Hindustan Unilever (HUL) announced Wednesday that the merger of GlaxoSmithKline (GSK) Consumer with the company has been completed and that the combined food and beverage business is more than Rs. 12,000.
The merger will also give HUL access to brands such as Horlicks and Boost and place it alongside competitors such as Nestlé India, another major player in health and nutrition.
HUL will also pay Rs 3,045 to GSK Plc to acquire the rights to the Horlicks brand in India, meaning that it will not pay royalties on the brand of its parent company Unilever, which first acquired the rights when the merger was announced in December 2018.
In addition, GSK Plc will sell its 5.7% stake in HUL after the closing of the trade on 17 January 2009. Monetizing the month of April. 4.39 The HUL Shares will be exchanged for each GSK Consumer as part of the plan or arrangement approved by the national company courts in Mumbai and Chandigarh.
With the completion of the merger and the transfer of the assets and liabilities of GSK Consumer to the books of HUL, the focus will be on the integration of the employees and the activities of HUL.
Some 3,500 GSK Consumer catering staff have been transferred to HUL, the company’s finance director, Srinivas Fatak, said Wednesday. He focused on the integration of IT, systems, sales, distribution and procurement in both companies.
The Hul has formed two teams for this. The first unit will manage basic integration, said Mr Fatak, seeking cooperation between the various departments in order to avoid duplication of work and consolidate operations where necessary. We will keep the employees of GSK Consumer where they are needed. Others are used for all Hullah operations, he said.
The second unit will be the Country Category Trade Team (CCBT), which will handle the core portfolio of food and refreshments, he said. Horlix, Bust, Maltova and Viva will be added to this food portfolio and HKBT will be responsible for identifying opportunities for growth and expansion, he said.
However, analysts expect the integration process to be delayed due to the ongoing supply chain and the production disruptions caused by the Covida 19 pandemic, with the company indicating that it will take approximately 18 months to complete the integration process. There are short-term problems we have to face, Fatak said. In the medium term, however, we do not see any problems in the integration process, he said.
On Friday, HUL reported that the pandemic had disrupted operations in many of its production and distribution centers, warehouses and extended supply chain partners. It then suspended and closed most of its installations and negotiated with the authorities in order to resume operations and ensure the continuity of its activities. We keep a close eye on the situation and it is now difficult to assess the impact on business processes, because the situation continues to develop rapidly, according to the company.