Shares of Gillette India Ltd (GIL), the multinational personal care major, hit the 20 per cent upper limit on the Bombay Stock Exchange (BSE) early today following the announcement by its parent that it will infuse funds voluntarily into its Indian affiliate by way of a capital grant.
The scrip closed higher by 14.37 per cent to Rs 303.30, off its intra-day high of Rs 318.20.
On Monday, the company announced that its parent would infuse funds voluntarily into GIL by way of capital grant. However, details of the capital grant are still being worked out, and will be subject to necessary regulatory approvals.
The company also announced that it will shut its Duracell alkaline battery plant in Manesar. The company is shutting down the plant as a result of depressed market conditions. The company has already offered voluntary retirement scheme (VRS) to the 175 employees at the plant. From now on, the company will source batteries from other Duracell worldwide facilities.
The Duracell India plant manufactured only AA-sized alkaline batteries, while other sizes of batteries were being imported. Continuous supply of Duracell batteries will be ensured, in line with the company's commitment to grow its alkaline battery business in the country.
Jointly promoted by Gillette Co, US, and Poddar Enterprises, Gillette India (GIL) (previously known as Indian Shaving Products) manufactures a wide range of shaving products. Commercial production commenced in 1986. In January 2000, Duracell (India) and Wilkinson Sword India merged with the company.
GIL's product portfolio consists of the upper end of male grooming products with brands such as Gillette Presto, Sensor Excel, Gillette Mach III and Gillette series Shaving Gel.
With the merger, GIL has gained lower-end shaving products such as 7 O'Clock blades and Wilman shaving systems from Wilkinson Sword India. The company has also procured the strong battery business comprising Duracell alkaline batteries and the newly acquired Geep industrial batteries.
