5 November 2007
Indian pharmaceutical company Marico has entered the South African consumer products market by buying Enaleni Pharmaceuticals’ consumer division, including all its intellectual property, for R92.8-million.
JSE-listed Enaleni is a manufacturer, marketer and distributor of a wide range of pharmaceuticals and over-the-counter medicines, and is 30% owned by empowerment groups.
The consumer division business Enaleni has sold to Marico’s South African subsidiary owns some of the country’s leading personal care and health brands targeted at the growing ethnic market, with brands like Caivil, Just for Kids and Hercules, and reported half-year revenues to end June 2007 of R44.9-million.
Marico Group chairman Harsh Mariwala said in a statement this week that the acquisition “provides us an opportunity to participate in the rapidly growing ethnic consumer products market in South Africa.
“It helps us extend the Marico footprint to a new geography with potential, thus taking us a step further in our shift to becoming a global player in beauty and wellness.”
Marico is a leading Indian group in consumer products and services in the global beauty and wellness space, with a market capitalisation of US$1-billion. Its products and services in hair care, skin care and healthy foods generated a turnover of about $380-million during the 2006/07 financial year.
“This acquisition helps us to consolidate our position in Africa, as it complements our entry into Egypt last year,” Marico International Business chief executive Vijay Subramaniam said. “Caivil and Hercules are brands with good equity. We will invest in these brands and expand the franchise over a period of time.”
The Indian company’s brands and their extensions occupy leadership positions with significant market shares in most categories, including hair oils, hair care, fabric care, coconut oil and other premium refined edible oils.
“The sale [to] Marico satisfied a number of the requirements we had identified,” said Enaleni Pharmaceuticals chief executive Jerome Smith.
“Aside from the offered purchase price, other factors which led us to accept their offer were Marico’s willingness to retain the existing staff complement and the swift finalisation of the sale agreement, which has enabled management to conclude the disposal timeously and continue to focus on the pharmaceutical business.”