Henkel India has decided to sell its manufacturing facility in Kolkata which makes brands such as Margo soap and Neem toothpaste.
The facility was set up with an investment of Rs 5 crore in November 2004. The company made a formal announcement today to the Bombay Stock Exchange. Its spokesperson declined more comment.
The proposal, say sources, comes in the wake of the decision taken by Henkel internationally to hive off certain production facilities to improve efficiency. The parent company proposes to use the contract manufacturing route to keep its operations viable. The Kolkata plant annually produced 12,000 tonnes of soap and 1,000 tonnes of toothpaste.
While laundry and home care comprise 60 per cent of Henkel India’s annual turnover, the balance comes from cosmetics. Margo generates nearly a seventh of the company’s annual turnover, which stood at Rs 540 crore for the year ended December 2008.
Its regional soap brands, Aramusk and Moloy, estimated to be worth around Rs 10 crore, are also reportedly up for sale. Reliance Retail and the Emami group are said to be in the race for the brands. This could not be confirmed independently.