ITC, the renowned FMCG manufacturer has got into an agreement with Johnson & Johnson in order to acquire the latter’s brands Shower To Shower and Savlon in India. Notably, this acquisition will be the first ever purchase by ITC that has been carried out in the personal care segment of the consumer products market.
In a BSE filing, ITC stated that the firm entered into asset purchase agreements with Johnson & Johnson Ltd, India and Johnson & Johnson Pte Ltd, Singapore on Thursday to get hold of the ‘Shower To Shower’ and ‘Savlon’ trademarks. ITC added that it will also acquire the other intellectual properties as well in order to use them inIndia.
Notably, Savlon is an antiseptic brand and Shower To Shower is a personal care product brand. The filing also added that the agreements made between the two firms are regular closing conditions and customary permissions that are mandatory.
During the third quarter of the current fiscal year that is between October and December last year, FMCG manufacturer ITC reported a 10.47 percent rise in its net profit totaling to Rs 2,635 crore that was higher than the 2,385.34 crore net profit made by the firm during the same time period in the previous fiscal year.
ITC headquartered in Kolkata witnessed increase in sales marginally by 2.05 percent that is valued at Rs 8,800.22 crore. On the other hand, the sales were 8,623.11 crore in the same time period in the last year.
Notably, ITC’s earnings contributed by the FMCG business increased significantly. All products including cigarettes exhibited a rise in sales by 4.23 percent valuing at Rs 6,456.06 crore, whereas the non-FMCG business witnessed a growth of only 0.31 percent that stands at Rs 9,582.95 crore.
Also, during the announcement of the acquisition of Johnson & Johnson’s brands such as Shower to Shower and Savlon, ITC’s shares were trading at 0.30 percent up costing Rs 371.70 on BSE’s morning session.