In an exciting development, Emami’s share price witnessed an impressive 5% surge during early trading on Friday following the company’s announcement of its entry into the juice category. Emami’s shares rose by as much as 4.9%, reaching ₹537.80 each on the BSE.
The prominent FMCG (Fast-Moving Consumer Goods) company, Emami, acquired a noteworthy 26% equity stake in Axiom Ayurveda Pvt Ltd. Axiom Ayurveda is renowned for marketing beverage products under the brand “AloFrut.”
In addition to its flagship product, AloFrut, which forms a significant part of Axiom Ayurveda’s business, the company boasts a distinctive range of carbonated beverages, including mocktails and energy drinks. Furthermore, it has a presence in the Ayurvedic healthcare juice segment through its Jeevan Ras brand, as confirmed by Emami in an official statement.
AloFrut’s product range stands out due to its unique blend of Aloe pulp with fruit juice, offering a delightful fusion of taste and health. Emami’s Vice Chairman & Managing Director, Harsha V Agarwal, expressed enthusiasm about entering this category, emphasizing that it aligns with the company’s corporate growth strategy, focusing on investments in categories or brands that not only complement their existing business but also hold growth potential. Agarwal looks forward to bringing significant value to the brand.
Axiom Ayurveda boasts its manufacturing facility in Ambala, Haryana, and is in the process of establishing a fully automated new facility in Jammu (Kathua) at an investment cost of ₹160 crore.
AloFrut has already established a robust market presence, extending across General Trade, Government Institutions, Modern Trade, and E-Commerce platforms, according to the company.
Over the past three months, Emami’s share price has surged by over 28%, while the stock has marked an impressive gain of more than 24% year-to-date (YTD).
As of 10:10 am, Emami’s shares were trading 3.40% higher at ₹530.10 each on the BSE, reflecting the market’s positive response to this strategic move.