Emami hikes stake in Helios Lifestyle to 45.96%, becomes largest shareholder

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June 29, 2021 2:00 AM

In this latest round of investment of Rs 50 crore, Emami has acquired 51,991 shares in Helios, according to market sources.

As per the agreement, Emami has the right to have a controlling stake in Helios or acquire the company in future. Currently, the promoters’ stake in the company is 35-36%.

FMCG major Emami on Monday said it has increased its strategic stake in Helios Lifestyle, owner of the male grooming brand The Man Company (TMC), to 45.96% from 33.09%.

Emami, the makers of the brands like Navratna, BoroPlus, Fair & Handsome, Zandu Balm & Mentho Plus, and Kesh King, forayed into the fast-growing online male grooming segment with an investment in Gurugram-based Helios Lifestyle in 2017. It had acquired 33.09% equity stake in Helios in two tranches, one in December 2017 and the latter in February 2019.

In this latest round of investment of Rs 50 crore, Emami has acquired 51,991 shares in Helios, according to market sources.

Harsha V Agarwal, director, Emami, said, “As Helios is doing well, it needed funds for further growth and expansion, and we have the option to increase the stake, we have decided to increase the stake as per our plan. Now we are the largest shareholder in the company. We see a lot of potential in the whole area of the digital-first brand. The company now has an omnichannel presence, but it focuses on digital.”

As per the agreement, Emami has the right to have a controlling stake in Helios or acquire the company in future. Currently, the promoters’ stake in the company is 35-36%.

In the last financial year, the Gurugram-based firm’s turnover stood at Rs 42.89 crore as against Rs 39.34 crore in the previous year. The company offers a head-to-toe range of premium men’s grooming products in bath & body, beard management, and shaving & perfumes categories. The company has an omni-channel presence, selling its products through its own website and major e-commerce platforms, Lifestyle Modern Trade stores and premium outlets.

Hitesh Dhingra, co-founder & MD, Helios Lifestyle, said, “…We are delighted to receive the much-needed support from our strategic partner, Emami. Our strength of brand-building through digital marketing, online selling and distribution coupled with Emami’s resource and knowledge will help us further scale new heights in near future.”

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