Emami Group plans to consolidate its businesses under one umbrella and go for a corporate brand makeover.Plans to consolidate under a single entity.
Plans to consolidate its businesses under a single entity
MUMBAI: Emami Group plans to consolidate its businesses under one umbrella and go for a corporate brand makeover.
In an interview to DNA Money, Mohan Goenka, director, Emami, said: “We have decided to create a single identity, Emami.”
The group is into FMCG, retailing, healthcare, real estate, bio fuel, paper, cement, personal beauty and SEZ development, among others.
When asked about the rationale behind the makeover, Goenka said “the industry knows us as an FMCG player. People hardly know that Emami is into many other businesses.”
Emami’s design partner Evolve Creative, a London-based firm, is re-designing its corporate brand.
The group is running its retail businesses under Emami Retail Private Ltd, Real Value Projects Private Ltd and Frank Ross Ltd (drugstore retailing) and sources said it will merge first two arms into the third one and make it group’s flagship retailing arm.
Goenka further said the company’s fairness cream for men, Fair and Handsome, is doing very well.
“Our realty arm has identified 10 projects comprising four IT parks, three shopping malls and residential complexes in Kolkata, Coimbatore and Hyderabad,” he added.
It has already signed a memorandum of understanding (MoU) with Chhattisgarh government for setting up a 4 million tonne cement plant.
The proposed project also entails setting up of a 100 mw captive power plant in the state. Total outlay on the project is estimated at Rs 1,600 crore.
Also, the group is likely to set up a special economic zone (SEZ) in Haldia.
Analyst Vanmala Nagwekar of Indiainfoline said in a note to clients on July 6 that working capital requirements for Emami are very limited, as the business model doesn’t require huge cash outlays.
Emami has a war chest of over Rs 800 million, which can be used for business expansion and acquisition (most likely in the hair care segment).
The company has formed a 100% subsidiary — Emami Realty Pvt Ltd.
However, the unusual diversification in a new line of business could be a potential risk.
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