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| GCPL wraps up domestic buys Swastik, Genteel |
| BS Reporter / Mumbai Dec 04, 2010, 00:18 IST |
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In a break from its international acquisition spree, Mumbai-based Godrej Consumer Products Limited (GCPL) has acquired three local brands — Swastik Shikakai, Swastik Neem and Genteel — from the Priya Kothari family, a city-based business group that has a presence in the fast moving consumer goods (FMCG) and engineering sectors.
The deal size is estimated to be under Rs 50 crore. The Rs 2,043 crore GCPL will fund the deal completely through internal accruals. Its cash and bank balance as on date is Rs 246 crore.
With the acquisition of its FMCG brands, the Priya Kothari family, meanwhile, will exit the sector altogether.
The deal sees GCPL acquiring a 100 percent stake in two companies — Naturesse Consumer Care Products and Essence Consumer Care Products — which own the Swastik and Genteel brands, respectively. Both the companies belonged to the Priya Kothari family earlier.
 GCPL Chairman Adi Godrej describes the acquisitions as a strategic move. “It further enhances our presence in the liquid wool wash and Shikakai soap segments,” he said.
GCPL already has Ezee liquid wool wash and Godrej Shikakai soap in its portfolio. It has no presence in the neem soap segment, though. Ezee is the market leader in the Rs 200-crore liquid wool wash segment, with a 75 per cent share, while Genteel has a 12 per cent share, largely in the south of the country. “With the acquisition of Genteel, our share in the liquid wool wash segment will be close to 90 per cent now,” he said.
In the shikakai soap category worth Rs 500 crore, Godrej’s brand, a market leader again, has a 40 per cent share. Shikakai, for the record, is used to cleanse the hair. Swastik Shikakai, on the other hand, has a 20 per cent share. “So cumulatively our share in the shikakai segment will now go up to 60 percent,” he said.
With Swastik and Genteel in its kitty, the fight for incremental share will now be a square one between GCPL and Bangalore-based Wipro Consumer Care & Lighting. The latter has Wipro Shikakai and Safeguard liquid wool wash in its portfolio. Though Safeguard is small, Wipro Shikakai is the number two brand in its segment, with a share in excess of 20 per cent.
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