Marico board OKs amalgamation of unit

The board of Marico on 16 July 2020 approved the scheme of amalgamation of wholly-owned subsidiary, Marico Consumer Care, with the company.

Marico said the scheme of amalgamation is subject to the requisite statutory and regulatory approvals including the approval of National Company Law Tribunal (NCLT) and respective shareholders of the company.

MCCL has a total asset size of Rs 25.48 with a net worth of Rs 25.04 crore. The company had a turnover of Rs 6.77 crore. MCCL owns various Intellectual Property Rights which are licensed to Marico.

Marico said the amalgamation will consolidate the business, eliminate a multi-layered structure, reduce administrative and compliance and other operational costs. Marico added that there is no cash consideration involved since MCCL is a wholly owned subsidiary of the company.

Meanwhile, the board appointed Pawan Agrawal as the chief financial officer (CFO) of the company with effect from 10 September 2020. The board accepted the resignation of Vivek Karve, the current CFO, effective from the close of business hours on 10 September 2020.

On a consolidated basis, Marico's net profit fell 50.62% to Rs 199 crore on 7.02% decline in net sales to Rs 1,496 crore in Q4 March 2020 (Q4 FY20) over Q4 March 2019 (Q4 FY19).

Shares of Marico were up 0.26% at Rs 345. The company manufactures consumer products and services in the beauty and wellness space.

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