The stock of Godrej Consumer Products (GCPL) surged 7.7 per cent on Wednesday before closing at Rs 281.2 — a gain of 1.3 per cent. On Tuesday, the company had acquired Indonesian firm PT Megasari Makmur Group for Rs 1,000 crore.
After the acquisition, Godrej will use Megasari’s distribution network to push its home care and personal products in Indonesia.
“GCPL will use the Megasari platform to expand its business in neighboring Indonesian countries and strengthen presence in the region,” said an analyst at Enam Securities.
Megasari Group manufactures and distributes a wide range of household products including household insecticides, wet tissues and air fresheners.
This acquisition leapfrogs Godrej Group into consolidating its position in Household Insecticides in India, Sri Lanka, Nepal, Bangladesh and Indonesia. The company continues to look for future acquisitions in Africa, Asia and the Latin America.