SC Johnson consolidates businesses

The US-based SC Johnson & Son has consolidated its consumer products business under one company, Karamchand Appliances, in which it owns 50 per cent of the equity.

The Delhi-headquartered company, which produces the AllOut insect control product, has been identified as SC Johnson & Son's investment vehicle for the Indian market.

A source at Karamchand Appliances said: "Karamchand Appliances markets and distributes Raid and Bagyon insect control products. Any future launch of products from SC Johnson's global portfolio or any further investment will be through this company."

The remaining 50 per cent stake is held by the Arya family and Bimal Arya is chairman and managing director of Karamchand Appliances.

Industry sources said SC Johnson & Son had recognised India as one of its key markets for both consumer products and for its industrial cleaning and hygiene business (which falls under a separate company called Johnson Diversey India). It is drawing up strategies to consolidate and penetrate the market. As a result, the shareholding structure of Karamchand Appliances may see a change.

When contacted Kelly M Semrau, vice president, global public affairs and communications, at SC Johnson said "As a privately-held

company, S C Johnson does not discuss business plans."

SC Johnson entered the Indian fast moving consumer goods market through an equal joint venture with Hindustan Lever called Lever Johnson. The JV sold brands like Domex floor cleaner,Raid mosquito repellent and Glade incense sticks.

A few years back, Lever Johnson was split, with the Domex brand coming under HLL's fold. SC Johnson globally acquired the Bagyon insect control brand from Bayer. Bagyon is now marketed by Karamchand Appliances. S C Johnson then acquired a 50 per cent interest in Karamchand Appliances.

Johnson Diversey India, the 100 per cent subsidiary of Johnson Diversey, is planning to make India the hub for its South Asia region operations, according to T Balakrishnan, managing director of Johnson Diversey India.

Following the global merger of Diversey Lever and Johnson Wax Professional in India, Hindustan Lever sold its industrial cleaning business to JDI in 2002 for Rs 55 crore (Rs 550 million).

The company is now planning to set up another manufacturing unit in Mumbai, Balakrishnan added. Its current manufacturing plant is located at Daman.