Marico stock up 4 per cent on Paras Pharma
16 Feb 2012
Marico shares were up 4 per cent this morning on the FMCG player's acquisition of personal care business of privately held Paras Pharmaceuticals from UK's Reckitt Benckiser.
Reckitt Benckiser took over Paras Pharma in December 2010, but had said later, it would focus exclusively on the company's healthcare business.
Under the transaction all key assets including intellectual property rights, supply agreements and third-party manufacturing agreements would be transferred to a separate company, in which Marico would acquire 100 per cent shares, it had said yesterday.
According to Saugata Gupta, CEO, consumer products business, it would fast-forward the company's journey towards creating a portfolio for the future, with a significant presence in the male grooming and post wash hair care segments.
The biggest benefit that Marico would derive from the deal would be acquisition of three key brands - Zatak deodorant, Set Wet styling gel and leave-on conditioner Livon, all of which are ranked among the top three in their respective categories.
According to Marico's expectations Paras personal care business would achieve a turnover of Rs150 crore in the current fiscal year.