In an aggressive move to expand its presence rapidly in sub-Saharan Africa, Godrej Consumer Products (GCPL) is looking at acquiring 11 more companies of the Darling Group in the next two years.
?We are hopeful of acquiring 11 more companies under the Darling Group in next two years,? said P Ganesh, executive vice-president (finance) of the company. The 14 companies together have a collective revenue of about $200 million. The Adi Godrej-run consumer durable company had acquired 51% stake of the African hair care company Darling Group Holdings for an undisclosed amount in July this year. Later this year it acquired two more Darling Group companies in Mozambique and Nigeria.
?We would rather take time and do acquisitions in a phased manner. That will give us time to understand the new geographies,? Ganesh said. It will look at increasing its stake in the Darling Group Holdings from 51% at present to 100% in the next three-five years.
Last year it had acquired Indonesia-based Megasari and its distribution arm PT Intrasari Raya. It also acquired Issue Group & Argencos in Latin America. The FMCG major acquired personal care brand Tura from Nigeria?s Tura Group and Rapidol and Kinky businesses in South Africa.
?We will be looking at a $1.2 billion market in next two years,? said Ganesh. Almost one-third of GCPL?s revenue comes from its overseas operations with Indonesia contributing to the bulk of it. ?After the acquisitions are over, Africa is likely to be the major revenue driver,? said Tarun Arora, executive vice-president (marketing).