Calcutta, Sept. 23: J. L. Morrison (India) Ltd, the company that produces the Nivea range of skincare products in India, hopes the proposed divestment of Allianz’s stake in Beiersdorf, the global owners of the Nivea brand, would not affect the licensing arrangement here.
A senior executive of J. L. Morrison (India) said: “Beiersdorf has some 30-35 licensees worldwide producing skincare products under the Nivea brand. There is no reason why the new owners of Allianz’s stake should upset the arrangement.”
One of the key bidders for Allianz’s stake is Procter & Gamble, which has a strong presence in India. J. L. Morrison (India) is hopeful even P&G would not upset the licensing arrangement for advantages in production and distribution locally.
Beiersdorf provides technology, product support and advertising expertise to its licensees worldwide. In India, the entire range of Nivea products is produced locally in keeping with global standards. Of late, J. L. Morrison (India) has been thinking of expanding the range by importing some products — for instance, Nivea Deodorant and Nivea Soft. “Once introduced, they could contribute up to 25 per cent to revenues,” the J. L. Morrison (India) executive said.