On Jan 2015, Emami, Kolkata based, FMCG company acquired a controlling stake of 66.67% in an Australian company, Fravin Pty Ltd. This Australian Company makes complete range of organic hair care and skin care products and it is organic certified with respective organic bodies in Australia and the U.S. Fravin is the owner of leading brand Abache Organics, in 2014, at the Sustainable beauty awards, held in Paris Abache Organics was awarded at the first place for the Green Formulations category.
The company also has its major strengths in research and development of various advanced technologies. The size of the deal was not disclosed. Fravin will be a part of Emami’s international business division, which contributes around 14% to the company’s USD 272.4 million consolidated turnover. This acquisition comes on the back of the She and Rasoi brand bought by Emami in 2014 last year.
This significant step will mark the entry of Emami into organic personal care products where the company is not present. This move could add more than USD 70 million to Emami’s turnover in the next couple of years, taking it beyond its USD 350 million mark. This acquisition is in sync with Emami’s strategy to grow aggressively through both organic and inorganic routes in India and overseas. Emami with this acquisition will be able to expand its product portfolio but also seek attention of the consumer. This strategy will also leads to geographical expansion of the company. Emami will also be able to use technology and R & D strengths of the Australian company.