Godrej Hi Care To Go Global With Rs 100cr Investment

Godrej Hi Care plans to go global by investing upto Rs 100 crore over the next 10 years in setting up full-fledged operations in several countries.

The company, which commands a 45 per cent share of the Rs 450 crore insect repellant market, will launch its mosquito and insect control products in foreign markets which include countries in South-east Asia, East Africa and West Asia.

We want to target these countries as conditions there are quite similar to India. They have large populations and hot climate, which make it necessary to use insect repellants, said Godrej Hi Care chairman Adi Godrej.

 

He said the company hasadvantages like low-cost operations and economies of scale, and wanted to exploit them by going global.

Godrej Soaps through its 100 per cent subsidiary, Puran Plastics and Chemicals Ltd, holds a 60 per cent stake in Godrej Hi Care. The remaining 40 per cent is held by American major Sara Lee Corporation.

Which has an option to hike its stake to 51 per cent by March, 1998.

Godrej Hi Care can also use the services of Sara Lee in many countries to market its products, but such occasions are expected to be rare as Godrej will be primarily targeting the developing countries.

In developed markets, aerosols are largely used and since we are not very strong there, we will not be selling there, Godrej explained.

Godrej Hi Care, formerly called Transelektra Domestic Products Ltd, (TDPL) has a 45 per cent overall share of the domestic market. In mats, the share is 75 per cent, while in aerosols, it is much lower.

Other main players include, Reckitt and Colman, Bayer (India) Ltd, Hoechst Schering Agrevo and the recently promoted Lever Johnson Consumer Products Ltd.