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Godrej plans acquisition of overseas hair-care brand

Godrej plans acquisition of overseas hair-care brand
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First Published: Sun, Jul 27 2008. 04 05 PM IST
Updated: Sun, Jul 27 2008. 04 05 PM IST
PTI
Mumbai: After raising Rs400 crore through its rights issue, FMCG Godrej Consumer Products (GCPL) is eyeing acquisition of brands, primarily in the hair-care segment, both domestic and overseas.
“We are eyeing acquisitions of brands, businesses and companies, both domestically and overseas... At any given time, we have around four-five proposals under our consideration,” Godrej Group Chairman Adi Godrej told PTI.
The company was looking at buying brands overseas while in India it would scout for buys in the broader FMCG segment.
“Overseas, we will primarily look at buys in the hair-care segment,” he said adding the company had recently raised Rs400 crore through a rights issue and would leverage the same for the acquisitions.
“We will go in for acquisitions which will fit into our growth plans,” Godrej said, adding the company has made four acquisitions in the last three years with all of them proving accretive.
The company was interested in buying established brands abroad as otherwise much time and money needed to be spent on establishing them.
With the company enjoying a low debt-equity ratio, “even a half-billion acquisition would not be difficult.”
Godrej Consumer Products might consider increasing prices of some of its products in the July-September quarter of this fiscal, he said.
“We will review our prices...I can’t give you the exact quantum but it could be like around five per cent,” Godrej said.
Over the last one-year, input costs have risen considerably. Vegetable oil prices had shot up by around 40-50% while crude oil prices zooomed by nearly 100%.
“However, now there seems to be a cooling down in crude oil prices,” he said.
On group company, Godrej & Boyce’s nuclear segment business, Godrej said, “With the Government opening up the nuclear sector to private players, there was a tremendous opportunity here. It is the next big thing,” he said.
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First Published: Sun, Jul 27 2008. 04 05 PM IST