Home-grown FMCG major Emami said it is scouting for inorganic growth opportunities including partnership with D2C brands as well as acquisitions of brands. The company is also bullish on rural demand growth trends.

Speaking at the sidelines of a FICCI event, Harsha Agarwal, Vice Chairman & MD, Emami told businessline, “We are always looking at new inorganic opportunities. We have already invested in many D2C companies with the idea that if they do well, we bring them into the Emami fold. Going forward, we will continue to look at acquisitions, be it outright acquisitions or partnering with D2C companies that are doing exciting things in the consumer space.“

The company recently acquired the remaining 49.6 per cent stake in Helios Lifestyle, which owns the men’s grooming brand, the Man Company. It also increased its stake in Brillare Science to 100 per cent, making it a wholly owned subsidiary. In the past too, it has made strategic investments in segments such as juices as well as pet care.

“We are looking at inorganic growth opportunities of different sizes. In terms of categories, we are in the personal care and health care space, so we are open to acquisitions in these spaces. Apart from these, we continue to look at new opportunities in health food, nutrition and pet care,” Agarwal said. In its FY24 annual report, the company stated that about 45 per cent of its topline is generated from acquired brands.

Agarwal noted that all the new age channels including quick commerce, e-commerce and modern trade have been rapidly growing. The company expects to see 4-5 times growth in the quick commerce channel over the next two years.

Demand uptick

Responding to a query on rural growth demand trends, he said, “We have seen some kind of improvement in the rural demand. With a good monsoon and government’s spending initiatives in the rural area, we are quite bullish on the demand uptick in the rural region, going forward.” He also added that the outlook for festival season remains positive.

Meanwhile, according to a report released by Deloitte and FICCI, India is expected to emerge as the third largest consumer market by 2030. The report noted that the FMCG industry is witnessing heightened competition from D2C brands, rising focus on premiumisation, and fuelling demand for innovative new product development by young and middle-income consumers. Quick commerce, which focuses on rapid delivery of essentials, has also disrupted traditional supply chains, reshaping consumption patterns, it added. 

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