Marico Group sells refined sunflower oil brand ‘Sweekar’ to Cargill India Private Limited

The Marico Group announced it has divested its refined sunflower oil brand ‘Sweekar’ to Cargill India Private Limited (Cargill). The transaction, for an undisclosed consideration foresees an assignment of the Sweekar trademark and copyrights from Marico to Cargill. The transaction takes immediate effect.

Mr. Saugata Gupta, CEO of Marico’s Consumer Products Business, commented that in recent years, the firm has chosen Saffola as its wellness platform vehicle in the refined edible oils and health foods space. Gupta further reiterated that in Marico’s focused journey of sustainable profitable growth, the firm recognized that Sweekar has limited fitment in Marico’s portfolio.

Gupta added that however, with its legacy of a loyal franchise spanning two decades and the consumer connect that it commands, the brand will be of value to Cargill that can sustain and nurture it as a leading brand.

Mr. Milind Sarwate, Marico’s Chief - Finance, HR & Strategy, said that over the last 5 years, the firm has been accomplishing its organic growth targets at a relentless pace, augmented by acquisitions. Sarwate said Marico has also looked at rationalizing its Brand basket in parallel, so that it continues to focus sharply on Beauty and Wellness. According to Sarwate, the divestment is a logical sub-set of a portfolio strategy aimed at sustainable profitable growth.

Marico is one of India’s leading Consumer Products & Services companies, in the Beauty and Wellness space. During 2009/10, Marico recorded a turnover of Rs. 27 billion (about US$600 million) through its products and services sold in India and over 25 other countries.

Marico portfolio of brands includes Parachute, Saffola, Hair & Care, Nihar, Mediker, Revive and Manjal. The firm’s international portfolio contributes to 23% of Marico Group’s revenue and includes brands like Parachute, HairCode, Caivil, Hercules, X-Men and Code 10 spread over Bangladesh, MENA, South Africa, Malaysia and Vietnam.

Marico is also present in the Skin Care Solutions segment through Kaya Skin Clinics in India, Middle East and Bangladesh and Derma Rx in Singapore.

Cargill maintains a number of businesses in India, with operations including the handling and processing of a wide range of products, including refined oils, grain and oilseeds, sugar, cotton and animal feed. In addition, Cargill develops flavor systems and operates a value investing business. The firm’s presence in India has been growing since it began a joint venture operation in 1987.

29th March 2011