Consumer product firms GCPL and Emami have expressed interest in acquiring Chennai-based Henkel India's haircare business.
Henkel announced yesterday that it proposed to dispose its movable assets and other components of the haircare division, subject to shareholders' approval. The move is part of its attempts to restructure operations in India.
Henkel India is a joint venture between Germany-based Henkel AG and the Chennai-based Tamil Nadu Petroproducts (TPL). Henkel AG holds 50.97 per cent stake in the company, while TPL holds 16.6 per cent.
HSBC India has been given the mandate to sell Henkel’s haircare business. A Mahendran, managing director, GCPL, said, "While we are interested in Henkel, we have to first study the information memorandum before moving forward."
Harsh Agarwal, director, Emami Ltd said, "We will evaluate the opportunity. We are open to it."
Persons in the know say Marico and Procter & Gamble are also keen on acquiring the business, though this could not be verified when going to press.
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Henkel, which produces personal care, laundry, home care, beauty and industrial products has been looking to exit non-core areas in an attempt to focus on hair colour and industrial applications. Some of its brands are Henko, Neem, Fa, Margo and Schwarzkopf Professional.
Henkel's joint managing director, Domenico Mammola, said, "In the current scenario of competitive business environment, it has become imperative for the company to reorganise and restructure its operations, with a view to ensure long-term viability. This transaction will generate beneficial contributions to the capital structure of Henkel India."
The current round is the second such by Henkel in the past year. In early 2010, it had offloaded Aramusk and Moloy soaps, as well as Mahabringol hair oil, to Mumbai-based VVF Ltd, the world's largest contract manufacturer of bar soaps. The deal also saw VVF buy Henkel's manufacturing plant at Tiljala, Kolkata.