Calcutta, Jan. 2: City-based FMCG firm Emami is scouting for fresh acquisitions.

Emami director Harsh Agarwal said the company was looking at targets in the beauty, cosmetics and healthcare segments.

He said the company was confident of more deals after buying Zandu for Rs 700 crore two months back.

“None should think that we cannot make another big acquisition because of the large deal we did. If there is something on the table, Emami will go ahead,” he told The Telegraph.

Emami had funded the Zandu acquisition mostly through debt. It issued non–convertible debentures and borrowed from the group companies and promoters — the Agarwal and Goenka families.

If Emami opts for a buyout, the promoters may look at offloading a stake to raise cash. The shareholders have already passed a resolution authorising the management to sell 15 per cent equity.

Sources said the company was in a dialogue with private equity firms.

Agarwal said the company was in no hurry to strike a private equity deal. “Some people have shown interest. But it all depends on the right valuation.”

The Emami promoters hold 82.27 per cent in the firm. The company’s stock closed at Rs 225 today on the Bombay Stock Exchange, up Rs 1.30.

Industry observers said this could be a good time for another acquisition as asset prices had come down. However, FMCG is seen as a resilient sector, less impacted by the slowdown.

Zandu integration

Two-months after the Zandu buyout, Emami is charting a growth map for the century-old Mumbai firm.

It is setting up a factory at Pantnagar in Uttarakhand for Rs 40 crore and plans to spend Rs 20 crore on the promotion of Zandu products such as Zandu Balm. It also plans to step up exports.