Mumbai: US-based Sara Lee Corporation has terminated the licence of Godrej Household Products Ltd (GHPL) to sell Kiwi shoe care and Kiwi Kleen brands in India and Sri Lanka.
Sara Lee will pay GHPL Rs 177 crore for the said termination.
Marking the break-up of a 15-year- old relationship with Godrej Industries, Sara Lee Corporation sold its air freshners brand Ambi Pur to Procter & Gamble (P&G), while Unilever bought the household businesses, including the Brylcreem last year.
Calling Shoe care as a non core business for GHPL, a subsidiary of Godrej Consumer Products Ltd, Adi Godrej, chairman of the company said this agreement helps us to continue becoming more focused on our core categories in line with our 3 in 3 strategy i.e. presence in emerging markets in Asia, Africa and Latin Amercia through personal wash, hair care and home care products.
The company’s stock price was marginally up by 0.34% at 10:00 am to Rs 359.20 a share on Bombay Stock Exchange on Thursday.
Godrej Consumer Products manufactures and sells well known brands such as Good Knight, Cinthol, Godrej No.1, Expert, Hit, Jet and Fairglow apart from other brands.
For the third quarter ended 31 December 2010, the company saw its net sales rise by 89% at Rs 980 crore against same period in the previous year. The company also saw its net profit rise by 40% to Rs 119 crore for the third quarter FY 11.