Emami acquires male grooming brand Helios Lifestyle

After acquiring the male grooming brand, Helios Lifestyle, Emami Ltd is open to more acquisitions across traditional businesses and direct-to-consumer (D2C) brands, said a top executive at the Kolkata-based consumer goods maker.

In the past few years, the company picked up stakes in brands spanning male grooming, mass-market personal care, packaged drinks, pet care, and healthcare firms.

In a filing to the exchanges on Sunday, Emami said it increased its shareholding in Helios Lifestyle Pvt Ltd, which operates The Man Company, to 100% by acquiring the balance 49.60% stake for ₹177.63 crore. It first bought a stake in the Gurugram-based company in 2017. In FY24, Helios posted a turnover of ₹183 crore.

“We are open for all kinds of opportunities, be it small, medium or large,” said Harsha V. Agarwal, vice-chairman and managing director of Emami Ltd.

Heading for 500-cr revenue

The Man Company, which sells perfumes, body washes, face masks, and hair-removal creams, could touch ₹500 crore in revenue in the next three years, with plans to double the business in the mid-term, he said in a virtual interview with Mint. The Man Company exited fiscal 2024 with a revenue of ₹180 crore. 

Emami's largest brand Zandu (balm) could touch ₹1,000 crore in annual sales in the next one or two years, from ₹800 crore in FY24, he said.

Following investments in new-age startups, the company that sells several mass-market brands such as Navratna, Zandu, Kesh King, and Dermicool has been actively pursuing mergers and acquisitions in recent years. These investments have enabled the company to capitalise on online opportunities, incubate new growth engines, and tap into emerging consumer segments.

In 2022, the company picked up a minority stake in Tru Native F&B that markets nutrition products under the TruNativ brand. It also acquired a 30% stake in pet-care startup Cannis Lupus Services India in the same year.

The company is scouting for investments in new-age categories where it does not already have a presence, said Mr Agarwal.

Recent acquisitions

New-age companies aside, the company also acquired Dermicool talc from Reckitt in March 2022 for ₹432 crore. Last September, it announced its foray into the juice category by acquiring a 26% intake in Axiom Ayurveda Pvt Ltd which markets beverage products under the brand AloFrut.

“One objective is to scale portfolios, that is, wherever we are invested. Growing them will be one of the tasks. Apart from that, we are looking for more investment opportunities. Ultimately, getting the right category, company and then getting it at the right price—all have to work together,” he said. “We are evaluating one or two of them, depending on how we like it and if we get it at the right price. This could be both direct-to-consumer and heritage brands,” he said.

In FY24, Emami Ltd's revenue from operations rose 5% to ₹3,578 crore. The company’s reserves and surplus stood at ₹2,402.94 for the 12 months ended 31 March 2024. “Financially we are a very, very strong company; we have no debt, we have cash in hand.  It (acquisition) depends on the right opportunity," he added.

                                                     (By arrangement with livemint.com)