BS People: Ulhas Kamath

Jyothy`s Man Friday

Ulhas Kamath's elevation to joint managing director from deputy MD came right after the announcement of the company's third quarter results in January. It was a clear thumbs-up given by the company board to a man responsible for acquiring and then integrating Henkel India, the loss-making former subsidiary of German major Henkel AG, with Jyothy.

The Rs 600-crore acquisition done last year effectively put Jyothy, the maker of Ujala Washing Powder and Ujala Blue, amongst the top five fast moving consumer goods (FMCG) companies in the country with a combined turnover of Rs 1,300 crore having a presence in categories such as fabric care, surface cleaners, personal care, oral care and household insecticides.

 

Currently Jyothy has close to an 84 per cent stake in Henkel. While it has said that it will eventually merge Henkel into Jyothy, Kamath does not specify when it is likely to happen. Speculation is rife that the merger will happen in the next financial year given that Jyothy is keen to fully harness the synergies of the two companies, and grow the combined business at a rate of about 20 per cent per annum.

Jyothy reported a 78.34 per cent increase in net profit for the quarter ended December 31, 2011 to Rs 29.07 crore versus Rs 16.30 crore reported last year. Net sales stood at Rs 166.31 crore—a growth of 12.05 per cent—versus Rs 148.42 crore reported last year.

The eventual gameplan is to achieve a turnover of Rs 3,000 crore in five years - something that Kamath has been working towards by streamlining production, distribution and marketing. The firm is also working on reducing its Rs 510 crore debt on its books.

Said to be a trusted lieutenant of Jyothy promoter M P Ramachandran, Kamath refuses to rest on his laurels, working to relaunch Henkel brands such as Pril and Margo. Pril is a well-known brand of glass and surface cleaners, while Margo is a neem-based soap, popular in the south. Kamath says that he has high hopes for Margo, which is an iconic brand launched in 1920. “The relaunch should help Margo recapture its former glory," he adds.