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, securing full control of the AloFrut beverage brand. The move marks Emami's push into functional beverages amid rising demand for wellness products in India.
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 Emami's ownership to 100 percent. Axiom, founded in 2019 by Rishabh Gupta and Alisha Gupta, offers AloFrut aloe vera beverages, Axiom Jeevan Ras health juices, and Mukti Gold wellness products.
Strategic Shift to Health Beverages
Emami seeks to expand beyond beauty and personal care into high-growth food and beverage categories. Axiom's revenue grew from Rs 107 crore in FY24 to Rs 110 crore in FY25, providing a stable base for scaling. This acquisition follows Emami's purchases of The Man Company in 2024 for male grooming and Fur Ball Story in 2022 for pet care, building a multi-category FMCG presence.
Leadership Boost and Market Synergies
Axiom appointed Harkirat Bedi as CEO, drawing from his role as Vice President at Dabur Nepal. Emami's network of over 550 products, including Navratna, BoroPlus, and Zandu Balm, enables cross-distribution and brand bundling for Axiom's offerings. Vice Chairman Harsha Vardhan Agarwal emphasized targeting emerging categories that match consumer shifts toward natural, preventive health solutions.
Broader Wellness Trends in FMCG
India's FMCG sector faces pressure to adapt to demands for plant-based drinks and functional nutrition. Emami's inorganic growth strategy accelerates entry into beverages with high consumption frequency and urban appeal. Full ownership of Axiom positions the company to capture wellness ecosystem growth without building from scratch.