India's Jyothy Labs borrows 5.5 bln rupees from Axis Bank

MUMBAI Jan 27 (Reuters) - Indian consumer products maker Jyothy Laboratories has raised 5.5 billion rupees ($110 million) through a 5-year-loan from Axis Bank to refinance part of the debt it incurred to acquire a controlling stake in the Indian unit of Henkel AG, Managing Director Ullas Kamath said.

Jyothy acquired a 51 percent stake in Henkel India last year for 5.7 billion rupees, including debt.

"The fundraising is largely to meet our short-term debt requirement," Kamath told Reuters on Friday.

The loan, which has a floating interest rate of 11.25 percent, has a principal moratorium period of 18 months , he said.

For the Henkel India buyout, Jyothy Labs took on short-term debt from ICICI Bank, Kotak Mahindra Bank and Axis Bank, two sources with direct knowledge of the matter told Reuters.

The company had intended to raise funds through a private equity deal, but has put that plan on hold because of poor market conditions, one of the sources said.

Jyothy is known for its Ujala range of fabric care products, and has the largest market share in that category in India.

($1=49.51 rupees) (Reporting by Indulal PM and Nandita Bose; Editing by Rajesh Pandathil and Ted Kerr)