"The acquisition marks Emami's foray into the ayurvedic hair and scalp care segment, which is growing at a rapid pace," Emami said in a statement.

It further said, "The transaction envisages transfer of the business as a growing concern on a slump sale basis and will include brand portfolio of ayurvedic medicinal oil, herbal shampoo, herbal conditioner and ayurvedic capsules, along with its respective formulations and all related assets, rights and liabilities, including working capital for a total consideration of Rs 1,651 crore."
Emami Director Harsha V Agarwal said, "This acquisition is a part of our aggressive growth strategy... We plan to leverage the target business with our existing strength to make our presence stronger and deeper. The transaction is a perfect strategic fit for Emami."

Kesh King brand, introduced in 2009 by Sanjeev Juneja, offers products such as oil, herbal shampoo and conditioner and ayurvedic capsules. The brand has presence in 5.4 lakh outlets across India and had a turnover of around Rs 300 crore in 2014-15.

Emami's current oil portfolio includes Navratna Cool Oil and Emami 7 Oil in One Damage Control Hair Oil.  Emami has been acquiring brands domestically and internationally to wade into new product categories.

Last year, it acquired sanitary-napkin brand 'She Comfort' from Royal Hygiene Care in an undisclosed all-cash deal to enter into the Rs 2,100-crore women's hygiene segment dominated by Procter & Gamble and Johnson & Johnson. The company also acquired Zandu brand in 2008 for Rs 700 crore.

Latest News  from Business News Desk