7/26/2015

ITCtoacquireJohnson&Johnson's'Savlon'and'ShowerToShower'brandstimesofindiaeconomictimes
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ITCtoacquireJohnson&Johnson's
'Savlon'and'ShowerToShower'
brands

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ETBureau Feb14,2015,04.00AMIST

Tags: M&A

Johnson&JohnsonLtdIndia

BusinessPartnership

Johnson&Johnson

ITC

intellectualproperty

fmcg

BSE

KOLKATA:ITCLtdhasacquiredSavlonandShowerTo
ShowerbrandsforIndiafromJohnson&Johnsonaspartof
itsambitiousgoaltobecomethecountry'slargestFMCG
companyby2030.
Threeseniorindustryexecutivesestimatedthatthe
Kolkatabasedcigarettestohotelconglomeratewillshellout
aroundRs200250croreforthetwobrandsthatwillhelpit
forayintocategoriesofantisepticliquidsandsoapsand
pricklyheatpowder.
(FMCGmajorITChasentered)

PurePolitics
ETcouldnotindependentlyverifythedealsize.
AnITCspokesmansaidtheacquisitionsareinlinewithITC'saspirationtoachieverevenueofRs1lakh
crorefromFMCGbusinessesby2030.Companywouldnotsharefinancialdetailsoftheagreementwith
Johnson&Johnson(J&J).
AnemailsenttoJ&JdidnotelicitanyresponseasofpresstimeonFriday.
ITCsignedtheassetpurchaseagreementoftrademarksandotherintellectualpropertyofSavlonand
ShowerToShowerfortheIndianmarketonThursday.ThedealforSavlonwassignedwithJ&J'sIndian
arm,whileShowertoShowerwasacquiredfromJ&J'sSingaporearm.

TheexecutivesquotedabovesaidWiproConsumerCare,Dabur,EmamiandGodrejConsumerProducts,
IdentifyPNoteusers,curbbetting: GovtmishandledLalitgate&
too,hadevaluatedthetwobrands.
SITonblackmoney
Vyapamscam:RSS

SIThascalledonSebitocomeupwith

TopleadershipofRSS,includingBhagwatwere
"ITCbuyingthetwobrandswassurprising,sinceitwasnotinthefrayinitiallyandWiprowasthefavourite,"

regulationssothatthefinalbeneficialowner
ofParticipatoryNotesandODIareknown.

saidtheCEOofarivalFMCGfirm.
oftheviewthatthegovernmentdidnothandle
theVyapamscamandLalitModiissue
Investorscheeredthetwinacquisitions,helpingtheITCstockgain2.01%onFridaytocloseatRs378.05
effectively.

9thingsSITispushingfortocheckblack
moneymenace
'FallinSwissbankfundsmaybedueto
blackmoneydrive'

ontheBSE,whiletheSensexrose1.01percent.

IndustryestimatessuggestthatSavlonhasannualsalesofaroundRs50crorewhileShowertoShower
aroundRs20crore.
SavlonisthesecondlargestbrandintheRs350croreantisepticliquidmarketwith15percentshareway
behindmarketleaderDettolofReckittBenckiserthatenjoysmorethan80percentshare.Savlonhasa
marginalpresenceinsoapsandhandwashtoo.
IndustryinsidersexpectITCtonowbecomeaseriousplayerinthehygienespace,replicatingDettol's
strategybystrengtheningfocusonsoaps,handwashandhandsanitizer.
"Insoaps,twoantisepticsoapbrandsHUL'sLifebuoyandDettolareamongstthetopthreesothereis
hugepotentialforSavlon,"saidaseniorexecutivewithaleadingFMCGmaker.
"AndShowerToShowerislikelytobecomeITC'svehicleforafullfledgedentryintothetalcumpowder
market,"hesaid.
ShowerToShowerisestimatedtohave56percentshareintheRs300crorepricklyheatpowdermarket.
Heinz'sNycilleadsthesegment,followedbyEmami'sBoroplusandReckitt'sDermicool.
ITC'sentryisexpectedtoleadtoanintensemarketingwarinboththeseproductsegments.

http://articles.economictimes.indiatimes.com/20150214/news/59142364_1_savlonitcltdshower

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7/26/2015

ITCtoacquireJohnson&Johnson's'Savlon'and'ShowerToShower'brandstimesofindiaeconomictimes
ITC,whichhasbeenaggressivelydiversifyingitsbusinesstodrasticallyreduceitsdependenceonthecore
tobaccobusiness,hasbeenimmenselysuccessfulinfoodbusiness,attainingleadershipandthesecond
positionincategorieslikecreambiscuits,packagedatta,instantnoodlesandfingersnacks.
Whileithasbeentryinghardtogainshareinthepersonalcaresegmentaswell,theonlymajorsuccesssofar
hasbeenitsEngagedeodorantwhichbecamethesecondlargestbrandinthesegmentlastyear.The
companyhasjust3percent5percentmarketshareinsoapsandshampoo.
ITC'sprofitablepackagedfoodbusinessclockedRs5,717.32croresalesin201314.Therestofthe
noncigaretteFMCGbusinesseswhichincludepersonalcare,stationaryproducts,safetymatchesand
agarbattisreportedsalesofRs2,394.66crore.

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Readers'opinions(22)
Sortby: Newest | Oldest
VirendraPratapSingh(RepublicofIndia)
16Feb,201506:34PM
ITCboundtobecomeaveryseriousplayerinFMCG.
SanjayRally(Delhi)
15Feb,201511:31PM
Ithinkitsarightcombination,thesetwobrandscandrivesalesofotherpersonalcarebrandsparticularlyin
chemistchannel,whichcontributesmajorsharetooverallpcpsales.
RajeevRanjan(Mumbai)
15Feb,201503:38PM
Willrequireeffortstorebuildreputationofthesebrands
animeshp(bangalore)
14Feb,201508:03PM
wha'snewinthis...
motakhiladibabloo(Unknown)
14Feb,201505:20PM
Okay,,,,,,,,,,,fine............
READALLCOMMENTS

http://articles.economictimes.indiatimes.com/20150214/news/59142364_1_savlonitcltdshower

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7/26/2015

ITCtoacquireJohnson&Johnson's'Savlon'and'ShowerToShower'brandstimesofindiaeconomictimes
2015Bennett,Coleman&Co.Ltd.Allrightsreserved

www.economictimes.com

http://articles.economictimes.indiatimes.com/20150214/news/59142364_1_savlonitcltdshower

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