05/05/2011, Düsseldorf / Germany
Henkel to sell its stake in Indian HPC joint venture
Henkel to sell its majority stake in Henkel India Ltd to Jyothy Laboratories Ltd
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