Leading FMCG players, including Emami and Godrej, today said they are interested in buying the hair care business of Henkel India, which the company has announced it is planning to hive off.
"Certainly we do have interest in Henkel's hair care brands. We will evaluate as we are looking for a good acquisition. But right now it is too early to talk about as we do not know much about what all they are selling," Emami Director Harsh Agarwal told PTI.
This week, Henkel had announced that it is planning to dispose off movable assets and other components of hair care division of the company subject to shareholders' consent.
"In the current scenario of competitive business environment, it has become imperative for the company to reorganise and restructure its operations with the view to ensure long-term viability," Henkel India Joint Managing Director Domenico Mammola said.
This transaction will generate beneficial contributions to the capital structure of the Henkel India Group, he added.
Another homegrown FMCG firm Godrej has also not ruled out itself from the fray.
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When asked if it is interested in buying Henkel's hair care business, Godrej Group Chief Adi Godrej said: "We would not like to comment on potential acquisitions until we finally sign it or it has been concluded. But we will look at every opportunity that comes our way."
Market analysts also said with domestic firms, led by Godrej being active in acquisitions, Henkel's move provides yet another opportunity for them.
"Given the acquisitions it has been taking place in the hair care space, Godrej and Marico could be potential buyers. In the recent past, Godrej has talked about strengthening its hair care businesses, so they may look out for it," Anand Rathi Financial Services FMCG Analyst Shirish Pardeshi said.
While Marico said it is not interested in a possible buyout of Henkel's haircare brands, Dabur said it will not comment on market speculations.
"Henkel has been looking at exiting from the hair care business for quite a long time. Its hair care division is quite small. So probably they would want to rationalise the cost and investment they put in," Pardeshi said.
Henkel's hair care division includes hair colours, hair stylings and other professional hair care products.
Last year, Henkel India had a net sales of Rs 450.17 crore while its cosmetic business had a revenue of Rs 182.62 crore during the period. The rest of its businesses comes from detergents and cleansers. It sells products under the brands Henko, Fa, Pril and Margo.