Marico sells Sweekar oil brand to Cargill
26 Mar 2011
Marico, the Mumbai based consumer products maker, on Friday announced it had entirely divested its Sweekar edible oil brand to Cargill India an arm of the US-based Cargill for an undisclosed amount.
The transaction takes immediate effect and assigns the Sweekar trademark and copyrights from Marico to Cargill. Analysts estimate the deal size at about Rs340 crore. Sweekar's annual sales last year were Rs 170 crore.
Cargill said the acquisition strengthens its existing portfolio of edible oil consumer brands. It already sells sunflower oil locally under the NatureFresh and Gemini brands.
Marico had been looking to offload Sweekar for some time, but was unable to make much headway. It was reportedly in talks with the Kolkata-based Emami earlier, but the negotiations failed.
Marico's purpose in divesting Sweekar seems to be its increasing focus on the Rs400-crore Saffola brand. The latter was chosen as its preferred vehicle in refined edible oils and health foods, Saugata Gupta, chief executive officer, consumer products division, said.
''We recognised that Sweekar has limited fitment in Marico's portfolio. However, with its legacy of a loyal franchise spanning two decades and the consumer connect that it commands, we believe it would be of value to Cargill, who can sustain and nurture it as a leading brand,'' Gupta said.
