Marico to hive off Kaya into separate unit
08 Jan 2013
Marico, the maker of popular cooking oil brands Saffola and Parachute, has decided to hive off its skin clinic business Kaya into a separate listed company in order to spin off the loss-making services business into a separate unit.
With effect from 1 April, the company will also merge its consumer products business with its international business group to exploit potential synergies, rationalise costs and increase profitability across its fast moving consumer goods (FMCG) business. At present, the two businesses are headed by separate chief executives.
''The merger will lead to sharper focus on both the organisations and businesses. It will create synergies across the value chain, product portfolios, talent pool and capability through integrated FMCG businesses in India and overseas,'' the company said in a press note.
Marico is the apex corporate entity, which effectively owns all businesses in the group.
''Marico proposes to create two separate companies by partitioning Marico into an FMCG business company (to be called Marico) and Marico Kaya Enterprises (MaKE, to be formed) or any such other name as may be approved by the registrar of companies,'' the company said.
MaKE will be listed on the major stock exchanges in about 60-75 days from the date of receipt of approval of the scheme of arrangement from the court.
