Emami scouts for overseas buyouts
By Aditya Agarwal, director, Emami Group
Emami group director, Mr Aditya Agarwal, is one of the key persons in
diversifying the Group's activity into manufacturing of news-print, bio-diesel,
realty and healthcare.
Established in 1974, Emami is one of the leading companies in the Indian
FMCG sector. It exports its products to 60 countries across the globe.
The Rs 1,600-crore Kolkata-based company has recently bought a 70.34 per
cent stake in Zandu Pharmaceutical Works Ltd.
Excerpts from an interview
Where does Emami stand in the Indian FMCG market following the
acquisition of Zandu?
With the acquisition of Zandu, Emami will become a formidable player in
the rubifacient (balm) and chy-awanprash segments with a significant market
share. In fact, it will now be the market leader in the rubifacient category.
The biggest gain for Emami, however, is that it will be able to make a
mark in the Ayurvedic pharmaceutical market which has got a huge market in
India.
You are already in advanced stage of discussions with at least two
companies - one in the UK and another in South Africa - for possible
acquisition. Any progress on that front?
At this moment, we are looking at various options. We are waiting for an
opportunity.
The global economic gloom has also affected our overseas acquisition
plans.
In which sector will these overseas acquisitions come through?
It will essentially be in personal and health care segment. But other
areas are also on our radar.
How has the global financial meltdown affected your exports?
We have not experienced any significant slowdown in our international
business.
On the contrary, we have been able to defy the market trend by
registering growth. Exports grew by 48 per cent during the second quarter of
2008-09. It grew by 46 per cent in the first-half at Rs 36 crore. I hope that
our exports will continue to grow in this fiscal too.
You are also entering into babycare segment. What is the market size of
this segment and what are your plans?
Our plans are being worked out in this respect. The market size of the
baby care segment comprising baby skin care, baby soap, baby powder, hair oil
and baby shampoo would be about Rs 600 crore.
Emami is also known for its celebrity brand ambassadors but how have
these endorsements helped the company to build its brands? How effective is
this tool?
Definitely brand endorsement by celebrities has helped us, which is
evident from the pole position that Emami's Boroplus, Navratna and F&H brands
hold.
A brand is a promise; a trust. Similarly, celebrities are also brands by
themselves. The association of a celebrity reinforces the communication of
trust, the power of the brand and image recall.
How is Emami doing in the newsprint and bio-diesel sectors? Do you have
any plan to expand your presence in these areas?
Emami has ambitious plans about its paper business and it is currently
amongst the biggest news-print manufacturer in India with a capacity of 500
tonnes per day. We are on an expansion mode and have committed about Rs 260
crore for the purpose. We are also working to set up a 500 tonnes per day
capacity plant with an inve-stment of around Rs 1,000 crore. Bio-diesel could
bec-ome big in India but the rig-ht policies and right environment have to be
created by the Union government. The government has fixed the price of
bio-diesel at
Rs 26.5 whereas diesel prices vary between Rs 36.4 per litre across the
country. The government basically gives importance to importing diesel rather
than promoting bio-diesel. That's why, we are yet to begin production at our
bio-diesel plant at Haldia.
What are your future plans in healthcare and realty?
In healthcare, we are already the largest private sector multi-speciality
hospital chain in eastern India and have plans to grow further. We will come up
with two multi-specialty hospitals in Kolkata and Bhub-aneshwar with a capacity
of 300 beds each
http://www.deccanchronicle.com/Business/Business.asp
Opportunity is missed by most people because it is dressed in overalls and
looks like work.
Thomas A. Edison
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