Marico to acquire Nihar from HLL

Marico and HLL announced this in a joint media release today. HLL had initiated the divestment as a part of its brand rationalization exercise. The process involved competitive bidding amongst select FMCG Companies. The transaction envisages a 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.

Marico expects to reap significant synergies from Nihar:

• Nihar's strengths in the East - especially its distribution reach, in Bihar and Jharkhand- will provide Marico a platform for its other brands. On the whole, Marico's brands will gain in the East.
• In Perfumed Coconut Oils, Nihar Naturals (Jasmine and Rose) is the national market leader, with significant presence in the East.
• In Coconut Oil, Nihar's regional strengths will complement Marico's presence in this Rs 800 crore category.
• Marico's efficient supply chain, larger scale of operations and high focus on coconut oils and hair oils will also enable Marico to drive cost advantages.

Mr. Harsh Mariwala, Chairman and Managing Director, expressed happiness at Marico's first acquisition over Rs. 100 crore. "Nihar elegantly complements Marico's strengths in both Coconut Oil and Perfumed Hair Oils. We see significant scope for value creation leveraging Nihar's equity. This will help us top up our healthy organic growth, as we move towards our target of reaching a Rs. 2000 crore turnover over the next 3 years."

Mr. M K Sharma, Vice-Chairman, HLL stated: "This is in line with our Portfolio rationalization strategy, while at the same time creating value for our shareholders."

Ambit Corporate Finance acted as Marico’s advisors in this transaction.

About HLL

HLL is India's largest Fast Moving Consumer Goods company, touching the lives of two out of three Indians. HLL's mission is to "add vitality to life" through its presence in over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. The company meets everyday needs for nutrition, hygiene, and personal care, with brands that help people feel good, look good and get more out of life. For more information visit www.hll.com

About Marico

Marico is a leading Indian Group operating in the Hair Care, Health care and Skin care segments of the Beauty and Wellness space in India and abroad. Marico's current annualized Global Turnover is about Rs. 11.4 billion (USD 260 Million). Marico markets 15 brands, including Parachute, Saffola, Kaya, Sundari, Hair & Care, Shanti and Mediker. Marico's brands and their extensions occupy leadership positions with significant market shares in most categories. The Marico scrip is listed on the Bombay Stock Exchange (BSE) under the Code 531642 & "MARICO" on the National Stock Exchange (NSE), with a market capitalization of over Rs. 22 billion. For more information, visit maricoindia.com.