Consumer goods major Emami is looking to increase investment in new-age firms, with plans to double the portfolio of companies to 10 from five now in the next 2-3 years, vice-chairman & MD Harsh Agarwal said in a conversation with FE on Monday. Areas of interest will include premium personal care, pet care, health & wellness and nutrition, segments that Agarwal believes will grow in coming years. Some of Emami’s current investments are in these areas, he said.
“These are emerging segments, which have high traction will millennials and Gen Z. We need to grow our presence in these areas. We are talking to more new-age brands and companies for possible investments in the future,” Agarwal said.
The aspiration to grow its digital-first portfolio is also tied with Emami’s broader objective of achieving double-digit topline growth in the current fiscal and beyond. Emami had said in its FY24 annual report as well as its annual general meeting held in August that it was exploring both inorganic and organic opportunities to grow its business. The company closed FY24 with a revenue of Rs 3,578.09 crore. The company counts Navratna (Rs 750 cr+), Zandu (Rs 800 cr+) and Boroplus (Rs 550 cr+) amongst its key brands in its portfolio.
Agarwal’s comments on Monday follow the acquisition of the remaining 49.6% stake in Helios Lifestyle, best known for its male grooming brand The Man Company, for Rs 177.6 crore. The all-cash deal was announced on Saturday. Emami already has a 50.4% stake in the firm. It first picked up a 30% stake in Helios Lifestyle in 2017, subsequently increasing it.
Agarwal says that he is keen to see The Man Company touch an annual revenue run rate of Rs 200 crore by this year-end. Helios Lifestyle closed FY24 with a turnover of Rs 183 crore. In the next 2-3 years, Emami is aiming for a Rs 500 crore topline for The Man Company.
The acquisition of 100% in Helios Lifestyle will be the second such deal after Brillare Science, where Emami, which had a 95.36% stake, picked up the balance 4.64% stake in March this year. The Ahmedabad-based firm (Brillare Science), which is into premium beauty, is now a wholly-owned subsidiary of Emami.
“The eventual plan will be to take complete control of our portfolio firms. But each will have its timelines, since we have varying stakes in the other three firms that we have invested in,” Agarwal said.
Emami has a 26% stake in Axiom Ayurveda, which makes juice AloFruit; in Cannis Lupus, which is a pet care startup, it has a 47% stake, while in direct-to-consumer company Tru Native, it has a 19% stake respectively.