Consumer goods group Godrej is stepping up its presence in Africa, with the acquisition of a 51% stake in African hair care company Darling Group Holdings for an undisclosed sum.
Godrej Consumer Products Ltd (GCPL), which manufactures household goods such as Godrej hair-dye, Cinthol soap and Good Knight anti-mosquito mats, already has a sizeable presence in Africa, which contributes 15% to the revenues of its international business.
“The Darling Group enables us to take our presence in Africa to the next level,” said Adi Godrej, chairman, GCPL. “We believe that the strong share positions that the group brands enjoy will further accelerate our trajectory of sustainable profitable growth in the region.”
Darling Group Holdings operates in 14 countries across Africa including Namibia, Zimbabwe, and Botswana, selling hair extension products under brand names like ‘Darling’ and ‘Amigos’. The company said the acquisition will help scale up its operations in the region and will strengthen its position in the hair care market. GCPL currently sells hair colours in several sub-Saharan countries through the ‘Inecto’ brand.
The buy will help GCPL introduce its own range of home care and personal care products in the region. “It is a sizeable acquisition and it will allow us to further establish our 3X3 strategy in Africa. Africa is clearly the next frontier of growth,” said Vivek Gambhir, chief strategy officer, Godrej Industries.
{{/usCountry}}The buy will help GCPL introduce its own range of home care and personal care products in the region. “It is a sizeable acquisition and it will allow us to further establish our 3X3 strategy in Africa. Africa is clearly the next frontier of growth,” said Vivek Gambhir, chief strategy officer, Godrej Industries.
{{/usCountry}}In the last four years, GCPL has made three acquisitions in Africa — Kinky and Rapidol in South Africa and Nigeria’s personal care firm Tura.
Last fiscal, the company made five acquisitions including homecare company Megasari Group of Indonesia and Issue Group and Argencos in Argentina.