NEW DELHI — Over the last year, Kolkata, India-based Emami Ltd. made no secret of the fact that it was on the lookout for possible acquisitions, and ready for a shopping spree. It was considering international and local personal-care brands.
Last week, Emami, a strong player in the men’s beauty market, particularly in the fairness category, stepped into the organic personal-care space with an acquisition of a 66.67 controlling stake in Australia-based Fravin Pty.
“This is a significant step for the organization, as the acquisition marks Emami’s entry into organic personal-care products, where we were not present earlier,” said Harsh Agarwal, director of Emami. He added that Emami has “made its mark in Australia” and would expand globally and into India “in due course.”
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The strategy of acquisitions, brand launches and brand extensions has been working for Emami, which has more than tripled its turnover in the last 15 years. In the last financial year, ended in March, Emami had a consolidated turnover of 18 billion rupees, or $296 million.
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The company competes with other big Indian-owned players, such as Dabur, Godrej and Marico as well as global giants like Hindustan Unilever and Procter & Gamble.
Emami has a strong presence with brands like the men’s fairness cream Fair and Handsome, which launched in 2005.
The company’s foothold in the beauty market took off in a big way after an acquisition made 36 years ago of Himani Ltd., a cosmetics company in Kolkata, with products based on Ayurvedic formulations. Boroplus Antiseptic Cream, which was launched in 1984, became the flagship product, a fast seller not only in India, but also in Russia and Nepal. Other brand extensions, including Boroplus Prickly Heat Powder, were well received.
Growing its positioning in the men’s market, Emami also launched a deodorant for men called He in 2014, with well-known Bollywood actor Hrithik Roshan as brand ambassador.
Another launch — Emami 7 Oils in One — has building brand positioning in hair care.
International markets are important to the brand, which has 14 percent turnover from outside India, including from countries such as Bangladesh, Saudi Arabia, Oman, Kenya and Uganda.
The Fravin Group, which has a manufacturing plant and a research and development facility in Adelaide, Australia, has strength in hair-care and skin-care products and kids’ products, with certification in Australia and in the U.S., and has more than 100 stockkeeping units.
Another acquisition by Emami over the last year was Rasoi, a Kolkata-based edible-oil brand in September.