Jyothi Lab now eyes Shudh to add to Ujala
Financial Express — January 29, 2002

After acquiring Tata Chemicals’ detergent manufacturing facility at Pithampur, Jyothi Laboratories - which owns the Ujala brand of whiteners - is now believed to be eyeing Tata Chem’s Shudh brand of detergent.

Jyothi Labs had last year acquired the detergent facility of Tata Chem for a consideration of Rs 4 crore. However, the companies have not yet signed the final sale deal. Tata Chemicals’ detergents business had a turnover of about Rs 20 crore, which accounted for less than two per cent of the company’s turnover.

Tata Chemicals officials, however, said “We are not selling our brand Shudh, since we also use it for our other products like cement.”

Meanwhile, Tata Chem’s decision to review its cement business - which includes options such as sale of the cement business and strategic marketing tie-ups - has not attracted any favourable response as yet. The company said it is evaluating various options for its cement business.

Jyothi Laboratories officials declined to comment on the issue, but said that the company is negotiating with Tata Chemicals for the brand. “Even though we have our flagship brand of Ujala, we don’t want to use this brand for any other product, except whitners. The company is looking out for a new brand for detergents, which is expected to be launched in a four to five months period.

Earlier, Tata Chemicals was reportedly approached by Jyothi Laboratories for buying both its detergent facility at Pithampur in Madhya Pradesh along with the brand Shudh. IL&FS had been mandated to advise Tata Chemicals to finalise the deal.

Tata Chemicals has two detergent brands - Shudh and Rakshak - in the middle and lower segments of the market, respectively. But their market penetration was limited to certain markets like Kerala, Maharashtra, Bihar and Orissa.