A stake of 27.5 per cent in the prominent ayurvedic products manufacturing company, Zandu Pharmaceutical Works Ltd. has been acquired by the Emami Group and an open offer is soon to follow suit. Since the personal care products company i.e. the Emami Group is interested in more domestic as well as international acquisitions, it is expected that the company may not yet be done with Zandu. The director of Emami Group, Harsh V Agarwal recently informed that deliberations are on with about three to four companies.

 

Agarwal further pointed out that Emami is especially interested in the personal care, household and healthcare sectors. The Emami Group first got hold of 3.9 per cent shares of the Zandu Company from the market. Thereafter, it acquired 14.81 percent on 28 May followed by the final 12.7 per cent that it picked up from one of the existing promoters' group on Friday. As per the Securities and Exchange Board of India regulations, it now makes is mandatory for the Emami Group to make Zandu an offer for 20 per cent. It is reported that Emami will fund the buyout through internal accruals.