JL Morison transfers medical-distribution business to Smith & Nephew Medical
Anju Ghangurde
MUMBAI, January 13: JL Morison India, maker of the Nivea brand of skin-care cosmetics, has transferred its medical-distribution business to Smith & Nephew Medical (India) Ltd, as part of the company's strategy to get out of non-core areas. Smith & Nephew Medical is the domestic arm of British multinational Smith and Nephew Plc.JL Morison's medical division, distributing Smith & Nephew's healthcare products like Gypsona, Elastplast and Elastocrepe, accounted for over 45 per cent of the company's turnover. Industry sources that JL Morison's decision to divest is in line with the firm's plans to focus on marketing of fast-moving consumer goods (FMCG) and emerge as a "professionally managed marketing company" offering an entire range of services." JL Morison's FMCG thrust will include setting up a new manufacturing facility in Maharashtra -- essentially for the Nivea range -- at a cost of about Rs 4 crore, launch of oral-hygiene products of Swiss company Dr Wild and Company, besides the relaunch of
products of UK-based Wisdom Toothbrushes. Wisdom Toothbrushes also holds a small equity in JL Morison. JL Morison will also launch a range of new Nivea products in collaboration with Beierdorf AG, Hamburg, Germany. Sources said JL Morison had already reaped rich dividends from its decision to focus on core strengths and was expected to end the current fiscal with a turnover matching last year's figure of Rs 43 crore. This, they added, was despite transfer of the medical-distribution business to Smith & Nephew. The move is understood to have seen the transfer of a field force of about 100 to Smith & Nephew and will allow both companies gain the focus necessary for quantum growth in their chosen product areas. Meanwhile, JL Morison's proposed divestment of 24 per cent equity in Smith & Nephew Medical India Ltd to Smith & Nephew Plc is awaiting the clearance of the Reserve Bank of India (RBI) and the Foreign Investment Promotion Board (FIPB). JL Morison holds about 600,000 shares of Rs 10 each fully paid
in Smith & Nephew, of which 279,663 were purchased during the year ended March 31, 1997.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
|
