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

The Man Company acquisition: Kolkata-based FMCG giant Emami has announced the acquisition of the remaining 49.6% stake in Helios Lifestyle, the company behind the premium male grooming brand 'The Man Company.' With this move, Emami now wholly owns Helios Lifestyle, which was already a subsidiary, holding 50.4% of its shares, on August 31.

Harsha V Agarwal, Vice Chairman & MD at Emami, said, “We had adopted the route of strategic investments in new-age startups very early to leverage online opportunities brought about by rapid digitalization to incubate new engines of growth. These strategic investments help us to have footprints in emerging segments that align with evolving consumer preferences."

Emami stock price closed flat, up 0.01 per cent, at ₹813.25 apiece on August 30 on BSE. The company enjoys a market capitalisation of ₹35,708.19 crore. According to NSE, Emami's share price hit its 52-week high on 27 August 2024 at ₹855.60.

Agarwal added, “We will continue to explore more such opportunities for strategic investment that have synergies with our existing line of businesses.”

"The completion of the acquisition of Helios by Emami will strengthen its presence in the fast-growing digital-first premium male grooming segment," stated Emami.

Emami initially acquired a 33.09% stake in Helios in two phases, starting in December 2017 and followed by another in February 2019. The stake was later increased to 50.4% in 2022, making Helios a subsidiary before this final acquisition.

The Man Company, known for its digital-first approach, offers a range of premium grooming products for men, including fragrances, skincare, hair care, body care, and beard management.

"The segment offers huge potential for innovation & growth. Emami is already an active player in the male grooming segment through its brand Fair and Handsome," the company added.

Hitesh Dhingra, Co-founder of Helios Lifestyle, said, “We now expect it to continue its growth trajectory with Emami, who has the ability to further accelerate the same and make ‘The Man Company’ one of the leading brands in the segment.”

We believe the brand has great potential and would love to see ‘The Man Company’ as a global brand under Emami” added Bhisham Bhateja, Co-founder, Helios Lifestyle .

Emami emphasized that the male grooming market in India is expanding rapidly, showing significant growth potential.

"We are happy to have not only invested in ‘The Man Company’ as we could foresee its huge potential but equally impressed and happy with the promoter’s vision and commitment towards making it a formidable brand. With the completion of the 100 per cent acquisition of the company, we are excited to take the brand to its next level of growth,” the statement continued.

Emami's future outlook

Earlier in August, Emami Chairman R S Goenka mentioned during the company's AGM that Emami would continue to explore opportunities for inorganic and strategic growth, focusing on new product categories.

Emami, which has previously acquired brands like AloFrut, Creme21, and Zandu, plans to keep pursuing such opportunities to expand its market reach.

In its latest annual report, Emami revealed that 45% of its revenue in FY24 came from acquired brands, with a growing share of sales from non-rural markets. The company, which owns well-known brands such as Navratna, Boroplus, Zandu, Fair and Handsome, Kesh King, and Dermicool, reported a turnover of ₹2,921.57 crore for FY24.