Emami - Worth Sona And Chandi

Emami has all the potential of becoming a multibagger. The company is slowly and steadily advancing in all the FMCG related growth areas with some aggressive marketing and brand positioning. Keep an eye on all the news flows.

Emami Ltd reported a 37.8% rise in net profit to Rs 19.1 crore in the third quarter ended December 31, 05, compared to Rs 13.9 crore in the corresponding quarter. Net revenue, at Rs 105.2 crore, during October-December ’05 was up by 42.4% against Rs 73.9 crore in the earlier corresponding quarter. Emami launched BoroPlus light cream and body lotion, a fairness cream for men, a Sona Chandi baby oil, a laxative churna, its cough syrup and vaporub and memory booster in recent months. Emami, in the three quarters ended December 31, 2005, reported turnover and PAT at Rs 203 crore and Rs 33 crore against previous year's Rs 159 crore and Rs 23 crore respectively.

Its Navratna oil and Boroplus antiseptic cream strengthened their leadership position while other existing brands like Sona Chandi Chyawanprash, Boroplus Prickly Heat Powder and Menthoplus Balm were growing too, it claimed. The fairness cream for men had received excellent response. Emami's international business grew 58 per cent, in CIS, SAARC, GCC, Africa and Europe regions. Emami's new international range of products, called the Emma range in developing countries and the Gold range and Ayucare range for niche and premium markets, were selling strongly, it added. Emami's said it had developed unique rural marketing strategy includes sales through its 1800 mobile traders and 100 small village shops covering states like West Bengal, Chhatisgarh, Madhya Pradesh and Andhra Pradesh. Collaborations with ITC e-choupals and the postal department in Maharashtra helped increase penetration further.

Earlier, Emami and Shrachi group, promoters of AMRI hospital, has acquired Kolkata's Suraksha hospital for Rs 32 crore on January 19. The new entity would be known as AMRI Hospitals Salt Lake and would be managed by AMRI. Announcing the acquisition, S K Todi, chairman, Shrachi group said, "The acquisition jointly by Shrachi and Emami group was completed on January 19".

It would be managed by Advanced Medicare & Research Institute Ltd (AMRI), a joint venture between Emami-Shrachi group and government of West Bengal. The government will not have any stake in the new venture, he added. "The acquisition has solely been done by Emami and Shrachi group," claimed Todi. The AMRI hospital board has cleared the proposal of using the brand name of AMRI for the new venture, said Aditya Agarwal, director of Emami Ltd and AMRI Hospitals. A sum of Rs 5 crore would be spent on upgradation of the facility at Salt Lake. With the acquisition of Suraksha, AMRI has become the largest private hospital in the city with 530 beds, claimed Manish Goenka, director, Emami Ltd and AMRI Hospitals. All 460 employees of Suraksha would retain their jobs, he added. Emami and Shrachi group had invested Rs 150 crore in AMRI hospital. The two groups would invest Rs 200 crore more in AMRI over the next two to three years.