BackMarico’s skincare unit buys Singapore’s Derma Rx
Marico’s skincare unit buys Singapore’s Derma Rx
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Mumbai: Personal care products maker Marico Ltd’s skincare solutions unit acquired a Singapore-based skin care firm to expand its business in southeastern Asia and to boost revenues.
Kaya Ltd acquired the aesthetic skincare business of Derma Rx Asia Pacific Pte Ltd., Marico said on Tuesday without disclosing any financial details.
“This acquisition will give us an opening into the south east Asian market as they have centres in Singapore and Kuala Lumpur," Milind Sarwate, chief of Finance, HR and Strategy told Reuters.
Derma, which provides skin-care solutions, generates a turnover of Rs500 million annually, Marico said in a statement to the exchange.
The acquisition will help Kaya’s revenue share rise from 13% currently to over 20% from this fiscal itself, Sarwate said.
Marico, which currently operates Kaya clinics in India and the west Asia, may also roll out Kaya clinics in Singapore.
“We are considering that. Typically now we will consolidate for a while and then take things forward," Sarwate said.
The firm had earlier in an interview to Reuters said it plans to roll out 3-4 clinics in the west Asia, but does not have any expansion lined up for India.
The Kaya skin business posted a net loss of Rs122.5 million on revenues of Rs180 crore in FY10.
Shares of the firm on Tuesday ended 4.33% down at Rs100.45 in a weak Mumbai market.
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