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Godrej eyes acquisitions up to Rs500 cr in consumer care segment

Godrej eyes acquisitions up to Rs500 cr in consumer care segment
PTI
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First Published: Sun, Jan 18 2009. 12 45 PM IST
Updated: Sun, Jan 18 2009. 12 45 PM IST
New Delhi: FMCG firm Godrej Consumer Products Ltd (GCPL) is looking at acquiring companies in the consumer care segment in India and abroad and could spend up to Rs500 crore for the buyouts.
The company is targeting larger firms as it plans to expand presence in the international market and its product portfolio.
GCPL has recently acquired international companies for Rs100-200 crore. “What we could now look at is slightly bigger companies in the range of Rs400-500 crore and Indian companies also in the same range,” GCPL chief operating officer (Marketing and Operations) Rakesh Kumar Sinha said.
GCPL is also looking at consolidating its presence in the international markets and acquire companies for entering the new markets.
“We want to consolidate our presence in South Africa, the UK and the Middle East where we have a reasonable presence instead of jumping in a new market...If it is a new geography, it would be largely through acquisition or if its a new line like haircare,” Sinha said.
The company is keen on expanding its product portfolio and will enter the segments like skin cream, haircare products and deodorants through acquisition route.
Godrej had acquired South African hair products firm Kinky in August last year for 265 million South African Rands (about Rs150 crore). It acquired another firm Rapidol in the country in 2006.
GPCL’s international business is worth about Rs400 crore and it is present in South Africa, the UK (through Keyline) and the Middle East.
Asked how the acquisitions would be funded, Sinha said, “We are pretty cash rich company...Either use our internal funds for acquisitions or will raise funds for a reasonable size acquisition.”
The company, however, will not be launching new brands but would look at introducing variants to the existing products.
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First Published: Sun, Jan 18 2009. 12 45 PM IST