Kolkata-based FMCG conglomerate Emami has acquired a 26% stake in Axiom Ayurveda in an all-cash deal for an undisclosed amount, it said in an exchange filing on Thursday (September 28).
The move marks the conglomerate’s entry into the packed juice business.
Explaining the rationale behind the move, Emami said the investment was in line with its strategy to invest in the health and wellness segment. Further, it said the investment in Axiom Ayurveda will help Emami venture into the packed juice segment.
The acquisition of 26% of the paid-up share capital of Axiom Ayurveda is on a fully diluted basis, through primary infusion and secondary buyouts, and is expected to be completed within one month, Emami added.
Incorporated in 2019, Axiom Ayurveda is led by Rishabh Gupta & Alisha Gupta. It sells beverages under the brand name AloFrut, selling a proprietary fusion of aloe vera pulp with a fruit blend. Apart from AloFrut, it has a range of carbonated beverages, including mocktails and energy drinks. It is also present in the Ayurvedic healthcare juice segment under the Jeevan Ras brand.
The company had reported a revenue of INR 129 Cr in FY23.
This is not the first time the Kolkata-based FMCG giant has chosen the acquisition route to expand into new territory. Last year, it acquired a 30% stake in the pet care startup Cannis Lupus, after picking up a 19% stake in the nutrition startup TruNativ. Financial terms of both the deals were left undisclosed.
Emami also invested in the male personal care startup, The Man Company, in 2019.
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