In a bid to consolidate its fast moving consumer goods (FMCG) business, Marico Ltd, makers of Parachute hair oil, plans to demerge its Kaya Skin Care Solutions business and list it separately as Marico Kaya Enterprises Ltd (MaKE) on the exchanges.
The Kaya Skin Care business, with a turnover of around Rs 280 crore in FY 2012, comprises over 100 clinics that offer numerous products and services in skin care.
V Srinivasan, FMCG analyst with Angel Broking said, “With this move, Marico’s management focus would improve on its FMCG business... it will become a pure FMCG player. Kaya has been a loss-making unit of Marico during some quarters, making some profit inthe last quarter.”
As part of the demerger, shareholders of Marico will be issued 1 share of MaKE with a face value of Rs 10 each to be issued at a premium of Rs 200 per share, for every 50 shares of Marico with a face value of Re 1 each. Post the restructuring, Marico’s Consumer Product Business (CPB) and International Business Group (IBG) 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. Harsh Mariwala will continue to be the chairman and managing director of both Marico Limited and MaKE, which will have a separate board.