Ispl, Duracell To Have Common Sales Network

Indian Shaving Products Ltd (ISPL) and Duracell India Pvt Ltd are merging their respective sales and marketing networks in the country with effective from April 1, 1997.

This is the first step towards merging the two Gillette subsidiaries in the country following the worldwide acquisition of battery maker Duracell by the US-based consumer products giant Gillette last year in a deal that was worth nearly $8 billion.

This was confirmed to Business Standard by Amit Sarkar, Duracell Indias chief executive officer, and Pradeep Pant, managing director of ISPL.

The two companies expect to complete the total merger of their operations by June this year. We are absorbing the best talents from both the companies, said Pant.

Gillette, which holds the majority stake of 51 per cent in ISPL with Calcutta-based businessman S Poddar holding the remaining 49 per cent equity, has also picked up the 74 per cent equity stake that Duracell held in Duracell India by virtue of the international buyout. Incidentally, Poddar also holds the remaining 26 per cent equity shareholding in Duracell India.

The merger of the distribution chains has been worked out to synergise the operations of the two companies pending the final decision by the Gillette board regarding the legal entity and management structure of Duracell in India. This would eliminate the duplication of the operations-side.

However, Sarkar added that Duracell, which has a totally separate product line than that of Gillette, one of the world leaders in shavers, might continue to remain as a separate entity, functioning like another Gillette subsidiary in the country, while marketing is handled through a unified network.

Duracell India is currently setting up a production facility at Manesar in Haryana to manufacture the AA range of alkaline batteries which are currently being shipped in by the company. The total cost of the project is about $17 million.

Apart from ISPL, which has launched the Gillette range of wet shavers, epilators, and Oral B toothbrushes in India, Gillette currently has three more subsidiaries in the country the 100% subsidiary Gillette India, its wholly owned subsidiary Gillette Diversified, and its joint venture with Luxor Pen.

Gillette India, which currently has an equity base of Rs 150 crore, is the multinationals investment conduit in the country, while Gillette Diversified has launched the Braun range of dry shavers in the domestic market.

The joint venture Luxor Writing Instruments Pvt Ltd, in which both Gillette India and Luxor have each picked up a 50 per cent equity, will introduce the well known Gillette brands of pens - Parker, Waterman and Papermate - in the country.