Emami Ltd., a leading name in the personal care and FMCG sectors, is positioning itself to tap into the vast potential of the male grooming market, particularly in premium and niche segments. According to NH Bhansali, CEO-Finance, Strategy & Business Development, and CFO at Emami, the company is eyeing significant growth opportunities in this space, driven by the rising demand for high-quality grooming products tailored specifically for men.
On August 31, Emami announced a pivotal decision to acquire the remaining 49.6% stake in Helios Lifestyle, a company renowned for its premium men’s grooming brand, The Man Company (TMC). With this acquisition, Emami now fully owns Helios, having previously held a majority stake of 50.4%. This strategic move highlights Emami’s commitment to expanding its footprint in the male grooming market, leveraging the success and growing popularity of The Man Company, which first caught the company’s attention in 2017 when Emami made its initial investment.
The Man Company has since evolved into a digital-first lifestyle brand offering a diverse range of men’s grooming products, including skincare, fragrances, hair care, body care, and beard care solutions. The brand has successfully established a presence across both online platforms and offline retail channels, catering to the evolving needs of modern male consumers. As a subsidiary of Emami since 2022, The Man Company has seen impressive growth, driven by the increasing demand for specialized grooming products for men.
With Emami’s market capitalization standing at ₹36,358.02 crore, the acquisition of the remaining stake in Helios Lifestyle marks a significant milestone in the company’s broader strategy to dominate the male grooming sector. In a recent interview, NH Bhansali revealed that the balance shares in Helios were acquired at a valuation of approximately ₹177 crore, emphasizing the value Emami sees in this brand’s future growth prospects.
When discussing the performance of The Man Company in the first quarter of the fiscal year, Bhansali highlighted its aggressive growth trajectory. The brand, along with Brillare, another entity under Emami’s portfolio, achieved a combined growth rate of nearly 23%. Bhansali mentioned that The Man Company alone generated an annual turnover of around ₹180 crore in FY24, showcasing its solid financial standing and EBITDA-positive status.
Currently, The Man Company and Brillare contribute approximately 7-8% to Emami’s total revenue, with TMC accounting for around 5%. While Brillare makes up the remaining 1-2%, the performance of both brands indicates substantial room for growth. Emami has ambitious plans for The Man Company, with Bhansali projecting that the brand could achieve revenue of around ₹500 crore within the next three to four years.
This optimism is fueled by the tremendous opportunities present in the male grooming market, particularly in premium segments where demand continues to rise. The male grooming sector is experiencing double-digit growth, and Emami is well-positioned to outperform the category’s growth rate, according to Bhansali. With a strategic focus on premium grooming products and a robust digital-first approach, Emami aims to capture a larger share of this expanding market.
The company’s bullish outlook for The Man Company reflects its confidence in the brand’s ability to scale its operations and increase its market presence over the next few years. In terms of financials, Emami remains in a strong cash position, with ₹500-600 crore in reserves even after the Helios acquisition. Bhansali confirmed that the acquisition would be funded entirely through internal accruals, further demonstrating Emami’s financial prudence and ability to execute strategic investments without straining its balance sheet.
Looking ahead, Bhansali stated that Emami would continue to seek strategic investments and acquisitions in complementary sectors. The company has a history of successful acquisitions, including well-known brands like Kesh King and Dermicool, and has made strategic investments in other businesses, including pet care, juices, and nutrition. Emami plans to nurture these investments, allowing them to grow within its portfolio.
Bhansali hinted that, depending on mutual interests, Emami may consider full-fledged acquisitions of these brands in the future. Beyond its investment strategy, Emami is also closely monitoring external market conditions, particularly in Bangladesh, which contributes around 5-6% of the company’s total revenue.
The political situation in Bangladesh has caused some disruptions in sales, but Bhansali reassured that despite challenges in recent months, Emami’s market share and operations in the region remain intact. He expressed optimism that stability will return following the elections, allowing for continued growth in the market. Emami’s manufacturing facility in Bangladesh has resumed operations, and the company is confident that its distribution network and product offerings will continue to thrive in the region.
