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Henkel boss confirms takeover plans
FOCUS losses fell to Yen 0.4 bn from Yen 1 bn. Japanese sales of hair care products dropped due to intensified competition in shampoos and conditioners and the impact of the contraction of the hair colouring market, but sales of skin care products rose. Net sales from Kao’s fabric and home care segment rose to Yen 62.7 bn in 1Q FY 2013 from Yen 62.2 bn in the restated 1Q FY 2012, while operating income increased to Yen 10.6 bn from Yen 8.5 bn. Sales of fabric care products dropped due in part to the effects of price competition. Higher sales were recorded in Asia with the strong performance of Attack laundry detergent in Indonesia and Thailand. Sales of home care products rose in Japan aided by new products such as Bath Magiclean Aroma Deodorizer Plus. Operating income rose due to lower raw material costs and more efficient management of expenses. Original Source: Kao Corp, 1-14-10 Nihonbashi Kayabacho, Chuo-ku, Tokyo 103-8210, Japan, tel: +81 3 3660 7111, website: http://www.kao.co.jp/en/ (30 Apr 2013), © Kao Corporation 2013
COMPANY NEWS BASF aiming to double APAC sales and extend R&D outside Europe BASF wants to double its sales in Asia/Pacific (APAC) to €25 bn by 2020. This will require a good deal of spending. By 2020, the company and its partners will invest €10 bn in the region and create 9000 jobs. Acquisitions are also possible. BASF and partners have invested €7 bn in APAC in the last 10 years. Around 25% of the company’s global research will be carried out there in 2020, with the number of R&D employees climbing from 800 to 3500. BASF sees chemical production in the region growing by 6.2%/y. The company wants to grow two percentage points faster than this. By 2020, BASF wants around 75% of products sold in APAC to be produced in the region; it currently operates more than 100 production sites in the region. BASF also wants to become more efficient in Asia. Savings of around €1 bn/y are AUGUST 2013
ON
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expected from 2020. The expansion of R&D in Asia is part of a wider move by the company to extend its R&D activities outside Europe to get closer to its customers. The Americas will also receive 25% of BASF’s research budget and scientists by 2020. Aside from expanding its R&D footprint, BASF is exploring new research areas. Though BASF is expanding outside Europe, it is not scaling back its R&D hub in Ludwigshafen, Germany or elsewhere in the continent. The company invested 73% of its $2.2 bn R&D budget in Europe in 2012, and half of its 10,500 scientists call Ludwigshafen home. Original Source: Nachrichten fuer Aussenhandel, 4 Jun 2013, (Website: http://www.maerkte-weltweit.de) (in German) © MBM Martin Brueckner Medien GmbH 2013. Original Source: Chemical and Engineering News, 20 May 2013, 91 (20), 22 (Website: http://www.cen-online.org) © American Chemical Society 2013
Henkel boss confirms takeover plans Henkel has confirmed its interest in taking over companies. The company analysed possible targets intensively in 2012. Now it is a matter of implementation. The company’s financial scope is currently €4 bn. The last billion-figure acquisition was in 2008 when the adhesives division was strengthened. Henkel has also confirmed its 2013 forecast. Organic growth of 3-5% is expected. The adjusted EBIT margin is expected to be around 14.5%. Original Source: Handelsblatt Wirtschafts- und Finanzzeitung, 22 Jun 2013, (Website: http://www.handelsblatt.com) (in German) © Verlagsgruppe Handelsblatt GmbH & Co KG 2013
Unilever thinks big in Myanmar Unilever is all set to make a comeback and establish a significant presence in Myanmar in the near future. Myanmar offers a highpotential emerging market for Unilever, and the Anglo-Dutch firm aims to become the No 1 FMCG company in the country by 2023. In view of this, the company aims to invest c $650 M during 2013-2023 as investment for the consumer products category in Myanmar. As part of its plan, it will be commencing operations of its first manufacturing unit called Unilever (Myanmar) by Jul 2013 in Yangon. The group also proposes establishing a second
factory in Myanmar during the latter part of 2013 and expects to have about 2000 staff employed directly and indirectly in Myanmar by 2015. Unilever re-entered Myanmar about three years ago and supplies to 100,000 outlets with hygiene products, shampoo and toothpaste. Unilever derives about 57% of its global turnover from new markets. In other news, Unilever has increased its sustainability pledge. Currently 36% of its agricultural raw materials are sourced sustainably and the company is aiming at 100% by 2020 with its Unilever Sustainable Living Plan. All of Unilever’s palm oil for its cosmetics ingredients is certified by GreenPalm and the company is aiming at 100% certified sustainable palm oil. Original Source: Bangkok Post, 19 Jun 2013, (Website: http://www.bangkokpost.net/) © The Post Publishing PCL 2013. Original Source: Business Line, 7 Jun 2013, 20 (158), 5 (Website: http://www.thehindubusinessline.com/) © The Hindu Business Line 2013. Original Source: SPC, Soap, Perfumery and Cosmetics, May 2013, 86 (5), 13 (Website: http://www.cosmeticsbusiness.com/) © HPCi Media Ltd 2013
Jyothy Labs to restrict own brands to south FMCG major Jyothy Labs plans to confine its Ujala washing powder brand to South Indian markets and withdraw its premium brand Ujala Technobright from its portfolio due to severe competition in the detergent category. Ujala, which has sales of Rup 700 M, has garnered 17% market share in Kerala. The company plans to re-launch the Henko brand detergent (acquired from Henkel) across India, and expects to increase its market share from 2% to 4%; Henko is already a Rup 1 bn brand. In the soaps division, the company plans to restrict its soap brand Jeeva to Kerala while unleashing Margo, acquired from Henkel, in several variants. It also proposes to make its soap brand Fa a Rup 1 bn product. During 4Q 2012-2013 ended Mar 2013, Jyothy Labs derived revenues of Rup 1.72 bn from its soaps and detergents business as against Rup 1.37 bn in 4Q 2011-2012. Original Source: Business Line, 24 May 2013, 20 (144), 5 (Website: http://www.thehindubusinessline.com/) © The Hindu Business Line 2013
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COMPANY NEWS BASF aiming to double APAC sales and extend R&D outside Europe BASF wants to double its sales in Asia/Pacific (APAC) to €25 bn by 2020. This will require a good deal of spending. By 2020, the company and its partners will invest €10 bn in the region and create 9000 jobs. Acquisitions are also possible. BASF and partners have invested €7 bn in APAC in the last 10 years. Around 25% of the company’s global research will be carried out there in 2020, with the number of R&D employees climbing from 800 to 3500. BASF sees chemical production in the region growing by 6.2%/y. The company wants to grow two percentage points faster than this. By 2020, BASF wants around 75% of products sold in APAC to be produced in the region; it currently operates more than 100 production sites in the region. BASF also wants to become more efficient in Asia. Savings of around €1 bn/y are AUGUST 2013
ON
S U R FA C TA N T S
expected from 2020. The expansion of R&D in Asia is part of a wider move by the company to extend its R&D activities outside Europe to get closer to its customers. The Americas will also receive 25% of BASF’s research budget and scientists by 2020. Aside from expanding its R&D footprint, BASF is exploring new research areas. Though BASF is expanding outside Europe, it is not scaling back its R&D hub in Ludwigshafen, Germany or elsewhere in the continent. The company invested 73% of its $2.2 bn R&D budget in Europe in 2012, and half of its 10,500 scientists call Ludwigshafen home. Original Source: Nachrichten fuer Aussenhandel, 4 Jun 2013, (Website: http://www.maerkte-weltweit.de) (in German) © MBM Martin Brueckner Medien GmbH 2013. Original Source: Chemical and Engineering News, 20 May 2013, 91 (20), 22 (Website: http://www.cen-online.org) © American Chemical Society 2013
Henkel boss confirms takeover plans Henkel has confirmed its interest in taking over companies. The company analysed possible targets intensively in 2012. Now it is a matter of implementation. The company’s financial scope is currently €4 bn. The last billion-figure acquisition was in 2008 when the adhesives division was strengthened. Henkel has also confirmed its 2013 forecast. Organic growth of 3-5% is expected. The adjusted EBIT margin is expected to be around 14.5%. Original Source: Handelsblatt Wirtschafts- und Finanzzeitung, 22 Jun 2013, (Website: http://www.handelsblatt.com) (in German) © Verlagsgruppe Handelsblatt GmbH & Co KG 2013
Unilever thinks big in Myanmar Unilever is all set to make a comeback and establish a significant presence in Myanmar in the near future. Myanmar offers a highpotential emerging market for Unilever, and the Anglo-Dutch firm aims to become the No 1 FMCG company in the country by 2023. In view of this, the company aims to invest c $650 M during 2013-2023 as investment for the consumer products category in Myanmar. As part of its plan, it will be commencing operations of its first manufacturing unit called Unilever (Myanmar) by Jul 2013 in Yangon. The group also proposes establishing a second
factory in Myanmar during the latter part of 2013 and expects to have about 2000 staff employed directly and indirectly in Myanmar by 2015. Unilever re-entered Myanmar about three years ago and supplies to 100,000 outlets with hygiene products, shampoo and toothpaste. Unilever derives about 57% of its global turnover from new markets. In other news, Unilever has increased its sustainability pledge. Currently 36% of its agricultural raw materials are sourced sustainably and the company is aiming at 100% by 2020 with its Unilever Sustainable Living Plan. All of Unilever’s palm oil for its cosmetics ingredients is certified by GreenPalm and the company is aiming at 100% certified sustainable palm oil. Original Source: Bangkok Post, 19 Jun 2013, (Website: http://www.bangkokpost.net/) © The Post Publishing PCL 2013. Original Source: Business Line, 7 Jun 2013, 20 (158), 5 (Website: http://www.thehindubusinessline.com/) © The Hindu Business Line 2013. Original Source: SPC, Soap, Perfumery and Cosmetics, May 2013, 86 (5), 13 (Website: http://www.cosmeticsbusiness.com/) © HPCi Media Ltd 2013
Jyothy Labs to restrict own brands to south FMCG major Jyothy Labs plans to confine its Ujala washing powder brand to South Indian markets and withdraw its premium brand Ujala Technobright from its portfolio due to severe competition in the detergent category. Ujala, which has sales of Rup 700 M, has garnered 17% market share in Kerala. The company plans to re-launch the Henko brand detergent (acquired from Henkel) across India, and expects to increase its market share from 2% to 4%; Henko is already a Rup 1 bn brand. In the soaps division, the company plans to restrict its soap brand Jeeva to Kerala while unleashing Margo, acquired from Henkel, in several variants. It also proposes to make its soap brand Fa a Rup 1 bn product. During 4Q 2012-2013 ended Mar 2013, Jyothy Labs derived revenues of Rup 1.72 bn from its soaps and detergents business as against Rup 1.37 bn in 4Q 2011-2012. Original Source: Business Line, 24 May 2013, 20 (144), 5 (Website: http://www.thehindubusinessline.com/) © The Hindu Business Line 2013
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