Global FMCG giant Unilever and Godrej Consumer Products (GCPL) have agreed to terminate their licensing agreement to market Brylcreem in India.
Subsequently, Unilever's Indian arm Hindustan Unilever (HUL) will start selling the men's hairstyling product from March 31, 2012.
In a statement by GCPL, the Godrej group firm said Unilever Home & Personal Int BV has terminated GCPL's licence for Brylcreem and Sri Lanka with effect from March 31, 2012.
"As a result of the termination, GCPL will receive a consideration of Rs 25 crore as provided in the licensing agreement of the brand," GCPL said.
In a separate statement, HUL said it has entered into an agreement with its parent firm Unilever for manufacturing, marketing and distributing the Brylcreem brand in India with effect from March 31, 2012.
"HUL plans to integrate this business (Brylcreem) with its existing personal care portfolio and further grow the Brylcreem franchise," the company said.
The development is subsequent to the acquisition of the personal care business of the Sara Lee Corporation by Unilever for Euro 1.275 billion in 2009. The Brylcreem brand was originally owned by US-based Sara Lee Corporation.
"This agreement will help us to focus on our own brands in our core categories in line with our 3x3 strategy -- presence in emerging markets in Asia, Africa and Latin America, through three core categories – personal wash, hair care and home care," GCPL Chairman Adi Godrej said.
