The announcement was made after market hours on Friday, 25 January 2013.
Meanwhile, the BSE Sensex was up 25.39 points, or 0.13%, to 20,128.92.
On BSE, 65 shares were traded in the counter as against an average daily volume of 26,221 shares in the past one quarter.
The stock hit a high of Rs 728.80 and a low of Rs 726 so far during the day. The stock had hit a record high of Rs 767.80 on 24 December 2012. The stock had hit a 52-week low of Rs 414.15 on 27 January 2012.
The stock had underperformed the market over the past one month till 25 January 2013, falling 1.84% compared with the Sensex's 4.41% rise. The scrip had also underperformed the market in past one quarter, falling 1.34% as against Sensex's 7.17% rise.
The large-cap company has an equity capital of Rs 34.03 crore. Face value per share is Re 1.
Godrej Consumer Products (GCPL) said it has entered into an agreement to divest its non-core foods business to Creador, with the transaction expected to close in about two months. Since the acquisition of this business in 2010, Godrej has been able to enhance the business value significantly. In 2012, this business generated net sales of about $ 22 million. The foods business in Indonesia includes cereals, snacks and instant food products under largely the brands Simba and Turbo. Under this agreement, Godrej's Indonesian subsidiary will continue to distribute these brands for a two-year period.
Commenting on the divestment, Mr. Adi Godrej, Chairman, GCPL said: "Our decision to divest the foods business is very much in line with our strategic intent to focus on home and personal care. The divestiture of this business will improve the margin profile of our Indonesian business and help the team to take the household and personal care platforms to their full potential. Over the last few years, Naveen and his great team have delivered excellent performance and we remain very optimistic of the future growth prospects in Indonesia. The consideration from this divestiture will further strengthen our balance sheet.
Creador is a private equity firm focused on long-term investments in growth-oriented businesses in Indonesia, India and Malaysia.
Godrej Consumer Products' consolidated net profit rose 25% to Rs 159 crore on 35% growth in net sales to Rs 1595 crore in Q2 September 2012 over Q2 September 2011. The company will announce Q3 results on 31 January 2013.
Godrej Consumer Products is a major player in the Indian FMCG market, with leading household and personal care products. It is one of the largest marketers of toilet soaps in the country and are also leaders in hair colours and household insecticides. The firm has a strong emerging presence in markets outside India.
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