After a series of acquisitions in Asia, Africa and Latin America, Godrej Consumer Products Ltd (GCPL) is poised to give a facelift to its domestic product offerings by bringing in brands it acquired overseas. The FMCG major would bring to India personal care, home wash and haircare products of the acquired companies, such as Magasari of Indonesia and Argenco of Argentina and the Issue Group with major presence in Latin America, to add synergy to its product offerings across geographies.
A Mahendran, managing director, GCPL, told FE, ?Argenco is the no. 1 hair colouring and styling spray company in Argentina and has strong mid-priced brands in the hair colour space. We would be bringing its haircare products to India.? Argenco, along with Issue Group, another company acquired by GCPL, would add up to the 15% plus market share of the company in India. The company would also be looking at cross-locating other products, taking into account the synergy between the geographies, he added.
Outlining the rationale behind the acquisitions, Mahendran said, ?As an FMCG company, we have been adopting both organic and inorganic ways for furthering the growth momentum. As part of the inorganic growth, we had set up a separate panel to oversee mergers & acquisitions and each buyout has to go through a long process of brand identification, valuation and pricing.?
He said the acquisitions represent GCPL becoming a multinational with its global 3-by-3 strategy: presence in three continents through three core categories-home care, personal wash and hair care. “We are focusing only on emerging markets for acquisitions and we will not do any buyouts in developed markets as the further rate of growth would be comparatively low,? he said.