Shares of Hindustan Unilever (HUL) surged ten for every cent to Rs two,059.eighty on the BSE on Tuesday following the customer items major declared the acquisition of intimate cleanliness brand name VWash from Glenmark Pharmaceuticals for an undisclosed sum.
The deal would incorporate an upfront hard cash payment and a deferred thought in excess of the up coming a few a long time, the firm claimed in an exchange submitting yesterday. The acquisition incorporates mental property, trademark and structure of the brand name. Study THE Trade Submitting Right here
“The acquisition offers us entry into the currently underpenetrated and speedily developing feminine intimate cleanliness segment. The brand name has a management place and fits effectively into the white areas in our Elegance and Individual Treatment company,” HUL’s Chairman and Handling Director, Sanjiv Mehta claimed.
Glenmark will manufacture VWash for HUL in excess of the up coming a person year following which the generation arrangement would be reviewed, HUL’s chief monetary officer Srinivas Phatak claimed in a meeting connect with on Monday.
VWash was launched by Glenmark in 2013 and has established by itself as the sector chief in the feminine intimate cleanliness sector, an emerging group.
Commenting on the acquisition, brokerage firm Motilal Oswal claimed, “The ‘VWash’ brand name acquisition is aspect of HUVR’s Elegance and Individual Treatment strategy which involves introducing new expansion segments. The acquisition allows HUVR’s channel existence in chemist channel, health and fitness & beauty segment and in e-commerce.”
About the ‘Vwash’ brand name, analysts at the brokerage firm claimed,” Personal cleanliness is a large expansion option for the long term and penetration is in small-single-digit (<8%) even in urban India. The brand was launched in 2013 and is the leader in the intimate hygiene category. The gap between the brand and its competitors is also large. It has good gross margins in the category as well along with synergies with the HUVR distribution muscle."
The brokerage has a ‘Buy’ rating on the stock with the focus on of Rs two,425, thirty for every cent upside.
At ten AM, the stock had pared some gains and was trading four.five for every cent up at Rs one,957.45 as as opposed to .eight for every cent attain in the S&P BSE Sensex. About 9.7 lakh shares have transformed hands on the counter on the NSE and BSE merged. Glenmark Pharmaceuticals also jumped eight.9 for every cent to Rs 204.seventy five following the deal.