Fast moving consumer goods firm Hindustan Unilever (HUL) has completely acquired detergent and soap manufacturer Aquagel Chemicals Private Ltd.
Aquagel, a third party contract manufacturer that makes detergent (Wheel) and toilet soaps (Lux) for HUL, will become the wholly- owned subsidiary of the FMCG major with effect from April 1.
In a filing with the BSE, HUL said that the company, through a share purchase agreement, has bought 74 per cent stake in the Gandhidham-based company. Earlier, the company had an investment to the extent of 26 per cent of the equity share capital of ACPL. However, the company did not disclose the deal size.
On the rationale behind the acquisition, a company spokesperson said, “Aquagel is a strategic sourcing site for HUL. The promoters had expressed a desire to divest their holding and, given that this is a strategic site, it was a good opportunity for HUL to acquire the balance shareholding.”
HUL gets its products manufactured from over 50 such contract manufacturers across the country.
Analysts said the acquisition will not have any impact on the margins of the cash-rich company. Research firm Edelweiss, in its latest report on the company, said that optimism is underpinned by the company’s aggressive focus on innovations and on categories of the future.