Mumbai: Godrej Consumer Products Ltd., India’s second-biggest soap maker, said its board approved plans to raise as much as Rs30 billion ($642 million) to boost its long-term financial resources.
The Mumbai-based company didn’t immediately give further details about the fund-raising plan or how it plans to use the proceeds.
Godrej slipped 0.2% to Rs265 as of 10:41 a.m. in Mumbai trading, after rising as much as 3.5% earlier.
Godrej Consumer may buy Sara Lee Corp.’s stake in an Indian joint venture as well as bits and pieces of the Downers Grove, Illinois-based company’s global assets, Hoshedar Press, vice chairman of the Indian company, said in an interview in August. If Sara Lee manages to find a buyer globally, we will certainly want to buy out their local business, he said.
Godrej’s acquisition of the 51% stake it doesn’t own in the joint venture with Sara Lee will cost it Rs8 billion, CNBC-TV18 television channel reported on Wednesday.
Procter & Gamble Co., the world’s largest consumer-goods company, agreed last week to buy Sara Lee’s Ambi Pur brand for about €320 million ($465 million) to boost air-freshener sales outside the US Sara Lee has been shedding units to focus on coffee and food.
Godrej Consumer Chairman Adi Godrej declined to comment on a 14 December Economic Times report that it plans to bid for the insecticides business of Sara Lee Corp.