Bajaj Corp Ltd is acquiring NOMARKS, an anti-marks skin care brand from Ozone Ayurvedics, for an undisclosed amount, the company disclosed on Thursday. The firm has signed the agreement for the transaction which will give it access to the second-largest brand in its category and marking an entry for the firm in a much larger skin care segment.
NOMARKS has 12 per cent market share in a Rs 342 crore category which is growing at 27 per cent per annum. With revenues of around Rs 40 crore its product basket includes face wash, lotion, facial cream, facial soap and facial scrub. NOMARKS will continue to be manufactured by Ozone Ayurvedics for an year under a transition support agreement, the company added. Ozone Ayurvedics is a proprietorship owned by SC Sehgal.
Commenting on the acquisition, Kushagra Bajaj, chairman Bajaj Corp Ltd, said, "The acquisition of the NOMARKS brand by Bajaj Corp is a strategic move as it enhances our presence in the personal care market and gives us an entry into the skin care category. It widens the company's position in the personal care sector as Bajaj Almond Drop Hair Oil is already the third-largest brand in the overall hair oil category.”
He said the investment strategy for NOMARKS will be similar to that employed by the company for Bajaj Almond Drops Hair Oil and the objective will be to build a large consumer franchise for the brand.
Bajaj Corp is known for its hair oil brands and is part of the Shishir Bajaj group which split from the rest of the Bajaj business family a few years ago and also has interests in sugar among others areas. It has brands like Bajaj Kailash Parbat Thanda Tel, Bajaj Almond Drops Hair Oil, Bajaj Brahmi Amla Hair Oil, Bajaj Amla Shikakai Hair Oil and Bajaj Jasmine Hair Oil.
With the acquisition of these brands, Bajaj Corp enters the Rs 8,500 crore large skin care category which grew by 12.1 per cent during FY13. The deal will add around 7 per cent to its annual revenues of around Rs 600 crore.
Bajaj Corp’s scrip was quoting at Rs 238 a share, up 2.3 per cent in mid-day trades on the BSE in a strong Mumbai market on Thursday.
(Edited by Joby Puthuparampil Johnson)
