Marico buys Colgate Palmolive's Malaysian business
04 Jan 2010
Marico Ltd, the Indian personal care products maker, said today that its Malaysian unit has acquired hair styling brand 'Code 10' from Colgate Palmolive Co. It did not disclose the price of the deal.
The acquisition marks Marico's entry into the Malaysian hair styling market, it said in a statement from Mumbai. "The deal envisages the acquisition of the brand Code 10 and related IPR by Marico Malaysia Sdn Bhd, a wholly owned subsidiary of Marico Middle East FZE," the company said.
"It meets two requirements. It enables us to enter Malaysia, and it helps us grow our strengths - hair cream and hair gels," said Milind Sarwate, chief of finance, human resources, and strategy.
The Malaysian hair styling market is estimated at 150 million Malaysia Ringgits ($43.86 million). Code 10 is the third biggest player in the country, with a double-digit market share, Marico said.
Colgate Palmolive will continue to distribute the Code 10 range of products, comprising hair creams and hair gels, for a limited period under a transition services agreement, he added. "You can't take over everything overnight. For a period of about six months Colgate will distribute for us - then we will take it over on our own," Sarwate said.
The Code 10 range comprises hair creams and hair gels, and enjoys a double-digit market share in the country.
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