Mr.
K.N.Bhattacharya, Director Reckitt Piramal Ltd., and
ED & CFO Reckitt Benckiser (India) Ltd., signing
the paper for handing over the brand Burnol to Dr.
Morepen Ltd.
Mr. Sushil Suri, Chairman Dr. Morepen Ltd. looks on
|
Dr. Morepen,
A fully owned subsidiary of Morepen labs ltd.
Today announced an acquisition of the brand Burnol
from Reckitt Piramal ltd. for Rs. 8.95 crores.
As a part of the agreement, Reckitt Benckiser (India)
ltd, who have been handling the Sales and Distribution
of Burnol since July 2001 and would continue to do so
till March 2002. Burnol registered a turnover of Rs. 6.20
crores in the year ending December 2000 with high gross
margins. With the dealer network of 3,00,000 outlets and
1000 stockist across the country, it has deep access into
a considerable amount of the universe constituting of
Chemists, Cosmetic stores, General stores, grocer and
other outlets. This would also provide support and deeper
market penetration to other Dr. Morepen products. Burnol
acquisition would also give Dr. Morepen an entry into
the 210 crore antiseptic market, which opens a vast arena
of opportunities for the company.
Rabo Bank has organized the acquisition deal between
the two companies and a detailed due diligence exercise
was carried out by KPMG to evaluate the brand Burnol.
A 60-year-old OTC brand is synonymous with burns
is the leader in its category. It was originally
a brand of Boots Company PLC, it was bought over by Knoll
AG of Germany in 1995 and was then bought by Reckitt Piramal
in 1998. The brand has a loyal consumer base with little
competition from any other brand in the local market.
Burnol enjoys very high awareness (>90%)
amongst urban consumers and has over the years become
an essential presence in every household as an antiseptic
for minor cuts and burns. Burnol was re- launched
as " Antiseptic Burnol plus" in 1994,
which widened its usage from minor burns category to an
antiseptic cream.
Speaking on the occasion Mr. Sushil Suri, CMD
Morepen labs said, "Burnol provides an excellent
fit with our strategy of acquiring and developing strong
brands in Indian market. It is a premium brand, well positioned
in India that offers superior volume and value growth
potential’’.
Primarily an Urban brand 70% of Burnol sales comes from
4 metros and big cities with higher turnover in the months
of September – December due to festival season of
Diwali and May- June due to school and college holidays.
The product is available in two SKU’s 10g and 20g
tube priced at Rs.14 and Rs.25 respectively.
Dr. Morepen’s strategy continues to focus on building
a range of premium and specialty brands that would bestow
threshold numbers to the newly formed company and also
facilitate its entry into newer markets. This acquisition
further demonstrates Dr. Morepen’s commitment of
acquiring well-known brands to strengthen and expand the
Its category and also help leveraging its existing operational
platform. Acquiring a well-known brand like Burnol will
give deeper penetration to Dr. Morepen products by leveraging
the already existing extensive distribution and dealer
network spread across the country. Dr. Morepen would continue
looking for more brand acquisitions based on the criteria
grid set up by it and the synergies in the positioning
and distribution and also.
Benefits of the Acquisition
Dr Morepen’s existing FMHG business in India is
focused on a range of self-health brands, which empowers
an individual with " Health in your Hands".
Brand acquisition of Burnol will significantly strengthen
the position of Dr Morepen by giving it a wide spread
network for all its products as strong synergies exist
in both. The sales of Burnol will also add requisite threshold
numbers required by a new company. Burnol will also give
Dr Morepen
--------------------------------------------------------------------------------
Dr. Morepen, the FMHG brand from Morepen Labs, is a forward-looking
futuristic brand, which endeavors to occupy a place in
every urban household. The category of self-health has
been identified after research on modern behavior patterns
and preferences. The new FMHG category created by Dr Morepen
is aimed at people, who on account of their hectic lifestyles
overlook basic health needs and cannot afford to take
time out to go to the doctor for minor irritants and problems.
Dr. Morepen’s problem solution and heath enhancement
products are lifestyle companions for every 21st century
household. On one hand they enhance your health by providing
nutrients that modern foods may lack on other hand they
takes care of minor irritants and problems resulting from
changing lifestyle and environment. Dr.Morepen products
can be picked off the shelf and do not need any prescription
from a doctor.
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