Godrej Soaps No To Ezee, Trilo Buyback

Godrej Soaps will not buy back the two detergent brands Trilo and Ezee which have been put on the block by Procter and Gamble (P&G), a senior Godrej soaps director said.

The Godrej Soaps board (had once) made a conscious decision to sell these brands to P&G. Now we dont want to buy it back, Godrej Soaps director, and managing director of Godrej and Boyce Manufacturing Ltd, Jamshyd N Godrej, told PTI.

The Indian subsidiary of the $36 billion Cincinnati-based P&G had earlier this month announced that it was selling Ezee and Trilo, two brands it acquired from Godrej Soaps in December 1992, when both companies formed a marketing joint venture, Procter and Gamble Godrej (P&G).

 

Godrej Soaps managing director Adi B Godrej refused to answer queries but said: We were approached by investment bankers ING Barings. Other than that I would not like to comment.

Godrej Soaps had sold Ezee, Trilo and Key reportedly for Rs 40 crore to P&G when the marketing and distribution alliance was formed.

The joint venture, in which Godrej held 49 per cent to 51 per cent of P&G, failed in mid-1996 when both companies decided to restructure their four-year-old business alliance. P&G, which owns brands such as shampoos Vidal Sassoon, Pantene and Head and Shoulders as well as Camay soap, is selling Ezee and Trilo in order to focus on its flagship brand Ariel.

The company had last month put Mediker shampoo a product that came to the P&G portfolio from Richard and Vicks following a world-wide acquisition by the parent company on the block.

Industry sources said the investment banker ING Barings has approached many other leading names among fast-moving goods manufacturers to sell the three brands.

Ezee is a liquid detergent used for washing woollen and silk clothes while Trilo is a lower-end detergent cake. Godrej in the meantime had launched a liquid detergent called Dip last year.

After the break in alliance, nine soap brands Cinthol, Marvel, Evita, Fresca, Vigil, Ganga, Fay, Crowning Glory and Godrej Shikakai went back to Godrej Soaps.

However, P&G retained three detergent brands Trilo, Key and Ezee and the scourer Biz from Godrej since it had negligible presence in the premium detergent and cake segments. (PTI)

The Godrej Soaps board (had once) made a conscious decision to sell these brands to P&G. Now we dont want to buy it back

Jamshyd N Godrej, Director, Godrej Soaps