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Marico Ltd. has moved to further strengthen its portfolio of hair care products in South Africa with the acquisition of South African-based Isoplus that makes ethnic hair care products.
Isoplus owned by JM Products is one of the largest African American owned companies that manufactures hair care products in South Africa.
The acquisition comes just three months after Marico acquired a 45 percent stake in Zed Lifestyle, an Ahmedabad-based company that owns the brand Beardo.
Marico, which is well-known for brands such as Parachute (for hair oils and skincare) and Saffola (for edible oil and oats), has also been increasing focus on premium products –including products like value-added hair oil and virgin coconut oil (as a superfood).
Marico is currently present in South Africa through brands like Caivil, Black Chic, Just for Kids, Hercules and Medi-Pac.
Commenting on the acquisition, Saugata Gupta, MD and CEO, Marico Limited said “This bolt-on acquisition plugs a critical gap in Marico’s portfolio in the ethnic hair care space in South Africa. Isoplus has a strong consumer franchise and I am confident that the team will leverage its strengths and expertise to further grow the business.”
Marico, which says that Isoplus has a 27 percent market share by value paid Rs 36 crore for the acquisition. At revenues of Rs 30 crore the acquisition is unlikely to have a meaningful impact on Marico’s Rs 5,900 crore topline for FY17.