Kolkata, May 30 (UNI) Emami Limited, the Rs 600 crore FMCG major, has bought a substantial stake of 27.5 per cent in Zandu Pharmaceutical Works Ltd.
A company release said here today that Emami had bought 24 per cent from one of the existing promoters' groups.
This was a strategic investment with an objective to be part of management control along with the existing promoter, the release said adding as per regulation also, Emami would be making an open offer for acquiring further 20 per cent stake in the company.
Zandu, the age-old ayurvedic herbal and healthcare products company, owns renowned brands like Zandu Balm, Zandu Special Chyawanprash, Kesri Jeevan and other ayurvedic and ethical products.
In recent years this was the first ever deal of purchasing sizable stake in FMCG sector by Emami, it stated.
'' Zandu has a tremendous business potential, which can be exploited with strong marketing, R&D and other operating efficiencies coupled with long term entrepreneurial vision. Emami with its strong marketing acumen and operational efficiency can help Zandu reap its true potential. There is strong synergy between the business of Emami and Zandu. If Emami and Zandu's respective expertise are combined, it can attain greater heights, '' Mr Harsha V.Agarwal, Director, Emami Limited, said.
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