New Delhi: Kolkata-based Emami on Sunday said it is in talks with global FMCG giant Reckitt Benckiser to buy the personal care business of Paras Healthcare for an estimated deal size of up to Rs900 crore.
Last year, British consumer goods firm Reckitt Benckiser had acquired Paras Pharmaceuticals for Rs3,260 crore ($726 million). Emami was in the race to buy the Ahmedabad-based firm, which was selling brands like Moov, Krack and Dermicool.
“We have shown our interest in buying Paras’ personal care business. We are in talks with Reckitt Benckiser. They are planning to sell off the personal care business of Paras, which is of the size of Rs800-900 crore,” Emami executive chairman R. S. Agarwal told PTI.
However, when contacted, Reckitt Benckiser India chairman and managing director Chander Mohan Sethi refused to comment on the deal.
According to reports, Reckitt Benckiser is planning to sell Paras’ personal care business as it is keen to focus on the latter’s healthcare business.
Under the personal care portfolio, Paras Pharmaceuticals had been selling brands like Borosoft, Reconova, Livon, Set Wet and Zatak.
On the other hand, Emami has been looking to strengthen its personal care and healthcare segments and has been scouting for acquisitions that would be of strategic fit to the company.
“Acquisitions are very important for us. We are in talks with lot of companies both outside and in India for our future growth. Some talks abroad are shaping up but nothing concrete is happening right now,” Agarwal said.
It is likely that the company may announce at least one acquisition during this fiscal, he added, without naming any of the companies that it is currently in talks with.
Asked how the company plans to fund the acquisition, Agarwal said the firm has enough capital. “It is not a problem. We have enough cash. We had earlier planned to buy Paras for over Rs3,000 crore. So, buying only the personal care business should not be a problem,” he said.
Emami’s last acquisition was in 2008 when it bought out Zandu Pharmaceuticals for around Rs700 crore.