Henkel to sell its majority stake in Indian company

Henkel said it has sold its 50.97% stake in Henkel India based in Chennai, India, to Jyothy Laboratories from Mumbai, India.

In an all-cash transaction Henkel sells 59.4 million equity shares at 20 INR each, amounting to 1,187 million INR ($25.65 million) and 68 million preference shares, amounting to 439 million INR.

Henkel will generate a one-time gain of more than €30 million ($42.77 million).

Meanwhile, Jyothy Laboratories had acquired a 14.9% stake in Henkel India from Tamilnadu Petroproducts in March 2011.

Henkel said its sale of its majority stake in Henkel India is in line with the company's strategy to focus on its core businesses and phase out marginal positions.

Its local Indian brands have lacked size in order to be able to effectively compete with its competitors in the challenging Indian market.