Homegrown FMCG major Emami Ltd Friday said it has acquired a leading German personal care brand, Creme 21, for 11-12 million euro but the same will not be introduced in India anytime soon.
"It is our first international acquisition of this size in this segment. We had acquired a small company earlier. The brand has been acquired at around 11-12 million euro of little less than 1.5 times of sales of 8 million euro," Emami director Harsha V Agarwal said.
"This international acquisition will add to about 15 per cent of total overseas revenues and is in line with the companys strategy for growth through inorganic route," he said.
The brand will help expanding the company's international business which is primarily dependent on personal care. The segment alone accounts for 70 per cent of its total business in India.
The brand has a major business in Middle East and North Africa (MENA) region, Saarc and Russian markets offering skin care and body care products such as creams and lotions, shower gels, sun care range and mens range, the company said.
The acquisition is being funded from Emami's internal accruals.
The products are manufactured by a third party in Germany under the 'asset light' model.
"With current sale at over 8 million euro and a gross margin of over 50 per cent, Emami expects to take this brand on an aggressive growth trajectory," said Emami.
"We plan to leverage our existing network of distribution and infrastructure to grow the brand. Creme 21 is an iconic German brand that has a high brand recall. We expect it to add value to our growth trajectory. With this acquisition, the company would be able to enjoy economies of scale due to additional business base," Agarwal said.
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