Henkel Spic consolidates stake in Calcutta Chem. - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Henkel Spic consolidates stake in Calcutta Chem.

Dec 7, 1999

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 its a good beginning.

Equitymaster requests your view! Post a comment on "Henkel Spic consolidates stake in Calcutta Chem.". Click here!

  

More Views on News

Sorry! There are no related views on news for this company/sector.

Most Popular

India: Recovery Stalled by Vaccine Games? (The Honest Truth)

Apr 13, 2021

Ajit Dayal on how India's vaccine strategy will impact the markets.

4 Stocks to Make Your Portfolio Immune to the Second Covid Wave (Profit Hunter)

Apr 6, 2021

Rather than predicting the market, successful investing is more about preparing well and placing your bets accordingly.

A Stock with 700% Return Potential Comes with Additional Payoffs (Profit Hunter)

Apr 15, 2021

Narayana Murthy was one of the first unicorn founders to get the backing of this entity...

Why Did the Market Crash on Monday? (Fast Profits Daily)

Apr 13, 2021

In this video, I'll you what I think is the real reason behind yesterday's market crash.

A Unique Sector for Short-Term Profits (Fast Profits Daily)

Apr 12, 2021

This ignored sector could deliver big short-term profits.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

TRACK HENKEL SPIC

  • Track your investment in HENKEL SPIC with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MARKET STATS