Home >companies >Godrej Consumer Products to acquire majority stake in Kenya’s Canon Chemicals

Mumbai: Godrej Consumer Products Ltd’s (GCPL’s) subsidiary has entered into an agreement with Canon Chemicals Ltd to acquire a majority equity stake in its business in Kenya for an undisclosed sum, said a statement on Thursday.

Canon Chemicals makes and distributes products in the personal and home categories. Its major brand is Valon, a petroleum jelly. In 2015, the annualized revenue of the business was KSh 1,146 million, or 76 crore.

GCPL’s Africa business currently has annualized revenue of $200 million, or 1,357.3 crore and with this acquisition the company hopes to further build its presence in the sub-Saharan Africa market.

“This acquisition reflects our continued commitment to scaling up our presence in Africa and providing African consumers with a wide range of superior quality products at affordable prices. We remain very excited by the tremendous potential of the African market and look forward to further building our business," said Vivek Gambhir, managing director, GCPL, in the statement.

The maker of Cinthol soaps and Hit insecticides, GCPL has been building its presence in Africa since early 2000s. In 2006, the company acquired Rapidol (Pty) Ltd, a strong player in hair colour. In 2008, it followed it up with another acquisition of a brand called Kinky known for products for dry hair.

In 2010, the acquired Tura, a personal care brand that is particularly popular in Nigeria, and a year later, it made one of its largest acquisitions in the region with Darling Group, a pan-Africa hair care company and market leader in hair extensions.

Besides Africa, the company also has a strong presence in Latin America. “This move is in line with GCPL’s global 3 by 3 strategy, targeting strong regional assets in the emerging world," the company said in its statement.

GCPL’s net profit was up 23% at 323 crore for the quarter ended December as against 264 crore in the year-ago period. Consolidated total income rose 6% to 2,354 crore from 2,226 crore a year ago.

Shares of GCPL closed 0.29% higher at 1,237.50 apiece on BSE, while the benchmark Sensex was up by 0.48% at 24,338.43 points.

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