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Emami group sees spurt in business -- Consultants' report on recast shortly

Kohinoor Mandal

CALCUTTA, Dec. 5

THE Emami group with diversified interests in personal and health care products, paper, retail outlets, stationery, plastics, hospitals, IT and real estate, is looking forward to a major surge in turnover in 2000-01.

The Emami group's projections place the likely turnover at around Rs 700 crore, which if achieved, would mark a growth of over Rs 450 crore it reached in 1999-2000.

It has appointed global consultant majors Arthur Anderson and Ernst & Young to advise it on possible restructuring as also alliances and tie-ups for future. ``They were appointed about six months back and their report is likely to be available shortly'', Mr Aditya V. Agarwal, Director, told Business Line.

According to Mr Agarwal, the personal and health care business is expected to generate a turnover of Rs 250 crore as against Rs 150 crore in the previous financial year. For this business, Emami Ltd is responsible for production and marketing is undertak en by JB Marketing & Finance Ltd.

The major products, which would contribute to the expected increase in turnover, were Boro Plus Antiseptic Cream, Himani Navratan Oil, Sona Chandi Chwyanprash, Royal Bee Honey and Boro Plus Prickly Heat Powder. The powder has been able to outperform seve ral of its rivals, he said.

Mr Manish Goenka, another director of the Emami group, said all personal care products would be branded under Emami and health care under Himani. ``The men's personal care products, like shaving cream and after shave lotion, are marketed under Emami bran d. So we would be developing two umbrella brands simultaneously'', Mr Goenka said.

Emami recently contracted cine sensation, Ms Madhuri Dixit, for endorsing women's personal care products. ``There is a slight delay in giving effect to the arrangement. She is giving significant inputs for developing the products and this has delayed the launching''. Hopefuly, by March next, the women's range of products -- six or seven -- would be launched", he observed.

The Emami group has recently diversified into IT and has acquired a 27 per cent stake in Data Processing System, a city-based software developer and solution provider. ``It is almost a two decade old company and it is mostly exporting its products'', Mr Agarwal said.

The two paper outfits -- Emami Paper Mills Ltd and Gulmohar Paper Ltd -- were witnessing significant growth. ``After three-and-a half years, the paper market was on the rise. The turnover from paper was expected to rise to Rs 150 crore from Rs 100 crore of the previous year'', he added.

Emami's retail outlet, Landmark, which is only a year old is ``doing good business, would be soon expanded''. New Landmark outlets in other metros were under consideration.

It is also focussing on Ayurveda. Currently, it is developing ayurvedic drugs like baby massage oil, cough remedial syrups and vaporubs, blood purifiers and purgatives. The products would be introduced by March / April next.