There is a big deal in the FMCG sector! Godrej Consumer Products, a leading emerging markets company, on Thursday announced the acquisition of the FMCG business of Raymond Consumer Care (RCCL), a leading player in deodorants and sexual wellness categories in India. cost of acquisition is up to 2,825 crores.
Along with the FMCG business, Godrej is also acquiring the trademarks of Park Avenue (for the FMCG category), KS, Kamasutra and Premium through Consumer Slump Sale.
On the announcement, Sudhir Sitapati, Managing Director & CEO, GCPL said, “This acquisition allows us to complement our business portfolio and growth strategy with under-penetrated categories that offer longer runway of growth. Raymond Deodorants and sexual wellness categories with brands such as Park Avenue and Kamasutra.”
These categories have the potential to deliver double-digit multi-decade growth given India’s low per capita consumption compared to similar emerging markets, he added.
Additionally, Atul Singh, Group Vice Chairman, Raymond Group, said, “Having brought these brands to the forefront of consumer memory, we believe Godrej Consumer Products will provide the much-needed impetus to drive the growth of these brands.” “
According to Sitapati, the per capita consumption (USD) of deodorants in India is 0.4 times that of Indonesia, 0.05 times that of Brazil and 0.04 times that of USA. Therefore, they look forward to building on this capability by unlocking critical integration synergies with their business.
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