GCPL expects 1,000 crore sales in Africa in next two years

GCPL expects 1,000 crore sales in Africa in next two years

New Delhi: FMCG player Godrej Consumer Products (GCPL) expects a five-fold jump in its sales in Africa to 1,000 crore in the next two years, post the completion of the recently announced acquisition of hair care company Darling Group Holdings.

On 1 June, GCPL had said it will acquire 51% stake in African FMCG firm Darling Group in a phased manner in the next 24 to 30 months.

“Sales in Africa would be about 200 crore currently and...by the time it (the acquisition) is completed it will be around 1,000 crore plus...this is a much bigger acquisition than our past acquisitions," GCPL chairman Adi Godrej said during an investor conference call.

The Darling Group is one of the market leaders in hair extension products across Africa with an annual revenue of $200 million and has been growing at about 15% in the last five years.

The firm has operations in 14 countries across Africa and sells two hair extension brands ‘Darling´ and ‘Amigos´.

“The Darling Group, enables us to take our presence in Africa to the next level. Our aspiration is to touch the lives of at least a 100 million consumers across Africa in the next five years," Godrej said.

In the last four years, GCPL said it has made three acquisitions in Africa, including Kinky and Rapidol in South Africa and Nigeria’s personal care firm Tura.

Last fiscal, the company had a net revenue of 2,442.64 crore and net profit of 434.96 crore.

During 2010-11, the company made over five acquisitions in the personal care and hair care segment, including household care company Megasari Group of Indonesia and Issue Group and Argencos in Argentina.