Emami Shares Surge Nearly by 5%

Emami Shares Surge Nearly by 5%

VoM News Desk | September 29, 2023 | 11:49 AM IST | Breaking News | Follow on Google News

Emami Shares Surge Nearly by 5%

Emami, a prominent player in the FMCG sector, made a significant announcement that fueled a near 5% surge in its share price during early trading on Friday. The company unveiled its strategic entry into the juice category, which resonated positively with investors. Emami’s shares ascended by as much as 4.9%, reaching ₹537.80 apiece on the BSE.

Equity Stake in Axiom Ayurveda and the “AloFrut” Brand

Emami solidified its presence in the beverage industry by acquiring a 26% equity stake in Axiom Ayurveda Pvt Ltd, the company responsible for marketing beverage products under the brand name “AloFrut.” Beyond AloFrut, a key component of Axiom Ayurveda’s portfolio, the company boasts a diverse range of carbonated beverages, encompassing mocktails and energy drinks. Additionally, Axiom Ayurveda operates in the Ayurvedic healthcare juice segment under the Jeevan Ras brand, further enhancing Emami’s product offerings.

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A Unique Approach to Beverage Products

AloFrut stands out for its innovative approach to beverages, incorporating Aloe pulp into fruit juice to provide a harmonious blend of flavor and health benefits. Harsha V Agarwal, Vice Chairman & MD of Emami Ltd, expressed enthusiasm for this strategic move, aligning it with the company’s growth strategy to invest in categories or brands that not only complement their existing business but also offer potential for expansion. Emami aims to add substantial value to the AloFrut brand through this partnership.

Expansion Plans and Market Presence

Axiom Ayurveda’s expansion efforts are apparent, with an existing manufacturing facility in Ambala, Haryana, and plans for a fully automated new facility in Jammu (Kathua) at a cost of ₹160 crore. AloFrut has already established a robust presence across various segments, including General Trade, Government Institutions, Modern Trade, and E-Commerce platforms, reinforcing its status in the market.

Strong Share Performance

Emami’s share price has demonstrated impressive growth, surging over 28% in the past three months. Furthermore, the stock has seen a substantial year-to-date (YTD) increase of more than 24%, reflecting the company’s resilient performance and investor confidence.

At 10:10 am, Emami shares were trading at ₹530.10 apiece on the BSE, marking a 3.40% increase.

VoM News Desk

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