Emami’s decision to to acquire Axiom Ayurveda, the maker of AloFrut, is not just about testing the waters; it’s about investing in a battle-tested machine that can lead its foray into a high-growth category.
Harsha Vardhan Agarwal, vice-chairman & MD, Emami, says the company was always interested in the functional beverages space which is expected to be anywhere between $3.7 billion to $6.5 billion – growing at the rate of 11%.
When Emami picked up a minority stake in Axiom Ayurveda in 2023, AloFrut had already made its name in the functional beverages space. It had successfully expanded its reach in the southern markets, onboarded Parineeti Chopra and Shikhar Dhawan as brand ambassadors and clocked a revenue of Rs 120 crore (FY24). In FY25 the revenues fell marginally to Rs 107 crore.
Emami hopes the brand will regain momemtum by FY27.To that end, the Kolkata-based company will leverage its existing distribution muscle to go deeper into current markets and expand into new ones. It hopes to make AloFrut a Rs 400-500 crore brand in the next four to five years.
Competitive Beverage Landscape
That is easier said than done. To begin with, the beverage category is far more competitive and consolidated than the personal care segment and the margins are very thin, points out Ankur Bisen, senior partner, The Knowledge Company.That apart, competition is tough. The brand is up against the likes of Dabur’s Real Juice, PepsiCo’s Tropicana, Paper Boat’s juices and a clutch of D2C brands.
In any case breaking into a new category is never easy. “While distribution is a strong advantage for Emami, building brand preference in beverages requires repeat consumption, not just availability, says Yasin Hamidani, director, Media Care Brand Solution. “Competing with established players in juices, energy drinks, and wellness beverages will require sharper positioning, not just scale.”
Leadership Shift
Emami is not taking it easy. It has announced the appointment of Dabur’s former CEO for Nepal and Myanmar cluster, Harkirat Bedi, as the new CEO of Axiom. Bedi has led the healthcare, food and personal care portfolios for Dabur for more than a decade.