Godrej Consumer Products Tuesday said it has acquired two newly set up haircare firms in Zambia and Senegal to ramp up presence in African market.
Homegrown FMCG player Godrej Consumer Products Ltd (GCPL) on Wednesday reported 39 percent rise in net profit at Rs 199.23 crore for April-June quarter of this fiscal, boosted by cheaper raw materials and a massive spurt in rural sales following product innovations.
GCPL had said its Africa business currently has annualised revenues of USD 200 million. It acquired 51 percent stake in Darling South Africa in September 2011 and in Darling Mozambique in October 2011.
Godrej said currently opportunity is more in overseas markets and his group is exploring acquisitions not beyond developing nations.
Godrej Consumer Products Ltd (GCPL) had completed the acquisition of 51 percent stake in Darling South Africa in September 2011 and in Darling Mozambique in October 2011. Darling Group Holdings operates in 14 countries across Africa, selling hair extension products under brand names like 'Darling' and 'Amigos'.
GCPL is confident of sustained growth momentum in the hair colour portfolio despite heightened competition.
There may have been some slowdown in discretionary spends by consumers, growth across Godrej Consumer Products' key categories -- personal care, hair care and household insectisides -- remains strong, according to a top company official.
Shares of Godrej Consumer Products (GCPL) rallied 2.5% Tuesday as the company has entered into an agreement for exclusive rights to include the hair extensions business in Kenya and exports to other East Africa geographies in its partnership with the Darling Group.
Expect to pay more for your favourite soap soon. Godrej Consumer Products, for instance, plans to raise soap prices further given continued commodity cost pressure, like palm oil, which is a key input.
Godrej Consumer Products’ second quarter consolidated net profit declined 2.6% year-on-year to Rs 127.71 crore due to high tax expenses and increase in interest and financial charges.
Godrej Consumer Products has acquired eight companies overseas in the last six years, with five of those in the last 17 months alone. But the company’s quest for more buys continues.
For Indian FMCG companies, strong domestic growth was just the icing on the cake. The real growth came from international operations, and inorganic growth, CNBC-TV18's Tanvi Shukla and Swati Khandelwal Jain report.
Godrej Consumer Products (GCPL) is betting big on the African region to grow via acquisitions there, and also plans to push its existing product range like insecticides into Africa to speed up growth.