FMCG player Jyothy Laboratories on Wednesday said it has acquired 14.9% stake in Henkel India in an all cash deal amounting to Rs 60.73 crore.
The company said the acquisition is part of its strategy to strengthen its "brand portfolio both in the urban and rural India".
"Jyothy Laboratories has bought 14.9% or 1,73,51,686 shares at Rs 35 each of Henkel India Ltd from Tamil Nadu Petro Products Ltd (TNPL)," the company said in a statement.
The entire transaction is an all cash deal amounting to Rs 60.73 crore, it added. Besides, the company will participate in the bidding process to gain Henkel AG's 50.9% stake in Henkel India.
"There is synergy between the two companies product offerings and we saw a value added proposition in this stake purchase," Jyothy Laboratories chairman and managing director MP Ramachandran said.
The firm, which sells fabric care products under the brand 'Ujala' and household insecticides under 'Maxo', said the two firms have synergy in various business segments.
Both are present in segments including, home care, fabric care, dish wash, personal care and household cleaning items. Some of Henkel's brands include Henko, Mr White, Pril, Fa, Neem and Margo.
Jyothy Labs also marks its presence in personal care, fragrances and dish wash categories among others.
Comments could not be obtained from Henkel India as queries remained unanswered.
Last week, Henkel had announced that it is planning to dispose off movable assets and other components of hair care division of the company subject to shareholders' consent.
Leading FMCG players, including Emami and Godrej, had expressed their interest in buying the hair care business of Henkel India.
Share of Jyothy Laboratories closed at Rs 228, down 0.44% from the previous close on the Bombay Stock Exchange (BSE) while scrips of Henkel India closed at Rs 45.35, up 4.98% on the BSE.