Contrary to initial reports and apparently after trying for a distress sale from the Henkel promoters, Jyothy Labs , owners of the Ghadi brand worth Rs 2200 crores or $500mln walked away with TN Petro's Henkel India's 50% promoter stake for 115 Crores in Equity at $0.50 per share it is good enough for the poor house brands but the cost to Jyothy is considerably higher servicing an additional debt burden of 525 crores or $131-2mln for the old company without its barber shop brands.

The open offer at current rices closer to $1 per share may fetch another $25 mln for the Henkel brands taking Jyothy's stake from 65% to 85% Even with majority interest in the company, rebuilding the Henkel brands would require considerable risk taking but PE premium for 26% in the Jyothy Labs group holding is unlikely to be a seriously broached subject, and if PE invest,ment is expected, it would matter that the same is only around the $50 mln spent by the Ghadi promoters to buy the Henkel poorhouse brands and for its rural/poor urban household market distribution and advertising investment benefits 

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