Emami subsidiary picks up stake in U.S. firm Loli Beauty
FMCG major Emami Ltd’s Dubai based subsidiary, Emami International FZE has picked up 7.54 percent stake in U.S.-based personal care firm Loli Beauty Inc for around Rs 3.8 crore (approx $0.5 million).
“Emami International FZE, a wholly owned subsidiary of the company based at Dubai, has made an investment in Loli Beauty Inc., Delaware USA, by subscribing to 12,28,261 series seed prime preferred stock (SSPPS) which will result in stake of 7.54 per cent in the company,” Emami said in a regulatory filing.
Emami further said that an investment agreement with the investee company and its existing shareholders has already been executed.
Emami Ltd, had reported net profit of Rs 60 crore (approx $9 million) for the quarter ended March 31, 2018, with sales revenue of Rs 617 crore (approx $92.5 million).
The beauty and fairness brands, in particular, registered double-digit growth during the last quarter, which is why Emami is looking to broaden its personal care portfolio with strategic investments in beauty firms to drive growth.
The company had earlier made strategic investments in beauty start-ups like Brillare Science Pvt Ltd and The Man Company during the last fiscal to strengthen its foothold in this segment.
Emami Limited is one of the leading personal and healthcare businesses in India, with a portfolio of over 300 products. Loli Beauty INC deals in natural and organic personal care product with its BIY (Blend-It-Yourself) concept.
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