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Godrej Consumer earmarks up to Rs1,000 cr for acquisitions

Godrej Consumer earmarks up to Rs1,000 cr for acquisitions
PTI
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First Published: Mon, Aug 03 2009. 04 45 PM IST
Updated: Mon, Aug 03 2009. 04 45 PM IST
Mumbai: “Godrej Consumer Products Ltd (GCPL) has earmarked up to Rs1,000 crore for acquisitions in emerging markets like Asia, Africa and Latin America,” a top company official said.
The FMCG major has been scouting for companies in the hygiene, personal and hair-care segments.
“We are looking at acquisitions internationally and domestically in high-growth markets. It (amount earmarked for acquisitions) is up to Rs1,000 crore,” GCPL executive director and president, Hoshedar K. Press said.
“The company may borrow a portion of the funds as and when required,” Press added.
“GCPL, which has 25% of its revenues coming from outside India, is currently studying markets in Asia, Africa and Latin America,” he said.
Last year, Godrej bought South African hair product firm, Kinky.
Meanwhile, GCPL also aims to double its market reach in rural areas in the next three years as it expects high growth led by development in agriculture and infrastructure.
“We are looking to double our market reach in rural India in the next three years. Rather than spending money across the board, we will focus on 8-9 states for greater penetration,” GCPL managing director, Dalip Sehgal said.
“Our coverage in small towns will go up to 8,000 sub-stockists from 4,000 currently. In villages, this would more than treble to 50,000 from 15,000,” Sehgal said.
Although GCPL has not firmed up plans to launch new products this fiscal, Sehgal said that there would be not more than a couple of extensions (variants) in existing products.
Godrej Consumer currently has a cash surplus of Rs400 crore on its books.
With an export portfolio covering 30 countries, GCPL’s product line consists of soaps, detergents, hair-colour, fabric cleaner, shaving cream and deodorants, among others.
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First Published: Mon, Aug 03 2009. 04 45 PM IST