05/05/2011, Düsseldorf / Germany

 

Henkel to sell its stake in Indian HPC joint venture

 
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Press Release / DOC

 

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Name Lars Witteck
  Head External Communications | Headquarters, Düsseldorf / Germany
Phone +49-211-797-2606
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Name Wulf Klüppelholz
  Corporate Media Relations | Headquarters, Düsseldorf / Germany
Phone +49-211-797-1875
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Henkel to sell its majority stake in Henkel India Ltd to Jyothy Laboratories Ltd

Henkel AG & Co. KGaA, Düsseldorf, today announced the sale of its 50.97% stake in Henkel India Ltd, Chennai, India, to Jyothy Laboratories Ltd., Mumbai, India. In an all-cash transaction Henkel sells 59.4 million equity shares at 20 INR each, amounting to 1,187 million INR (approx. 18 million euros) and 68 million preference shares, amounting to 439 million INR (approx. 7 million euros). Henkel will generate a one-time gain of more than 30 million euros. Jyothy Laboratories had acquired a 14.9% stake in Henkel India Ltd from Tamilnadu Petroproducts Ltd, Chennai, India, in March 2011.

Henkel’s sale of its majority stake in Henkel India Ltd is in line with the company’s strategy to focus on its core businesses and phase out marginal positions. Henkel’s local Indian brands have lacked size in order to be able to effectively compete with its competitors in the challenging Indian market. However, Henkel will still be present in the Indian HPC market with its international brands Fa and Pril which will be licensed to Jyothy, and with the Schwarzkopf Professional hair care business.

Henkel India Ltd was founded in 1987 as a joint venture between Henkel and Tamilnadu Petroproducts Ltd. The company operates in detergents and cosmetics retail businesses and employs around 400 people. In 2010, sales of Henkel India Ltd amounted to 4,217 million INR (approx. 70 million euros).
The sale will trigger the mandatory 20% open offer to the public shareholders of Henkel India Ltd as per Indian SEBI regulations. The transaction is expected to be closed by the end of May.

About Jyothy Laboratories Limited:
Jyothy Laboratories Ltd, a fast moving consumer goods Company, was founded in 1983 by Mr. M P Ramachandran. Over the years the company has evolved from a single product proprietary firm into a multi brand company involved in the manufacturing and marketing of products in Fabric Care, Mosquito Repellent, Surface Cleaning & Personal Care. The company has 28 manufacturing facilities in 16 locations across India.

Henkel AG & Co. KGaA



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