Friday, May 03, 2002
Friday, May 03, 2002 |
| Business | ||
|
News:
Front Page |
National |
Southern States |
Other States |
International |
Opinion |
Business |
Sport |
Miscellaneous |
Advts: Classifieds | Employment | Obituary | Business
By Our Staff Correspondent
Both JV partners have decided that the JV would benefit by a sharper focus and it was thus proposed that the disinfectants division of the JV would be demerged on a going concern basis from the company into a new entity (resulting company) with identical shareholding pattern. It is, however, the intention that the demerged company would focus on insect control and air fresheners while the resulting company would focus on the disinfectants part of the business. SCJ would provide leadership for the demerged company and HLL for the resulting company. Over time, SCJ would gain management control and substantial shareholding in the demerged company while HLL will gain management control and substantial shareholding in the resulting company. SCJ and HLL had in 1995 formed Lever Johnson (Consumer Products) Ltd., a 50-50 joint venture with an initial capital of Rs. 15 crores to cater to the Indian market in the insect control products to be supplemented with aircare and disinfectant products. This was to be done using SCJ's technology, knowhow and brands for insect control and aircare market and HLL's technology, knowhow and brands for disinfectant category. The JV was also to benefit from HLL's strong distribution presence in the domestic market. The JV had set up a facility and a technical centre at Sanaswadi near Pune for mosquito mats and disinfectant cleaners. Also, a new facility was added at Daman last year to harness synergies of proximity to input suppliers. Other products such as mosquito coils, incense sticks, air fresheners and the like were outsourced. Both JV partners believe that this measure would be in keeping with HLL's strategic intent of focussing on core categories and core brands and also enable SCJ to pursue its longer term vision of building up a strong presence in insect control products and aircare products market in India. The proposed corporate structures are intended to be put in place in total co-operation with each other and the two JV partners would keep drawing upon each other's strengths while focussing on their respective businesses. The revised structure would be achieved through a scheme of arrangement between the two companies and their respective members and creditors through a scheme approved by the High Court. All employees in the JV who are on secondment from HLL will revert to HLL, while those who have been engaged directly by the JV and are now on its rolls will continue to serve the demerged company, namely, SC Johnson Products Pvt. Ltd.
Send this article to Friends by E-Mail
News:
Front Page |
National |
Southern States |
Other States |
International |
Opinion |
Business |
Sport |
Miscellaneous |
|
|
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |
Copyright © 2002, The
Hindu. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu
|