After years of looking to increase its personal-care portfolio, Kolkata, India-based consumer goods company Emami Ltd. has acquired hair-care firm Kesh King.
Emami is strong in skin care — its Fair and Handsome product is a market leader in the men’s skin-care category.
“This acquisition is part of our aggressive growth strategy,” Harsha V. Agarwal, director of Emami Ltd., said of the 16 billion rupee, or $260 million at current exchange, acquisition.
Kesh King, which has a stronghold in the ayurvedic hair- and scalp-care sector, strengthens Emami’s portfolio in the category, where it already owns Emami 7 Oils in One Damage Control Hair Oil and Navratna Cool Oil.
Emami reported a 21.8 percent rise in revenue for the year ending March 31, to 22 billion rupees, or $348 million. Net profit grew 20 percent to 4.8 billion rupees, or $78.3 million.
Kesh King had revenues of 3 billion rupees, or $47 million, in 2014-15.
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Agarwal said the company had been growing at an average of 61 percent a year for the last three years. Products from the brand are available in 540,000 outlets across India.
The acquisition includes the Kesh King brand portfolio of ayurvedic medicinal oil, herbal shampoos and conditioner and ayurvedic capsules, along with their formulations and all related assets, rights and liabilities, including working capital for a total consideration of 16.51 billion rupees.
Consumer goods companies have been in a race for acquisitions in the personal-care market — acquiring both Indian and global brands. Companies such as Dabur Ltd., Godrej Ltd. and Marico Ltd. dominate the personal-care space in India.
In January, Emami bought a 66.67 percent stake in Australian company Fravin Pty Ltd., which makes hair-care, skin-care and kids’ products. The Australian company has more than 100 stockkeeping units.
“Consumers in India are increasingly becoming conscious about safety and chemical components, which will help to grow the organic consumer goods market,” Agarwal said at the time.