Mumbai: After raising Rs400 crore through a rights issue, Godrej Consumer Products Ltd is eyeing potential acquisitions in its home market and abroad.
“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 said here.
The company is looking at buying brands overseas, while in India it would scout for purchases in the so-called fast moving consumer goods segment.
Eyeing acquisitions: Godrej group chairman Adi Godrej. Photograph: Sanjit Das / Bloomberg
“Overseas, we will primarily look at buys in the haircare segment,” Godrej said, adding the company would use the proceeds of its rights offering to fund the acquisitions.
The company is interested in buying established brands abroad to avoid having to spend too much time and money in building their market presence. Because it has a low debt-equity ratio, “even a half-billion acquisition would not be difficult,” said Godrej.
Godrej Consumer Products might consider increasing prices of some of its products in the July-September quarter of this fiscal year, he said.
“We will review our prices...I can’t give you the exact quantum but it could be like around five percent,” Godrej said.
Over the last one year, input costs have risen considerably. Vegetable oil prices have shot up by around 40-50%, while crude oil prices have nearly doubled.
“However, now there seems to be a cooling down in crude oil prices,” he said.
On group company Godrej and Boyce’s nuclear segment business, Godrej said, “With the government opening up the nuclear sector to private players, there is a tremendous opportunity here. It is the next big thing.”