While Sara Lee has a 51 per cent stake in Godrej Sara Lee, a household product company, it also has an independent unit, Sara Lee Household and Body Care India, which is headquartered in Chennai.

The independent unit markets brands like Kiwi shoe polish, drain cleaner Kiwi Dranex and hair care brand Brylcreem in India. It is believed that the business and operations of Sara Lee Household and Body Care will be transferred to GSL.

Sources familiar with the discussions said the size of the transaction is estimated to be in the range of Rs 100 crore. When contacted, A Mahendran, managing director, Godrej Sara Lee, declined to comment on the matter.

At present, Godrej Sara Lee's portfolio largely consists of household insecticide brands like Hit and Good Knight in India, apart from Sara Lee's air purifier brand, Ambi Pur.

Industry sources said Sara Lee was keen on moving all its brands to one company to better manage its portfolio in India.

"Moving the Sara Lee brands to GSL will give them access to the Godrej distribution network, as well as management and marketing support," they said.

Godrej Sara Lee was formed in 1995, a year after Godrej acquired the Good Knight brand from R Mohan.