Consumer Goods

L'Oreal SA plans to invest Rs5bn to open more factories, laboratories and an innovation centre in India, which the French cosmetics giant wants to be one of its top six markets in the world by the end of this decade, management said. The company also plans to take several brands developed in the country to other markets.

The first mover advantage is just one of the reasons for HUL increasing its lead over Colgate in the gel toothpaste segment. Colgate-Palmolive is the overall market leader in the Rs 30bn Indian toothpaste market.

But the crown has eluded Colgate in the fastest growing segment of the toothpaste market — the Rs9bn gel segment — where Hindustan Unilever’s Close Up has widened its lead with a 60% share.

United Spirits has announced refinancing of its remnant debt taken for the acquisition of Whyte & Mackay. The company will refinance debt of 370mn pounds and the new loan has a seven-year tenure including a three-year moratorium.

The total hedged cost of the new debt is about 45 basis points lower than the existing loan. According to the company the new arrangement will give W&M flexibility to focus on brands.

Bharti-Wal-Mart has pumped in an additional Rs1.2bn into the company. For this purpose, Bharti Wal-Mart has issued 120mn new shares from the unissued share capital of the firm, equally divided between the JV partners, at Rs 10 each. This is the first major investment by the JV partners since setting up shop in 2009.