Menezes Cosmetics bags P&Gs Old Spice trademark license
13 December 2002
Mumbai: Procter & Gamble Hygiene and Healthcare (P&G) has informed the Bombay Stock Exchange (BSE) its decision to license the Old Spice trademark and business for an undisclosed license fee to Menezes Cosmetics Pvt Ltd (MCPL), Goa, effective 1 December 2002.
The agreement, which is limited to the Old Spice business in India, is for 10 years and covers Old Spice After Shave Lotion, Old Spice Shaving Cream and Old Spice Talcum Powders.
The decision will marginally impact P&G sales to the tune 3 per cent (Rs 160 million annually), but will not impact its profitability as estimated license fees revenues are expected to be higher than the profits currently generated by P&G on the Old Spice business.
As a result of this arrangement with MCPL, the current arrangement with Marico Industries for the distribution of all products including Old Spice will be terminated with effect from 1 December 2002.
Old Spice will now be distributed, marketed and sold by MCPL in India.