![]() ![]() ![]() I am confident that this merger will create significant shareholder value through both revenue growth and cost synergies. Sanjiv Mehta, Chairman and Managing Director, HUL said, “With this proposed strategic merger with GSK CH India, we will be expanding our portfolio with great brands into a new category catering to the nutritional needs of our consumers. Business has delivered growth of 10 percent CAGR in the last 10 years with EBIT improvement of 530bps. HUL is the number one FMCG business in the India with a demonstrated track record of delivering growth which is competitive, profitable, sustainable and responsible. The company expects the business to grow in double-digits in the medium-term and margins to be accretive to HUL post realisation of synergy benefits. It will drive significant cost synergies from a combination of supply chain efficiencies and operational improvements, go-to-market and distribution network optimisation, scale in a number of cost areas such as marketing and streamlining of overlapping infrastructure. Customer development, according to HUL, will be a growth multiplier given it direct coverage and technology led capabilities. The FMCG giant will increase penetration with special focus on rural markets and emerging channels and expand its offerings to the fast-growing premium segment. HUL is well positioned to further develop the market given the extent of its reach and capabilities. The average growth rate has been double digit over the last decade, and the category still remains under-penetrated in India. Horlicks products have been an everyday staple in households across generations. This portfolio has a long history in India with Horlicks having originally been introduced in the 1930s. GSK CH India is the market leader in the HFD category, with iconic brands such as Horlicks and Boost, and a product portfolio supported by strong nutritional claims. ![]() The acquisition is in line with the Hindustan Unilever strategy to build a sustainable and profitable Foods and Refreshment (F&R) business in India by leveraging the mega trend of health and wellness. This transaction values the total business at Rs 317 billion. The transaction is an all equity merger with 4.39 shares of HUL being allotted for every share in GSK CH India. HUL has reached a definite agreement with GSK CH India in this regard. ![]() The Board of Directors of Hindustan Unilever Limited (HUL) today approved a scheme of merger between the Company and GlaxoSmithKline Consumer Healthcare Limited (GSK CH India) subject to obtaining requisite approvals from statutory authorities and shareholders. ![]()
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