After buying out the entire stake of the condom manufacturing and distribution business for around Rs 150 crore from its foreign partner, TTK Healthcare has launched its own brand, 'Skore'.
The company said it was ceasing the distribution of Kohinoor and Durex brand condoms, the rights of which would be with Reckitt India.
The TTK Group had decided to buy out the entire interest of its foreign collaborator in TTK-LIG Ltd, a joint venture which had the licence to manufacture Kohinoor and Durex.
"We started the brand building exercise almost six months before and have launched our own brand today. We have an experience of 65 years in this business and have confidence in winning the market," said T T Jagannathan, chairman of TTK Healthcare. He added the brand building exercise would continue for five years.
While sources said the stake from the foreign partner would be worth Rs 150 crore, Jagannathan refused to divulge the price for buying out the 49.87 per cent stake of the foreign partner, New Bridge Holdings, part of Reckitt Benckiser, in TTK-LIG.
Earlier, Business Standard had reported the agreement for New Bridge Holdings to sell its 49 per cent share in TTK-LIG to the TTK Group. TTK-LIG would sell a 49 per cent stake in another partnership SSL-TTK, manufacturer of the Scholl footware and footcare brand, to the Reckitt Benckiser group. While the agreement regarding the settlement was signed at the end of September, the actual transfer happened today, including the transfer of money and the other formalities, said sources.
The 49 per cent stake sale in SSL-TTK to Reckitt Benckiser has to wait for approval from the Foreign Investment Promotion Board.
The agreement signed in September included New Bridge Holdings buying all the stocks with the trademarks of Reckitt Benckiser, including Durex, Kohinoor and Fiesta. TTK-LIG will henceforth be almost fully owned by TTK.