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Godrej, SCA unit to spend 200 mn on India venture

Godrej, SCA unit to spend 200 mn on India venture
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First Published: Mon, Mar 26 2007. 11 47 AM IST
Updated: Mon, Mar 26 2007. 11 47 AM IST
By Subramaniam Sharma, Bloomberg
New Delhi: Godrej Consumer Products Ltd. and Sweden’s SCA Hygiene Products AB, will spend Rs200 million ($4.6 million) to set up a company jointly to sell sanitary products.
The joint venture called Godrej SCA Hygiene Ltd. will set up a plant to make feminine hygiene products and baby diapers, the companies said in a joint e-mailed news release on 24 March. Mumbai-based Godrej and SCA, a unit of Svenska Cellulosa AB, will own 50% each in the venture, the companies said.
Godrej Consumer plans to compete with the local units of Procter & Gamble Co. and Unilever in the market estimated at Rs8 billion for feminine hygiene products and Rs2 billion for baby diapers.
“There is opportunity in the feminine hygiene protection and baby diaper market, which is presently in a nascent stage in the South Asian subcontinent region,” Godrej Chairman Adi Godrej said in the statement. The venture will possess “strong brands and a well-developed distribution network.”
Godrej consumer sells its range of soaps, hair colour and household products through 2.5 million shops across India. Godrej will sell its Snuggy brand of baby diaper to the joint venture company, it said, without providing the amount for the transaction.
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First Published: Mon, Mar 26 2007. 11 47 AM IST
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