Godrej Consumer Products on Thursday announced that it has acquired the FMCG business of Raymond Consumer Care Limited, which includes brands like Park Avenue, Kamasutra and Premium, for Rs 2,825 crore. The deal would be completed by May 10 and the deal consideration is in cash. “These categories have the potential to deliver double-digit multi-decade growth given the low per capita consumption in India compared to similar emerging markets,” said Sudhir Sitapati, Managing Director and CEO, GCPL.
The deal is expected to strengthen GCPL’s men grooming business and to provide the company space in the fragrance and sexual wellness categories. GCPL currently operates in hair care, home care and personal care categories. “This acquisition allows us to complement our business portfolio and growth strategy with underpenetrated categories that offer a long runway of growth. Raymond is a leading player in the deodorants and sexual wellness categories with brands like Park Avenue and Kamasutra,” said Sudhir Sitapati.
According to a regulatory filing RCCL’s reported sales for the financial year 2023 was Rs 622 crore, as against Rs 522 crore in FY22 and Rs 411 crore in FY21. “We take pride in building strong homegrown brands that are amongst the leaders in their categories. Having brought these brands at the forefront of consumer recall, we believe that Godrej Consumer Products will provide the requisite impetus to further drive the growth of these brands,” said Atul Singh, Group Vice Chairman, Raymond Group.
Raymond, which owns 47.66 per cent stake in Raymond Consumer Care as of financial year 2022, has been looking at selling the FMCG arm for a few years.