Emami enters into definitive agreement to acquire 26% of Axiom Ayurveda

Kolkata-headquartered FMCG firm Emami, on Thursday, announced its foray into the health juice category with a 26 per cent strategic stake in Axiom Ayurveda, makers of 'AloFrut', for an undisclosed amount.

In an exchange filing, the company said that it had entered into definitive agreements today (Thursday) to acquire 26 per cent of the shareholding of Axiom Ayurveda on a fully diluted basis.

The key business of Axiom Ayurveda is AloFrut juices – a mix of aloe vera pulp and fruit blends – available in multiple flavours. It also has other product portfolios in the beverage segment and personal care, which contribute 15-20 per cent to the business.

In a statement, Harsha V Agarwal, vice chairman and managing director of Emami, said the strategic investment in the equity of Axiom Ayurveda marks the entry into the juice category with 'AloFrut'.

"With health and wellness being the buzzword for consumers today, we see tremendous potential in the segment," he added.

He also said that the move was in line with the corporate growth strategy to invest in categories or brands that not only have synergy with the existing business but offer potential for growth. "We look forward to adding meaningful value to the brand."

Axiom has its own manufacturing facility in Ambala, Haryana and is setting up a fully automated new facility in Jammu (Kathua) at a cost of Rs 160 crore. According to the exchange filing, Axiom Ayurveda's turnover in 2022-2023 had stood at Rs 129 crore.

Rishabh Gupta, founder of Axiom Ayurveda, said, "Nowadays consumers are moving away from carbonated beverages and are looking for a healthier alternative with equal importance to taste. Considering this trend where the consumer is focusing on taste and health, we have tried to offer a perfect blend of the same, which is a big differentiator from other beverage company offerings."

"It is exciting to have Emami come on board as a strategic partner with wide industry experience who shares our vision to make AloFrut a leader brand," Gupta added.

Emami's growth has been marked by acquisitions. The last major acquisition from Emami was 'Dermicool', one of the leading brands in prickly heat powder and cool talc, in March 2022 from Reckitt for a total consideration of Rs 432 crore (excluding taxes and duties). In addition, there has been a spate of strategic investment in start-ups.

Key acquisitions over the years were Zandu in 2008, Kesh King in 2015 and Crème 21, Germany in 2019. These apart, Emami's major brands include Boroplus, Navratna, Fair & Handsome.