Eveready Industries India (EIIL) entered into a joint venture (JV) with Universal Wellbeing to establish a fast-moving consumer goods company in India.
Khaitan & Co advised EIIL about structuring the JV and finalizing the agreement. “We assisted EIIL in negotiating the agreement keeping in mind the general structure of the JV,” Padam Khaitan, a partner at Khaitan & Co, told India Business Law Journal. “[We looked at] issues around how the sourcing and distribution of the products would be structured and how the parties would effectively grant their expertise to the JV – i.e. licensing of the brand and supply of products in case of Wings [Group] and distribution and marketing in case of EIIL.”
Khaitan & Co also analyzed the transaction from a foreign direct investment perspective as it related to the entry of a foreign player. Universal Wellbeing is part of Wings Group from Indonesia and manufactures household care, personal care and skincare products.
The firm also advised the company on the general procedures post the finalization of the JV around the disclosures to be made to the stock exchanges and certain allied compliances.
EIIL will hold 30% of the JV’s shares with the rest held by Universal Wellbeing. The new venture will combine the products expertise of Universal Wellbeing and distribution network of EIIL.
Khaitan & Co associate partner Supratim Chakraborty, senior associate Prithwijit Gangopadhyay and associate Nikita Bhuwania worked on the deal. Shook Lin & Bok from Singapore represented Universal Wellbeing.