Emami acquires Dermicool: Boroplus maker Emami has acquired Dermicool, one of the leading brands in the heat and cool powder category. Emami said in a stock exchange filing on Friday, the company has acquired this powder brand from FMCG company Reckitt for Rs 432 crore (including taxes and duties).
The company said, the acquisition has been made out of funds raised from internal sources and is subject to the terms and conditions of the deal.
Emami can become number 1 in cool powder segment
According to Emami, the powder brand known for its popular jingle ‘Aaya mausam cold cold dermicool ka’ has a 20 per cent market share in this category. The company also sells cool powder under the name Navratna and is expected to become the leader in this category with the recent acquisition of Dermicool. Nycil, owned by Zydus Wellness, is the largest brand in this category.
Multibagger Stocks: “Faladi” returns given up to 8 times in 2 years, will the rally continue in these 2 steel stocks
From whom did Reckitt buy Dermicool?
Reckitt (erstwhile name Reckitt Benckiser) had in 2010 acquired Dermicool-owned Pharmaceuticals and its other popular brands like Move, Decold and Crack for Rs 3,210 crore. Later, the company sold Set Weight, Livon and Jhatak to Marico in 2012, which it had bought from Paras Pharmaceuticals.
Huge potential for such products
In a media statement, Harsh V Agarwal, Director, Emami Limited said, “We are extremely pleased to announce the acquisition of the Dermicool brand, which is a strategic fit for our business. This will strengthen our penetration in this category. This will make us No. 1 in the Heat Powder and Cool Talc category. With increasing global warming and rising summer temperatures, there are good growth prospects for such specialty products in the future.”
These small cap mutual funds gave up to 56% returns in FY22, let’s have a look at them
Emami has acquired these brands
Over the years, has bought several consumer goods brands like Emami Zandu, Kesh King and German brand Creme 21. Earlier this month, the company acquired nutritional product maker True Native F&B Pvt. Ltd. had bought a 19 per cent stake.
The company said, “Emami has always been poised for growth through the inorganic route as one of its core business strategies. The company believes that acquisitions not only add value and create synergy between existing businesses, but also create opportunities in a category with good growth potential.” The company exports its products to more than 60 countries.
,