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Henkel India receives majority to sell its stake in haircare division

Henkel India receives majority to sell its stake in haircare division
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First Published: Fri, Apr 08 2011. 09 40 PM IST
Updated: Fri, Apr 08 2011. 09 40 PM IST
Mumbai: Henkel India Ltd. has received the requisite majority to sell movable assets and other components of its haircare division, the company informed through a notice to the Bombay Stock Exchange (BSE). On 1 March 2011, Henkel India Ltd told the BSE it had decided to sell the same and had informed its shareholders that it will be selling them for a minimum of Rs 25 crore.
In a letter dated 4th Feb, the company has said that, considering the competitive business environment, it has become imperative for the company to reorganize and restructure its operations with a view to ensure long term liability. The products of the Schwarzkopf Professional Division (SKP Division) are imported and sold in India and the division does not have any immoveable properties and factors.
The haircare market in India has three components hair oil, shampoos and hair color and dyes. The hair oils market is a Rs 4000 crore market growing at 10%-12% per annum; shampoos is a Rs 3000 crore market growing at 15% per annum and hair dyes, a Rs 1200 crore market growing at 25% per annum, says Purnendu Kumar, vice president, Retail and Consumer Goods, at retail consultancy firm Technopak Advisors Pvt Ltd.. Schwarzkopf is a Rs 40 crore brand and more focused on the professional (salon side), said Kumar.
Share price of Henkel India fell 1.83% to close at Rs 37.65 apiece on the BSE.
Harini.S@livemint.com
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First Published: Fri, Apr 08 2011. 09 40 PM IST