New Delhi: Godrej Consumer Products (GCPL) on Thursday said its board of directors has approved the merger of Godrej Household Products Limited (GHPL) with itself.
The company said the merger subsequent to GCPL’s acquisition of 51% stake in Godrej Sara Lee (GSLL) from erstwhile partner Sara Lee Corp, will be applicable with retrospective effective from 1 April, 2010.
After the acquisition, GSLL was renamed as Godrej Household Products Limited (GHPL).
“The merger of GHPL with GCPL is an important milestone in our aspiration towards becoming a leading emerging markets FMCG company,” GCPL chairman Adi Godrej said in a statement.
The company said a dedicated programme office has been set up as part of the integration process.
“Over 100 of our team members are working very hard in cross functional teams to cross pollinate ideas, to share learnings and to chart the path of a bigger and better GCPL. This intensive effort has been code-named Project Neo,” GCPL managing director A Mahendran said.
After the integration, GCPL will now sell personal care and household insecticide brands including GoodKnight,Cinthol, Godrej No 1, Expert, Hit, Jet, Fairglow, Ezee, Protekt and Snuggy among others.
“The merger will provide us with significant strategic and operational benefits. Both GCPL and GHPL have delivered outstanding performance and we believe that the merger provides us with a scale platform to accelerate our growth and profit trajectory,” Godrej said.
According to analysts, the integration of the two firms will help in bringing more synergies in terms of its distribution and marketing.
“There has been synergy already between the two firms, it will be higher now whether in their distribution channel or marketing,” an analyst with Angel Broking said.
They will have a bigger basket of products to offer. Besides, there might be certain things, which were overlapping. It will help in overcoming that and help in cost saving, he added.