Emami was a strong contender in the race to acquire GSK’s Horlicks and Kraft Heinz’s Complan and Glucon-D, but they have currently left the game and not pursuing it after rethinking over their strategy to enter the food market.
Why Emami Backed Off?
“We had considered the acquisition of Horlicks and Kraft Heinz’s portfolio of brands and even went through the brief draft. But after reviewing them, a decision has been taken to not go ahead since we don’t want to enter food business right now. There are more interesting high growth categories for expansion,” Agarwal said.
The Future Plans
As per Agarwal, Emami would rather by eyeing FMCG startups to invest in order to gain some insights and expertise into e-commerce business targetting the millennial consumer base, They also have plans to roll out separate premium products to be sold only through e-commerce mechanism, into personal care and health.
“The startup FMCG brands are premium and niche, targets the millennial, is strong in digital marketing and are sold through e-commerce or premium stores, which makes it a win-win investment, since we want to provide our expertise and also imbibe their culture,” said Agarwal.
Emami last December and later in February this year announced purchasing stakes in two FMCG startups. It now has 30% in Helios Lifestyle which owns the male grooming brand ‘The Man Company’ and 26% in Brillare Science, which has premium hair and skin care products for use in salons.
After ITC, Emami became the second brand to drop this acquisition for the time being, though even ITC said they would look into Horlicks once the bids open, there is a big no-no for Kraft Heinz. Let’s see which brand will finally acquire these two reputed products from GSK and Heinz respectively