MUMBAI: Marico Ltd. will be acquiring Hindustan Lever Limited's (HLL) brand Nihar, which has a current annualised turnover of about Rs 1.20 billion spread over two segments - coconut oil and perfumed hair oils.

HLL had initiated the divestment as a part of its brand rationalisation exercise. The process involved competitive bidding amongst select FMCG companies. The transaction envisages a transfer of the IPR and other rights associated with the brand in India and other parts of the world. HLL will continue to operate brands other than Nihar in the value added hair oil segment.

Some of the synergies that Marico expects to reap from Nihar are as follows:

HLL chairman and managing director Harsh Mariwala expressed happiness at Marico's first acquisition over Rs 1 billion. "Nihar elegantly complements Marico's strengths in both coconut oil and perfumed hair oils. We see significant scope for value creation leveraging Nihar's equity. This will help us top up our healthy organic growth, as we move towards our target of reaching a Rs 20 billion turnover over the next three years."

HLL vice chairman M K Sharma said, "This is in line with our portfolio rationalisation strategy, while at the same time creating value for our shareholders."

Ambit Corporate Finance acted as Marico’s advisors in this transaction.