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Synergies from Paras deal to drive future growth: Marico
Saugata Gupta, chief executive of Marico's consumer products division, tells CNBC-TV18 that the acquisition of Paras Pharma personal care business will provide significant synergies and drive future growth of the company.
Saugata Gupta, chief executive of Marico's consumer products division, tells CNBC-TV18 that the acquisition of Paras Pharma personal care business will provide significant synergies and drive future growth of the company.
"We wanted to fast forward our entire journey into creating a portfolio of the future. Also, didn't have a youth brand in our portfolio and I think this filled the gap perfectly," he said.
Out of the products Paras deals in, Marico is present in two categories, styling gel and cream and leave in conditioners. "Deo is a category which is new to us, but it's a category which is not new to Marico because we participate in this category in some other markets internationally, so we will use the existing Marico system," he added.
Overall, there is an 80% overlap between Marico's outlets and Paras' current distribution in the hands of Reckitt Benckiser, but it is only a certain fraction of what the Marico reaches. So therefore, there are opportunities and synergies on both sides.
As per the deal, the personal care assets will be transferred into a separate company in which Marico will acquire 100% shares. The deal is likely to be completed over next three-four months.
The deal will be funded by a mixture of debt, equity and internal accruals, says Gupta.
