Kolkata-based FMCG company Emami has posted a 17.73 per cent increase in its net profit to Rs 41.50 crore for the first quarter ended June 30, 2011, over the same period last fiscal.
The company, which had a net profit of Rs 35.25 crore in the year-ago period, attributed the jump in profit to robust growth for some of its brands like Navratna Oil, Zandu Balm, Fair and Handsome and Menthoplus Balm.
During the quarter under review, the firm had posted a 23.95 per cent increase in its sales to Rs 299.91 crore against Rs 241.95 crore in the year-ago period.
Emami said the quarter also witnessed strong demand for male grooming products sold under the brand ‘Fair and Handsome’. Besides, its international business has grown by 31.2 per cent to Rs 34 crore.
“While development of new products and new markets continues, thrust is being put on increasing distribution and penetration in existing markets and to develop global brands,” the company said in a statement.
Emami scouts for acquisition in India and abroad
Emami said that it is exploring opportunities to acquire companies, mainly in the personal care and the healthcare area, within and outside the country.
At present, most of its revenues from the overseas comes from CIS countries, West Asian and SAARC nations.
“Internationally, we are looking at the CIS markets, the Middle-East, Africa and also the South-East Asian markets. Some proposals are still at the evaluation stage. Mostly we are looking at personal care and the healthcare areas,” Emami Executive Chairman Mr R S Agarwal said here.
“We cannot disclose the names of companies. There are some under consideration of course, but we would not like to reveal their names or their territories,” he said.
It is definite that Emami is moving aggressively on acquisitions, but not at very high price, Mr Agarwal added.
The Emami Group is also in the process of merging three companies under its fold - Zandu Realty, Emami Reality and Emami Infrastructure - into one, thereby bringing all its real estate businesses under one roof. These companies, however, were not subsidiaries of Emami Ltd.
“Zandu (Zandu Realty Ltd), Emami Reality and Emami Infrastructure all are in the process of being merged. The details will be revealed in the next 2-3 months,” Mr Agarwal told reporters after the annual general meeting of the company.
“Nowadays the trend is to reduce the number of subsidiaries as much as possible so that the operational problems are least. Other benefits like fund raising is also there. Otherwise, we have to go for bank loans for each company,” he said when asked about the rationale for the merger.