Emami scouting for acquisitions to expand product pipeline

Last month, company had bought Kesh King to strengthen its presence in the fast-growing haircare segment

FMCG major Emami is scouting for acquisitions to expand its product offerings as the company enters into next phase of growth in consumer care products segment.

In its next phase of growth, the company is deepening its product pipeline and categories to strengthen its market position.

"Emami is standing at an inflection point gearing for next phase of growth... This phase will be marked by the company continuing to look for inorganic opportunities," the company said in its annual report for the 2014-15.

It further said: "Emami intends to launch unique offerings that meet the unfulfilled needs of consumers."

Emami has been acquiring brands to enter into new product categories.

Last month, Emami bought ayurvedic hair and scalp care brand Kesh King for Rs 1,651 crore to strengthen its presence in the fast-growing haircare segment.

Earlier this year, Emami took over a controlling stake in Australia-based Fravin, that manufactures natural and organic personal care products, along with its three subsidiaries for an undisclosed sum, and believes the step will help gaining foothold in this segment in the overseas markets.

Last year, it acquired sanitary-napkin brand 'She Comfort' from Royal Hygiene Care in an undisclosed all-cash deal to enter into the Rs 2,100-crore women's hygiene segment dominated by Procter & Gamble and Johnson & Johnson. The company also acquired Zandu brand in 2008 for Rs 700 crore.

Elaborating on plans for international markets, the firm said it is proposing market specific line extensions, new launches, promotions to enhance product visibility and deeper distribution channels.

In fiscal 2014-15, international markets accounted for 14.4 per cent of the company's total revenue.

Emami has presence in markets such as Sri Lanka, Bhutan, Bangladesh, Maldives, Pakistan and Afghanistan, along with Gulf countries, Russia and CIS regions with key brands Boroplus, Navratna, Fair and Handsome and Zandu.