Marico to demerge, list Kaya Skin Care biz
As part of the demerger, shareholders of Marico will be issued 1 share of MaKE with a face value of R10 each to be issued at a premium of R200 per share, for every 50 shares of Marico with a face value of R1 each. Post the restructuring, Marico’s Consumer Product Business (CPB) and International Business Group will form a unified FMCG business, while Kaya will be redefined as a separate business.
MaKE will also be listed on the BSE and the NSE, just as Marico. According to the company, MaKE will have its own separate board of directors. Harsh Mariwala will continue to be the chairman and MD of both Marico and MaKE. On the rationale behind Marico’s move, Milind Sarwate, group CFO of the company, said, “We have opted for this move to give a higher degree of focus to our FMCG and Kaya beauty business. In FY2012, Kaya business accounted for 7% of our total sales turnover (R3,980 crore).”
As part of its organisational restructuring, Saugata Gupta, who currently heads CPB, will lead the company’s overall FMCG business, as chief executive officer,
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