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After acquiring the remaining 40 per cent stake in Latin American company Cosmetica Nacional, fast-moving consumer goods (FMCG) major Godrej Consumer Products Limited (GCPL) said it was open to more such acquisitions. “We are open to acquisitions as it is a part of our business strategy. If suitable, we will definitely acquire companies in Asia, Latin America and Africa,” said Sunil Kataria, business head for India and SAARC at GCPL.
The Godrej Group recently approved the acquisition of the balance 40 per cent stake in Cosmetica Nacional, a market-leading hair colour and cosmetics company in Chile. GCPL had acquired a 60 per cent stake in Cosmetica Nacional in January 2012.
Kataria clarified the company was not in acquisition talks with any company in India or abroad.
Earlier this year, GCPL acquired South Africa-based Frika Hair’s hair extension business for an undisclosed amount. Frika Hair has a strong presence in the Western Cape, Eastern Cape and Gauteng regions of South Africa.
In February, GCPL signed an agreement with African hair-care company Darling Group Holdings to raise its stake in its two entities, in South Africa and Mozambique, to 90 per cent.
GCPL recently launched a new product, Godrej Henna cream hair color. “Our core strength is innovation. Users, especially young buyers, are now aware about what they are using and that is why innovation has become important in FMCG products.
Over 35 per cent growth is coming from new products and we are going to launch three more products by the end of this year,” Kataria said. GCPL registered a net profit of Rs 654.45 crore for the year ended March 2015 against Rs 564.84 crore in the previous year.
The company reported 39 per cent year-on-year growth in consolidated net profit at Rs 199 crore for the quarter ended June 30, 2015. Of its total business, exports account for 48 per cent, while the rest comes from the domestic market.
EXPANSION MODE
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The company is already present across Latin America and West Asia
