The board of Marico on 16 July 2020 approved the scheme of amalgamation of wholly-owned subsidiary, Marico Consumer Care, with the company.
The scheme is subject to the requisite statutory/regulatory approvals including the approval of jurisdictional National Company Law Tribunal (NCLT), and the respective shareholders and creditors of the company and Marico Consumer Care (MCCL) (as may be directed by the NCLT).MCCL has a total asset size of Rs 25.48 with a net worth of Rs 25.04 crore. The company had a turnover of Rs 6.77 crore. MCCL owns various Intellectual Property Rights which are licensed to Marico.
Marico said the amalgamation will consolidate the business, eliminate a multi-layered structure, reduce administrative and compliance and other operational costs. Marico added that there is no cash consideration involved.
Meanwhile, the board appointed Pawan Agrawal as the chief financial officer (CFO) of the company with effect from 10 September 2020. The board accepted the resignation of Vivek Karve, the current CFO, effective from the close of business hours on 10 September 2020.
On a consolidated basis, Marico's net profit fell 50.62% to Rs 199 crore on 7.02% decline in net sales to Rs 1,496 crore in Q4 March 2020 (Q4 FY20) over Q4 March 2019 (Q4 FY19).
Shares of Marico were up 0.26% at Rs 345. The company manufactures consumer products and services in the beauty and wellness space.
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