Emami Ltd eyes more acquisitions, increases stake in The Man Company to 100%

New Delhi: Emami Ltd is open to more acquisitions across traditional businesses and direct-to-consumer (D2C) brands, said a top executive at the Kolkata-based consumer goods maker, after the firm completed the purchase of a male grooming company.

In the past few years, the company has picked up stakes in brands spanning male grooming, mass market personal care, packaged drinks, pet care and healthcare firms.

In a filing to the exchanges on Sunday, the company said it increased its shareholding in Helios Lifestyle Pvt Ltd, which operates The Man Company, to 100% by acquiring the balance 49.60% stake for ₹177.63 crore. It first bought a stake in the Gurugram-based company in 2017. In FY24, Helios posted a turnover of ₹183 crore.

Also Read: The Man Company acquisition: Emami to acquire remaining 49.6% stake, gaining 100% ownership of Helios Lifestyle

“We are open for all kinds of opportunities, be it small, medium size or large,” said Harsha V. Agarwal, vice-chairman and managing director, Emami Ltd.

The Man Company may touch ₹500 crore in revenue in 3 years

The Man Company, which sells perfumes, body washes, face masks, and hair-removal creams, could touch ₹500 crore in revenue in the next three years, with plans to double the business in the mid-term, he said in a virtual interview with Mint. The Man Company exited fiscal 2024 with a revenue of ₹180 crore. 

Meanwhile, Emami's largest brand Zandu (balm) could touch ₹1,000 crore in annual sales in the next one or two years, from ₹800 crore in FY24.

Following investments in new-age startups, the company that sells several mass-market brands such as Navratna, Zandu, Kesh King and Dermicool has been actively pursuing mergers and acquisitions in recent years. These investments have enabled the company to capitalize on online opportunities, incubate new growth engines, and tap into emerging consumer segments.

In 2022, the company picked up a minority stake in Tru Native F&B that markets nutrition products under the TruNativ brand. It also acquired a 30% stake in pet-care startup Cannis Lupus Services India in the same year.

The company is scouting for investments in new-age categories where it does not already have a presence, said Agarwal.

Also Read: Emami Group shows a ₹2,000 crore appetite for its food business

New-age companies aside, the company also acquired Dermicool talc from Reckitt in March 2022 for ₹432 crore. Last September, it announced its foray into the juice category by acquiring a 26% intake in Axiom Ayurveda Pvt Ltd that markets beverage products under the brand AloFrut.

“One objective is to scale portfolios, that is, wherever we are invested. Growing them will be one of the tasks. Apart from that, we are looking for more investment opportunities. Ultimately, getting the right category, company and then getting it at the right price—all have to work together,” he said. “We are evaluating one or two of them, depending on how we like it and if we get it at the right price. This could be both direct-to-consumer and heritage brands,” he said.

In FY24, Emami Ltd's revenue from operations rose 5% to ₹3,578 crore. The company’s reserves and surplus stood at ₹2,402.94 for the 12 months ended 31 March 2024. “Financially a very, very strong company—we have no debt, we have cash in hand.  It (acquisitions) depends on the right opportunity," he added.