Emami Announces Open Offer At Rs 7315/-

Last week Emami picked up a substantial stake of 23.6 % at around Rs 130 cr where Emami paid Rs 6900/- (inclusive of non-compete fees of Rs 100) per share of Zandu through off market deals with the Vaidyas, one of the promoter groups of Zandu. This, along with existing holding of Emami group companies, makes its total holding in Zandu at 27.5%.

"Zandu has incredible business prospect and very strong brand equity. Emami is a fast growing FMCG company having strong presence in Health, Personal and Beauty Care segment. Combination of the respective efficiencies of Emami and Zandu to achieve synergetic benefits would be a win-win situation for both the companies", said Mr Harsha V Agarwal, Director, Emami Limited.

Zandu, the age old ayurvedic herbal and healthcare products company, owns renowned brands like Zandu Balm, Zandu Special Chyawanprash, Kesri Jeevan, Pancharishta, Sudarshan and other ayurvedic and ethical products. In recent years this is the first ever deal of Emami to purchase sizable stake in the FMCG sector. Emami is on the look out for further acquisition opportunities nationally and internationally and walk the path of inorganic growth.

Anand Rathi Financial Services is working as the manager for this open offer while Mosaic Capital Pvt Ltd was the advisor for the transaction with the Vaidyas.

About Zandu

Zandu is a very prominent, age old ayurvedic Herbal Health Care products company. Zandu Balm is the market leader and has other power brands like Kesri Jeevan and Zandu Chyawanprash. It is a profit making, ayurvedic company with turnover and profit of over Rs 150 cr and Rs 15 cr respectively.

About Emami Group

Emami Group enjoys the reputation of being one of the major players in the personal and health care industry in India. It is a diversified business group with interests in paper, health care and hospital, pharmacy chains, ball pen tips, , bio diesel, cement, real estate and retail. Mr R S Agarwal and Mr R S Goenka, promoters of Emami Group, started as a manufacturer of beauty products, toiletry and cosmetics way back in 1974 . Today, moving ahead with the time, Emami Group is a Rs. 1600 crore conglomerate with its plants and offices spread across India. Emami's exports span the Middle East & Far East, UK, USA, Australia, Russia and the CIS countries.