Emami in talks to acquire Philippines co for Rs 200 cr

Written by fe Bureau | Mumbai | Updated: Oct 11 2013, 17:09pm hrs
After scouting for acquisitions in domestic markets, FMCG company Emami is in advanced talks to acquire Philippines-based Splash, a health and wellness company, industry sources said. The deal value is pegged at R200 crore.

In a bid to extend its product offerings, Emami had been looking for acquisitions in Indias heath and wellness sector for over two years. Emami has net cash of R187 crore at the end of FY 2013. With a market cap of R176 crore, Splashs brands include Biolink, Extraderm, Maxi-Peel and Skin White.

Like Emami, Marico is also looking for acquisitions in the sector for quite some time. Last month, LOral India made its first acquisition in the domestic beauty market by acquiring salon brand Cheryls Cosmeceuticals for an undisclosed amount.

As part of its growth strategic, Emami is eying brand extensions to bolster its future growth. Currently, the company is test marketing face wash under Boroplus brand for a pan India roll out next month.When contacted by FE, the company spokesperson said, While we constantly keep evaluating opportunities for inorganic growth that are in sync with our companys vision and growth strategies, we are not contemplating acquisition in Philippines.

Despite the economic downturn, Indian FMCG majors are looking for acquisitions in domestic as well as global markets.As there are not many homegrown brands on sale, companies like Emami are looking for global brand to extend its product portfolio, an industry analyst with a domestic brokerage firm in Mumbai said.

In a attempt to acquire more product lines, Emami has tried to enter hair dyes category earlier through Mr Black & Mrs Black brand, Nitin Mathur, consumer research analyst with Espirito Santo Securities said.