Emami Ltd shares dropped to a 52-week low of Rs 385.5 during Thursday's trading but closed 1.3 percent higher at Rs 398.5. This volatility coincided with the company's announcement to acquire the remaining 73 percent stake in Axiom Ayurveda for up to Rs 200 crore, gaining full control of the AloFrut beverage brand. The move marks Emami's expansion into high-growth health beverages amid shifting consumer demand for wellness products.
Acquisition Details and Timeline
Emami already held a 27 percent stake in Axiom Ayurveda, acquired about two and a half years ago. The full buyout, phased over the next three months, elevates ownership to 100 percent and targets Axiom's portfolio of functional beverages and natural health products. Founded in 2019 by Rishabh Gupta and Alisha Gupta, Axiom reported turnover of Rs 107 crore in FY24 and Rs 110 crore in FY25, showing steady growth in a scalable model.
Strategic Pivot to Health and Beverages
Emami seeks to strengthen its position in India's health and wellness sector through this deal, moving beyond traditional personal care into food and beverages. Axiom's flagship AloFrut aloe vera drinks, Axiom Jeevan Ras juices, and Mukti Gold wellness range align with rising demand for preventive health and plant-based options. This follows prior moves like full ownership of The Man Company in 2024 for male grooming and investment in Fur Ball Story in 2022 for pet care, building a multi-category FMCG presence with over 550 products including Navratna and Zandu Balm.
Leadership Boost and Synergy Potential
Axiom appointed Harkirat Bedi as CEO, drawing from his role as Vice President at Dabur Nepal to professionalize operations and drive expansion. Emami's distribution network enables cross-selling, brand bundling, and shared marketing across health categories. Vice Chairman Harsha Vardhan Agarwal emphasized capturing emerging categories, positioning Emami within broader FMCG trends where large firms acquire startups to access functional beverages and adapt to natural product preferences.