Jyothy may rope in PE firms if bid for Henkel succeeds

Jyothy Laboratories will consider taking on board private equity players for its potential acquisition of Henkel India after some big global funds like Carlyle, TPG and Apax Partners approached it with commitments of $100 million each, according to a report.

Quoting unnamed sources, The Times of India said the Mumbai-based firm is open to private equity partnership to turn around Henkel's loss-making and struggling Indian business, which reported revenues of Rs390 crore in 2010. 

Jyothy Laboratories, a regional player in the home and laundry care segments, is in the fray to acquire the debt-laden Henkel India as it hopes to emerge as a national player with a wider FMCG portfolio.

A fortnight ago, Jyothy acquired a 14.9-per cent stake from Henkel's Indian partner A C Muthiah even as the German giant mandated HSBC to sell its 50.97 per cent stake in the Indian unit. The transaction is believed to have strengthened Jyothy's position in the bidding process for Henkel stake that is currently underway. Mape Advisory Group is advising Jyothi on the deal. 

The report said Jyothy would rope in a private equity investor if it clinches the Henkel stake buy, which is still at a tentative stage.. 

When contacted, a top Jyothy executive said, "Several financial institutions have approached us to fund our requirements but there is nothing concrete at this stage."