The company said in an exchange filing today (Thursday) that it entered into a definitive agreement to acquire 26 per cent stake in Axiom Ayurveda on a fully diluted basis.
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Axiom Ayurveda’s main business is Arofruit juice, which is a mixture of aloe vera pulp and fruit blends, and is available in multiple flavours. It also has other product portfolios in the beverage and personal care sectors, which contribute 15-20% to the business.
Harsha V Agarwal, Vice Chairman and Managing Director, Emami, said in a statement that the strategic investment in Axiom Ayurveda stake marks the company’s entry into the juice category with ‘AloFrut’.
“With health and wellness becoming a buzzword for consumers today, we see great potential in this space,” he added.
He also said the move is in line with the company’s growth strategy of investing in categories and brands that offer growth potential as well as synergies with existing businesses. “We look forward to adding meaningful value to the brand.”
Axiom has its own manufacturing facility in Ambala, Haryana and is setting up a new fully automated facility in Jammu (Katur) at a cost of Rs 160 million. Axiom Ayurveda’s revenue in 2022-23 stood at Rs 129 crore, according to exchange filings.
Rishabh Gupta, founder of Axiom Ayurveda, said, “Currently, consumers are moving away from carbonated drinks and are looking for healthier alternatives, while giving equal importance to taste.Consumers “Given this trend of consumers valuing taste and health, we have strived to offer carbonated beverages.” It’s a perfect blend of these, which is what sets us apart from other beverage companies. ”
“We are very pleased to have Emami as a strategic partner, with extensive industry experience who shares our vision of making AloFrut a leading brand,” added Mr. Gupta.
Emami’s growth has been driven by acquisitions. The last major acquisition from Emami was from Reckitt in March 2022 for a total of Rs 432 million (excluding taxes and duties) for Dermicool, one of the leading brands of heat rash powder and cool talc. “was. Furthermore, strategic investments in start-up companies are occurring one after another.
Key acquisitions over the years include Zandu in 2008, Kesh King in 2015, and Germany’s Crème 21 in 2019. Apart from these, Emami’s major brands include Boroplus, Navratna and Fair & Handsome.
