Marico shares up on Paras Pharma buy
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Marico shares gained more than 4% today morning on the FMCG player's acquirement of personal care biz of privately held Paras Pharmaceuticals from UK's Reckitt Benckiser.
Reckitt Benckiser got hold of Paras Pharma during December 2010, but had later stated that it would only concentrate on the company's healthcare section.
The deal envisages transfer of all main assets comprising intellectual property rights, supply deals and third party manufacturing contracts to a separate firm, in which Marico will get hold of 100% scrips.
Saugata Gupta, CEO, consumer products business satted, It fast-forwards our journey towards creating a portfolio for the future with a significant presence in the male grooming and post wash hair care segments.
The main advantage for the company is that it takes three major brands comprising Zatak deodorant, Set Wet styling gel and leave-on conditioner Livon, all of which are positioned among the top three in their own sections.
The company anticipated Paras personal care biz will attain a income of Rs 150 crore during the existing financial year, which ends March 31.
The acquirement will diminish Marico's dependency on edible oils and hair oils by bestowing 4% of its sales, brokerage Edelweiss Capital said in a note.
The stock will give good results in the medium or long term.
The investors can buy the stock on declines.
Marico seeks to sharpen focus on growing brands