Henkel board to consider Kolkata factory disposal
The popular soap brand Margo and Neem toothpaste are churned out of its Tiljala plant in Kolkata. The plant has an annual production capacity of 12,000 tonnes of soap and 1,000 tonnes of toothpaste. The plant, set up at a cost of Rs 5 crore, becam...
By ET Bureau |
CHENNAI: Henkel India is planning to sell its plant and machinery at its Kolkata factory. On Tuesday, Henkel informed the BSE that its Board would meet on September 11 to consider this proposal to dispose of its factory, comprising land, plant & machinery and other movable assets by way of sale, lease or otherwise.
The popular soap brand Margo and Neem toothpaste are churned out of its Tiljala plant in Kolkata. The plant has an annual production capacity of 12,000 tonnes of soap and 1,000 tonnes of toothpaste. The plant, set up at a cost of Rs 5 crore, became operational in November 2004.
The proposal comes in the wake of the decision taken by Henkel internationally to hive-off certain production facilities to improve efficiency, a senior Henkel official told ET. It proposes to use third-party manufacturing route to keep its operations viable.
While laundry and home care constitute 60% of Henkel India���s annual turnover, the balance comes from cosmetics. Margo generates nearly a seventh of the company���s annual turnover, which stood at Rs 540 crore for the year ended December 2008.
Its regional soap brands Aramusk and Moloy ��� estimated to be worth about Rs 10 crore ��� are said to be up for sale. Reliance Retail and Emami group are said to be in the race for the brands.
Net sales for H1 2009 (January-June) stood at Rs 190.83 crore, up from Rs 158 crore last year. Henkel���s flagship products in India include laundry care brands Henko and Mr White, homecare brands Pril dishwasher and Bref, besides cosmetics Margo soap and Fa deodorants.
The popular soap brand Margo and Neem toothpaste are churned out of its Tiljala plant in Kolkata. The plant has an annual production capacity of 12,000 tonnes of soap and 1,000 tonnes of toothpaste. The plant, set up at a cost of Rs 5 crore, became operational in November 2004.
The proposal comes in the wake of the decision taken by Henkel internationally to hive-off certain production facilities to improve efficiency, a senior Henkel official told ET. It proposes to use third-party manufacturing route to keep its operations viable.
While laundry and home care constitute 60% of Henkel India���s annual turnover, the balance comes from cosmetics. Margo generates nearly a seventh of the company���s annual turnover, which stood at Rs 540 crore for the year ended December 2008.
Its regional soap brands Aramusk and Moloy ��� estimated to be worth about Rs 10 crore ��� are said to be up for sale. Reliance Retail and Emami group are said to be in the race for the brands.
Net sales for H1 2009 (January-June) stood at Rs 190.83 crore, up from Rs 158 crore last year. Henkel���s flagship products in India include laundry care brands Henko and Mr White, homecare brands Pril dishwasher and Bref, besides cosmetics Margo soap and Fa deodorants.
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