Fast-moving consumer goods major (FMCG) Godrej Consumer Products Ltd (GCPL) will buy out US-based Sara Lee’s 51 stake in their joint venture for 185 million euros (about Rs 1,000 crore). The move is aimed at strengthening the company’s position in the consumer goods category.
The buyout comes on the heels of GCPL’s buyout of Indonesian household care firm Megasari Group and Nigerain personal care brand Tura.
The 15-year old joint venture Godrej Sara Lee has been a leading household insecticide player in the country with insecticide brands like Good Knight, Hit and Jet.
“The buyout is an important step towards GCPL becoming a leading emerging market multinational and fits well with our global 3 by 3 strategy — presence in Asia, Africa and Latin America through home care, personal wash and hair care categories,” said Adi Godrej, chairman GCPL.
The transaction is expected to close by July 2010.
One of the priorities for the company will be to take household insecticides to Africa, GCPL said. The increased scale will allow it to compete with large multinational companies in terms of investments and creating new platforms, the company statement added.