Jyothy Labs eyeing controlling stake in Henkel

FMCG player Jyothy Laboratories today said it is eyeing a controlling stake in Henkel India after acquiring 14.9% stake in the company from Tamil Nadu Petro Products (TNPL).

Henkel India, a joint venture between Henkel AG and Spic Group's Tamil Nadu Petro Products (TNPL), is headed for a split with the German firm planning to sell off its 51% stake. Jyothy Laboratories is keen on acquiring it.

"We are keen in buying the 50.9% stake of the parent firm and thereby hold a controlling stake in Henkel India," Jyothy Laboratories Deputy Managing Director Ullas Kamath told PTI.

Yesterday, Jyothy Laboratories bought 14.9% in Henkel India from Tamil Nadu Petro Products (TNPL) in an all cash deal amounting to Rs 60.73 crore.

Jyothy Laboratories has bought 1,73,51,686 shares at Rs 35 each of Henkel India.

"This is our strategic investment, showing our interest in the company (Henkel India)," Kamath added.

He said Jyothy Labs will participate in the bidding process of buying the majority stake of Germany's Henkel AG, the parent firm in Henkel India.

While the Henkel AG holds 51% stake in Henkel India, TNPL had 17% stake in it. The remaining stake was held by the public.

Kamath said as per the price it paid for 14.9% stake, Henkel India is valued at around Rs 400 crore.

Henkel India has already given the mandate to sell off the 51% stake of Henkel AG to HSBC. The bidding process is expected to start within the next one month.

"There is a synergy between the two companies in terms of the product portfolio. Together, we can reach new heights. And if we are able to hold the controlling stake, there are chances of it bringing global products to India," he said.

Both are present in segments including, home care, fabric care, dish wash, personal care and household cleaning items. Some of Henkel's brands include Henko, Mr. White, Pril, Fa, Neem and Margo.

Jyothy Labs sells fabric care products under the brand 'Ujala' and household insecticides under 'Maxo'. It also marks its presence in personal care, fragrances and dish wash categories among others.

Comments could not be obtained from Henkel India as queries remained unanswered.

Last week, Henkel had announced that it is planning to dispose off movable assets and other components of hair care division of the company subject to shareholders' consent.

Leading FMCG players, including Emami and Godrej, had expressed their interest in buying the hair care business of Henkel India.