Godrej Consumer To Acquire FMCG Business Of Raymond Consumer Care Godrej Consumer Products has been focusing on category development by building accessibility, brand relevance and sampling, and the acquisition will mark the company's foray into sexual wellness too
By Teena Jose
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Godrej Consumer Products Ltd (GCPL), on Thursday, said that it has signed an agreement to acquire the FMCG business of Raymond Consumer Care Ltd (RCCL), a leading player in the deodorants and sexual wellness categories in India, for INR 2825 crore. The official release of the company noted that the RCCL FMCG business is being sold to GCPL along with the trademarks of Park Avenue (for the FMCG category), KS, KamaSutra and Premium, through a slump sale.
"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," said Sudhir Sitapati, managing director and CEO, GCPL, in a statement.
"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," added Sitapati.
Godrej Consumer Products has been focusing on category development by building accessibility, brand relevance and sampling, and the acquisition will mark the company's foray into sexual wellness too.
"We have divested our FMCG business with trademarks of Park Avenue, Kamasutra for FMCG categories to Godrej Consumer Products. 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, in the statement.
According to media reports, Raymond Consumer reported sales of INR 622 crore in the fiscal ended March 31, 2023 compared to INR 522 crore in FY22. Also, the shares of Godrej Consumer closed 2.3% lower ahead of the announcement, while Raymond rose 6.4%.
