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Kalpathis not averse to quit Velvette

By K. T. Jagannathan

CHENNAI AUG. 23. The Kalpathi family has made up its mind to exit from shampoo-maker Velvette International Pharma Products.

Kalpathis, the promoters of SSI Ltd., got into Velvette in the middle of last year by picking up just over 24 per cent stake in the shampoo firm, founded by Dr. Rajkumar.

Sources said the Kalpathis would move out if it got the right price. While doing so, they would ensure that the interest of existing promoters was not harmed in any way, they added.

Though the family had not initiated any parleys for stake sale, it would offer the first right to the Velvette promoters, it was pointed out.

The Kalpathi family sources said when they moved into Velvette they worked in non-executive capacity, mapping the broad strategy for the shampoo company's growth. The non-core nature of the business done by the company was among assorted reasons alluded by the Kalpathi family for its move to quit Velvette.

Velvette, in the meanwhile, is reported to have firmed up a marketing arrangement with matchstick-maker Wimco. If sources are to be believed, Velvette shampoo and Velvette Talc will be marketed by Wimco. The excellent rural distribution network of Wimco appears to have guided Velvette into entering into this arrangement. For its Memory Plus product, it has reportedly sounded another multi-national company for a possible marketing tie-up.

Velvette, it may be recalled, pioneered the concept of shampoo in sachet and gave multinationals good run for their money. It always progressed through carefully crafted marketing arrangements with well-known companies. It had arrangements with some big names like Voltas and Godrej in former times. For a while, Amrutanjan and NEPC were also distributing Velvette products.

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