FMCG major Emami Ltd has acquired sanitary-napkin brand 'She Comfort' from Royal Hygiene Care in an undisclosed all-cash deal.
This marks Emami's entry into the Rs 2,100-crore women's hygiene segment dominated by Procter & Gamble and Johnson & Johnson and which is growing at 19 per cent.
"We have bought only the brand, not any other asset. In the last fiscal, the brand had sales of around Rs 30 crore," Emami Director Harsha V Agarwal told PTI.
While he did not disclose the acquisition value, Agarwal said the segment has a lot of potential as the penetration level of the sanitary napkin in India is still very low but there has been a growing awareness among women.
He further said: "She Comfort brand is one of the top five brands in its category in India. The acquisition is part of an aggressive strategy to strengthen our presence significantly in the personal and healthcare segment."
Emami will use its pan India network to sell the brand, which is strong particularly in Maharashtra and parts of North India.
Bullish on the brand, he said: "If we take good steps, I am confident we can double its sales within a year."
"The acquisition of She Comfort brand is a part of our inorganic growth strategy and is being funded through internal accruals," said Emami CEO (Finance, Strategy & Business Development) N H Bhansali said.
When asked if the company is pursuing more acquisitions in other verticals, Agarwal said: "We are always keeping our eyes open to inorganic growth opportunities. If we see the right opportunity at the right price, we will always consider the option."
Last year Emami had stated that it had net cash/liquid assets of over Rs 300 crore, which along with strong borrowing potential, could be used to invest in viable acquisitions.
Among the major acquisitions that Emmami had made in the past include that of Zandu in 2008 for Rs 700 crore.
