Acquires 50% of Ansell stake in JK Ansell Company for 100% ownership of its Sexual Wellness, personal care business under KamaSutra
A positive development which consolidates Raymond presence in FMCG Business
Transaction will draw synergies across FMCG Businesses that already has JK Helene Curtis, a group company of Raymond
JK Ansell sells its non-core B2B Surgical Gloves business to Pacific Dunlop Holdings (Singapore) Pte. Ltd. (Ansell group company)
Raymond Group – the leading manufacturer, marketer and retailer of worsted suiting fabrics & ready to wear apparel, today announced the acquisition of Ansell’s stake in a joint venture entity known as JK Ansell Pvt. Ltd. With this transaction, the Sexual Wellness and Personal care business will continue to remain in JK Ansell which will become a wholly owned subsidiary of J.K. Investo Trade (India) Limited (“JKIT”), a Raymond Group Company. As per the proposed deal, JKIT sells its stake in the gloves business to Pacific Dunlop Holdings (Singapore) Pte. Ltd. (Ansell Group Company).
This acquisition will pave the way for Raymond to further scale up the FMCG Business and unlock the immense potential of Brand KamaSutra globally. Raymond announced the formation of its FMCG group last year with a vision to be a player of choice amongst the new India, offering Premium products for Personal and Home Care categories.
Commenting on this development, Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited said, “As a part of our Raymond Re-Imagined journey, scaling up and creating a strong FMCG business is an important driver of value creation for the group. This acquisition of Ansell’s 50% stake gives us the full ownership of Brand KamaSutra that strengthens our FMCG portfolio and is a step towards value creation.”
KamaSutra being an iconic brand that was created 25 years ago, heralded a new revolution in the sexual wellness space in the country and till date commands a top of the mind recall in the category. Having successfully extended into the deodorant category, KS Deos have been amongst the fastest growing brand in this space with KS Spark being the No. 1 variant in the Aerosol segment.
Giriraj Bagri, President – FMCG Business, Raymond Limited added, “With this acquisition combined FMCG business is expected to be Rs 800 crore consumer value in FY18. This gives us the scale and opportunity to rejuvenate our FMCG brands and strengthen sales & distribution network. Having outlined a detailed roadmap, Brand KamaSutra is poised to become Top 5 global brands in the Sexual Wellness category.”
Raymond Group forayed into the FMCG business in the year 1964 through its subsidiary JK Helene Curtis Ltd. and is instrumental in launching various products in the male grooming space such as Park Avenue range of fragrances, soaps, shampoos, shaving foam and gel and a host of Homecare product offerings from Premium.
Commenting on this development Sanjay Bahl, Group CFO, Raymond Limited said, “This acquisition allows us to structure our FMCG businesses to unlock cost and revenue synergies with our other company JK Helene Curtis leading to a profitable growth.”