MUMBAI, Apr 26: Procter & Gamble India and Marico Industries on Monday announced the sale of P&G's anti-lice treatment shampoo brand `Mediker' with effect from June 30, 1999, to Marico for a consideration of Rs 10 crore.In separate releases issued on late Monday evening, the companies also announced a distribution tie-up, as per which Marico will distribute some of P&G's brands such as Old Spice and Clearasil. The distribution agreement which comes into effect on July 1, 1999, will help Marico to further develop and leverage its distribution competency, say analysts.The sale of Mediker comes almost a year after P&G divulged its intentions to divest the Mediker business in India. The deal, say analysts, took a long time to conclude owing to a delay on the part of the two companies to arrive at an agreement on the price. P&G has always held the opinion that brands such as Old Spice, Clearasil and Mediker do not have high market potential. P&G had earlier divested detergent brands Ezee and Trilo to Cussons India.Meanwhile, Procter & Gamble India has announced an impressive 33.73 per cent jump in net profit to Rs 13.44 crore in the third quarter ended March 1998 as against Rs 10.05 crore in the corresponding period last year. Net sales registered an 12.31 per cent increase during the period to Rs 115.75 crore from Rs 103.06 crore. Operating profit rose by 18 per cent during the period to Rs 21.45 crore from Rs 18.12 crore.Interest charges during the third quarter dropped to Rs 68 lakh from Rs 1.52 crore in the previous year. Depreciation was lower at Rs 5.75 crore as against Rs 6.03 crore. Provision for taxation was marginally lower at Rs 2.14 crore as against Rs 2.98 crore. During the first 9 months ended March 31, 1999, P&G posted a 37.24 per cent rise in net profit and a 9.17 per cent rise in sales. The company posted a net profit of Rs 45.91 crore (Rs 33.45 crore) over net sales of Rs 371.42 crore (Rs 340.22 crore).On the other hand, Marico Industries has posted a 24.9 per cent rise in net profit to Rs 37.5 crore for the year ended March 1999, over the previous year. Total revenues at Rs 553.1 crore during the period were up 12.5 per cent. The company posted a profit before tax of Rs 44 crore, which marks an increase of 20.7 per cent over the previous year. Net profit was 6.8 per cent of the revenue, up from 6.1 per cent, the company said. Top
