Godrej Consumer hopes to announce buys in early FY11

Godrej Consumer hopes to announce buys in early FY11
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First Published: Tue, Feb 23 2010. 11 10 PM IST
Updated: Tue, Feb 23 2010. 11 10 PM IST
Mumbai: Godrej Consumer Products Ltd, which has been scouting for acquisitions in the personal care and household categories for over two years, hopes to close some deals in early FY11, a top official said.
“We are looking at several acquisitions and we hope to announce some early in the next financial year, depending on how the negotiations go,” chairman Adi Godrej said.
In December, the company’s board had approved an enabling resolution to raise up to Rs3,000 crore through debt and equity for mergers and acquisitions.
“This fund-raising will take care of all the opportunities we are looking at currently,” Godrej said. The total cash on books of the firm as on date stood at Rs300 crore.
The firm has been looking at buying a 51% stake held by Sara Lee Corp. in the joint venture (JV) Godrej Sara Lee, the market leader in the domestic insecticides segment.
Godrej Consumer has also been looking at buys in the hair colour segment in the range of $50-100 million (Rs230-460 crore). In 2008, it had acquired South African hair brand Kinky.
Godrej Consumer, which makes and sells several brands across the soaps, haircare and toiletries segments, is best known for its flagship brand Cinthol and Godrej Expert hair colour. It also plans to launch new products at low price points in FY11 in an effort to increase revenues from rural business and does not plan any hike in prices going forward.
The group’s real estate arm Godrej Properties Ltd is also looking at entering into more JVs for residential projects, Godrej said.
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First Published: Tue, Feb 23 2010. 11 10 PM IST