Emami Ltd on Tuesday said it has bought ayurvedic hair-care brand ‘Kesh King’ for ₹1,651 crore.

“The transaction envisages transfer of the business as a going concern on a slump-sale basis and will include the brand portfolio of ayurvedic medicinal oil, herbal shampoo, conditioner and ayurvedic capsules along with its respective formulations and all related assets, rights and liabilities, including working capital, for a total consideration of ₹1,651 crore,” Emami said in a statement.

In 2014-15, Kesh King recorded a turnover of around ₹300 crore. According to Emami, Kesh King’s turnover grew at a compounded annual growth rate of 61 per in the past three years.

Emami further said that the brands had established themselves as leading players in the category with 5.4 lakh outlets across the country.

“We are very happy to announce the acquisition of the Kesh King business, which offers great synergy with our business of personal and healthcare products. This acquisition is a part of our aggressive growth strategy and marks our foray into the ayurvedic hair- and scalp-care segment. The transaction is a perfect strategic fit for Emami,” said Harsha V Agarwal, Director, Emami.

The funding “The acquisition will be funded by a judicious mix of surplus funds and short- and long-term debt. The process is expected to be completed in a month’s time,” said NH Bhansali, CEO, Finance, Strategy and Business Development, Emami.

The ayurvedic formulations were introduced in 2009 by Sanjeev Juneja, the owner of Kesh King.

Emami’s current hair oil portfolio includes Navratna Cool Oil and Emami 7 Oils in One.

The Emami stock closed 5.8 per cent down at ₹1,066.15 on the BSE on Tuesday.

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