Skin care or functional food? Zydus Wellness eyes acquisitions in FY19

With Rs 4,897 mn cash in balance sheet and a 94 per cent category share in artificial sweeteners, the company is eyeing the inorganic route to propel growth

The personal care arm of Cadila Healthcare, Zydus Wellness, which is the market leader in the artificial sweeteners category (Sugar Free enjoys a 94 per cent market share), plans to grow inorganically and is eyeing an acquisition in FY19 in the skincare or functional foods category. 

The company has cash reserves of around Rs 4897.8 million in its books and is looking at ways of deploying it for better returns. The return on capital employed (ROCE) has come down from 63.3 per cent in FY11 to 21.5 per cent in FY17. 
 

Apart from exploring brand extensions in its key brands