Thursday, 2 June 2016

Henkel-Jyothy Investment Questions Come to End, Agreed to Spend

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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