Godrej Consumer Products acquisition of Soft & Gentle in UK will help the the company to hive off the UK business over the medium term, says Nomura Equity Research.
"While this is not a game changer for the company as a whole, the acquisition shows management’s focus to drive profitability higher across all markets. This allows the company to build scale in the UK market, which has been one of management objectives over the last year or so," Nomura analysts said in a note to clients today.
"Also ownership of the brands will allow for profitability to improve from current levels," they said.
While total consideration has not been disclosed, total sales for the Soft & Gentle brand in CY11 were 21 million pounds or Rs 1,90 crore.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app