Marico may buy 51% stake in Unibic India unit

Marico, the maker of Parachute coconut hair oil and a home-grown fast-moving consumer goods or FMCG company, is in negotiations to buy a controlling stake in the Indian arm of Australian company Unibic, a maker of cookies. Marico is likely to pay Rs 130 crore for a 51% stake in Unibic India and the acquisition is expected to be completed by the end of the month, according to people familiar with the proposed transaction. Both companies declined to comment.

“We do not comment on M&A speculations and hence cannot either confirm or deny queries on this,” said the Marico spokesperson. “As you may be aware we do not comment on speculation,” was Unibic India’s comment.

Marico will acquire the remaining 49% of Unibic India after four years, the sources said. They pointed out that the due diligence process was currently on.

Unibic set shop in India in 2004, and its best selling brands are Chocolate Chip cookies, Oatmeal cookies, Butter, Cashew, Coconut and Jamz cookies. The company recently launched a variety of sugar-free cookies in three flavours, butter, cashew and oatmeal, and is also slated to launch Chyawanprash biscuits in the near future.

In the last two years, the company has focused on expanding its distribution and retail sales outlets across India by making its products available to modern retail and as well as traditional trade.

Marico, which has been desirous of becoming a significant player in the foods category, will get a immediate toe-hold in to the biscuits category. Sources say that Marico will retain Unibic’s brand name for some time.