Godrej Soaps managing director Adi B Godrej says the three merchant bankers are working on "restructuring opportunities" for the group. It comprises Godrej Foods, Godrej Pillsbury, Godrej Agrovet, Godrej HIcare and Godrej Properties & Investments, and a few others. He, however, denied that any brands were on the block.

Already, Andersen Consulting is working on improving operating efficiency of Godrej Soaps. "And the merchant bankers will be focussing on restructuring the group activities, along the lines of the successful restructuring which we undertook for Godrej HIcare," Godrej told The Financial Express.

He said the group is expected to undertake a "successful restructuring" for long-term benefit. Godrej Foods posted a drastic slump of 97.78 per cent in net profit toRs 5 lakh in the first six months ended September 30, as against Rs 2.26 crore in the corresponding period last year, leading to its being labelled a potentially sick company. This was despite a net sales growth by 26.23 per cent to Rs 140.73 crore (Rs 111.48 crore for the corresponding period last year).

Last year's mustard oil panic brought a brief bonanza for edible oil brands of Godrej Foods, but rumours of a brand sellout have not died down. The downslide has forced higher ad-spend on Godrej Soaps, eroding its bottomline, say analysts, pointing out that its 9 per cent toilet soaps marketshare remains stagnant in the face of tough competition with HLL and Nirma.

Godrej Soaps net declined sharply to Rs 8.53 crore from Rs 25 crore for the year-ended March 1998.Godrej HIcare, a leading insect repellent maker, was the first example of a restructuring within the Godrej group, with its resignation of distribution of Godrej Soaps products with effect from January 1, 1999.Godrej Soaps has fringe interests inanimal feeds and properties businesses, carried out through Godrej Agrovet and Godrej Properties & Investments.Godrej Soaps has already secured shareholders' approval to pump in Rs 57 crore in four companies -- Godrej Pillsbury, Godrej Properties & Investments, Godrej Foods and Godrej HIcare.

Currently, Godrej Soaps holds 20 per cent in Godrej Pillsbury (a JV with Selviac Nederland BV), 81.95 per cent in Godrej Properties & Investments, 41.16 per cent in Godrej Foods and 39.46 per cent in Godrej HIcare.