Godrej Consumer hopes to seal some buys over a yr

Godrej Consumer Products (GCPL) is eyeing acquisitions, both in domestic and overseas markets, and "should seal a few" in the next 12 months, a top company executive said today.

"We are looking at acquisitions and in the next 12 months, we hope to complete some," GCPL Chairman Adi Godrej told PTI here.

Besides India, the FMCG major is scouting for acquisition opportunities in the developing world, he said.
    
"We are eyeing Asia, Africa and Latin America.
    
The segments, in which the company is interested, are hair-care, household and personal wash, he said.
    
About the likely deal-size, Godrej said funding would pose no problem. "The deal-size could vary - it could be a large-sized acquisition or a mid-sized one. We will evaluate the opportunity and accordingly decide."
    
GCPL recently acquired a slew of companies overseas, including Megasari in Indonesia and Argencos in Latin America.
    
"Our international business has done very well in Q2 FY 11, exceeding our expectations," Godrej said.
    
The firm's international business clocked a 205 per cent vault in sales in Q2 FY 11 at Rs 337 crore and accounted for 35 per cent of its total consolidated business revenues.

The company's net sales expanded 66 per cent at Rs 953 crore, while its PAT (profit after tax) jumped 41 per cent at Rs 131 crore in the July-September period.
   
"Q2 has been good - growth has been driven by our international sales and also the rural markets, which made a healthy contribution to our kitty. Our household insecticides business also fared well," Godrej said.
   
Rural markets should do well in the coming quarters with a very good monsoon and an upbeat economy, he said.
   
"With food inflation down now, our toilet soaps sales should pick-up. Its sales was impacted due to the high inflation as a result of which low-income groups did not spend as much on the product."
   
The outlook for the remaining two quarters in the current fiscal are bright and the company should register a strong growth, Godrej maintained.