Marico to separate Kaya biz, list it on bourses
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FMCG firm Marico today said it will demerge its Kaya skin care business into a separate entity and list it independently on bourses, as part of the company's business restructuring process.
The company's board, at its meeting held today, approved restructuring of Marico's businesses, corporate entities and organisation, effective April 1, 2013.
As part of the restructuring process, the company's Consumer Product Business (CPB) and International Business Group (IBG) will now form a unified FMCG business while Kaya will be re-defined as a separate business, Marico said in a statement.
"The company also strongly believes that for the next phase of its value creation journey, the Kaya business should be run in an entrepreneurial manner independently from the FMCG business of Marico," it added.
The restructuring will bring sharper focus across both the consumer goods and cosmetic services businesses of the company, it said.
The company's board has proposed to create two separate companies through partitioning of the current Marico Ltd, into an FMCG business company which is Marico Ltd (already in existence) and a Kaya business company which will be Marico Kaya Enterprises Ltd (MaKE, to be formed), it said.
As a consideration, the shareholders of Marico Ltd as on the record date shall be issued one share of MaKE with a face value of Rs 10 each to be issued at a premium of Rs 200 per share for every 50 shares of Marico with a face value of Re 1 each, it added.
"MaKE will also be listed on the BSE and the NSE, just like Marico Ltd...Listing may take about 60-75 days from the date of receipt of approval of the Scheme of Arrangement from the Court," it added.
MaKE will have its own separate board of directors, distinct from Marico's board, the company said.