Marico Arm Acquires Singapore Firm Derma Rx

Chandrasekhar Atreya
27 May, 2010
New York City

India based consumer goods major Marico Ltd acquires Singapore-based skin care firm Derma Rx for an undisclosed sum to expand its reach further in Middle East and Southeast Asia.

[R]India based consumer goods major Marico Ltd acquires Singapore-based skin care firm Derma Rx for an undisclosed sum to expand its reach further in Middle East and Southeast Asia.[/R]

Consumer goods major Marico Ltd announced on May 25 that they have acquired the aesthetics business of Singapore-based Derma Rx Asia Pacific through its wholly owned subsidiary, Kaya Ltd.

Even though the company did not mention any acquisition amount, CNBC TV 18 said the acquisition was made for a consideration slightly above 100 crore rupees.

This acquisition provides Kaya access to an advanced range of skin-care products and a strong sourcing network, including suppliers of products from developed nations, a press release issued here stated.

'With this acquisition, nearly 45% of our skin-care solutions revenue would come from overseas,' Marico''s Chief of Finance, HR & Strategy, Milind Sarwate, said.

The deal envisages the acquisition by Derma Rx International Aesthetics, a wholly-owned subsidiary of Kaya Limited, of the IPRs relating to DermaRx''s business and the shares in wholly-owned subsidiaries of Derma Rx Asia Pacific Pte Ltd.

Derma Rx, operates three centers in Singapore and one in Kuala Lumpur and has a customer-base of about 37,000, generating a turnover of about Rs 50-crore.

Marico plans to introduce, over time, Derma Rx products into its range of offerings at Kaya clinics in India and the Middle-East, the release said.

'This would enable Kaya to increase its share of revenue, from sale of products, from the current level of about 13% to over 20%', the release said.

Kaya delivers skin care solutions in India and overseas, through its range of Kaya Skin Clinics.

Derma Rx's Founders Dr S K Tan and Ms Janifer Yeo, will continue to be engaged in the business for the next three-years, to facilitate the transition and provide Kaya, with the know-how and experience from their expertise in aesthetic solutions in a relatively more-evolved market, the release said.

The stock closed down 4.24% or Rs. 4.45 at Rs 100.55 on May 25.