The move is in line with the group's growing thrust towards distribution. An official told The Financial Express that the new company has been floated to explore distribution opportunities for brands - both local and global. The group is in talks with a number of companies in India and abroad to scout for distribution openings of other brands. The company official said that the group is laying more emphasis on distribution and less on manufacturing. However, JK Helene Curtis will continue with its manufacture activity.

While at the moment the two companies - JK Helene Curtis and JK Helene Curtis Distribution - would co-exist as separate companies, there are future possibilities of the two exploring synergies in distribution. There is also a possibility of JK Ansal, the Raymond group company, which is into the manufacture of `Kama Sutra' condoms, to exploit distribution synergies.

Company officials said that the new firm will set up its own distribution network, even though the distribution strength of JK Helene Curtis is well established. JK Helene Curtis has already deployed a strategy to beef up its distribution network from 1.5 lakh outlets to 3 lakh outlets. The company plans to cover the class II, class III and even class IV towns. JK Helene Curtis is expected to clock a sales turnover of Rs 57 crore and a net profit of Rs 4 crore in this fiscal. Riding on a growth platform of 20 per cent to 22 per cent, JK Helene Curtis has projected a turnover of Rs 80 crore in the next fiscal.