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Kolkata-based FMCG major Emami aims to double its revenue from overseas within next five years. The growth would come from the company’s power brands and through acquisitions.
According to whole time director Prashant Goenka, who is responsible for the overseas operations, the company has appointed consultancy firm McKinsey & Company to advise on overseas strategy.”
The main focus will be the middle east countries, African markets and CIS countries,” Goenka told at the sidelines of the annual general meeting of the company.
At present 14 per cent of the company’s revenue comes from overseas operations which it wants to increase upto 35 per cent in the next five years. The company’s power brands like Fair and Handsome, BoroPlus and some recently-launched categories of Zandu will be contributing towards this growth. Emami is significant ramp up in revenues from its international business this financial year. International business revenue of Emami has increased from Rs 137 crore in 2009-10 to Rs 221 crore in 2013-14.
Emami commissioned its first overseas manufacturing facility in Bangladesh in 2012-13. Egypt was the second such facility. Emami now feeds its markets in Asia, Russia and Africa through exports. New products in pipeline. After four acquisitions last year, the company is aiming to bring in new products in the market. The company has recently test launched some of its lifestyle products in Andhra Pradesh. The product will be marketed under the Zandu brand.
“We have involved Rishi Bhattacharya, who was the marketing head and director at Uniliver for all our strategies in our healthcare division. The lifestyle related products are in both tonics and tablets in both OTC and Ethical. Depending on the success of the Andhra Pradesh market, we will roll it out nationally,” said non-executive director Aditya V. Agarwal.
The company today sought shareholders’ approval for issuing unsecured redeemable NCDs on private placement basis up to Rs 700 crore and also for borrowing upto Rs 1,500 crore over and above the aggregate of paid-up share capital and free reserves.
“Today we have a debt of around Rs 800 crore on acquisition of Kesh King. So, at an opportune time we may convert it into the bond…if we raise money through bonds, it will reduce the cost of capital. The bonds would be primarily for domestic investors. Also we may not go for NCD, this is an enabling resolution,” said Naresh H Bahnsali, CEO, finance, strategy& business development.
