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01-05-2010, 12:26 AM #1
Marico enters Malaysia, acquires Code 10
The Marico Group (Marico), a leading Indian group in consumer products, Monday announced its entry into the Malaysian hair styling market through the acquisition of the brand Code 10 from Colgate-Palmolive Company.
The deal, for an undisclosed consideration, envisages the acquisition of the brand Code 10 and related IPR by Marico Malaysia Sdn Bhd, a wholly owned subsidiary of Marico Middle East FZE, said the company.
The Code 10 range comprises hair creams and hair gels.
Vijay Subramaniam, CEO, International Business, Marico, said: "Code 10 brings strong consumer equity. We believe that with investments behind the brand it can chart a new growth trajectory for itself. In addition, it provides us with a platform in the South East Asian market. We now look forward to faster organic growth in this region."
Marico estimates the Malaysian hair styling market to be about RM 150 million in size.
Code 10 is the number 3 player and enjoys a double digit market share. Hitherto Marico's presence in Malaysia has been through its coconut oil brands Parachute and Nihar, claimed the company.
Milind Sarwate, Chief Finance, HR and Strategy, Marico, stated: "Marico leads the market in key Hair Styling segments such as hair creams in the Middle East. We now hope to replicate this success in South East Asia, with this acquisition, our first one in this region."
As a part of the transaction, Marico Malaysia Sdn Bhd and Colgate-Palmolive Marketing Sdn Bhd have entered into a Transition Services Agreement whereby Colgate-Palmolive will continue to distribute the Code 10 range of products for a limited period.
The sale of the Code 10 brand is consistent with Colgate-Palmolive's strategy to focus on its fast growing oral, personal and pet care businesses, the company said.
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