Emami To Expand Its Business In Ayurvedic Space through inorganic opportunities

FMCG major Emami Ltd, which is looking at inorganic opportunities in the ayurvedic segment in India as well as abroad, is hoping that its future growth would come from "core brands and brand extensions" in the space.

Company's Chief Financial Officer N.H. Bhansali said “In the ayurvedic business, our growth will come from core brands; it could also come from brand extensions. Company is also looking at inorganic opportunities in India and overseas. What makes sense for us, we will look into them. But generally, in our business, the brands are very important. Those refunds have been restricted or halved in many of the cases. So a full clarity is required before we take a decision. And before that we need to make our calculations first. Wholesale trade channel has been amongst the worst affected post demonetisation and roll out of GST. However, normalcy is coming in now. While there have been some relaxations, still there is no clarity on the refunds, which were earlier available for the exemptions for Northeast and other exempted zones. It will depend whether we will be looking into brand acquisition or acquisition of production facilities. It will depend on the opportunities which will come.

The new facility, spread over a total planned floor area of over 50,000 sqm for a total capacity of 90,000 mtpa, is built at an investment of Rs 300 crore. Brand extensions can take place in haircare, personalcare and skin care, he said, adding that everywhere there is a lot of scope.

Rs 50,000 crore Emami group of companies has a portfolio of nearly 300 products based on ayurvedic formulations.