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Henkel Spic merges with Henkel India

Henkel Spic merges with Henkel India

Author | Source: The Economic Times | Wednesday, Aug 03,2005 8:00 AM

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Henkel Spic merges with Henkel India

Henkel Spic India (HSIL) has been merged with its 92% subsidiary Henkel India (HIL). The reverse merger is operationally effective from July 20 and the AGM of the merged entity would be held by September end, the company said.

The merged HIL would be a pure-play manufacturing arm, while its distribution and marketing functions would go to Detergents India (rechristened Henkel Marketing India), a 96% subsidiary of HSIL.

A Satish Kumar, MD, Henkel SPIC, said, “With this merger, there is high scope for optimisation of infrastructure cost and reduction in overhead costs due to the elimination of coordination points, the result of which will set HSIL on the road to dividend declaration.”

HSIL has a paid-up capital of Rs 184.39 crore with the German parent, Henkel KGaA holding 51%, Tamilnadu Petro 16.67%, IFC, Washington 6.94% and the rest with the public.

HIL, formerly Calcutta Chemical Company, was acquired by HSIL in 1999. HSIL had acquired 92% stake in HIL for Rs 19.47 crore at Rs 267 a share.

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