The acquisition of the erstwhile Paras personal care brands from Reckitt Benckiser gives Marico a foothold in the ‘youth brands' and male grooming space, says Mr Saugata Gupta, CEO, Consumer Products Business.
Speaking to Business Line , post the announcement of the deal with Reckitt, Mr Gupta said, “We've now got a strong position in styling with brands such as Set Wet and Livon. Our international brands give us a large product portfolio and also allow us a readymade funnel for innovation.”
This is Marico's second large acquisition in India post the acquisition of the Nihar brand from Unilever a few years ago. Earlier, it had made six brand acquisitions in Egypt, Vietnam, Malaysia and South Africa. Through these acquisitions it is present in these overseas markets in grooming, hair styling, deos, which was lacking in its Indian portfolio.
Growing deos market
Mr Gupta said the acquisition of Set Wet, Zatak and Eclipse gives Marico an entry into the rapidly growing deodorants market. The Rs 1,200-crore deos category is registering over 40 per cent growth annually and is dominated by HUL's Axe with a 17 per cent share of the market. Zatak and Set Wet together have a 6 per cent share of this market. “It's a fragmented market but consolidation will happen,” points out Mr Gupta.
The other categories of personal care such as hair gels, hair care, talc, creams are all growing at over 25 per cent so the potential is huge, he says.
Mr Gupta said while Marico has a larger distribution overall, this acquisition will give it a “20 per cent incremental distribution” as the Paras brands are strong in the north and west while Marico's brands are strong in the east and southern India.
The Paras brands are expected to achieve a turnover of Rs 150 crore during FY 12. The acquisition of this business is expected to further reduce Marico's dependence on edible oils and hair oils.