Pranav Nambiar
Pays Rs 5.8 cr; looks for larger footprint in the Gulf
Godrej Consumer Products (GCPL) on Monday said it is acquiring Godrej Global Mideast FZE (GGME), a 100% subsidiary Godrej International, for Rs 5.8 crore.
GGME distributes Godrej’s FMCG products like soaps, hair colours and toiletries in the Middle East.
Godrej Global has a strong network of distributors and sales personnel in countries like Oman, Kuwait and Bahrain.
GGME’s decade-long experience in the Gulf will help the company understand the consumer needs, the Rs 950-crore GCPL said in a statement to the stock exchange.
“With this acquisition GGME will come under the direct control of GCPL. Earlier, GGME was held by our sister concern, Godrej International. Now we have total control over its affairs,” said GCPL executive director and president Hoshedar K Press.
He added that the deal would also help GCPL in boosting its sales and profits.
Press said GGME was a profitable entity. According to chairman and managing director of the Godrej Group Adi Godrej, the acquisition will enable the GCPL to consolidate its presence in the Gulf Cooperation Council (GCC) countries and the Middle East.
“I don’t see any material impact of this acquisition on GCPL,” said an analyst with an international brokerage.
