Emami acquires 'Dermicool' brand for Rs423 crore; Stock hits 52-week low

28 Mar 2022 , 12:06 PM

Emami Limited stocks hit 52-week low on Dalal Street after the announcement of the acquisition of “Dermicool”, one of the leading brands in Prickly Heat Powder and Cool Talc category from Reckitt for a total consideration of Rs432 crore excluding taxes & duties. The acquisition is 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 through its marketing campaign jingle, ‘Aaya Mausam Thande Thande Dermicool Ka’. It commands “‘20% market share in the high growth and low penetrated category. Combined with Emami’s Navratna Cool Talc, Emami will become leader in this niche category which would also help realise synergetic benefits and optimize costs.

Harsha V Agarwal, Director, Emami Limited said, “We are very happy to announce the acquisition of Dermicool brand which offers great synergy with our existing businesses and is 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.”

Emami, as one of its core business strategies, has always 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 organization 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.

At around 12:05 PM, Emami was trading at Rs446.80 apiece down by Rs3.15 or 0.7% on the BSE.