Emami enters into hair care business by acquiring Kesh King

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Emami Ltd is a public Indian fast moving consumer goods (FMCG) company engaged in manufacturing and marketing of personal care and healthcare products. In was founded in the year 1974 and is headquartered in Kolkata, West Bengal. Emami’s portfolio has about 250 diverse products which include brands like Zandu, Boroplus, Navratna, Fair & Handsome, Mentho Plus, Fast Relief and new brands like ‘HE’ Deodorant and Emami 7 Oils in One. The company is well known in India for its fairness cream products for men.

Recently it has entered into an agreement to acquire Kesh King a hair and scalp care business for a consideration amount of Rs 1651 Crore. Kesh King is an ayurvedic patented hair medicinal preparation business without any side effects founded in 2009.It is owned by Mr.Sanjeev Juneja, the promoter of Himachal Pradesh based SBS Biotech. They are the manufactures of pharmaceutical and ayurvedic products like tablets, capsules, injections, dry syrups, ointments and herbal medicines they have more than 5.4 lahks outlets across India and has marked revenue of around R300 Cr in the previous fiscal year. Khaitan & Co acted is the legal advisor for Emami on this acquisition.

The deal marks Emami’s entry into ayurvedic hair and scalp care segment along with Kesh King’s portfolio of hair oil, shampoo and ayurvedic capsules. The company has acquired entirely with all its respective formulations of products and its related assets, rights and liabilities, including the working capital. Emami Overseas FZE a wholly owned subsidiary of Emami Ltd has also acquired their control   in Fravin Pty Ltd, an Australian based natural and organic personal care company by buying 66.67% stake of the company. This acquisition improves Emami’s scale of operations with combined effect of its operations. It   results in the profitable growth of the company and help the company in maintain its good track record.

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