Godrej Consumer Products (GCPL), a consumer goods company, recently announced that it has reached an agreement to acquire the fast-moving consumer goods (FMCG) business of Raymond Consumer Care (RCCL), a major player in the deodorant and sexual wellness categories in India. The RCCL FMCG business, which includes well-known brands such as Park Avenue, KS, KamaSutra, and Premium, will be sold to GCPL, along with the trademarks for the FMCG category, through a slump sale. The deal is valued at Rs 2,825 crore, and will be completed in cash by May 10.
This acquisition is expected to provide GCPL with a strong foothold in the personal care segment and expand its product portfolio, while also strengthening its distribution network across India. It is also seen as a strategic move to consolidate its market position and take advantage of the growing demand for personal care and wellness products in the country. Raymond Consumer Care, on the other hand, plans to use the funds from the sale to reduce its debt and focus on its core textile and apparel businesses.
As per a regulatory filing, Raymond Consumer Care Limited (RCCL) reported sales of Rs 622 crore for the financial year 2023, which marks an increase from Rs 522 crore in FY22 and Rs 411 crore in FY21. The company takes pride in building strong domestic brands that have become leaders in their respective categories. Atul Singh, the Group Vice Chairman of Raymond Group, expressed confidence that Godrej Consumer Products (GCPL) will provide the necessary impetus to further drive the growth of these brands, given its strong presence in the personal care segment and extensive distribution network across India.
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Commenting on the announcement, 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, added: “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.”
