NEW DELHI: Homegrown FMCG majorEmami Ltd is scouting for acquisitions to strengthen its market position, for which it is ready to use cash reserves of Rs 300 crore and leverage its borrowing potential, according to company Managing Director Sushil K Goenka.
"We are seeking inorganic opportunities to strengthen our industry position. We are building the company with a broader and stronger agenda for growth via both organic and inorganic routes," Goenka said in a statement in the company's annual report for the 2012-13.
The company is "looking aggressively in the sectors of our presence," he said.
"As on 31st March, 2013, we possessed net cash/liquid assets of over Rs 300 crore, which along with strong borrowing potential can be used to invest in viable acquisitions," Goenka said.
Emami has been focussing on international expansion, specially in the neighbouring markets such as Sri Lanka, Bangladesh, Bhutan, Maldives, Pakistan and Afghanistan, along with Gulf countries, Russia and CIS regions with key brands Boroplus, Navratna, Fair and Handsome and Zandu.
"We aligned our international vertical, classifying geographies as focused countries and concentrating on them. We discontinued lower-priced products and reduced our presence in countries where we had inconsequential presence," Goenka said.
The company plans to rebrand the Zandu healthcare portfolio, which it acquired in 2008 for Rs 700 crore.
"We will focus on rebranding the Zandu range as we see significant potential in the consumer healthcare segment," Goenka said.
"The company will continue to effectively deploy its resources, increase profits, build partnerships with retailers, improve operating margin and support power brands to growmarket share and achieve higher returns," he added.