Emami Limited has acquired Reckitt’s prickly heat powder and cool talc Dermicool for a total consideration of Rs 432 crore excluding taxes & duties. As per the company, the acquisition is funded through internal accruals and is subject to customary closing conditions. Dermicool brand offers great synergy with our existing businesses and is a perfect strategic fit, Harsha V Agarwal, director, Emami Limited, said. “The acquisition will strengthen our presence to make us number one in the prickly heat powder and cool talc category. With increasing global warming and soaring summer temperatures, such problem solution niche products are poised for strong growth in future,” he added.
The brand is popular for providing cooling and respite from prickly heat caused during summer season and has high consumer connect through its marketing campaign jingle, ‘Aaya Mausam Thande Thande Dermicool Ka’. It commands a 20% market share in the high growth and low penetrated category. “Combined with Emami’s Navratna Cool Talc, Emami will become a leader in this niche category which would also help realise synergetic benefits and optimise costs,” the company stated.
Emami, as one of its core business strategies, has always been open to growth through inorganic route. The company considers acquisitions that not only add value and have synergy with the current line of businesses, but also offer opportunities for the organisation to be present in categories that have high growth potential. Zandu, Kesh King and German brand Creme 21 are some of the brands or businesses acquired by the company in the past few years.
Emami is one of the leading FMCG companies in India in personal and healthcare space and is the flagship company of the diversified Emami Group of Companies. It is engaged in the business of manufacturing and marketing personal care, healthcare and beauty products. The company’s portfolio comprises more than 300 products. Emami’s leading brands are Boroplus, Navratna, Zandu, Fair & Handsome and Kesh King, among others. Emami has a strong domestic distribution network of more than 3,500 distributors and 4,000 sub distributors, with a direct reach across 900,000 retail outlets and overall reach to over 45 lakh outlets. The company also exports to over 60 countries and has a strong presence in Russia, CIS, GCC, SAARC and African countries. It has subsidiaries in UAE, Bangladesh, Russia and Sri Lanka.
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