Marico buys personal care business from Reckitt

Indian consumer products maker Marico said on Wednesday it had acquired the personal care business of privately held Indian company Paras Pharmaceuticals from UK consumer goods group Reckitt Benckiser.

Financial details of the deal were not disclosed, but Marico said it expected revenue of Rs 150 crore from the acquisition in the fiscal year that ends on March 31.

Reckitt, which acquired Paras for about USD 726 million in December 2010, had previously said it wanted to focus on the Indian company's healthcare business.

That business generates annual revenue of Rs 300 crore to Rs 350 crore, analysts have said.

Paras's personal care brands include Set Wet hair styling gel, Livon hair conditioner and the Zatak range of deodorants.

Marico said it would fund the purchase through a mix of internal accruals, equity and debt.

"This acquisition gives Marico an opportunity to participate in the rapidly growing deodorant and male grooming categories in India," the company said in a statement.

Marico said it would use its distribution strength in India to boost the brands and expected the acquisition to reduce its dependence on edible oils and hair oils.

Marico's flagship products include hair oil brand Parachute and edible oil Saffola.

Shares of Marico, which the market values at USD 2.03 billion, ended up 1.95% in a firm Mumbai market.