Godrej: Going global

Mumbai, July 4: Godrej Consumer Products Ltd (GCPL) is acquiring the South African hair colour business of Rapidol, UK and its subsidiary, Rapidol International, for an undisclosed sum in an all-cash deal.

The two Rapidol units had a combined turnover of 52 million South African rand (Rs 33 crore) in 2005.

Rapidol South Africa is a profit making company that manufactures and markets premium hair colourants in the African market.

GCPL said the deal would enable it to enter a large ethnic hair colour market through a profit-making company. The buyout is also expected to bolster GCPL’s balancesheet.

“It provides an opportunity to acquire the Inecto and Sofelene trademarks that would allow the company much larger territorial rights over the brands and the combined entity will be in a position to create value at a faster pace. It will also provide a springboard for the introduction of the company’s products in South Africa and other African countries,” GCPL told the bourses today.

Rapidol South Africa owns Inecto ? an internationally known brand of hair colour.

Inecto is distributed in Angola, Zambia, Mozambique, Tanzania, The Democratic Republic of Congo, Swaziland, Ghana, Gabon, Botswana, Namibia, Lesotho, Zimbabwe, Mauritius, Seychelles and Madagascar mainly through the cash and carry route.

This acquisition would enable GCPL to introduce some of its own products like hair colours, FairGlow and Evita in the African market.

Adi Godrej, chairman and managing director of GCPL, said, “This transaction is consistent with our endeavour to build a strong personal and household care business both at home and across the globe, especially in hair colours. The acquisition of the Inecto and Soflene brands will widen our portfolio and give us access to the large and growing African market.”

Godrej said the company plans to introduce some of its own products there through Rapidol’s distribution network.

This is GCPL’s second international acquisition in less than a year. The company had earlier acquired Keyline Brands of the UK. The Keyline Brands also enabled GCPL to take its brands to overseas markets.

GCPL is present in personal care, hair care, household care, fabric care and baby care segments. Some of its brands are Godrej No.1, Cinthol, and Fairglow.

Other brands include Renew hair colour cream, Colour Soft liquid hair colour, Fashion powder hair colours, Godrej powder hair dye sachet, Godrej kali mehendi, Godrej liquid hair dye and Ezee liquid detergent.