Godrej Consumer Products on Thursday informed exchanges that it will acquire FMCG business of Raymond Consumer Care which houses men’s grooming range of Park Avenue and condom brand Kamasutra.
The company is planning to buy Raymond's FMCG business on a slump sale basis to dive profitable growth for a total consideration of Rs 2,825 crore.
The deal is expected to be completed by May 10, 2023.
“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 percapita consumption in India compared to similar emerging markets. Per-capita consumption (USD) of deodorants in India is 0.4 times that in Indonesia, 0.05 times that in Brazil and 0.04 times that in the USA. We look forward to building on this potential by unlocking the significant integration synergies with our business,” Sudhir Sitapati, Managing Director and CEO, GCPL, said in a statement.
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“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,” said Atul Singh, Group Vice Chairman, Raymond Group.
Godrej Consumer Products is a leading emerging markets company and is part of over 125-year old Godrej Group.
Shares of Raymond fell 6 per cent to Rs 1,619 and Godrej Consumer Products dropped 4 per cent to Rs 915 after the deal was announced post market hours on Thursday.
