FMCG major Emami Ltd is looking out for acquisitions both in India and international markets to strengthen its footprint, while also tapping at opportunities arising out the coronavirus pandemic, according to a senior company official. The company, which is seeking to enhance the contribution of sales from e-commerce channel to 6-7 per cent in the next one to two years from the current 2.5-3 per cent of total sales, is scouting for opportunities to invest or buy majority stakes in digital-first brands and companies, according to a report by news agency PTI.
“Of course. To grow inorganically has been one of the strategies for Emami since the last decade or more,” Emami Ltd Director Harsha Vardhan Agarwal told news agency PTI when asked if the company is seeking to tap acquisition opportunities arising out of the COVID-19 pandemic.
Citing the examples of Emami’s acquisitions of Zandu and Kesh King, he told PTI,”Going forward also we are looking for good acquisition opportunities both in India as well as international markets, where we see good strategic fit and where we see the right value.”
When asked if the company is currently in discussions for takeovers, Agarwal was quoted by PTI as saying, “Always, there is something on the table, honestly. Even now we are in touch with and have discussions with few companies. These are in India and are at a very preliminary stage.”
With up to Rs 400 crore of cash in hand and debt-free, he said for Emami budget for acquisition is not a constraint but the company is looking more at strategic fit and potential of the target brand.
“It can even be regional (brands). Some of the regional brands if we see the potential, we are always open for them,” Agarwal further told PTI.
With the company working to enhance its presence in the digital channel, he said,”Apart from that (traditional brands) we are also always looking for opportunities to invest and also if needed buy majority (stakes) in digital first brands and companies.”
Home Hygiene Products
Emami is also seeking to cash in on Indian consumers slowly leaning towards homegrown brands following the government’s ‘Aatmanirbhar’ campaign for its newly launched home hygiene products besides tapping on increased awareness due to Swachh Bharat initiative.
The company, which had forayed into the home hygiene category in late 2020 currently dominated by multinationals such as RB and Unilever’s arm HUL, is looking to become a serious player in the segment with plans to introduce more products in future.