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GCPL buys 49% in Godrej SaraLee for Rs 214cr
In a bid to consolidate and strengthen its fast moving consumer goods (FMCG) business, Godrej Consumer Products has acquired 49% stake in Godrej SaraLee.
In a bid to consolidate and strengthen its fast moving consumer goods (FMCG) business, Godrej Consumer Products has acquired 49% stake in Godrej SaraLee. CNBC-TV18's Tanvi Shukla reports.
Here is a verbatim transcript of Tanvi Shukla's comments on CNBC-TV18. Also watch the accompanying video.
The Godrej group is trying to consolidate its FMCG business. Godrej Consumer Products (GCPL) has acquired a 49% stake through its group company stakes in Godrej SaraLee. This is for about Rs 214 crore. These are subsidiaries of Godrej Industries and Godrej & Boyce , which held 20% and 29% in Godrej SaraLee joint venture, giving a total of 49% to Godrej Consumer. This deal will increase the promoters' stake by 5% to 74.77% in GCPL.
Godrej SaraLee for FY09 recorded net sales of around Rs 754 crore and profit after tax of Rs 104 crore.
Godrej Consumer's acquisition of this 49% stake will add Rs 370 crore to its sales and around Rs 51 crore to the profits. Godrej SaraLee has brands such as Good Knight, Hit, Ambipur, Brylcreem and Kiwi. GCPL says this will help it consolidate the FMCG business, strengthen the FMCG market and also provide flexibility and scale for further growth opportunities.
In a bid to consolidate and strengthen its fast moving consumer goods (FMCG) business, 
