MUMBAI: FMCG major Emami has acquired Dermicool, making it a leader in prickly heat and cool talc category. The company has acquired the brand from Reckitt for Rs 432 crore, excluding taxes & duties. The acquisition has been funded through internal accruals and is subject to customary closing conditions.
“The brand is popular for providing cooling and respite from prickly heat caused during summer season and has high consumer connect,” said Emami in a note to the exchanges.
“It commands 20% market share in the high-growth and low penetrated category. Combined with Emami’s Navratna Cool Talc, Emami will become a leader in this niche category which would also help realise synergetic benefits and optimise costs.”
Harsha V Agarwal, Director, Emami, said the brand offered “great” synergy with the company’s existing business and was a perfect strategic fit.
“It will strengthen our presence to make us #1 in the prickly heat powder & cool talc category. With increasing global warming and soaring summer temperatures, such problem solution niche products are poised for strong growth in future” Agarwal added.
Emami, as one of its core business strategies, has been open to growth through inorganic route. The Company considers acquisitions that not only add value and have synergy with the current line of businesses but also offer opportunities for the organisation to be present in categories that have high growth potential. Zandu, Kesh King and German brand Creme 21 are some of the brands or businesses acquired by the Company in the past few years.