Emami's Strategic Leap: Acquisitions and Quick Commerce Expansion

Emami, a major in the FMCG sector, anticipates significant growth through quick commerce and acquisitions in D2C segments such as nutrition and pet care. The company, optimistic about upcoming festive sales, is cash-rich, enhancing its capacity for strategic acquisitions and investment in new categories.

Emami, a leading FMCG company, has set its sights on a remarkable four to five-fold increase in sales via quick commerce channels over the next two years, according to Vice Chairman & MD Harsha V Agarwal. This growth is anticipated on the back of strategic acquisitions in direct-to-consumer (D2C) segments, including nutrition, pet care, and health food.

The Kolkata-based company is buoyed by a favorable monsoon season and anticipates a robust festive season, even tapping into rural markets. Recently, Emami completed its acquisition of the remaining stake in Helios Lifestyle, the company behind 'The Man Company', and increased investments in Axiom Ayurveda and pet care brand Cannis Lupus.

With 45% of its FY24 top-line stemming from acquired brands, Emami continues to thrive as a cash-rich, zero-debt entity. The company is posed to leverage quick commerce's convenience and flexibility, expecting consumer preference to drive growth, and remains optimistic about rural and premiumisation trends in the industry.

(With inputs from agencies.)