Emami gets board's approval to hive off realty biz

FMCG major Emami Group has got its Board's approval to hive off its real estate arm into an independent entity.The Kolkata-based company, which recently acquired a controlling stake in Zandu Pharmaceuticals, is planning to focus more on its core FMCG business while letting Emami Realty chart its course as a completely separate firm.

Asked if Emami was planning to exit from the realty business after spinning off the arms, Emami Director Aditya Agarwal replied in the negative and said Emami Realty would continue working on the various projects that it has started. '

On the source of funding of the projects, he said: "It is too early to talk (about it) at the moment." Emami Realty's 10 projects comprise four IT parks, three shopping malls and three residential complexes in Kolkata, Coimbatore and Hyderabad, involving a construction area of over 50,00,000 sq ft. The projects are likely to be completed by 2010-11.

Emami set for cosmetic changes

Emami Group on Wednesday said it will invest about Rs 220 crore for expansion in the FMCG segment, which includes acquisitions in personal care and healthcare space and product portfolio enhancement through forays into new categories.

The company, which is eyeing over Rs 500 crore of revenue in the next 3-4 years by foraying into new segments like babycare, haircare and expansion in men's grooming categories, has also renewed its advertising contract with Bollywood superstar Amitabh Bachchan for another three years.

On product portfolio expansion, Agarwal said Emami would launch 18 new products this year in hair care, baby care and men's grooming segments.He said the company invests Rs 120 crore on brand investments every year, out of which Rs 40 crore would be spent on the new launches.

Read more in The Economic Times article.