Mumbai-based Godrej Consumer Products Ltd. (GCPL) has announced the acquisition of Raymond’s consumer care division for a total of Rs 2,825 crore. The acquisition is expected to help the company strengthen its presence in the personal care segment, where it already has a significant market share.
The acquisition includes brands like Park Avenue, KamaSutra, and Raymond’s in the personal grooming and hygiene segment. The deal is expected to be completed by the end of the year and will be funded through a mix of debt and internal accruals.
In a statement, GCPL’s Executive Chairman, Nisaba Godrej, said, “We are excited to announce the acquisition of the Raymond consumer care business. This acquisition is a significant step forward in our journey to become a leading player in the personal care segment.”
Raymond’s consumer care division is a subsidiary of the Raymond Group, one of India’s largest textile and apparel companies. The division has a strong presence in the personal care segment with a portfolio of premium brands. The division also includes a manufacturing plant located in Himachal Pradesh.
Commenting on the acquisition, Gautam Hari Singhania, Chairman and Managing Director of Raymond Group, said, “We are pleased to announce the sale of our consumer care division to Godrej Consumer Products. This sale is in line with our strategy to focus on our core business of textiles and apparel.”
The acquisition is expected to boost GCPL’s presence in the personal care segment, which is a growing market in India. The personal care market in India is expected to grow at a CAGR of 9.4% over the next five years and reach a value of $20.6 billion by 2025, according to a report by Grand View Research.
GCPL has been expanding its presence in the personal care segment in recent years. In 2019, the company acquired the balance 51% stake in Kenya-based Canon Chemicals Ltd, a leading manufacturer of personal care products in East Africa.
GCPL has also been expanding its presence in the home care segment. In 2020, the company acquired the balance 25% stake in Indian home insecticide brand GoodKnight, making it a wholly-owned subsidiary.
The acquisition of Raymond’s consumer care division is expected to further strengthen GCPL’s position in the personal care segment. The acquisition will bring in a strong portfolio of brands and a manufacturing plant, which will help the company expand its product portfolio and increase its production capacity.
The acquisition is also expected to create synergies between GCPL’s existing personal care portfolio and Raymond’s consumer care division. Both companies have a strong focus on innovation and product development, and the acquisition is expected to bring in new ideas and technologies to the company.
GCPL has a strong presence in India and several other countries, including Indonesia, Africa, and the Middle East. The company’s revenue in the financial year 2020-21 was Rs 10,205 crore, up 10% from the previous year.
The acquisition of Raymond’s consumer care division is expected to further boost GCPL’s revenue growth and help the company achieve its long-term growth targets. The company has set a target of achieving revenue of Rs 20,000 crore by 2030, and the acquisition is expected to play a significant role in achieving this target.
In conclusion, the acquisition of Raymond’s consumer care division is a significant step forward for GCPL in its journey to become a leading player in the personal care segment. The acquisition is expected to help the company strengthen its presence in the personal care market, which is a growing market in India. The acquisition is also expected to bring in new ideas and technologies to the company and create synergies between GCPL’s existing personal care portfolio and Raymond’s consumer care division.
