New Delhi: Emami Group said on 13 June it will invest about Rs220 crore ($54 million) for expansion in the FMCG segment, which includes acquisitions in personal care and healthcare space and product portfolio enhancement through forays into new categories.
The company, which is eyeing over Rs500 crore of revenue in the next 3-4 years by foraying into new segments like babycare, haircare and expansion in men’s grooming categories, has also renewed its advertising contract with Bollywood superstar Amitabh Bachchan for another three years.
“We are actively looking for acquisitions in the personal care and health care segment. About Rs100 crore has been earmarked for the purpose,” Emami Group director Aditya V Agarwal told PTI.
He, however, added an acquisition was not in the horizon right now, but said the company was “actively looking out for opportunities”.
On product portfolio expansion, Agarwal said Emami would launch 18 new products this year in hair care, baby care and men’s grooming segments.
He said the company invests Rs120 crore on brand investments every year, out of which Rs40 crore would be spent on the new launches.
“We have also renewed our contract with Amitabh Bachchan for endorsing our products for another three years,” he said, adding fees for the superstar was over and above its total promotion budget.
Agarwal said the new range of products from Emami would include hair pack, hair dye and shampoo, which is expected to be launched in next five months.
Shaving cream, toiletries and skin creams for the men’s portfolio and expansion of the ayurveda products basket were also on cards for this year, he added.
Currently, the company’s product basket comprises over 20 products, the major being Boroplus Antiseptic Cream, Navratna Oil, Bororplus Prickly Heat Powder, Sona Chandi Chyawanprash and Amritprash, Mentho Plus Pain Balm, Fast Relief, Golden Beauty Talc, Madhuri Range of Products and others.
Agarwal said, the company has been growing at an annual rate of 25-30 per cent primarily driven by robust sales of products like Fair and Handsome, Navratna Oil, Sona Chandi Chyawanprash and Fast Relief and Boroplus Antiseptic Cream.
The company is yet to come out with its annual results for the year 2006-07 but for the nine month period ended ended third quarter stood at Rs262 crore registering a 29% growth.
According to him, Emami’s association with Bollywood actor Amitabh Bachchan has helped it grow, which is why the company has renewed its contract with the actor for the next three years.
Emami’s products are manufactured in Kolkata, Pondicherry, Guwahati and Mumbai and sold across the country through a distribution network of over 2,100 direct distributors and 390,000 retail outlets.
Exports to countries like Nepal, Sri Lanka, Europe, Africa and the Middle East, accounts for 10% of the company’s total turnover.