Godrej Consumer Products (GCPL) announced on Thursday that it signed a deal to acquire the FMCG division of Raymond Consumer Care (RCCL). Through a slump sale, the RCCL FMCG business as well as the trademarks of Park Avenue (for the FMCG category), KS, KamaSutra, and Premium are being sold to GCPL.
In a stock exchange filing, GCPL stated that the cost of the acquisition is Rs 2,825 crore and is expected to be completed by 10 May, 2023.
As per reports, the Sudhir Sitapati, Managing Director and CEO, GCPL, said: “We are excited to welcome the Raymond Consumer Care team and brands to Godrej Consumer Products. This acquisition allows us to complement our business portfolio and growth strategy with under-penetrated 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.
“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. Per-capita consumption (USD) of deodorants in India is 0.4x that in Indonesia, 0.05x that in Brazil and 0.04x that in the USA. We look forward to building on this potential by unlocking the significant integration synergies with our business.”
Atul Singh, Group Vice Chairman, Raymond Group, commented as per reports, “We have divested our FMCG business with trademarks of Park Avenue, Kamasutra for FMCG categories to Godrej Consumer Products. 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.”
