FMCG major Emami is sharpening its digital-first strategy with the acquisition of a 60% stake in IncNut Digital, the parent company of personalised skincare brands Vedix and SkinKraft, in a deal valued at Rs 321 crore.
The Kolkata-based company sees the acquisition, which was announced on Thursday, as a key step toward building a larger direct-to-consumer (D2C) ecosystem across beauty, wellness, nutrition, healthcare and pet care. Emami aims to scale its broader digital portfolio to nearly Rs 3,000 crore over the next five years, vice-chairman and managing director Harsh V. Agarwal said in an interaction with FE on Thursday.
IncNut will be the sixth D2C acquisition by the company in recent years. Last month, Emami announced that it was acquiring full control of D2C beverage firm Axiom Ayurveda, where it already had a 26.5% stake, for up to Rs 200 crore.
“What differentiates SkinKraft and Vedix is their focus on personalisation rather than generic solutions. Consumers increasingly want products designed specifically for them,” Agarwal said. The transaction is subject to performance-linked adjustments over the next 24 months, he said.
Personalisation as a Growth Catalyst
The company also plans to acquire the remaining stake in IncNut within the next four-and-a-half years in two phases, with the valuation linked to future business performance.
Emami’s latest move reflects a broader shift among traditional FMCG companies toward digital-native brands as online commerce and premium consumer categories gain traction. India’s beauty and personal care market is expected to reach $34 billion by 2028, according to consultancy firm Redseer, with online and personalized segments growing faster than mass-market categories.
SkinKraft focuses on dermatology-backed and science-led skincare products. While Vedix combines Ayurvedic formulations with personalisation.
Agarwal said personalisation is likely to become a major growth driver in beauty and wellness as consumers become more informed and selective. “People increasingly want products tailored specifically for them. From that perspective, this adds a differentiated proposition to our portfolio,” he said.
The acquisition also gives Emami access to overseas markets through Vedix’s ayurvedic product offerings, which already have some international presence, he said.
Digital Ecosystem
Over the last few years, Emami has steadily expanded its investments in digital-first brands, backing startups such as the The Man Company (male grooming), Brillare (salon products), and pet-care platform Fur Ball Story. In 2022, Emami also invested in D2C wellness firm Tru Native F&B.
According to Agarwal, Emami’s strategy is to identify high-growth categories where consumer behaviour is evolving rapidly and where D2C models can scale meaningfully.
“We continuously evaluate brands doing good work in categories that interest us. However, we are very selective. We evaluate many companies but invest only in a few,” he added.
Unlike outright acquisitions, Emami prefers majority stakes initially while keeping founders actively involved in operations. “The idea is to work closely with founders and help scale the businesses over time,” Agarwal said.