Godrej Consumer Products to buy Raymond Consumer Care’s FMCG unit
Godrej Consumer Products Limited (GCPL), an Indian consumer goods company, has agreed to acquire the fast-moving consumer goods (FMCG) business of Raymond Consumer Care Limited (RCCL) for INR 2,825 crores ($350 million) in cash.
Raymond Consumer Care operates mainly in the deodorants and sexual wellness categories. Two of its main brands are Park Avenue and Kamasutra.
Godrej Consumer Products is taking up the acquisition to drive profitable growth for the company.
Sudhir Sitapati — Godrej Consumer Products Managing Director and CEO said: “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.”
In FY23, Raymond Consumer Care reported sales of INR 622 crores, and in the prior year, INR 522 crores.
Atul Singh — Raymond Group Vice Chairman said: “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.”
Earlier this month, Godrej Consumer Products Limited said that it will be investing INR 100 crores in the INR 300 crores Early Spring early-stage consumer fund, which is being built by Spring Marketing Capital.