Dec 7, 1999|
Henkel Spic consolidates stake in Calcutta Chem.
Henkel Spic has acquired another 26% in Calcutta Chemicals from a shareholder in an out-of-court negotiated deal. It already owns a majority stake of 55% in the aforesaid company. Henkel is also making an open offer to buy shares from minority shareholders of Calcutta Chemicals at Rs 267 per share, as per SEBI guidelines.
Henkel Spic - a 54% subsidiary of German consumer products major Henkel KgaA is engaged in the manufacture of eco-friendly zeolite-based phosphate free detergents, both surface cleaners and laundry based products. Tamilnadu Petroproducts is the other promoter. The company owns brands like Brisk, Henko, Limeshot, Pril and Mr. White. Until recently, the company focused on southern India. It is now embarked on a nationwide distribution of its products. Its current retail reach is over 250,000 outlets, which it plans to double over the next couple of years.
The move will help Henkel to merge Calcutta Chemicals with itself, and thereby consolidate its brand portfolio. Calcutta Chemicals owned brands like Margo, Neem toothpaste and Aramusk. These brands are quite well known in their respective segments and Henkel will look to relaunch them to gain market share. Henkel will be able to expand its geographical reach to the Northeast India in states like West Bengal, where Calcutta Chemicals brands have a strong presence. The acquisition will also mark Henkel's entry in the oral care segment with Neem and personal care segment with the premium 'Aramusk' soap and 'Margo'.
It is part of Henkel's broader aim to dominate the Indian consumer products market and challenge the might of FMCG major Hindustan Lever Limited (HLL) and others like P&G and Nirma. But it is still early days yet, as it has still to develop HLL's distribution strengths as also its marketing savvy. On the other hand itís a good beginning.
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