MUMBAI: Consumer products and services group, Marico Limited, is acquiring Set Wet, Livon, Zatak and certain other personal care brands currently owned by Reckitt Benckiser (RB).

RB had acquired these brands from Paras Pharmaceuticals in a deal completed during April 2011. The transaction envisages transfer of all key assets including intellectual property rights, supply agreements and third party manufacturing. These assets are in the process of being transferred to a separate company in which Marico will acquire 100 per cent shares over the next few months.

The Paras PC business is expected to achieve a turnover of over Rs 1.50 billion during FY12. Brands in the portfolio are amongst the top three positions in the hair gels, male deodorant and leave-on hair serum categories. The acquisition of this business is expected to further reduce Marico’s dependence on edibles oils and hair oils.

This acquisition gives Marico an opportunity to participate in the rapidly growing deodorant and male grooming categories in India. The portfolio addresses the grooming needs of the youth and is supported by India’s demographic profile. Marico will also leverage its distribution strength in India to provide a fillip to the growth of the brands.

Marico CEO consumer products business Saugata Gupta said, “I am excited about this acquisition. It fast-forwards our journey towards creating a portfolio for the future with a significant presence in the male grooming and post wash hair care segments.”

Marico group CFO and CHRO Milind Sarwate stated, “This strategic acquisition is a significant building block for value creation for Marico shareholders through profitable sustainable growth over the long term. We will fund the acquisition through a judicious mix of internal accruals, equity and debt.”