Marico to acquire Nihar from HLL

Our Corporate Bureau
27 January 2006

Mumbai: Marico Ltd. has announced that it is acquiring Hindustan Lever Limited Nihar brand of coconut oil and perfumed hair oils. Nihar has a current annualised turnover of about Rs120 crore from these two products.

The transaction envisages a transfer of the IPR and other rights associated with the brand in India and other parts of the world where the product is available. HLL will continue to operate brands other than Nihar in the value added hair oil segment.

Marico and HLL announced this through a joint press communiqué today. HLL had initiated the divestment as a part of its brand rationalisation programme. The process involved competitive bidding amongst select FMCG companies.

According to M K Sharma, vice chairman, HLL, "This is in line with our Portfolio rationalisation strategy, while at the same time creating value for our shareholders."

Ambit Corporate Finance acted as Marico's advisors in this transaction

Nihar Naturals' Jasmine and Rose-perfumed hair oils are the national market leaders in perfumed coconut oils, with significant presence in the east, while in the coconut oil segment Nihar''s regional strengths will complement Marico''s presence in the Rs800 crore category.