VVF close to buying Colgate’s US soap factory
It’s not exactly a Tata-Corus deal, but the business audacity is just about the same. A lesser-known Indian company is acquiring the manufacturing facility of one of the biggest global brands.
Mumbai-based FMCG company VVF, maker of Doy baby soap, is acquiring Colgate’s soap factory in the US. The unit is one of Colgate’s oldest facility, which came to it when it merged with American soap maker, Palmolive-Peet.
Later, it dropped the Peet name from the company and became Colgate-Palmolive. Industry experts say the sale is part of Colgate’s four-year restructuring programme announced two years ago. One of the key measures of the exercise was to cut down global manufacturing units by almost one-third.
When contacted by ET, Piyush Jindal, senior vice-president (personal care) at VVF, confirmed the development and said the details of the buyout would be announced shortly. It’s not known if the prospective deal include a sourcing arrangement for Colgate.
The Rs 675-crore VVF also does contract manufacturing for big consumer goods brands globally, including Johnson & Johnson, Henkel and Reckitt Benckiser, besides selling customised soaps for the hospitality industry worldwide.
The company has three overseas manufacturing facilities, including two units in Dubai for toilet soaps and one in Canada for bar soaps and liquid personal care products. In India, VVF has five production facilities spread across Mumbai, Taloja, Navsari, Kutch and Daman.
Apart from contract manufacturing, it also has its own brands in the personal care category, including a few baby care products. The portfolio includes Doy, DoyCare Aloe, Jo and recently-launched beauty soap, Schiff.
In addition to its FMCG business, VVF is also engaged in the business of oleo chemicals, which is its largest division. It makes a variety of fatty alcohols, fatty acids, glycerine and soap noodles. While VVF has been exporting its products to the US, operations are limited to oleo chemicals.
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