Emami buys 67% in Oz firm Fravin

Kolkata: Emami, the flagship company of the Rs 10,000-crore Emami Group, has acquired a controlling 66.67% stake in Fravin of Australia along with its three subsidiaries.

Emami International FZE, a subsidiary of Emami, was the special purpose vehicle for this first global acquisition by the group. The group had earlier acquired Zandu for over Rs 725 crore. It was also in the race for many leading Indian brands.

Fravin, based in Australia, has major strengths in R&D and is a manufacturer of natural and organic personal care products. This international acquisition marks Emami's entry into the fast growing natural and organic personal care segment and is in line with the company's strategy to be present in sectors with high-growth potential.

"The market for organic personal care products is growing at a rapid pace across the world. The global market for organic products which was over $7.6 billion in 2013, is expected to double in six years," said Harsh Agarwal, director, Emami.

Agarwal, though, refused to divulge the size of the acquisition. But sources close to the development said that, value-wise, it is just close to Rs 50 crore and it is strategically very important for Emami.

Commenting on the acquisition, Agarwal further said rising concerns for health safety, increasing green consciousness and growing awareness of the consumers about the hazards of using products with synthetic chemicals have fuelled the demand for organic personal care products. "The acquisition of the Fravin Group specializing in formulations of organic products with many international certifications emphasizes our core belief in usage of safe and natural products," he said.

Promoted by famous trichologist Peter Francis, the Fravin Group manufactures a full range of hair care and skin care products that have been certified by various certification bodies in Australia and United States such as Australian Certified Organic (ACO), the United States Department of Agriculture (USDA) and many more.

The group has major strength in R&D of various advanced technology like Trans follicular Anti-Ageing serums etc. Peter Francis, managing director, Fravin Pty Ltd, said: "We are very enthusiastic to be associated with a global company like Emami. There are strong synergies between the two companies. With Emami's strong marketing network and our R&D capabilities and advanced technologies, we expect to take Abache brands to new heights."

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.