Kolkata-based packaged goods firm Emami Ltd has acquired the Dermicool brand from Reckitt Benckiser Healthcare (India) Pvt. Ltd for a total consideration of ₹432 crore, excluding tax and duties, it said in a regulatory filing on Friday.
The acquisition was funded through internal accruals, and is subject to customary closing conditions, it added.
The move will help Emami, which sells Navratna Cool Talc to further strengthen its presence in the prickly heat and cool talcum powder category, considering that Dermicool has a 20% market share in the high-growth, low-penetrated talcum powder category.
Emami’s Navratna brand is driven by celebrity endorsements and is sold across 4.5- million-plus retail stores. It also leads the cool oil segment and commands the second largest market share in the cool talc prickly heat powder segment, the company said.
Following the deal, Emami is set to become the market leader in the niche category and help realise synergetic and cost optimization benefits, it said.
Harsha V. Agarwal, director, Emami, said Dermicool is a “strategic fit” in Emami’s portfolio. “It will strengthen our presence to make us number one in the prickly heat powder and cool talc category. With soaring summer temperatures such problem solution niche products are poised for strong growth,” he added. Avendus Capital was the exclusive financial advisor to Reckitt on this transaction. The move follows Emami’s investments in direct-to-consumer brands. Earlier this month, it had acquired a 19% stake in nutrition products maker Tru Native F&B Pvt. Ltd for an undisclosed amount. In 2021, the company increased its stake in Helios Lifestyle, a direct-to-consumer startup that sells male grooming products under The Man Company brand.
Emami’s core business strategies is to grow through the inorganic route. The company considers acquisitions that not only add value and synergy with its current line of businesses, but offer opportunities for the organization to be present in categories which have high-growth potential, it said.
Emami has acquired brands such as Zandu, Kesh King and German brand Creme 21, and owns Boroplus, Navratna, and Fair and Handsome. Emami exports to over 60 countries. It has subsidiaries in the UAE, Bangladesh, Russia and Sri Lanka.
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