Godrej Group puts two brands on the block

The Godrej Group has put two of its brands, which are under the Godrej Hershey's Food and Beverages Company Ltd (GHFBL), on the block. Emami , which has been scouting for acquisition opportunities, is believed to be one of the interested buyers. CNBC-TV18's Tanvi Shukla report, quoting sources..

Below is a verbatim transcript of her comments on CNBC-TV18. Also watch the accompanying video.

The Godrej Group has put two of its brands-- Edible Oil Cooklite and the juice brand XS on the block. Emami is looking at both of it, especially the juice brand where sales are at Rs 120 crore and also some assets in terms of distribution and manufacturing units which have been valued at Rs 60 crore. However, overall negotiations are on between Emami and Godrej and it could be sold off for around Rs 80-85 crore.

The company said that it is not looking to sell the juice brand XS. However, it is indeed looking to exit the edible oil business. In this business, the margins are really low and raw material prices are very volatile. However, the company also said that nothing has been finalized as of now and that they have Rs 100 crore of edible oil business currently. These brands are the part of the GHFBL which is a joint venture between Godrej and Hershey's.

Godrej is currently focusing a lot on confectionary products. They are planning to launch a lot more products in this category. They have recently launched a Chocolate Syrup, which was first tested down south and is now slowly being rolled out.