Emami acquires popular prickly heat powder brand 'Dermicool'

Home-grown FMCG company Emami Limited on Friday announced that it has acquired popular powder brand "Dermicool" from Reckitt for Rs 432 crore. The acquisition is funded through internal accruals and is subject to customary closing conditions, the company said in a statement. 

Dermicool is popular for providing cooling and respite from prickly heat caused during summer season and has high consumer connect through its marketing campaign jingle, 'Aaya Mausam Thande Thande Dermicool Ka'. 

As per the company statement, the brand has "20% market share in the high growth and low penetrated category. Combined
with Emami's Navratna Cool Talc, Emami will become leader in this niche category which would also help realise synergetic benefits and optimize costs."

Commenting on the acquisition, Harsha V Agarwal, Director, Emami Limited said, "We are very happy to announce the acquisition of Dermicool brand which offers great synergy with our existing businesses and is a perfect strategic fit. It will strengthen our presence to make us #1 in the prickly heat powder & cool talc category. With increasing global warming and soaring summer temperatures, such problem solution niche products are poised for strong growth in future."

Emami, as one of its core business strategies, has always been open to growth through inorganic route, the company further stated. Zandu, Kesh King and German brand Creme 21 are some of the brands or businesses acquired by the company in the past few years.

Earlier this month, Emami had acquired 19 per cent equity stake in TruNativ F&B Private Limited, a nutrition company for an undisclosed amount.

A statement issued by Emami said TruNativ is a nutrition-focused food and bevarage company. under the 'Tru Nativ' brand. TruNativ is a D2C business and its products are sold through the website and e-commerce portals. There are plans to expand its footprint by selling through retail stores and supermarket, the statement said.