Aug 30, 2000|
Henkel: An HLL in the making?
Henkel AG, the German consumer products majorsí efforts in India finally seem to be bearing fruit. Its 54% subsidiary Henkel Spic India has recorded profits for the first time in 2000. The companyís earnings were positive, both in the first quarter and the second quarter of FY2000 (the company financial year ends in December).
Henkelís strategy was simple. Attain critical mass (read volumes) either by adding brands or acquiring existing ones. As part of this strategy it acquired 'Brisk' from Modern Home Care Products and later bought out Calcutta Chemicals and Detergents India. By virtue of the latter acquisitions, the company now owns Margo, Neem toothpaste, Lavander Dew soap, Moloy sandal soap (all from Calcutta Chemicals) and Chek and Regal brands (from Detergents India). Henkelís portfolio now includes detergent powders, detergent cakes, dishwater products, cleansers, soaps and toiletries.
As a result, the companyís turnover has clocked a compounded annual growth rate (CAGR) of 121% over the past three financial years. And this year, Henkel India has finally recorded the Ďall importantí profits. The company seems to be planning on the lines of the Unilever subsidiary in India, the FMCG giant, Hindustan Lever Limited (HLL). The company has shown HLLís knack of acquisitions. Like HLL it realises the importance distribution muscle. Henkelís distribution reach extends to around 300,000 retail outlets currently and the company plans to significantly add to these numbers. Its presence has been predominantly in south India, but now Henkel has shown signs to go national.
The going will not be easy. At the national level, it has to take on the might of HLL, which is by no means an easy task. Nirma and P&G India will also give it sleepless nights. But judging by its first half results, FY2000 will be a good year for this new kid on the FMCG block.
More Views on News
Aug 9, 2017
While GST implementation brought down volumes and profitability in the short run, Marico remains optimistic in the long run.
More Views on News
Aug 17, 2017
A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.
Aug 10, 2017
Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.
Aug 16, 2017
The IT Sector could be in an uptrend till February 2019. Are you prepared to ride the trend?
Aug 10, 2017
Bitcoin hits an all-time high, is there more upside left?
Aug 16, 2017
Ensure your financial Independence, and pledge to start the journey towards financial freedom today!
Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement. LEGAL DISCLAIMER:
Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here
. The performance data quoted represents past performance and does not guarantee future results.SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: email@example.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407