According to two sources with knowledge of the situation, fast-moving consumer goods company Emami plans to buy a 100% share in men’s grooming company The Man company, Entrackr has learned. Although the group has invested in a number of direct-to-consumer businesses, this would be the group’s first full acquisition in the D2C market.
“The acquisition was inevitable and a matter of time as Emami already has a controlling stake in The Man Company,” said one of the sources requesting anonymity. “The deal will value the company at around Rs 400 crore.”
As of July 2022, Emami already owned slightly more than 50% of The Man Company. As per media reports, the company’s co-founders, Hitesh Dhingra, Parvesh Bareja, and Bhisam Bhateja, jointly own approximately 35% of the business.
Two tranches of Emami’s 33.09% acquisition of The Man Company materialized in December 2017 and February 2019.
“The discussions are in the final stages, and if nothing goes wrong at the last moment, the transaction will be completed in a few weeks from now,” said the source quoted above.
Revenue of Rs 185 crore was reported by The Man Company for the fiscal year that concluded in March 2024. The company claimed that e-commerce channels, such as its website and well-known marketplaces, accounted for 70% of its sales. With Rs 14 crore, it claimed EBITDA level profitability in FY24.
It’s important to note that the company has only raised Rs 75 crore ($9 million) in total.
