Shares of Jyothy Labs Ltd. dropped over 11% on Monday, May 11, after the company revealed that Henkel will not extend the licensing agreements for the Pril and Fa brands beyond May 31, 2026.
The Pril and Fa brands have been under license with Jyothy Labs since 2011.
While the company indicated that Fa does not significantly impact overall sales, analysts suggest that losing Pril may have a substantial effect on the business.
Pril is Jyothy Labs’ leading dishwashing liquid brand and is essential to its dishwashing lineup.
The dishwashing division, which includes both liquids and bars, contributes nearly 30% of the company’s total revenue, with analysts estimating that Pril alone represents approximately 12-15% of sales.
In the wake of the announcement, Jyothy Labs’ shares plummeted by as much as 11.07% to ₹232.55. The stock has now decreased nearly 55% from its peak values.
