Hindustan Unilever buys out local partner in Aquagel Chemicals

The country’s top fast moving consumer goods (FMCG) company Hindustan Unilever Ltd (HUL) has entered into a share purchase agreement with the promoters of Aquagel Chemicals Pvt Ltd (ACPL) to buy remaining 74 per cent stake in the company, as per a stock market disclosure. Terms of the deal were not disclosed.

The deal would give it full control over its existing product supplier.

According to the agreement, ACPL has become a wholly owned subsidiary of Hindustan Unilever Ltd with effect from April 1, 2013. The company had earlier held 26 per cent stake in ACPL.

Gujarat-based Aquagel Chemicals is engaged in manufacturing of soaps and detergents. It was set up around two decades ago as a sister concern of privately held Madhu Silica Pvt Ltd, one of the key players in the precipitated silica market in India.

Silica is used in various applications include tooth paste besides various cosmetics and other consumer products. It is also a juicy business with close to 30 per cent EBITDA margins.

HUL is the market leader in various FMCG product categories in India. It is the Indian public listed arm of Anglo-Dutch consumer products giant Unilever.

(Edited by Prem Udayabhanu)

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