To further strengthen its presence in the African market, Adi Godrej-led
Godrej Consumer Products Ltd (GCPL) has acquired 51 per cent stake in hair care major Darling Group Holdings that operates in 14 countries across sub-Saharan Africa.
This is the company's third acquisition in Africa in four years.
GCPL has not revealed the deal amount due to a confidentiality clause in the share purchase agreement. Godrej intends to acquire 100 per cent in Darling Group in three years. The GCPL stock closed on Wednesday at Rs 420, up 0.60 per cent on the Bombay Stock Exchange (BSE).
The Darling Group manufactures and distributes the full range of hair extension products, which is among the largest hair care categories in Africa. The brands 'Darling' and 'Amigos' are market leaders in almost all the countries where the Darling group operates.
THE AFRICAN SAFARI CONTINUES
Adi Godrej-led GCPL has bought 51% stake in hair care major Darling Group
This is part of its 3-by-3 strategy of having a presence in Asia, Africa and Latin America through three core categories - hair care, home care and personal wash
Over the last few years, Godrej has made acquisitions with strong value-creation potential
GCPL recently acquired Megasari Group, a leading household care company in Indonesia, Tura, a specialist personal care company in Nigeria, and Issue Group and Argencos, two leading hair colourant companies in Argentina
On Wednesday, the GCPL stock closed at Rs 420, up 0.60% on the BSE
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"The Darling Group enables us to take our presence in Africa to the next level. This acquisition is to be EPS accretive from the very first year. Our aspiration is to touch the lives of at least 100 million consumers across Africa in the next five years," said Adi Godrej, chairman, GCPL. "Over 500 million Indians use at least one Godrej product on a daily basis and we would like to build a similar kind of trust and relationship with the African consumer," Godrej added.
The Godrej group intends to have a strong foothold in Africa and this is part of the
company's 3-by-3 strategy, which means having presence in the emerging markets of Asia, Africa and Latin America through three core categories - hair care, home care and personal wash.
Over the last few years the company has been following a very disciplined approach by making acquisitions with strong value creation potential that fits well strategically, operationally and culturally and are EPS accretive.
"We are confident that we have the right building blocks in place to propel GCPL towards its goal of becoming a leading emerging markets FMCG leader. Along with continuing to drive our domestic India business to full potential, we remain committed to capitalising on the huge potential available to us in other attractive geographies," Godrej said.
"The Darling Group fits in very well with our entrepreneurial culture and our aspiration to become an emerging markets powerhouse in the ethnic hair care space," A. Mahendran, managing director (MD), GCPL said.
"The Godrej-Darling Group partnership offers tremendous opportunities for value creation. We look forward to working with the Darling Group team to accelerate the growth trajectory of the business through our global experience in branding, operations and human capital management and our best in class systems and processes," he said.
Darling Group's current management team will continue to manage the business and GCPL will put in place a crossfunctional team that will work in the areas of marketing, sales, manufacturing, finance and human resources.
Courtesy: Mail Today 
Godrej Group Chairman Adi Godrej 
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