Chennai-based Rs 900-crore FMCG company, CavinKare, is eyeing the acquisition of Henkel India’s personal care and home care businesses. HSBC India, which has received the sale mandate from Henkel, has approached CavinKare, a person privy to the development said.

CavinKare is currently evaluating the prospects of acquisition. A decision is likely to be taken in a week’s time. “We are discussing the matter internally. Henkel seems to be interested in selling off both the home care and personal care businesses. These businesses are reportedly worth around Rs 500 crore,” a senior CavinKare official told Financial Chronicle on condition of anonymity.

Henkel India, a subsidiary of Germany’s Henkel AG, has in its detergent portfolio brands like Henko Stain Champion in the premium category, Mr White in the mid-segment category, and Chek in the value segment. In the home care category, it has dishwashing solution Pril and floor cleaner brand Bref.

The personal care segment includes soaps like Margo and Fa, and Neem toothpaste. Of these Margo, Neem and Chek are local brands acquired by Henkel.

“In soaps, Margo has a good brand positioning though it is out of most of the retail shelves now. Fa is an internationally acclaimed brand but is not doing well in India. Pril is a well positioned brand in its category,” the official said.

Market analysts say aggressive and high-cost marketing by some leading FMCG companies has of late been pushing out Henkel products in the market, though some of its brands like Pril have good brand equity.

If all goes well for CavinKare, this will be the first major acquisition by the company since its acquired Garden snacks in 2009. The company recently disclosed plans to ramp up its home care business, mainly the inorganic way.

A few more FMCG players are reportedly in the race for Henkel India’s brands. These include Godrej Consumer Products and Kolkata-based Emami. “We are interested in the brands. But we have not heard anything from them,” A Mahendran, managing director of Godrej Consumer Products, said.

Henkel India, in an email response to Financial Chronicle, said that its units are not on the block, except the hair care division.