Honasa Consumer approves amalgamation of Fusion Cosmeceutics, Just4Kids subsidiaries

Honasa Consumer: Mamaearth parent Honasa Consumer Limited announced on Friday that its board has greenlit the amalgamation of its subsidiaries, Fusion Cosmeceutics Private Limited and Just4Kids Services Private Limited, with the company.

Fusion Cosmeceutics primarily specialises in the formulation and trading of skincare products, while Just4Kids Services operates and maintains a multilingual content platform.

In an official filing, Honasa Consumer disclosed, "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."

As per the financials, Fusion Cosmeceutics recorded standalone revenue of Rs 76.61 crore, while Just4Kids reported revenue of Rs 4.05 crore as of December 31, 2023.

The proposed scheme is contingent upon obtaining necessary statutory and regulatory approvals, including the sanction of the Hon'ble National Company Law Tribunal, New Delhi Bench, New Delhi, and the Hon'ble National Company Law Tribunal, Chandigarh Bench, Chandigarh.

This amalgamation is expected to streamline operations for Honasa, mitigating cost duplication and fostering financial efficiencies within its holding structure.

"The resultant operations are expected to be substantially cost-efficient which would result in maximising overall shareholder value and will improve the competitive position of the combined entity. Eliminate layered structures and reduce managerial overlap," stated the filing.

(With PTI inputs.)