VVF to buy Colgate Palmolive's Kansas, USA plant

VVF, one of India's biggest producer of oleochemicals and personal care products, is buying Colgate Palmolive's soap manufacturing plant in Kansas City, USA.

"We will make this facility our North American headquarters", Kurussh Amrolia, president(US Operations) of VVF, said.

The company declined to disclose further details about the deal citing a non-disclosure agreement with Colgate.

The unit, which will be closing shortly will be reopened during the first quarter of next year with a startup work force to produce private-label soap for hotels and personal care products for other clients. VVF is looking at increasing the work force as well as the customer base after reopening.

Piyush Jindal, senior VP(personal care) of VVF India said: "This development is a significant step towards expanding our global footprint. During 2006, a significant expansion of capacities has happened at Dubai plants, followed by the setting up of a Singapore office. With this, we have enhanced our capabilities to address customers' needs in the vast market of the American continent."

This acquisition will allow the company to cater to clients demands for soap as well as other skin care and oral care products on a bigger scale than its existing facility in Ontario, Canada.

VVF does contract manufacturing for various brands like Johnson & Johnson, Henkel, Reckitt Benckiser, J L Morrison and Cussons. Apart from this, it also has its own soap brands, Doy, Doycare, Jo and Schiff.

Currently a Rs. 675 crore company, is charting high growth with plans afoot to cross Rs 1000 crore 2008.