FMCG major Marico Ltd?s Malaysian unit has acquired hair styling brand ?Code 10? from Colgate Palmolive Company with the deal size reported to be around Rs 20 crore. Marico?s presence in Malaysia so far has been through its flagship hair care brands, Parachute and Nihar. The current turnover of the Code 10 brand is about Rs 12 crore annually. According to Milind Sarwate, chief finance, HR & Strategy, Marico, the company today leads the market in key hair styling segments such as hair creams in the Middle East. ?We now hope to replicate this success in South East Asia, with this acquisition, our first one in this region,? he said.

Vijay Subramaniam, CEO, International Business, Marico, said, ?Code 10 brings strong consumer equity. We believe with investments behind the brand, it can chart a new growth trajectory for itself. In addition, it provides us with a platform in the South East Asian market. We now look forward to faster organic growth in this region.?

?It may be a small acquisition but Marico will now get an entry into the South East Asian markets,? said Akhil Kejriwal, an analyst with Enam Securities. At present, Marico operates in the consumer product, skin care services and ayurvedic segments in India. The company?s product portfolio includes Parachute, Saffola, Sweekar, Hair & Care, Nihar, Revive and Manjal among others. Marico has been scouting for acquisitions both in domestic and overseas markets for some time and together with Godrej Consumer Products is reportedly in the race to buy British skincare brand Simple. In 2006, Marico had bought out Hindustan Lever Ltd?s Nihar brand for a Rs 227 crore. In the same year, the company also acquired Fiancee (a hair care brand) from Egypt?s Ready Group.

Marico?s acquisition Code 10 is the third largest player in hair styling in Malaysia. As a part of the transaction of the deal, Marico Malaysia Sdn Bhd and Colgate-Palmolive Marketing Sdn Bhd have entered into a transition services agreement whereby Colgate-Palmolive will continue to distribute the Code 10 range of products for a limited period. Marico’s net profit rose 15.6% to Rs 52.14 crore on a 5% rise in sales to Rs 517.29 crore in Q2 September 2009 over Q2 September 2008.