Emami weighs more acquisitions as digital-first brands zoom

Emami Ltd is looking to buy more premium digital-first consumer brands that sell mainly online, after its recent acquisitions grew to a little over a quarter of its India sales in the September quarter, a top executive said.

The move puts the maker of BoroPlus and Navratna alongside Marico Ltd and Hindustan Unilever Ltd (HUL), which are also buying fast-growing online-first brands.

“At any given time, we are in touch with many different opportunities at different stages,” Harsha Vardhan Agarwal, vice chairman and managing director of Emami, told Mint in an interview. “But we are very particular from a strategic point of view and about pricing. So we don’t want to pay extra to acquire anything. Hopefully, in the next 12 months, you should expect some further investment.”

Sales from what Emami calls its ‘strategic investments’ brands rose 73% on a comparable basis to ₹239 crore in the quarter, or 26% of India revenue.

This portfolio includes male grooming brand The Man Company (first invested in 2017), premium beauty and personal care brand Brillare (first invested in 2018). It also includes Axiom Ayurveda, a seller of aloe-vera juice brand Alo Fruit and other Ayurvedic supplements, and IncNut, which owns skincare brands Vedix and SkinKraft. Both companies were acquired earlier this year. The deals were valued at ₹200 crore and ₹321 crore, respectively.

“We have a two-pronged focus going forward,” Agarwal said. “Our core brands have to grow because that is where we have our niche and where we are the market leaders. But with this digital commerce and digital media becoming more popular, it opens up opportunities for us. Overall, the topline from these brands will exceed ₹800 crore by the end of this financial year.”

Emami’s consolidated revenue for the quarter grew 36% year on year to ₹1,088 crore, led by 49% topline growth in the domestic business and 43% growth in domestic volumes for the quarter. Earnings before interest, taxes, depreciation, and amortisation were up 25% to ₹222 crore, although profit after tax fell by 2% to ₹145.5 crore as margins were squeezed due to higher input costs from the ongoing West Asia war.

Shares of Emami closed 1.8% higher on Thursday, lagging the benchmark Nifty 50, which was up 2.4%.

Analysts at brokerage Nuvama Institutional Equities wrote in a 21 September note that D2C (direct-to-consumer) brands were likely to be the ‘next ignition’ of Emami’s growth.

“D2C is emerging as a major growth pillar, with revenue expected at around ₹8 billion ( ₹800 crore) in FY27, growing around 60–70% year-on-year,” the note said. “Over the medium term, core India business is expected to deliver around 6–8% growth, with incremental growth increasingly driven by D2C/new-age businesses. For D2C, [the company] targets around 25% CAGR [compound annual growth rate] in the next three years, ex-acquisitions.”

Nearly all major FMCG companies have been investing heavily in acquiring digital-first, premium brands, or D2C companies. These brand portfolios have now begun to contribute substantially to the companies’ revenue.

For instance, Marico reported that its portfolio of digital-first premium personal care brands had crossed ₹1,150 crore in annualised revenue in the September 2026 quarter, while its food portfolio had crossed ₹1,500 crore in annualised run rate (ARR), led by acquisitions such as supplements brands Plix and Cosmix and snacking brand 4700 BC.

HUL reported consistent double-digit growth for its acquired premium skincare brand, Minimalist, in Q1 and Q2 of FY27. And in June this year, beauty and personal care major Brillare acquired skincare brand owner Innovist for an undisclosed amount.

Neethi Lisa Rojan contributed to this story.

• Emami’s digital brands now account for over a quarter of India's sales.
• Emami’s managing director hopes for another investment within the next twelve months.
• Emami will not overpay; it wants only brands that fit its strategy.
• Profit slipped 2% as costs rose amid the war in West Asia.
• Rivals Marico and Hindustan Unilever are also buying fast-growing online-first premium brands.

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