Henkel eyes growth via acquisitions in emerging markets
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Mumbai: German packaged consumer goods company Henkel AG and Co. KGaA said on Thursday that it’s aiming for acquisitions in emerging markets to fuel future growth.
Globally, Henkel has three lines of businesses—adhesives, home care and beauty care.
The company’s India unit sold its consumer business—with brands such as Pril and Fa—to Jyothy Laboratories Ltd in 2012, while retaining an option to buy back a 26% stake in them after five years.
Emerging markets, including India, account for 55% of Henkel’s 50,000 employees.
In 2015, sales in emerging markets accounted for 43% of the total and are expected to account for half by 2016, the company said in a statement on its strategic vision for 2020.
In 2015, Henkel had said that it would invest Rs220 crore to set up the first phase of India’s largest adhesives plant in Kurkumbh, near Pune.
Henkel has also established a research lab, its largest in the IMEA (India, Middle East, and Africa) region at Pune. Henkel divested its India business as it had been making losses.
In fiscal 2016, Jyothy Laboratories recorded a net profit of Rs162.36 crore, a 13.7% increase over the Rs142.79 crore posted in the previous year.
Revenue increased 9.5% to Rs1,575.37 crore from Rs1,437.82 in financial year 2015.