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Journalism of Courage
The acquisitive nature as well as spreading wings across markets has taken Marico to new lands,flashing its buying power.
Personal care products maker Marico Ltd’s skincare solutions unit acquired a Singapore-based skin care firm to expand its business in southeastern Asia and to boost revenues.
Kaya Ltd acquired the aesthetic skincare business of Derma Rx Asia Pacific Pte Ltd.,Marico said on Tuesday without disclosing any financial details.
This acquisition will give us an opening into the South East Asian market as they have centres in Singapore and Kuala Lumpur,Milind Sarwate,chief of Finance,HR and Strategy told Reuters.
With this acquisition,nearly 45 per cent of our skin-care solutions revenue would come from overseas,he added.
Derma Rx,which provides skin-care solutions,generates a turnover of 500 million rupees annually,Marico said in a statement to the exchange.
The acquisition will help Kaya’s revenue share from its sale of products rise to over 20 percent from 13 percent currently from this fiscal itself,Sarwate said.
Marico,which currently operates Kaya clinics in India and the Middle-East,may also roll out Kaya clinics in Singapore. We are considering that. Typically now we will consolidate for a while and then take things forward,Sarwate said.
The firm had earlier in an interview said it plans to roll out 3-4 clinics in the Middle East,but does not have any expansion lined up for India.
The Kaya skin business posted a net loss of 122.5 million rupees on revenues of 1.8 billion rupees in FY10.
Shares of the firm on Tuesday ended 4.33 percent down at 100.45 rupees in a weak Mumbai market.
