Kolkata-based FMCG major Emami is scouting for acquisitions in the domestic and overseas markets and says it can spend up to Rs 800 crore on this.
The company, which acquired Zandu Pharmaceuticals last year for around Rs 700 crore, said it would be a debt-free company soon and could raise more funds for inorganic growth.
“We are in a better position for acquisitions. Soon we will be a debt-free company. Our balance sheet is strong and we will try to acquire some brands and companies now,” Emami Group Joint Chairman R S Agarwal said.
He said the company is currently exploring opportunities in the US and UK markets, and the size of the deal could be up to Rs 600-800 crore. He declined to specify any time-frame for the acquisitions.
Agarwal also did not reveal the names of the companies Emami is currently in talks with, but said they are in the personal and healthcare sector.
The company said it has started looking for possible buyouts in the domestic market also.
“We have already made attempts to buy some brands in the country as well. We are very satisfied with our Zandu acquisition and by the end of this year we will start seeing some result from it,” he said. The company recently raised over Rs 310 crore through Qualified Institutional Placements to clear its debt and for other business activities.
“Being a debt-free firm has always been a policy. We had a debt of around Rs 500-600 crore after the Zandu acquisition, now much of them have been cleared,” Agarwal said.
Besides, Emami is looking at strengthening its presence in the international markets like the US, UK and CIS (former Soviet republics) countries, as it aims to achieve 50 per cent of its overall sales to come from exports in the next five years.
“Emami is present in almost 60 countries. At present, it contributes about 15-16 per cent to our overall sales. We want to strengthen our presence and take it to 50 per cent in the next five years,” he said.
The company sells brands like Boroplus, Fair and Handsome and Fast Relief in the overseas market.
“We have already started working on our global branding. We have hired experts and we will also start outsourcing for it. We are in talks with some consultant firms,” he said.
