Emami eyes entry into new segments via acquisitions, investment in startups

Firm began investing in startups over three years back ago when it bet on Helios Lifestyle; it has also invested in personal care company Brillare

Kolkata-based FMCG firm Emami is on the look-out for acquisition opportunities that may even pave an entry into new categories.

Acquisitions could be in the areas of healthcare and personal care where Emami is currently present in and may also include new categories and segments. “We are open in terms of categories,” said Harsha V Agarwal, director, Emami.

As part of the strategy, Emami may also look at investing in startups, buying stakes and wherever possible, buying companies.

Emami’s journey of investing in startups began more than three years back when it invested in Helios Lifestyle, known for its male grooming brand, The Man Company (TMC). Months back, it increased its stake in the company to 45.96 per cent, consolidating its position as the largest shareholder of TMC.

“We also have the option to buy the rest of the shares after a period of time,” said Agarwal.

Apart from that, Emami has invested in Brillare, which is into premium skin care and hair care products and sells in salons and digital e-commerce products.

Going forward, too, Emami may continue to scout for opportunities in the startup space.  “We are looking for opportunities to invest in some of the start-ups in categories and segments where we see potential,” said Agarwal.

The engines of growth for Emami, as Agarwal spelt out, would be to tap the growth potential of power brands, grow the international business and create digital first brands as well as look at inorganic opportunities in the e-commerce area.

The Covid-19 pandemic made e-commerce an important revenue stream for FMCG companies as consumers moved to the online marketplace. Currently, e-commerce is contributing 3-4 per cent of overall revenues, but Agarwal said, the share will go up.

The company already has a D2C (digital to consumer) e-commerce platform, Zanducare, where digital first products under existing brands are being launched.

“We have launched many products last year and even this year, we are launching. We will aggressively pursue this strategy and in every brand, we are looking to launch digital first products,” said Agarwal.

The total number of product launches from the Emami stable was 40, an all-time high, which included digital offerings.