Henkel India Ltd has proposed to sell its professional haircare and hairstyling brand, Schwarzkopf Professional.
According to the notice of postal ballot sent out to its shareholders, the company says in the current competitive business environment, it has become imperative for the company to reorganise and restructure its operations with a view to ensure long-term viability.
Products of the Schwarzkopf Professional Division are imported and sold in the country and the division does not have any immovable properties and factories. The turnover of the division is marginal in comparison to the total sales of the company, says the notice.
It also adds that the current activities and future development of the division requires further significant investment, which the company would not be able to fund without compromising its core business and hence it would be more advantageous to sell all the movable assets, licensing contracts and other components of the division and that the sale price should not be less than Rs 25 crore.
Tamil Nadu Petro Products has 14 per cent stake and Henkel’s German parent has a 51 per cent stake in Henkel India Ltd. The company, for the third-quarter ended December 31, 2010, reported a net loss of Rs 2.34 crore on a turnover of Rs 97 crore as against Rs 22.34 crore of net loss on a turnover of Rs 73.4 crore in the comparable previous year quarter.
Source: Business Line