Emami plans overseas buys

Besides tapping the growth in the domestic FMCG market, beauty and health product major Emami is seeking acquisitions overseas to drive the company's growth.

"We are actively considering brand acquisitions abroad for which a blueprint has already been prepared," Emami Chairman R S Agarwal said while addressing the company's annual general meeting (AGM) at Kolkata today.

He said the company picked up 27.5 per cent stake in Zandu Pharmaceuticals "as part of a major strategic investment with an objective to have management control along with the existing promoters" and seeking acquisitions abroad was a follow-up to the company's growth plans.

Agarwal, however, did not elaborate the details of its overseas acquisition plans. Emami is currently waiting for Company Law Board’s verdict on its intention to acquire Zandu.

Emami is also looking to enhance its domestic position by improving its supply chain and sales besides adding fresh capacity. "The company has set up a state-of-the-art manufacturing plant in Guwahati at an investment of Rs 40 crore," he said. "Emami is also reaching out to consumers through a solid supply-chain management involving 2,700 distributors and four lakh retail outlets."

Emami's rural reach through its schemes like Emami Mobile Traders and Emami Small Village Shops had extended to about 9.3 lakh households.

It will launch products to cater to the health conscious and diabetic patients through less sweetened and zero-calorie product versions.

It also plans to position itself as a complete food supplement major for pregnant women.

The group is investing Rs 250 crore in its plant in Haldia in West Bengal to expand into the edible oil business this year.

Emami will foray into babycare products this year. It would introduce talcum powder, soaps, shampoos, lotions, creams and body oils for babies.

Moreover, Emami - which started the male grooming revolution with its Fair & Handsome fairness cream - will launch a complete range of men's products this year.

"The drivers of growth in the FMCG industry will be increasing households, higher incomes, retail boom, untapped rural market and new and innovative products in the long term. With nearly 220 malls expected to come up in the next four to five years, the demand for FMCG is expected to be higher," Agarwal said.