HUL & LAKME Acquisition •Hindustan Lever Limited (HLL) had in the last ten years used the takeover route to expand the base of the Company.• Average sales growth in the last ten years had been 29.5 per cent, driven partly by successful acquisitions like Kwality, Dollops, TOMCO, Brooke Bond and Lakme. Sans the mergers, HLL would have maintained an average of 18 per cent year-to-year growth per annum

. Net profit had grown at a compounded rate of 37 per cent during the same period. HLL

• In 1996, HUL and Tata company, Lakme Limited, formed a 50:50 joint venture Lakme Unilever Limited, to market Lakme's market-leading cosmetics and other appropriate products of both the companies.

•Subsequently in 1998, Lakme Limited sold its brands to HUL and divested its 50% stake in the joint venture to the company.

Takeover of Lakme brands, sales and distribution network done in two stages:

Takeover of Lakme brands, sales and distribution network done in two stages:

• Stage I -In January1995, the Lakme trademark, technology And related intellectual property was transferred to a 100 per cent subsidiary of Lakme Ltd.-Lakme Brands Ltd. The transfer

consideration was determined at Rs. 78 crore

Stage II - In 1998, Lakme Limited divested its 50 per cent stake in Lakme Lever Ltd. to HLL for a consideration of Rs. 90.5 crore. The entire stake of Lakme Ltd. in its wholly owned subsidiary Lakme Brands Ltd. was also acquired by HLL.

• Lakme’s manufacturing facility at Deonar was taken over for Rs.24 crore. • The manufacturing plant at Kandla owned by LakmeExports, the 100 per cent

subsidiary of Lakme Ltd. was takenover by HLL for a consideration of Rs. 5.71 crore

HUL & LAKME Statistics

Stake in Lakme Lever Ltd. 90.5Deonar manufacturing facility 24.03Kandla manufacturing facility (from Lakme Export) 5.71

Trade mark, Designs, Brands, Copyrights (from Lakme Brands Ltd.) 110.05R&D infrastructure (from Lakme Brands Ltd.) .27Total 230.56