Gillette’s to hike stake in ISPL

"We have already obtained shareholder approval for the merger of Duracell India and Wilkinson Swords with ISPL and the process should be over by September by when we ought to be granted permission by the courts," Director Legal & Corporate Affairs of ISPL Vijai Mathur told PTI here today.

He said that after the process was over, US parent Gillette would become a 72 per cent stake holder in ISPL, up from the present 52 per cent. "Under the plan, ISPL’s 12 million share will go up to 32 million share after the merger of these two companies into it, Mathur said.

This would have reduced Gillette’s stake in ISPL to 46 per cent he said but one must take into account the equity stake the US company holds in the two merging companies as well.

"Gillette corporation holds 85 per cent and 100 per cent equity stake respectively in Duracell India and Wilkinson Swords," Mathur said, adding this will mean the US company’s effective holding in Indian operations would become 72 per cent after the restructuring was over.

Mathur said he was hoping all the necessary clearances would be in place by September this year but the merger would be effective from January one, 2000.

"We hope to bring out a consolidated balance sheet forthe year 2000, if all goes as per plan," he said.

Explaning the reasons for undertaking this massiveconsolidation drive, Mathur said this would put an end to the multitude of legal entities Gillette’s Indian operations was saddled with.

"We were operating with an amazing 20 legal entities,making the functions complicated and raising costs," he said .

WIth the proposed restructuring, there would be a majorsales force rationalisation, Mathur said, adding the company would now employ common sales force for selling both shaving products and batteries.