Emami will make investment in FMCG startups instead to gain expertise in targeting millennial consumers.
Deciding to postpone its entry into the food space at the moment, Emami has dropped plans to acquire GSK's Horlicks and Kraft Heinz’s Complan and Glucon-D. The company would instead invest in FMCG startups to gain expertise in targeting millennial consumers, selling through e-commerce firms and modern trade.
Harsha V Agarwal, Emami’s Director, said, “We had considered the acquisition of Horlicks and Kraft Heinz’s portfolio of brands and even went through the brief draft. But after reviewing them, a decision has been taken to not go ahead since we don’t want to enter food business right now. There are more interesting high growth categories for expansion”.
Emami is all set to unveil a premium product line in personal care and health only for online retail sale and large retail chains. The company also focuses on investing in FMCG startups in personal care as well as food and home care where it has no presence.
Last year, Emami acquired two FMCG startups. At present, it has 30% stake in Helios Lifestyle which owns the male grooming brand ‘The Man Company’ and 26% in Brillare Science, which has premium hair and skin care products for use in salons.