Ghari group in consolidation mode

As it approaches the Rs 1,000 crore turnover mark, the Ghari group, Kanpur-based detergent major, has started corporate consolidation by merging a string of SSI manufacturing outfits into one large company.

While manufacturing is done in various outfits, marketing is done only through Kanpur Trading Company.

Group Chairman Murlidhar told Business Standard that there was no immediate plan to go in for a public issue, but the consolidation into one large company would be necessary for such a step.

"At an opportune time, we may go for it. Another advantage is it will facilitate our negotiations with the banks, and give us the necessary image of being a large player," he said. "A new company will be born with impressive financials," he added.

Thus, the shoe unit, which is run by Murlidhar's son Manoj, was merged with the parent company last year and is now the shoe division of Ghari. However, the company owning the Ghari brand will remain separate.

However, he did not comment on the reported deal with a private equity investor for investing in the company, nor on the firm's balance sheet.

The group is set to re-launch the detergent "Double Dog" with a new brand name MR-2.

"The name Double Dog is likely to put off consumers. But MR-2 is neutral. Its marketing will be done differently since the clientele is different. A new team has been readied for advertisement and the media as well as for marketing. But the launch will be a slow process," says nephew Rahul. Its price will be about Rs 65 a kg.

Ghari, after considerable exercise, chose to develop its own noodle for toilet soaps rather than buy it and is currently establishing its noodle plant, from which toilet soaps will be made with an investment of Rs 40 crore. The toilet soap, the first such venture from the Ghari group, will be sold under the "Venus" and "Khushboo" brand names. The prices have not been finalised.

The company has established itself in Uttaranchal. Its footwear unit has started production with an investment of Rs 6 crore and its detergent plant of 400 tonnes per day is coming up at Roorkee with an investment of Rs 20-22 crore.

To take advantage of the current high prices, at Noida the company is set to construct a park for IT companies with an investment of Rs 35-40 crore. The contractors are the Ahluwalias and the architects are DSP of Bangalore.

The park is coming up in an area of 200,000 square feet. This will be sold and the group has no intention of getting into either construction or IT. It is a one-deal affair.