According to Emami Director Aditya Agarwal, "Most regional companies are regional because they do not have national marketing and distribution muscle. Acquiring a few of them would be a good proposition for Emami as that way we could expand rapidly. But there are only a handful of local FMCG companies that would fit into Emami's portfolio. So, while we are looking at opportunities to acquire regional FMCG companies, we are also eyeing acquisitions of some of the established national brands."

Emami has a war chest of Rs 100 crore for acquisitions, he said, adding that for more money, the firm will depend on bank loans and internal accruals.

Emami has recently been in the news because it acquired 27.5 per cent in its competitor Zandu Pharma in an attempt to have management control over the latter. If its current open offer of Rs 7,315 per share for acquiring 20 per cent additional stake in Zandu is successful, the company can end up spending a maximum of Rs 117 crore.

Meanwhile, Emami is also looking at a series of launches in the personal-care category this financial year. It will launch a complete hair-care product range comprising hair packs, colourants, shampoos and oils.

Emami already has hair dyes and instant hair packs. Next will be the baby-care range with products like oil, soap, talc and cream. The company is also in the process of launching over-the-counter ayurvedic medicines for ailments like cough and cold.

"Initially, we will launch eight ayurvedic medicines. We should be able to launch around 20 ayurvedic medicines in two years," Agarwal said.

"We will continue to be a mass market brand as consumers are used to this image. One of our key strengths is research and development and we tailor-make all products to suit Indian consumers. Entering the premium product category is not our focus area," he added.

Around 65 per cent of Emami's sales come from rural markets.