Emami Limited issued a statement on Friday stating that they have acquired Dermicool from the massive FMCG brand – Reckitt for a total fee of RS. 432 Crores.
Dermicool is one of the prickly heat and powder industry leaders having a fifth of the total market share. According to Emami, Dermicool is a historic brand with a strong brand value and equity. These were their main driving factors to go all out for the company.
Emami also owns Dermicool’s competitors Navratna and Boroplus Ice. With this new transfer of ownership, Emami is currently biggest player in the body powder sector which will only assist growing their companies along with industry as a whole simultaneously.
Harsha V Agarwal the Director of Emami Limited said that everyone at the company is over the moon to announce the acquisition of Dermicool brand which offers some great collaborations with the existing companies and products in the family and called the new purchase as the perfect tactical link. The acquisition will help us rise to the summit of the prickly heat powder & cool talc category. With the increase of average temperatures and unbearable summers, Emami provides a solid solution with niche products which are poised for potentially strong development in the future.
According to multiples sources and industry shareholders, Navratna comes in second in terms of market share in the industry, losing out top spot to Nycil owned by Zydus Wellness while Dermicool takes the bronze medal. BoroPlus Ice’s share in the market is relatively insignificant
Mr. Harsha continued to say that after thorough consumer research projects that both Dermicool and Navratna do not work in the same are and are not perfect substitutes even though they are both players in the prickly heat category. Navratna aids in the skin’s coolness but Dermicool helps in coolness as well as prickly heat which is a common occurrence during the months of May and June.
With both brands have their own uniqueness, it only makes sense to strive to make both brands thrive in the market and accompany each other at the top of the market share.
Emami’s biggest goal is to rule the market primarily by growing both Navratna and Dermicool. Unfortunately for Boroplus Ice, the company has no real plans for it to accompany the other two at the peak.
With this new acquisition, it seems as if Emami will climb to the summit of the industry grabbing most of the market share in the near future. Only time will tell.
