Emami moves into scalp care with 'Kesh King' business

By Michelle Yeomans

- Last updated on GMT

Emami moves into scalp care with 'Kesh King' business

Related tags Dandruff Compound annual growth rate

Emami has moved into the ayurvedic scalp care segment with the acquisition of six year old hair care brand 'Kesh King’, reportedly one of the largest deals in India's FMCG sector.

International manufacturer, Emami signed an agreement with entrepreneur Sanjeev Juneja for Rs 1,651 crore - a valuation The Economic Times reports to be more than five times the annual sales of Kesh King.

The brand notched up Rs 300 crore in sales in 2014-15, expanding at a compounded annual growth rate of more than 60%. 

The deal includes a portfolio of ayurvedic medicinal oils, herbal shampoos, conditioners and ayurvedic capsules along with its respective formulations and all related assets.

We are very happy to announce the acquisition of Kesh King, which offers great synergy with our personal & healthcare products. This is a part of our aggressive growth strategy and we plan to leverage the target business with our existing strength to make our presence stronger,​says Mr Harsha V Agarwal, Emami director.

Scalp care will be the way forward for Emami

Scalp and hair concerns are on the rise due to today’s hectic lifestyle and environmental issues.

Launched in 2009, Kesh King's GMP & Halal India certified formulations aimed to cater to these concerns, offering hair protection, prevention from premature greying and hair loss, dandruff prevention etc.

The range managed to establish itself as the No. 1 player in the category within a few years, boasting a turnover of around Rs.300 crores (US$ 47 mn) in FY15 with a 3 year CAGR of 61%.

Ayurvedic demand in India

As the world continues to go green, the demand for ayurvedic cosmetics particularly in India, is set for an increase in demand as cosmetics featuring natural or herbal components become more important to consumers.

According to Research and Markets, Indians have been traditionally inclined toward natural products for their beauty needs due to a vast knowledge of using natural products as well as the herbal beauty care business emerging as the new growth frontier for beauty business.

"While consumers in the rest of the world have to be educated about the benefits of natural herbs, this knowledge is well inherited in India from generations, and the market is expected to grow at a rapid pace over the coming decades,​" says the firm's analysts.

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