Emami Group, a leading Indian conglomerate, has recently appointed McKinsey & Co. to assist in identifying potential categories for expansion. The group aims to diversify its business portfolio and enter 2-3 new categories to drive growth and tap into emerging consumer trends. These may include packaged staples like atta (wheat flour), rice, sugar, and salt, as well as ready-to-eat and ready-to-cook meals, gourmet packaged food, and kitchen appliances.
Celebrating its 50th year, the multinational conglomerate is keen on venturing into new verticals with a focus on consumer-facing businesses such as fast-moving consumer goods (FMCG), edible oil, healthcare products, and packaged food. The group believes that these areas align with its expertise and offer significant growth potential.
Emami Group plans to undertake an initial public offering (IPO) for its edible oil and packaged food business, Emami Agrotech, once the business achieves sustained profitability. The group is also exploring acquisition opportunities in the paper business to further expand its operations.
The entry of the third generation of the Emami family into the business has prompted the group to seek new growth vectors. Six members of the third generation, who are in their 20s, have already joined the company as trainees. Emami Group aims to provide them with opportunities to build their own businesses within the group.
Emami Group is considering selling its Frank Ross pharmacy chain if it receives a good valuation. The decision to sell the chain is driven by the group’s focus on higher-margin businesses and the need to raise funds for expansion into new categories.
RTM Watch’s Take
Emami Group’s decision to appoint McKinsey & Co. to aid in category expansion reflects the company’s commitment to diversifying its business and exploring new growth opportunities. By leveraging McKinsey’s expertise, the group aims to identify promising categories and capitalise on emerging consumer trends. This move aligns with Emami’s focus on consumer-facing businesses and its desire to provide opportunities for the next generation of family members to build their own businesses within the group.
