Hindustan Unilever Ltd (HUL) and GSK Consumer have mutually agreed to terminate the distribution agreement for over-the-counter (OTC) and oral care products.
Hindustan Unilever had entered into a Consignment Selling Agency Agreement with GSK Consumers in April 2020 to distribute latter’s brands like Sensodyne, Crocin, Eno and Iodex for a five-year period.
The termination of agreement will be effective from November 8, 2023, after completion of one-year notice period as per the agreement. The notice period commenced from November 9.
In April 2020, Hindustan Unilever Ltd. had completed the merger of GlaxoSmithKline Consumer Healthcare with itself in a Rs 32,000 crore deal. The deal was announced in 2018. The deal gave HUL access to brands such as Horlicks, Boost and Maltova and OTC brands such as Sensodyne, Eno and Crocin.
The merger was in line with HUL’s strategy to grow its Foods and Refreshments business in India, following which, it signed consignment selling agreements with GlaxoSmithKline Asia Private Limited (GSKAPL) and GlaxoSmithKline Consumer Private Limited (GSKCPL) in 2020.
Shares of Hindustan Unilever are trading 0.6 percent higher at Rs 2,524.15.
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