Mumbai: Germany-hail consumer goods manufacturer Henkel AG
is all set to invest in Indian firm Jyothy Laboratories, famous for its product
Ujala, the fabric whitener and other detergent products. In this context, Ullas
Kamath, the Joint Managing Director and Chief Financial Officer of Jyothy
Laboratories had asserted that all the ‘indication are positive’ from Henkel in
the contract but nothing has been finalized yet.
“The option is open for them to come and talk to us. We
were waiting for the board meeting (on May 23) to get over. That has happened.
They can talk to us now. The option for them to invest in the company will
close in March 2017,” Kamath added. Sources added that Henkel have been planning
to invest on the city-based fast-moving consumer-goods-maker from the past few
months. Speculations about this deal between Henkel and Jyothy dates back to
2011 when Henkel had the opportunity to acquire the Indian brand but that ended
into exactly the opposite. Jyothy acquired shares of Henkel’s Indian branch on
May 2011. The question remained in when
the German brand will exercise the deal, seems that has come to an end
now. “Before March 2017 if they don't
invest, they will lose that option,” Kamath confirmed.
According to reports, Jyothy, after it merged with Henkel
India had an annual turnover of Rs 1,300 cror. The turnover increased about 27
per cent and became Rs 1,645 crore in the 2016-17 financial years. Jyothy
laboratories also has asserted that following the investment, they are very
likely to change their business plans, since they also deal with same products
and might decide to introduce some of the products in India.
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