Godrej Consumer Products (GCPL), part of the R19,000-crore Godrej Group, is scouting for acquisitions in the personal care and hair colour categories in Africa, Asia and Latin America. The company is also looking for acquisitions in domestic markets in the personal care sector.

In 2011, GCPL had clinched seven acquisitions globally, which include Megasari (Indonesia), Argencos (Argentina), Tura (Nigeria), Selectives (UK) and Genteel & Swastik (India). In June last year, GCPL had announced the acquisition of a 51% stake in African hair-care company, Darling Group Holdings.

?We are looking for acquisitions in Africa, Asia and Latin America as part of our inorganic growth strategy,? Adi Godrej, chairman, Godrej Group, told FE.

?Our acquisition strategy globally is to acquire in businesses that we know very well, and in which we have great strength in India ? hair care, household insecticides and personal wash.?

According to Godrej, over 40% of GCPL’s revenues of $1 billion comes from its international business. ?Inorganic growth strategy has worked well for us,? he says, adding that the group has completed the first phase of its integration with the Darling Group.

More Indian FMCG companies are scouting the global landscape to tap new demand in emerging markets in personal care products and soaps and shampoos.

?We are looking at acquisition of personal care brands in India, West Asia and Africa. In domestic markets, we are also looking at healthcare brands,? said Sunil Duggal, CEO, Dabur India. After acquiring the US-based Namaste Group in November 2010, Dabur India is looking at acquisitions to extend its product portfolio. In 2008, Dabur acquired a majority stake in Femcare Pharma.

?Increasingly, Indian FMCG majors are opting for the acquisition route to enter new geographies and categories,” said an analyst from a domestic brokerage.

?Cash-rich FMCG companies scout for acquisitions in the global market, as there are not many brands on sale here. During the economic slowdown, companies hope to buy good brands for a lesser price.” For the 2010-11 fiscal, Godrej had a cash balance of R226.9 crore in its books.

In June 2006, the Godrej Group acquired Chittur-based confectionery maker Nutrine Confectionery Company for an approximate sum of R250 crore. With sales revenue of R392 crore in FY12, Godrej Hershey’s, which sells the Nutrine brand, is currently the market leader with 20% market share in the branded sugar confectionery segment in India.