- Emami Limited announced the acquisition of “Dermicool”, a brand in Prickly Heat Powder and Cool Talc category from Reckitt Benckiser for a total consideration of Rs.432 crores.
- Emami said that the acquisition was funded through internal accruals.
- Emami is a FMCG Company in Personal & Healthcare Space and is the flagship company of the Emami Group of Companies. It is engaged in the business of manufacturing and marketing personal care, healthcare and beauty products.
- Emami has market capitalization of approx. USD 3 bn.
- Emami has a strong domestic distribution network of more than 3,500 distributors and 4,000 sub distributors, with a direct reach across 9 Lakh retail outlets and overall reach to 45 lakh+ outlets.
- Emami owns brands like Boroplus, Navratna, Zandu, Fair & Handsome and Kesh King amongst others.
Reckitt Benckiser (India) Ltd:
- Reckitt Benckiser is a British multinational consumer goods company with global presence.
- Reckitt Benckiser India Ltd. manufactures and distributes household domestic goods. It produces household, laundry, toiletry, pharmaceutical, and food products and includes brands like Dettol, Strepsils, Veet, Airwick etc.
- Dermicool brand has 20% market share in the category of cooling and respite from prickly heat caused during summer season and has high consumer connect through its marketing campaign.
- Combined with Emami’s Navratna Cool Talc, Emami expects to be leader in prickly heat powder and cool talc category with acquisition of Dermicool brand.
- Harsha Agarwal, Director of Emami Limited commented that they are very happy to announce the acquisition as it will help realize synergetic benefits and optimize costs.
- He added that with increasing global warming and soaring summer temperatures, such problem solution niche products are poised for strong growth in future.
- Emami further added that it is open to grow through inorganic route. The Company considers acquisitions that add value and have synergy with the current line of businesses, or offer opportunities to be present in categories that have high growth potential.
- Zandu, Kesh King and German brand Creme 21 are some of the brands or businesses acquired by the Company in the past few years.
- Earlier this month Emami has acquired 19% stake in TruNative, a nutrition focused food and Beverage Company, for an undisclosed amount.
- Though the market was not very cheerful to the news, as Emami stock went down by 4% in 2 days following the announcement.
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