The Hindu Business Line : Marico may buy out partner's stake in Kaya Skin Care

MARICO Industries is expected to buy out the stake of its partner, the New Jersey-based Adil & Associates, in its joint venture company Kaya Skin Care Ltd.

Mr Harsh Mariwala, Chairman & MD, Kaya Skin Clinic, told Business Line, "We are in the process of buying out the stake of Adil & Associates in our skincare business."

Adil & Associates has a 23 per cent stake in Kaya Skin Care Ltd, which was launched in 2002. After the buyout, Kaya Skin Care is expected to become a wholly owned subsidiary of Marico.

Marking an investment of Rs 15 crore for its Kaya Skin Clinics, the company recently appointed a skin advisory board to bring in international breakthrough treatments. It is also rapidly expanding the number of skincare clinics across the country and abroad; today, it has 18 such fully functional clinics.

Having crossed a turnover of Rs 5 crore, the company expects to register a turnover of Rs 20 crore this year. "There is still some time before we can make profits though," said Mr Mariwala.

Marico Industries had also forayed into the international skincare market with the acquisition of the Sundari line of ayurvedic cosmetics. In fact, Adil & Associates, the consulting and advisory firm, has been helping Marico in its global forays. It had also picked up a 7.5 stake in the joint venture company, Sundari LLC, floated between Marico Industries and Shantih LLC, which owns the Sundari line of premium ayurvedic cosmetics.

More Stories on : Mergers & Acquisitions | Health

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