The Rs 1,500-crore Emami Ltd is eyeing opportunities for greenfield expansion of its personal and healthcare products in Assam. The company plans to invest close to Rs 50 crore for the project.
This apart, the company has also earmarked Rs 100-125 crore towards brownfield and greenfield projects this year. According to N.H. Bhansali, Chief Executive Officer, Finance, Emami, the company is in the process of identifying land in Assam for its manufacturing facility.
“We are in the process of identifying land. We hope to finalise by the end of this year,” Bhansali told newspersons after the 29th annual general meeting of Emami here on Wednesday.
On the overseas front, Emami is setting up manufacturing units in Egypt and Bangladesh. These units would be operational by the end of this year, he said. “Overseas business accounts for 13 per cent of our total sales. We expect it to remain stable at 14-15 per cent on an increased turnover this year,” he added.
Emami is also rationalising its operations in certain overseas markets like Africa. “We are in the process of doing some corrections in the overseas markets to bring down the inventory of stocks,” he said.
Acquisition
Apart from organic growth, the company is also eyeing acquisitions in personal and healthcare markets in India and overseas. “SAARC, CIS and West Asia countries have a good value proposition,” he said.
Financial performance
Riding on the back of higher sales, Emami posted 12 per cent growth in net profit to Rs 47 crore for the quarter ended June 30, 2012. Net sales grew by 14 per cent to Rs 339 crore. The company’s shares closed at Rs 499.15, down by 1.61 per cent, on the BSE on Wednesday.
Responding to a media query on the impact of the recent incident at AMRI Hospital on the company’s image, Aditya Agarwal, Director, Emami, said, “I do not think there is any impact on our image as is evident in our results.”