Marico acquires Oil of Malabar
27 Sep 1999
Marico Industries Ltd and West Coast India Ltd (WCIL) have reached an understanding, in terms of which Marico will acquire the brand 'Oil of Malabar' and all associated business and commercial rights. 'Oil of Malabar' will continue to be distributed, on mutually acceptable terms and conditions, through WCIL's sales and distribution network, which has a strong rural presence.
Oil of Malabar, a coconut oil brand, with an all-India market share of 3.2 per cent, clocked a turnover of over Rs 12 crore for the year ended March 31, 1999. It has a national presence and a significant franchise in south India with an 8 per cent market share. The brand has a reach of about 160,000 outlets, of which about 100,000 are in rural India.
Marico already leads the branded coconut oil market with a share of over 50 per cent through its flagship brand 'Parachute'. This acquisition helps Marico in further consolidating its clout in the coconut oil market.
With the sale of these brands, WCIL intends to focus on its other businesses.