The acquisition, which Marico says gives it access to a range of skin care products and a strong sourcing network, establishes a presence for Kaya in the South East Asia region.
Derma Rx sells its products through its three clinics in Singapore and one in Kuala Lumpur. The company has a customer base of around 37,000 people and generates an estimated annual turnover of Rs 500m (€8.57m).
Boost Kaya profile and enhance shareholder value
According to Marico, the acquisition will significantly boost Kaya’s portfolio, and is expected to enhance shareholder value.
“With this acquisition, nearly 45 per cent of our skin care solutions revenue would come from overseas. This will strengthen our efforts to continue to bring world-class skin care solutions to our customers,” said Milind Sarwate, chief of finance, HR & strategy at Marico.
Kaya also plans to introduce Derma Rx products to its own clinics across India and the Middle East, which according to the company would increase Kaya’s share of the market in this area from 13 per cent to more than 20 per cent.
In order to facilitate the transition of the business, the founders of Derma Rx; Dr S. K. Tan and Janifer Yeo will remained involved in the business over the next three years, it was said in a statement.
Tapping into potential of South East Asia region
Marico has previously outlined its desire to replicate in South East Asia the success it enjoys in the Indian market with its portfolio of consumer products.
The company markets brands such as Parachute, Haire & Care and Shanti, and reported turnover of Rs. 26.6bn (€460m) in 2009-2010.
Earlier this year the Malaysian arm of Marico agreed to buy Colgate-Palmolive’s Code 10 hair styling brand which marked both the company’s first acquisition in Malaysia and entry into the country’s hair styling market.