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Emami Limited on Friday announced the acquisition of “Dermicool”, one of the leading brands in Prickly Heat Powder and Cool Talc category from Reckitt for a total consideration of ₹432 crores excluding taxes and duties. The acquisition is funded through internal accruals and is subject to customary closing conditions.
Dermicool is one of the leading brands in India in the prickly heat talc powder segment with -20% market share. Dermicool is an iconic brand with strong brand equity and high recall value. It commands “‘20% market share in the high growth and low penetrated category. Combined with Emami’s Navratna Cool Talc, Emami will become leader in this niche category which would also help realise synergetic benefits and optimize costs.
Harsha V Agarwal, Director, Emami Limited said, “We are very happy to announce the acquisition of Dermicool brand which offers great synergy with our existing businesses and is a perfect strategic fit. It will strengthen our presence to make us #1 in the prickly heat powder & cool talc category. With increasing global warming and soaring summer temperatures, such problem solution niche products are poised for strong growth in future.”
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 organization to be present in categories that have high growth potential. Zandu, Kesh King and German brand Creme 21 are some of the brands or businesses acquired by the Company in the past few years.
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