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Emami ready with Rs 5,000-cr war-chest

Kolkata-based Emami — which lost the higher bid of around Rs 3,400 crore against Reckitt Benckiser’s Rs 3,260 crore to buy Paras Pharmaceutical — is eyeing new sectors such as personal care and food for acquisitions.

business Updated: Dec 19, 2010 22:14 IST
Rachit Vats
Rachit Vats
Hindustan Times

Kolkata-based Emami — which lost the higher bid of around Rs 3,400 crore against Reckitt Benckiser’s Rs 3,260 crore to buy Paras Pharmaceutical — is eyeing new sectors such as personal care and food for acquisitions. The FMCG (fast-moving consumer goods) major is eyeing a clutch of companies for buyouts.

Emami, armed with a warchest of around Rs 5,000 crore for domestic and overseas acquisitions, couldn’t be better positioned for such buyouts. The company earlier acquired Zandu Pharmaceuticals for nearly Rs 725 crore.

“We are focusing our efforts on future acquisitions. Other than personal care we are guning for firms in the food sector. The M&A department is actively involved in operations and the announcement may come in soon,” said Aditya Agarwal, director, Emami.

“There’s this notion going around that they might do something very quick and it might be true,” said an FMCG analyst on condition of anonymity.

“We are evaluating other ways to grow and opportunities are being looked at and steps will be taken in a disciplined manner keeping in mind the shareholders,” said Agarwal.

Emami had appointed Anand Rathi and Macquarie as investment bankers for the Paras buy.

“I wouldn’t say Emami is under any pressure but it is expected that it will make a move sooner than later,” said a retailer on the condition of anonymity.