Calcutta, Aug. 1: FMCG major Emami Ltd is in advanced stages of talks to acquire personal care companies in the UK and South Africa to boost its presence in the European and African markets.
The company, which is engaged in a takeover tussle for Zandu Pharmaceuticals Ltd, plans to acquire the UK and South African outfits with manufacturing base, brands and distribution setups.
Emami already earns 10 per cent of its annual revenues from exports, mainly to Commonwealth of Independent States and in West Asia.
We are present in those countries. But if these buyouts materialise they will strengthen our markets, Aditya Agarwal, director of Emami Group of Companies, said.
The product range of these companies is complementary to what Emami has. They need not be big acquisitions, he said.
Emami Ltd, the flagship company of the group, which has interest in paper, real estate, edible oil and cement among others, did Rs 600 crore business last year.
Navaratna oil accounts for Rs 200 crore followed by Boroplus, which contributes Rs 120 crore. Fair and Handsome, Sona Chandi Chyawanprash and Mentho Plus are some of the bigger brands of the company. Back home, the company is also planning to enter the baby care segment by end of this year.
We will launch a baby-care line under brand Healthy & Fair. We will introduce baby products such as powder, oil, soap and cream, Agarwal said.
He was speaking at the launch of an advertisement of the pain balm brand, Himani Fast Relief. Emami has spent Rs 1.8 crore excluding the celebrity endorsement cost for the advertisement.
Emami plans to spend Rs 150 crore in brand building alone this year.