Within a month of global giant of the UK snapping up Ahmedabad-based Paras Pharmaceuticals for

Rs 3,260 crore, yet another consumer care deal seems to be brewing. The Mumbai-based Shah
family of the diversified Anchor Group has decided to put its FMCG portfolio of oral care and
personal care products on the block, two independent sources told Business Standard.
A formal process of selecting potential suitors is expected to begin later this month. Kotak Mahindra
Bank has been given the mandate by Anchors promoters to advise them on
the sale.
The FMCG portfolio of the Rs 2,025-crore ($450-million) Anchor group is
housed in privately-held group subsidiary Anchor Health & Beauty Care
(AHBC). Founded in 1997, its portfolio includes white toothpaste, gels, toothbrushes, tooth powders
and soaps. Anchor White toothpaste, with Bollywood star Kajol as its brand ambassador, along with
Anchor Gel and Dyna soap are its flagship brands. They are big volume grossers. AHBCs
manufacturing

facility

is

in

Himachal

Pradesh.

BRANDS ON THE BLOCK

# Anchor

White

toothpaste

# Anchor

gel

# Anchor

toothbrushes

# Anchor

tooth

powders

# Anchor soaps

Sources said the FMCG portfolio is expected to end the fiscal with a close-to Rs 400-crore topline
and the promoters are looking at three to four times current sales. Thats Rs 1,200-1,600 crore as a
fair value for the business and brands.
However, AHBC promoter and Managing Director Atul Shah denied any such plans. We deny this.
A lot of people are speculating. We dont have any such plans of an exit. No mandate has been given

to anyone, he told Business Standard. An e-mail sent to CFO Navin Patel did not elicit any
response.
Analysts said AHBC gave heavyweights like HUL and Colgate Palmolive stiff competition by
launching its 100 per cent vegetarian Anchor White toothpaste.
Its positioning, competitive pricing and higher trade margins forced market leaders Colgate and HUL
to retaliate by dropping prices in an effort to retain consumer loyalty.
Today, the Rs 3,000-crore oral care market is dominated by three big players: Colgate Palmolive,
HUL and Dabur, who between themselves control over 85 per cent marketshare. Anchors oral care
portfolio is estimated to have a 4-5 per cent share, said sources.
ABHC positioned Dyna Soaps, with its four variants, in the premium category with Bollywood actor
Katrina Kaif as brand ambassador. Sources add that Dyna has been growing faster than many other
in-house brands of the group.
Dyna was launched in 2006, and the company claims that within a year it became the first new
beauty soap in over a decade to enter the league of top 10 national soap brands. Sources say Dyna
today has close to 3 per cent share in the Rs 8,000-crore domestic soap market, which is controlled
by deep-pocket players like HUL, Godrej and Wipro.
Consolidation, therefore, will be a recurring theme. Bigger and more focused players that have very
strong distribution are able to scale up their business and its becoming difficult for smaller players to
compete. Also if you are not dominant in your key categories, then the diversification route will be
also tough. Big, established players with marketing muscle will also put a premium on innovation,
while R&D will tend to suffer in smaller players, said a Mumbai-based FMCG analyst, who did not
want to be identified.
Sources said ABHCs FMCG portfolio will elicit considerable interest among existing players, or
newer entrants seeking to enter India. HUL or Dabur may be keen to look at Anchor for its oral care
brands. Likewise, Wipro or Emami may be interested in Dyna to increase their marketshare, said an
industry source privy to the developments.
Generally speaking, homegrown brands are growing at a robust pace. Thats why the nomenclature.
Many such brands are actually growing faster than many of the established global peers. But to divest
a business or a brand is a pure finance and business decision, said Jagdeep Kapoor, managing

director at Samsika Marketing Consultants, who has advised the Anchor group in the past. Kapoor,
however, refused to comment on any specific deal.
Sources said that in the past, the Shah cousins looked at the possibility of transferring the FMCG
business from one family to another as an inter-promoter group transfer. But they had failed to come
to a consensus on valuations. This time, both sides of the family seems to be ready to explore
divestment options.
Forty-year-old Anchor Group, recently in the news for being part of the promoter consortium of the
Kochi IPL team, has several business interests, including real estate and writing instruments. Shah
brothers Damjibhai and Jadavjibhai started their business empire in 1963, but now their sons run the
day-to-day management. Damjibhais sons, Atul and Sanjay, manage the FMCG portfolio. Their
younger cousins, Mehul and Hemang, focus on the real estate and writing instruments businesses, as
well as the Kochi IPL team. They were also looking to enter the paints segment.
This is not the first time the promoters have explored options to exit a business. In 2007, they sold 80
per cent stake in the flagship electrical business, which controlled two-thirds of the market, to Japans
Matsushita Electric Works owners of the National and Panasonic brands for a little over Rs
2,000 crore. In the same year, they also sold their consumer electronics business, Anchor Daewoo, to
Chinese appliances company Haier for an undisclosed sum.
In 2009, ABHC reportedly toyed with the idea of selling Forhans, one of the countrys oldest
toothpaste brands, to drive the growth of its successful in-house brands. In 2007, Anchor had
acquired Forhans for an undisclosed sum from John Oak Remedies, an Indian company, which in
turn bought it from Wyeth, the global pharma major, in 2005.

Founded in 1997, as a part of the $450 million Anchor Group, today Anchor Health and Beauty Care is
one of the fastest growing FMCG companies. It has evolved rapidly to establish itself as a respected oral
Founded in 1997, as a part of the $450 million Anchor Group, today Anchor Health and Beauty Care is
one of the fastest growing FMCG companies. It has evolved rapidly to establish itself as a respected oral
care and personal care brand.
respected oral care and personal care brand.
Founded in 1997, as a part of the $450 million Anchor Group, today Anchor Health and Beauty Care

IN OURSELVES

We believe in ourselves, and the fact that we have, within each one of us, the ability to change our lives, and
proactively contribute to the society we live in. IN PEOPLE We believe it is important to create the ideal environment
for "good" people, to develop into exceptional leaders, who will add significant value to the organization, our
customers, society and themselves.

IN INNOVATION
We will actively encourage people to think beyond the norms of convention, to find solutions that significantly improve
the quality of life around us.

IN CUSTOMER DELIGHT
We will continually strive to understand our customers, both internal and external, their requirements and will try to
deliver products and services beyond their expectations.

IN PERFECTING OUR PROCESSES

We will continually work towards our goal to improve our systems and processes, which will enable our people to
deliver much more than their expectations in corporate excellence.

IN BUSINESS ETHICS
We are committed to the highest standards of ethical behavior, complete accountability, integrity and honesty in all
our dealings with stakeholders, and the society at large.

IN INCLUSIVE SOCIAL RESPONSIBILITY

As corporate citizens, vie will actively pursue policies that will make a significant positive contribution to the society
which we live in.

THE JOURNEY SO FAR

Anchor Health & Beauty Care was formed in 1997 as a division of the Anchor Group, which is one of the world's
largest manufactures of electrical switches and accessories, and a household name in India.
Anchor Health & Beauty Care has achieved a number of milestones in its 12 year journey.

1997

Anchor White Toothpaste launched - India's first certified 100% vegetarian toothpaste.

Anchor White toothpaste becomes the first Indian toothpaste to get BDHF approval.

2005

Anchor is the first toothpaste brand to win an AA award.

2006

The Dyna range of premium soaps is launched. It becomes the first soap, in 25 years, to achieve
1000 MT per month of sales within 12 months.

Bollywood actress, Katrina Kaif, becomes the brand ambassador for Dyna soaps.

2007

Anchor White toothpaste is the first toothpaste brand to win the annual 'Consumer World Awards'
5 years in a row.

Anchor is the first toothpaste brand to launch Neo-Natural toothpaste.

Dyna becomes the first new soap brand, inthe last 10 years, to enter the league of the top 10
soap brands in India.

Brand Anchor occupies the 3rd position in AC Nielsen Connect list of the top 10 fastest growing
FMCG brands in India.

According to the 'Economic Times: Most Trusted Brands 2007' survey, at 8 years, Anchor is one of the youngest
brands to be among the most trusted brands in the country

2008

Anchor ropes in actress, Kajol, as Brand Ambassador for Anchor White toothpaste

CSR & SUSTAINABILITY

Anchor is a socially responsible organization, with a firm will that is committed to helping and nurturing
both society, and the environment. As a corporation, we understand the importance of being socially
aware of our actions, and our responsibility towards the planet.
The is reflected in all of the endeavors that we undertake, so that, together, we are able to improve the
well-being of present and future generations in the years to come.

ANCHOR WHITE TOOTHPASTE

Almost every dentist would agree that two ingredients are absolutely necessary in tooth paste to be effective for the
vast majority of the population - Fluoride and Triclosan.

ALL VARIANTS OF ANCHOR WHITE OFFER COMPREHENSIVE ORAL CARE.

It is the first Indian toothpaste to offer All Round Protection.

It is the first toothpaste to be recognized by the Vegetarian Society of London.

Is approved by The International Dental Health Foundation London, UK

London, UK

London, UK

ANCHOR GEL
Anchor Gel comes with a unique germ fighter 'Anchor Grip Formula', containing Active micro cleaners and a cool
mouthwash. Anchor Gel, apart from being approved by the Vegetarian Society of London, is also approved & certified
by the British Dental Health Foundation, London UK.

IT IS AVAILABLE IN NEW EXCITING FLAVORS

Intense Fresh

available in 150g, 80g, 40g packs

ANCHOR TOOTHBRUSH
Anchor Toothbrushes are made with state-of-the-art machinery from Boucherie of Belgium using DuPont Tynex high
grade nylon bristles, thus meeting DuPont's exacting Standards of Toothbrush Quality. These toothbrushes are
designed to meet the unique requirements in Indian consumers.
The British Dental Health Foundation specifically recognizes these tooth brushes as a useful aid in Dental Care.
Anchor offers a comprehensive range of toothbrushes to suit the specific requirements of each member of the family.

ANCHOR TOOTH POWDER

Anchor White Tooth Powder comes with a unique germ fighter Anchor Grip formula that cleans teeth effectively. Its
unique formulation with better abrasive properties helps you get whiter, stronger teeth and fresher breath that lasts.

Available in 200g, 100g & 50g convenient tin packs

DYNA SOAP
In keeping with Anchor's commitment to offer consumers with the finest products, Dyna is India's only soap with 76%
TFM (Total Fatty Matter), Grade 1 and zero fillers. With real extracts of milk and other natural ingredients, Dyna is the
finest soap in its category.

DYNA IS AVAILABLE IN FOUR DIFFERENT VARIANTS

Safforn & Sandal

Milk & Rose

Milk & Almond

Blueberry & Olive Oil

Line & Aloe Vera

In July 2007, Dyna became the first new beauty soap brand, in last 10 years, to enter the league of top ten national
soap brands in India. It also became the first beauty soap, in 25 years to achieve 1000 MT per month of sale within
12 months of its launch.