brands such as Boroplus, Navratan Oil and Fair and Handsome commanding considerable equity in the CIS countries and Gulf countries.

However in the domestic market, the chances of an acquisition may take a while. “Somebody has to sell and at the moment nobody is selling in the domestic market,” states Mr Venkat.

Considering Marico’s Sweekar brand has been up for sale and with Emami’s recent foray into edible oils, sources cite a possibility of both the home-grown companies undergoing negotiations.

Meanwhile, in the domestic market, Emami has recently appointed Ernst & Young to enhance its distribution, HRD and supply chain network. “We want to strengthen our complete distribution system and increase our direct coverage and supply chain efficiencies. Ernst & Young has been appointed to develop this project during a one-year period,” he said.

Apart from its toiletries, Emami is also foraying into new areas within FMCG in areas such as foods. “Foods is a greenfield project for us and we are developing a couple of products under it,” stated Mr Venkat.

Other FMCG categories such as diapers and feminine care are also being explored and its international acquisitions are also likely to be in these areas. Its foods division has already appointed a new CEO from Britannia and new products such as breakfast cereals and honey is currently being tested by the company.

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