The Calcutta High Court has approved the scheme of arrangement of de-merger/merger of businesses between Emami, Zandu Pharmaceutical Works and Emami Infrastructure.
Emami acquired 68.9% stake in Zandu Pharmaceutical and took management control on November 5, 2008. The acquisition was aimed at achieving synergetic benefits and to leverage on mutual strengths. Once the scheme of arrangement was approved by shareholders and stock exchanges, it was placed before the Calcutta High Court for approval. The court approval means that the FMCG business of Zandu comprising all brands and corresponding assets and liabilities will be de-merged into Emami with effect from November 5 and the realty undertaking of Emami comprising Emami?s interest in Emami Realty and Zandu?s non-core business including realty will be demerged into Emami Infrastructure with effect from the same date.
While consolidated turnover for the year at Rs 747 crore has increased by 29.1%, consolidated EBIDTA at Rs 135 crore has increased by 36.3% over the previous year. Despite increase in interest expenses by Rs 31.5 crores, profit after tax was at Rs 92 crore, a growth of 2%.
Emami has recorded growth from its power brands like Fair and Handsome, Navratna Oil, Boroplus Antiseptic Cream, Zandu Balm, Menthoplus Balm and other products. New products like Malai Kesar Cold Cream, Navratna Cool Talc, Boroplus winter lotion have grown too.