Godrej eyes buyouts in Brazil, Indonesia
After acquisitions in Europe and Africa in the last twelve months, the Godrej group is now looking at possible acquisitions in Brazil and Indonesia.
The acquisitions are likely to be in the areas of personal care and household care,
Adi Godrej, chairman of Godrej Group, said on the sidelines of the CII Corporate Governance Summit in Mumbai.
The group is also on the verge of aquiring a household insecticide company in China through its joint venture Godrej Sara Lee, and is evaluating investment options in other developing markets in Africa and Asia.
On funding for the proposed acquisitions, Godrej said the group had a comfortable debt position.
"There are enough options to raise money either through FCCB or QIP," he added.’
In the last 12 months, Godrej has made three acquisitions. Last month, Godrej Consumer, the consumer products company of the group, completed the acquisition of Rapidol, the hair colour company that it acquired in South Africa. In October 2005, GCPL had acquired Keyline Brands, a UK company that gave the group access to a boutique of personal care brands like Cuticura.
Also, Godrej Beverage & Foods took over the confectionery brand from South India, Nutrine, for Rs
250 crore.
Godrej said his group would focus on developing markets for identifying acquisition targets.
Godrej personal care brands posted a 20% growth in FY06. On the back of acquisitions, analysts
peg the sales growth in FY07 and FY08 at 40% and 25%, respectively. With control over raw
material costs through in-house production of fatty acids (highest in India), Godrej is expected
to get better margins as FMCG prices go up.
FMCG companies are likely to announce further price hikes in the following months, Godrej said.
Source:
