Business Daily from THE HINDU group of publications
Thursday, Jan 18, 2007
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Business Daily from THE HINDU group of publications Thursday, Jan 18, 2007 ePaper |
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Marketing
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Strategy Corporate - Mergers & Acquisitions VVF acquires Canadian deodorant maker Teo Corp R. Ravikumar
The company will use the plant to expand its product line offering.
Chennai , Jan. 17 Expanding its global footprint, VVF Ltd, a major producer of oleochemicals and personal care products, has acquired antiperspirant and deodorant maker Teo Corp, based at Ontario, Canada. Commenting on this development, Mr Piyush Jindal, Senior Vice-President (Personal Care), VVF Ltd, said, "This acquisition is a perfect fit for us to gain a good market share in the North American personal care market." According to him, Teo Corp will be operated by VVF Ltd as a wholly-owned subsidiary. VVF will now have the capability to produce a range of deodorants and antiperspirant sticks as well as pain-relief sticks. Without divulging any financial details involved in the deal, Mr Jindal told Business Line: "We acquired Teo Corp basically to support our plan to improve the company's supply efficiency of its contract manufacturing business in the North American region."
To further build brand
The company will use the plant to expand its product line offering and to further build its position in the growing private label market for personal care products. Mr Jindal said the acquisition would complement the company's prior acquisition of Colgate's Kansas City plant, where VVF would produce bar soaps and home and personal care products. The company recently expanded its production capacity in its Dubai facility to cater to the European markets. That apart, VVF also bought around 100 acres of land at Baddi in Himachal Pradesh, where it plans a greenfield facility, said Mr Jindal. "The construction work is underway and commercial production is likely to commence before the end of this year." The company, with its manufacturing facilities at Mumbai, Daman, Navsari, Kutch and Dubai, currently supplies its oleochemicals to companies such as Clariant (Switzerland), BASF (Germany) and Huntsman (US).
More variants
Apart from manufacturing soaps under its own brand names such as Doy Care, Jo and Shiff, VVF also manufactures personal care products on contract basis for leadingbrands such as Johnson & Johnson (baby soap, baby talc and baby oil), Dabur (Vatika), Amway (Persona), Henkel (Fa), Reckitt Benckiser (Dettol), Beirsdorf (Nivea), Pfizer (Neko), JK Helene Curtis (Park Avenue) and also for the hospitality industry. The company is also working on expanding its product portfolio by introducing more variants to its existing brands. Mr Jindal claims that VVF's own soap brands are doing very well in the market and its Jo Lime is the largest selling brand in the lime category. "Jo Lime has outdone HLL's Liril and Godrej's Cinthol in the category," he claims. According to him, VVF hopes to close the fiscal 2006-07 with a turnover of Rs 800 crore and breach the Rs 1,000-crore mark in the next fiscal. "Almost 50 per cent of our revenues come from export," he said.
More Stories on : Strategy | Mergers & Acquisitions | Overseas Investments | Personal Products
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