Godrej plans global inorganic growth
Godrej Consumer Products Limited is exploring acquisitions and strategic investments overseas to take its hair-colouring and hair-care products global, according to the company's chairman Adi Godrej.
The company has a 35 per cent share of the domestic market. It acquired Rapidol in 2006, which is a leader in hair colour in 10 African countries.
Godrej Consumer is also the second largest player in the soaps market in India and reported an 18 per cent growth in consolidated sales and 20 per cent growth in consolidated profits for the last quarter.
“We want to expand our hair care business to the entire developing world – Asia, Africa and Latin America. The countries of interest to us are China, Indonesia, Pakistan, Bangladesh, Brazil and Mexico,” Godrej told the
Godrej explained that the company would be also looking for manufacturing capacities in these countries as well as a brands and distribution presence. “We acquired Rapidol in South Africa that is a leader in hair colourants in 10 African countries. We will look for similar companies,” he said.
Earlier this minth, Godrej Consumer Products acquired Godrej Global Mideast FZE from Godrej International.
Explaining the acquisition, Godrej said: “The company now comes under the direct control of Godrej Consumer Products and the accounting will be done differently under Godrej Consumer Products from next year.”
The company would also be used by Godrej Consumer Products to launch its products range in the west Asian market.
Godrej said that the company was ready to acquire or invest in companies that have capacities in other hair care products. “We want to be present globally in the entire hair care segment and take Indian products global in this segment,” he said.