Cussons buys Indian firm

Cussons buys Indian firm

BOMBAY (AFP): Britain's Cussons Group is to buy out its Indian partner in a joint venture toiletries company, a leading business daily reported Tuesday.

The Economic Times newspaper said Cussons was increasing its stake from 60 to 100 percent in Cussons India Pvt Ltd, a joint venture it set up with local firm R.R. Oomerbhoy Pvt Ltd. The joint venture had been set up to manufacture Cussons' toiletries and shampoos in the country.

The newspaper said New Delhi had initially rejected Cussons' application to raise its stake to 100 percent on the ground that there was no justification for a wholly-owned subsidiary to manufacture toiletries and shampoos in India.

Cussons, however, has assured the authorities it will reduce its stake from 100 to 74 percent over the next five years.

Overseas firms such as Unilever and Proctor and Gamble Co. dominate the toiletries business in India.