Diversified Emami Group is looking to enter new consumer-facing businesses as consulting giant McKinsey is working on different projects for the group, which is on its way to completing 50 years of operations, to prepare a roadmap for new businesses.
For the ₹30,000-crore group, founded by RS Agarwal and RS Goenka in 1974, the focus areas will remain personal care products, healthcare products and food business.
“McKinsey is working on group level on different projects. The mandate is to identify new ventures for us,” said Emami Group director Aditya V Agarwal.
Expansion Plans
The group has a presence in FMCG, food, bio-diesel, paper and real estate. It also runs a pharmacy chain, Frank Ross.
Agarwal said the group would like to list its edible oil and bio-diesel arm Emami Agrotech. “I would say not in the near future. Of course, we would like to. But we have not thought about it yet,” he replied when asked about the plan to list Emami Agrotech, which is further expanding its product portfolio in the food space.
Emami Paper Mills, which is the group’s newsprint and paperboard arm, is currently looking to add fresh capacities. “Paper business will only grow when you add capacity to it. Historically, every six to seven years, the company has added capacity. So, it is the time now,” Aditya, the second-generation entrepreneur said.
For Emami, pharmacy chain Frank Ross is not a focus area. However, there is no immediate plan to exit this business unless the group gets a good offer for it, which has over 250 outlets with a revenue of around ₹500 crore.
The group has recently exited non-core healthcare business. Manipal Hospitals, the country’s second largest hospital chain, in September this year, acquired an 84 per cent stake in AMRI Hospitals as Emami Group divested its majority stake for around ₹2450 crore.
Emami sold its cement business, Emami Cement, to Nuvoco Vistas, part of the Nirma Group, in 2020.
“Now our third generation is entering the business. We would not like to mind them with our thoughts. We can tell them our stories for learning. But it will be upon them to accept or not to accept it. They will have their learning,” Agarwal added.