New Delhi, Feb 9: Indian Shaving Products Ltd, a Gillette Company subsidiary, on Wednesday announced that it has approved the merger of Duracell (India) Pvt Ltd and Wilkinson Sword India Ltd with it.The board of the company, which met in Mumbai, has decided to offer two shares of ISPL for every 13 held in Duracell. Similarly two ISPL shares would be offered for every nine shares held in Wilkinson. The decision is based on the recommendations made by the committee of directors constituted on January 14, 2000, to consider various options. The merger would be effective January 1, 2000, a company statement here said.The board has also approved the annual results for the calender year 1999. The net profit of the company was up by 10% to Rs 253.74 crore for calender year 1999 as against Rs 17.6 crore for April-December 1998. Sales income went up by over 25 per cent to Rs 250 crore over Rs 200 crore (annualised) in the corresponding period last year. Depreciation as higher by 13 per cent over the correspondingperiod (annualised) while interest cost was lower by 5 per cent to Rs 4 crore.The merger will improve ISPL's stranglehold in the razors and blades market. At present, ISPL has 8 per cent market share (unit value) in the razors and blades market while the value share in estimated at 26 per cent. With the merger of Wilkinson with it, the value share will increase to 38 per cent and market share (unit value) will increase to 16 per cent, the company estimates. The House of Malhotras continues to be the largest player in the razor and blades market despite this merger of the Gillete group companies.The merger of the two companies into ISPL had been on the anvil for some time. The marketing networks of the Duracell and Wilkinson had been combined earlier last year. Duracell India is a 85% subsidiary of Gillette Company while Wilkinson is a 100% subsidiary of Gillette India.
