FMCG company Emami Ltd. has entered into an agreement with Sanjeev Juneja to acquire his hair and scalp-care business under the Kesh King and allied brands. The total consideration has been pegged at Rs.1,651 crore.
The acquisition marks Emami’s foray in the ayurvedic hair and scalpcare segment. The transaction involves transfer of the business as going concern on a slump-sale basis, including brand portfolio of ayurvedic medicinal oil, herbal shampoo, conditioner and ayurvedic capsules along with respective formulations and all-related assets, rights and liabilities including working capital.
Harsha V Agarwal, Director, Emami Ltd., said, “This acquisition is a part of our aggressive growth strategy, and is a perfect strategic fit for Emami.”
Commenting on the development, Mr. Juneja said “The Kesh King brand of products offer a complete solution to hair and scalp problems.”
The five-year-old brand is a significant player in its segment, clocking a turnover of Rs.300 crore in 2014-15, and a CAGR of 60 per cent.
“The acquisition will be funded by a mix of surplus funds and short and long-term debt, and the process is expected to be completed in a month’s time,” said N. H. Bhansali, CEO-Finance, Strategy and Business Development, Emami.
Emami’s current oil portfolio includes Navratna Cool Oil and Emami 7 Oils in One Damage Control Hair Oil in the light hair oil segment.
Emami is the flagship company of the Kolkata-based Emami Group. With 250 diverse products, its portfolio includes brands such as Zandu, BoroPlus, Navratna, Fair & Handsome, Mentho Plus, Fast Relief and SonaChandi Chyawanprash and new brands such as ‘HE’ Deodorant & Emami 7 Oils in One.
It has marked its presence in several segments such as personal care, female hygiene and pharmaceuticals through acquisitions which include Fravin, She, and Zandu. The company said that it was always open to such inorganic route for growth. The group is present in paper and packaging board, bio diesel, edible oil, writing instrument, realty, healthcare and retail, besides cement and solar power.
| 1 | The transaction involves transfer of the business as going concern on a slump-sale basis. |
| 2 | Kesh King brand of products offer a complete solution to hair and scalp problems. |
| 3 | The five-year-old brand is a significant player in its segment, clocking a turnover of Rs.300 cr in 2014-15. |
| 4 | Emami is the flagship company of the Kolkata-based Emami Group. |
