Muristek
New Delhi, March 25
Home-grown FMCG major Emami on Friday said it has acquired the 'Dermicool' brand from the British multinational consumer goods company Reckitt for a total consideration of Rs 432 crore, expanding its play into the prickly heat and cool talc category.
The acquisition, post the consolidation of Dermicool with Emami's own brands — Navratna and Boro Plus Ice — will provide Emami a lead over its competitors in the prickly heat amp; cool talc market.
Dermicool has around 20 per cent market share in the prickly heat talc powder segment and is an iconic brand with strong brand equity and high recall value in India.
The brand is popular for providing respite from prickly heat caused during summers and has high consumer connect through its marketing campaign jingle, 'Aaya Mausam Thande Thande Dermicool Ka'.
"Combined with Emami's Navratna Cool Talc, Emami will become the leader in this niche category which would also help realise synergetic benefits and optimise costs," the Kolkata-based company said in a statement.
The acquisition is funded through internal accruals and is subject to the customary closing conditions, it added.
Emami Director Harsha V Agarwal said Dermicool offers great synergy with existing businesses and is a perfect strategic fit.
"It will strengthen our presence to make us #1 in the prickly heat powder amp; cool talc category. With increasing global warming and soaring summer temperatures, such problem solution niche products are poised for strong growth in future," he said.
Emami, as one of its core business strategies, has always been open to growth through inorganic route.
The company considers acquisitions that not only add value and have synergy with the current line of businesses, but also offer opportunities for the organisation to be present in categories that have high growth potential, it said.
Earlier this month, Emami had acquired a 19 per cent stake in nutrition products maker Tru Native Famp;B Pvt Ltd for an undisclosed amount.
In 2021, Emami had increased its stake in Helios Lifestyle, which is a D2C startup that sells male grooming products under 'The Man Company' brand.
Zandu, Kesh King, and German brand Creme 21 are some of the brands or businesses acquired by the company in the past few years, it added.
Emami aexports to over 60 countries and has with a presence in Russia, CIS (Commonwealth of Independent States), GCC, SAARC and African countries. It also has subsidiaries in the UAE, Bangladesh, Russia and Sri Lanka.