Raymond buys joint venture partner's stake in JK Ansell
Textile and apparel major Raymond today said it has acquired its joint venture partner Ansell’s stake in JK Ansell, which will help it to scale its FMCG portfolio.
The company has acquired 100 per cent ownership of the sexual wellness and personal care business under the brand KamaSutra.
“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 JK Investo Trade (JKIT), a Raymond group company.
As per the proposed deal, JKIT will sell its stake in the gloves business to Pacific Dunlop Holdings (Singapore), an Ansell group company,” the company said in a statement here.
The acquisition will help to scale up the company’s FMCG business and unlock the potential of brand KamaSutra globally, it added.
“Scaling up and creating a strong FMCG business is an important driver of value creation for the group. This acquisition of Ansell’s 50 per cent stake gives us the full ownership of brand KamaSutra that strengthens our FMCG portfolio and is a step towards value creation,” Raymond Chairman and Managing Director Gautam Singhania said.
The KamaSutra brand, launched 25 years ago in the sexual wellness space, has been extended to deodorants.
The acquisition will allow the company to structure its FMCG businesses to unlock cost and revenue synergies with the other group company JK Helene Curtis.
“With this acquisition combined FMCG business is expected to be Rs 800 crore in consumer value in FY18. This gives us the scale and opportunity to rejuvenate our FMCG brands and strengthen sales and distribution network.
“Having outlined a detailed roadmap, brand KamaSutra is poised to feature among the top five global brands in the sexual wellness category,” Raymond President – FMCG Business Giriraj Bagri said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)