Little Local Impact Of Johnson Wax-Diversey Merger

The global merger between Unilever subsidiary DiverseyLever and Johnson Wax Professional, a division of SC Johnson Commercial Markets of the US, is unlikely to make a major impact on Hindustan Lever Ltd (HLL), the Anglo-Dutch major's local subsidiary.

This is because DiverseyLever India's operations form part of the detergents business of HLL. It employs 65 people and is estimated to have a turnover of Rs 27 crore in 2001.

SC Johnson also has an equal stake joint venture in India with HLL, called Lever Johnson, which operates in the cleaning, insect control and air care segments.

Johnson Wax will hold two-third equity in the new merged global entity, while Unilever will retain the rest for a period of five years.

 

Following the global announcement, HLL, in a press release, said the new structure for the combined business in India is expected to evolve over the next few months based on the partnership agreement between Unilever and Johnson Wax Professional.

For the fiscal 2000, the Diversey Lever Industrial cleaning and hygiene business has reported a growth of 25 per cent in turnover over 1999.

According to the Hindustan Lever Ltd annual report for 2000-01, while one part of the DiverseyLever business focussed on improving cleaning and hygiene standards in hotels, hospitals, restaurants etc, the other part focused on the beverage and other food processing industries.

The DiverseyLever's Taski brand of industrial cleaning equipment has become the preferred brand in its category.

With hygiene awareness levels growing rapidly, the business is expected to continue to maintain high growth rates both in sales as well as profits in the future.

DiverseyLever and Johnson Wax today announced that they will combine globally to form a new company which will bring together their complementary cleaning and hygiene technology and skills.