Pharmaceutical and Personal Care Marico to Acquire Paras Personal Care Business
Marico Limited has executed documents to acquire Set Wet, Livon, Zatak and certain other Personal Care brands currently owned by Reckitt Benckiser (RB). RB had acquired these brands from Paras Pharmaceuticals in a deal completed during April 2011.
The transaction envisages transfer of all key assets including intellectual property rights, supply agreements and third party manufacturing agreements (Paras PC business), for an undisclosed consideration. These assets are in the process of being transferred to a separate company in which Marico will acquire 100 per cent shares. The closing of the transaction is scheduled to take place over the next few months.
Personal Care Market Grows in India
The Paras PC business is expected to achieve a turnover of over `150 crore during FY12. Brands in the portfolio are amongst the top three positions in the hair gels, male deodorant and leave-on hair serum categories. This acquisition gives Marico an opportunity to participate in the rapidly growing deodorant and male grooming categories in India. The portfolio addresses the grooming needs of the youth and is supported by India’s demographic profile. Marico will also leverage its distribution strength in India to provide a fillip to the growth of the brands. The acquisition of this business is expected to further reduce Marico’s dependence on edibles oils and hair oils.
Creating a Pharmaceutical and Personal Care Portfolio
Saugata Gupta, CEO, Consumer Products Business, Marico, said “I am excited about this acquisition. It fast-forwards our journey towards creating a portfolio for the future with a significant presence in the male grooming and post wash hair care segments.