In Short:
Emami is actively seeking growth through partnerships and acquisitions, focusing on D2C brands. The company recently increased its stake in Helios Lifestyle and Brillare Science. Emami is optimistic about rural demand and expects growth in quick commerce. With 45% of its revenue from acquired brands, Emami is positioned to adapt to changing market trends and consumer demands.
Emami Sets Sights on Growth through Strategic Partnerships and Acquisitions
The home-grown FMCG giant, Emami, is on the lookout for exciting opportunities to broaden its horizons. With a focus on partnering with D2C brands and making acquisitions, the company is gearing up for inorganic growth while maintaining a positive outlook on the booming rural demand.
Leadership Insights from Emami
At a recent FICCI event, Harsha Agarwal, Vice Chairman & Managing Director of Emami, shared his thoughts with businessline on their growth strategy. He emphasized, “We are always looking at new inorganic opportunities. We have already invested in several D2C companies with the goal of integrating them into the Emami family as they perform well. Looking ahead, we are committed to exploring both outright acquisitions and partnerships with innovative D2C companies in the consumer space.”
Recent Strategic Moves
In a notable move, Emami recently secured the remaining 49.6% stake in Helios Lifestyle, which boasts the popular men’s grooming brand, The Man Company. The company also raised its stake in Brillare Science to a full 100%, making it a wholly-owned subsidiary. Historically, Emami has invested in diverse segments, including juices and pet care, showcasing a varied investment portfolio.
A Focus on Diverse Categories
Agarwal highlighted, “We are keen on seeking inorganic growth opportunities across various sizes and categories. We’re focused on personal care and healthcare, but we’re also exploring acquisitions in health food, nutrition, and pet care.” Interestingly, Emami revealed in its FY24 annual report that around 45% of its overall revenue comes from acquired brands.
Anticipating Growth in New Channels
With the rise of new-age retail channels, including quick commerce and e-commerce, Agarwal expressed optimism for the future. He foresees an impressive 4-5 times growth in the quick commerce segment over the next two years, indicating a significant shift in consumer buying habits.
Rural Demand on the Rise
When asked about trends in rural demand, Agarwal noted, “We’ve observed a noticeable upswing in rural demand. Thanks to favorable monsoon conditions and government initiatives aimed at rural development, we are optimistic about the potential growth in these areas.” He also mentioned a positive outlook for the upcoming festival season.
India’s Position in the Global Market
According to a recent report by Deloitte and FICCI, India is projected to become the third largest consumer market by 2030. The report highlights the increasing competition in the FMCG sector from D2C brands, the rising trend of premiumisation, and a growing demand for innovative new products among young and middle-income consumers. The quick commerce model, emphasizing rapid delivery, is also changing traditional supply chains and altering consumption habits.
