Emami Buys Majority Stake in Personalised Skincare Brands

Emami has significantly advanced its digital-first strategy by acquiring a 60% stake in IncNut Digital, the parent entity of personalised skincare brands Vedix and SkinKraft, in a transaction valued at Rs 321 crore. This acquisition, finalized on Thursday, is a pivotal step for the Kolkata-based company as it seeks to establish a more robust direct-to-consumer (D2C) ecosystem encompassing beauty, wellness, nutrition, healthcare, and pet care.

Emami anticipates its digital portfolio will reach approximately Rs 3,000 crore within the next five years. IncNut Digital marks Emami's sixth D2C acquisition, following recent moves like gaining full control of Axiom Ayurveda. Company leadership highlighted the unique value proposition of SkinKraft and Vedix, emphasizing their focus on personalized solutions over generic offerings, aligning with growing consumer demand for tailored products.

This acquisition underscores a broader industry trend where traditional FMCG companies are embracing digital-native brands amidst the surge in online commerce and premium consumer categories. The Indian beauty and personal care market is projected to reach $34 billion by 2028, with personalized and online segments experiencing accelerated growth. Emami plans to acquire the remaining stake in IncNut within the next four-and-a-half years, subject to future business performance.

Emami's D2C strategy involves identifying high-growth categories with rapidly evolving consumer behavior and scalable D2C models. The company prefers acquiring majority stakes initially, ensuring founders remain actively involved in operations to foster growth. This approach allows Emami to collaborate closely with founders and scale businesses effectively over time, further strengthening its diversified portfolio.