Emami acquires controlling stake in Australia-based personal care company

KOLKATA: Kolkata-heaquartered fast moving consumer goods (FMCG) major Emami Ltd has acquired a controlling stake of 66.67 per cent in Australia-based personal care products firm Fravin.


The stake in the Australian firm has not only opened the market further for the Emami group’s flagship FMCG firm Emami, but has also given it access to a range of organic and natural personal care products.


The partial acquisition was done through one of its UAE-based subsidiary Emami Overseas FZE. Post this acquisition, Fravin and its three subsidiary companies have become subsidiaries of Emami.


“The Fravin acquisition is in sync with the company’s strategy to grow aggressively through both organic and inorganic routes in India and overseas. This is a significant step for the organisation as the acquisition marks Emami's entry into organic personal care products, where we were not present earlier,” said company director Harsh Agarwal.


Agarwal said that the market for organic personal care products, which was around $ 7.6 billion in 2013, was expected to double in six years.


It is learnt that Fravin will be a part of Emami’s international business division, which contributes around 14 per cent to the FMCG business.


“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,” he said.


Promoted by Peter Francis, Fravin Group manufactures hair care and skin care products that are certified organic by various certification bodies in Australia and US. The firm has research and development (R&D) and manufacturing plant at Adelaide, the capital city of South Australia.


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