Marico strikes a Strategic Alliance for Haircode Brand In Egypt

Marico Ltd has on December 20, 2006 has announced that the Company has entered into a Strategic Alliance with the Cairo-based Pyramids Group for the hair care brand HairCode.

HairCode is a leading brand in the Egyptian hair care market and its range includes hair creams and hair gels. The Alliance parties expect that they can grow the brand’s turnover from its current base to over Egyptian Pounds 50 Million in the next financial year.

The Alliance, for an undisclosed consideration, envisages for the Company, direct investment in a Company with manufacturing facilities in Egypt, apart from the acquisition of the brand HairCode. The Pyramids Group will continue to distribute the brand for the medium term and has agreed for a non-compete in certain segments.

The Company had marked its entry into the hair-care market in Egypt when it acquired Fiancee in September this year.

Mr Harsh Mariwala, Chairman and Managing Director, of the Company and Dr Hamdy Soliman, Chairman Pyramids Group, Egypt expressed happiness at the alliance and were confident of charting out a mutually beneficial path over the near future.

Mr Vijay Subramaniam, CEO, International Business said "We are happy to add HairCode to our portfolio in Egypt. This will enable us to cover a much wider range of consumer preferences in the hair care market."

Mr Milind Sarwate, Chief Financial Officer, Marico Group stated: "This alliance makes Egypt an important geographical segment of Marico’s operations. This helps us in leveraging the resources deployed in the country optimally. Egypt is a profitable market and we believe we have made an entry into the country at the right multiples".

HC Securities & Investment, Cairo, advised the Company on this transaction.

Source : Equity Bulls

Keywords