The Hindu : Business : P&G to transfer detergents business for Rs. 101 cr.

Online edition of India's National Newspaper
Wednesday, Jul 13, 2005

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Business

P&G to transfer detergents business for Rs. 101 cr.

Staff Correspondent

The transfer through sale will benefit the company

MUMBAI: The board of Procter and Gamble Hygiene and Health Care Ltd. (PGHH) has recommended the transfer by way of sale of its detergent manufacturing business (comprising land, building, plant andmachinery and other assets at its Mandideep plant in Madhya Pradesh) to Procter and Gamble Home Products Ltd. (PGHP), a fully owned subsidiary of the Procter & Gamble Company (P&G) USA for a consideration of Rs. 101 crore. The sale is not expected to have any significant impact on PHGG's profits.

Bharat Patel, Non-executive Chairman, PGHH, said, "The transfer via sale will benefit PGHH in three ways; reduce complexities, ensure that each company focused on growing its core categories; and in effect, free up Rs. 101 crore of cash for productive use in PGHH's core businesses and for augmenting company's distributable profits.'' The company will also transfer its employees together with severance liability to PGHP, which will protect the present terms and conditions of employment of these employees. As the proposed transfer of business requires approval of shareholders, a postal ballot will soon be sought and upon approval, the transfer is expected to be effective from October 1.

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