Homegrown FMCG major Emami Ltd is on the prowl, looking to scale up presence in the fast growing direct- to-consumer segment to build a portfolio of 8-10 brands by acquisition.

The company has zoomed in on nutrition and health food as some of the niche areas that can act as the growth engine in the future and pave the way for Emami, which turned 50, to remain relevant.

Speaking to The Telegraph after agreeing to pick up a 49.6 per cent stake in Helios Lifestyle for ₹177.63 crore, Harsh Agarwal, vice-chairman and managing director of Emami Ltd, said the company was ‘aggressively’ looking at good investment opportunities in the D2C space.

Helios owns male grooming brand The Man Company,

“We have already invested in four to five D2C brands. The idea is to build a portfolio of 8-10 such brands, which we believe is targeting new age consumers and their requirements and also acts as a growth engine for Emami Ltd,” Agarwal said.

Emami, which has acquisition in its DNA, did not shy away from big-bulge buyouts in the past such as Zandu Pharmaceuticals (₹750 crore) or Kesh King (₹1,651 crore). In comparison, investment in D2C brands is relatively smaller. Agarwal insisted that Emami is game to look at acquisitions both big and small, backed by a strong balance sheet.

“When we acquire a brand, the most critical thing in mind is what we can do with it, how fast can it grow,” the VC explained.

For the D2C universe, which has become a happy hunting ground for established FMCG players in India, Emami’s strategy is to partner with them at an early stage, grow the brand together and gradually bring the brand under Emami fold, depending on the arrangement with the promoters.

The segment also fits into the growing consumer trend of premiumisation. “We want to build a portfolio of premium products because clearly a lot of new consumers are spending money and that’s where the trend is,” Agarwal said.

Emami’s D2C foray includes niche areas such as pet care, health drink (aloe vera juices), men’s grooming, personal care. It is one of the strategic pillars of the company to keep it relevant in the future, apart from growing distributions and use of technology.

Man Company

Agarwal said Emami hopes to make The Man Company a ₹1000 crore brand.

“The first goal is to take it to ₹500 crore in the next three years, profitably and then grow from there,” he said. Helios, which will become a wholly owned subsidiary post acquisition, clocked ₹183 crore turnover in FY24.