Homegrown FMCG major Emami Ltd. announced entering the health juice category, with the acquisition of a 26% stake in Axiom Ayurveda Pvt Ltd., which markets a range of beverages under the brand name AloFrut.
The deal size was not disclosed.
“We are delighted to announce our partnership with Axiom Ayurveda through a strategic investment in equity. This marks our entry into the juice category with ‘AloFrut’. With health & wellness being the buzzword for consumers today, we see tremendous potential in the segment,” Harsha V Agarwal, vice chairman and managing director, Emami Ltd., said in a statement.
Axiom Ayurveda claims that AloFrut juices are rich in vitamins, minerals, and essential amino acids and are available in multiple flavors. The company also markets a range of carbonated beverages, including mocktails and energy drinks, as well as ayurvedic healthcare juices under the brand Jeevan Ras.
Axiom Ayurveda has a manufacturing facility in Ambala, Haryana, and is setting up a new state-of-the-art facility in Jammu at a cost ₹160 crore. AloFrut has a strong market presence across general trade, government institutions, modern trade, and e-commerce platforms.
Emami’s entry in the juices category will see the company compete with the likes of Dabur Ltd. and PepsiCo India.
“AloFrut product offering is very unique as these beverages are based on Aloe pulp inclusion in fruit juice which provides a perfect mix of taste and health together. We are excited to be present in this category which is in line with our corporate growth strategy to invest in categories or brands that not only have synergy with our existing business but offer potential for growth. We look forward to add meaningful value to the brand,” said Agarwal.
“We strongly believe in the potential that our brand has to offer. It is exciting to have Emami come on board as a strategic partner with wide industry experience who shares our vision to make Alofrut a leader brand,” said Rishabh Gupta, founder, Axiom Ayurveda Pvt Ltd.
Last year, Emami had acquired talcum powder brand Dermicool from Reckitt for a total consideration of ₹432 crore, excluding taxes and duties.
Today, shares of Emami closed at marginally higher at ₹515 apiece on the BSE.