In a restructuring aimed at creating sustained value, the Rs 4,000-crore Marico is demerging the business into two - one focused on the FMCG business, which will continue to be called Marico, and the other would be Marico Kaya Enterprises (MaKE), which will give its Kaya beauty business a separate identity.
While the Rs 278-crore Kaya business will get a distinct entrepreneurial approach and an independent leadership team, Marico believes the restructuring will lead to enhanced shareholder value through a sharper focus and greater energy across both organizations and businesses, synergies across the value chain, product portfolios, talent pool and capability through an integrated FMCG business. The FMCG business on the other hand is worth Rs 3,701 crore.
The business portfolios of the consumer business and the international businesses are increasingly mirroring each other, especially after the company acquired the portfolio of youth brands like Set Wet, Zatak and Livon earlier this year. The two business groups will now form a unified FMCG business, while Kaya will be sharply re-defined as a separate business.
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