Emami Shares Soar 5% After The FMCG Major Acquires Stake In Axiom Ayurveda To Foray Into Juice Category Biz

Emami Shares jumped as high as 5.19% at Rs 539.25 per share in the intraday trading on Friday. The stark jump in the company's shares was seen a day after the homegrown FMCG major announced its foray into the juice category with 'AloFrut' through strategic investment in Axiom Ayurveda Pvt Ltd and its subsidiaries/associates by buying 26% equity stake for an undisclosed amount. Axiom markets beverage products under the brand "AloFrut".

In an exchange filing, the company said, AloFrut juices are the most refreshing and healthy fusion of aloevera pulp and fruit blends. Aloevera is known worldwide as a rich source of vitamins, minerals, and essential amino acids."

As per the exchange filing, Axiom Ayurveda has its own manufacturing facility in Ambala, Haryana, and is setting up a fully automated state-of-the-art modern new facility in Jammu (Kathua) at a cost of Rs 160 crore. AloFrut has a strong market presence across General Trade, Government Institutions, Modern Trade and e-commerce platforms.

Axiom Ayurveda Pvt Ltd. markets a range of beverages under the brand name AloFrut.

Commenting on this development, Harsha V Agarwal, Vice Chairman & MD, Emami Ltd said, "We are delighted to announce our partnership with Axiom Ayurveda through a strategic investment in equity. This marks our entry into the juice category with 'AloFrut'. With health & wellness being the buzzword for consumers today, we see tremendous potential in the segment. "AloFrut" product offering is unique as these beverages are based on Aloe pulp inclusion in fruit juice which provides a perfect mix of taste and health together. We are excited to be present in this category which is in line with our corporate growth strategy to invest in categories or brands that not only have synergy with our existing business but offer potential for growth. We look forward to add meaningful value to the brand."

Meanwhile, Rishabh Gupta, Founder, Axiom Ayurveda Pvt Ltd said, "Now-adays consumers are moving away from the carbonated beverages and are looking for a healthier alternative with an equal importance to taste. Considering this trend where consumer is focussing on taste and health, we have tried to offer a perfect blend of the same which is a big differentiator from other beverage company offerings."

Founded in 1974, Emami is one of India's leading FMCG Companies engaged in manufacturing & marketing of personal care & healthcare products. With over 450 diverse products, Emami's portfolio includes trusted power brands like Navratna, BoroPlus, Fair & Handsome, Zandu Balm, Mentho Plus and Kesh King. After a successful takeover of Zandu Pharmaceuticals Works Ltd in 2008, in 2015, the Company acquired the business of 'Kesh King' and forayed into the Ayurvedic hair & scalp care segment. Emami, following the acquisition of Creme 21, a German brand with strong roots and brand recall in 2019, went on to acquire 'Dermicool', one of the leading Prickly Heat and Cool Talc brands of India in 2022.

Emami products are available in over 4.9 million retail outlets across India through its network of 4000+ distributors and its global footprint spans over 70 countries including SAARC, MENAP, SEA, Africa, Eastern Europe, and the CIS countries. Emami is well known for its aggressive marketing powered by celebrity endorsements like Amitabh Bachchan, Shah Rukh Khan, Salman Khan, Hrithik Roshan, Ayushmann Khurrana, Madhuri Dixit, Juhi Chawla, Katrina Kaif, Kareena Kapoor Khan, Bipasha Basu, Malaika Arora Khan, and many others over the years.

With a market cap of Rs 22,500 crores, Emami Ltd is the flagship Company of the diversified Emami Group.