Gillette To Buy Parle Oral Care Division

Global shaving systems major Gillette is buying the oral care division of Parle Products.

The $10-billion US multinational will also be picking up various Parle-owned oral products such as Parle-Prudent, Parle-Calcium, and Parle-TrueGel.

The deal is expected to be clinched by the end of the month, sources said. Parle's oral care division, which contributes to 2 per cent of the company's turnover, manufactures and sells three brands of toothpastes: TrueGel, Calcium and Prudent, and eight varieties of toothbrushes besides Prudent mouthwash.

Prudent Mouthwash commands a market share of 10-15 per cent behind segment leader Listerine. Parle's decision to sell the business stems from a view that the company should stick to its core business of biscuits and confectioneries, rather than carry on a losing battle against the multinationals which dominate the oral care business. "To compete against the multinationals would require a lot of investments. Hence the company decided to get out of the oral care business and stick to its core areas." Gillette has been scouting for a right firm to extend its oral care business in India.

 

Globally, the company had acquired the Oral B brand, which it launched in India through its subsidiary Gillette Diversified Operations Pvt Ltd, in the middle of last year. Parle Products had notched up sales of Rs 348 crore and a net profit of Rs 16.03 crore in 1995.

The company's range of products include biscuit brands like Parle-G, Monaco, and Krackjack. Besides, the company's confectioneries range include, Poppins, Melody, Mango Bite, Rola Cola, and Kisme toffee bar.

Parle also owns mineral water brands like Bisleri and Bailey besides the soft-pack mango drink Frooti through subsidiary Parle Agro. Parle Exports, on the other hand, is known for cola and non-cola brands such as Thums Up and Limca.

Gillette is represented in India through Indian Shaving Products (in which it holds 51 per cent stake), Wilkinson Sword India Pvt Ltd, Braun, and the 50:50 joint venture between (Gillette unit) Parker and Luxor.

Indian Shaving Products, a Rs 85-crore company, has products ranging from the double-edged 7 'O Clock to the disposable Prestos and Ready Tos, besides the premium range shaving systems.

such as the Sensor Excel. The world's premier 'male grooming' company enjoys around 10 per cent market share in the domestic shaving market.