ITC Logo
Media Centre
Press Report

ITC acquires Shower To Shower, Savlon brands from J&J in India
The Times of India - 14 Feb 2015

FMCG-to-tobacco-to-hotels giant ITC is back on acquisition path. The over Rs 40,000-crore conglomerate has acquired from Johnson & Johnson (J&J) its India business of Savlon and Shower to Shower, two of the major brands globally for the consumer and healthcare multinational.

While the companies did not disclose the financial details of the deal, industry experts peg the valuation of the two brands at around Rs 250-300 crore.

TOI had reported on October 20, 2014 that J&J's non-core divestment had attracted multiple suitors, including Wipro Consumer Care and Emami.

This is ITC's first major acquisition in personal care product domain since it entered the category 7-8 years back.

Commenting on the acquisition, an ITC spokesperson said: "ITC has entered into asset purchase agreements with Johnson & Johnson India, and Johnson & Johnson Pte, Singapore, for purchase of Savlon and Shower to Shower trademarks and other intellectual property, respectively, primarily for use in India. This is in line with ITC's aspiration to achieve a revenue of Rs 100,000 crore from the new FMCG businesses by 2030."

Savlon is one of the globally acclaimed antiseptic and disinfectant brands. Shower to Shower is also a global brand, which has a big consumer following in India. While Savlon is a niche player in the Indian antiseptic market competing with leader Dettol with its range of antiseptic liquid and soap, Shower to Shower is a leading player in the prickly heat powder market.

J&J, which makes adhesive bandages under the brand Band-Aid and Stayfree sanitary napkins, has decided to offload these two brands in India as they were not been doing too well. For ITC, the acquisition opens up a new whole new avenue into the niche segments along with strengthening its current personal care products portfolio.

ITC has home-grown personal care product brands like Vivel, Fiama Di Wills and Engage. Some of its personal care brands - mid-market brand Vivel and popular segment brand Superia - have already crossed the Rs 200-crore mark.

In foods business, ITC has made a few acquisitions in the last few years like B Natural, Mint-o. The Indian multinational also attempted acquisition in the hospitality sector. It bought over 14.9% stake in EIH and later also acquired a major strategic stake in Hotel Leela.

Click here to know more about Personal Care Business