Deal envisages transfer of IPR
MUMBAI: Marico has reached an agreement to acquire the brand `Nihar' from Hindustan Lever Ltd. (HLL). Nihar has a current annualised turnover of about Rs. 120 crore spread over two segments - coconut oil and perfumed hair oils - and this acquisition marks the first acquisition by Marico for over Rs. 100 crore. Marico and HLL announced this in a joint media release here on Friday. HLL had initiated the divestment as a part of its brand rationalisation exercise. The process involved competitive bidding among select fast moving consumer goods (FMCG) companies.
The transaction envisages transfer of the IPR and other rights associated with the brand in India and other parts of the world. HLL will continue to operate brands other than Nihar in the value added hair oil segment.
According to M. K. Sharma, Vice Chairman, HLL, the sale is in line with HLL's portfolio rationalisation strategy, while at the same time creating value for shareholders. Marico expects to reap significant synergies from Nihar. Its strengths in the East, especially its distribution reach in Bihar and Jharkhand, will provide Marico a platform for its other brands. Harsh Mariwala, Chairman and Managing Director, Marico, said, "Nihar elegantly complements Marico's strengths in both coconut oil and perfumed hair oils."