Honasa Consumer, which owns Mamaearth brand, on Friday said its board has approved the amalgamation of its subsidiaries Fusion Cosmeceutics and Just4Kids with the company.
Fusion Cosmeceutics is primarily engaged in formulation and trading of skin care products and Just4Kids Services is engaged in the operation and maintenance of a multilingual content platform.
"The Board of Directors of the Company, at its meeting held today i.e. on April 19, 2024, considered and approved the scheme of amalgamation...providing for the amalgamation of wholly owned subsidiaries of Honasa Consumer Limited namely, Fusion Cosmeceutics Private Limited (Transferor Company-1) and Just4Kids Services Private Limited (Transferor Company-2) into and with Honasa Consumer Limited," the filing said.
Fusion Cosmeceutics standalone revenue was Rs 76.61 crore and Just4Kids had revenue of Rs 4.05 crore on as December 31, 2023.
"The Scheme is subject to necessary statutory and regulatory approvals under applicable laws, including approval of the Hon'ble National Company Law Tribunal, New Delhi Bench, New Delhi and the Hon'ble National Company Law Tribunal, Chandigarh Bench, Chandigarh," the filing said.
The amalgamation will help Honasa in preventing cost duplication and bring in financial efficiencies of a holding structure..
"The resultant operations are expected to be substantially cost-efficient which would result in maximizing overall shareholder value and will improve the competitive position of the combined entity. Eliminate layered structures and reduce managerial overlap," the filing said.
