Godrej Consumer to acquire Latin American company
19 Apr 2010
Godrej Consumer Products (GCPL) is gearing up to make its sixth global acquisition, with a foray into Latin America. It is learnt that GCPL is talking to the Argentine company, Issue Group Co, a family-owned business specialising in hair colouration, for a possible buyout.
The acquisition, if it were to go through, would give GCPL a strong foothold in the Latin American market after the group, which has so far established bases in Africa and Indonesia through a series of acquisitions recently.
GCPL's global acquisitions include Megasari in Indonesia in April and Tura in Africa in March 2010. Additionally, in the past four years, the company has acquired Rapidol and Kinky businesses in Africa, through which Godrej now has a substantial share of the African hair market.
Industry sources say, GCPL is in an advanced stage of discussions with Issue Group, and an announcement could be expected soon. Issue Group is said to be one of the leading players in the Latin American market for hair colouration products.
According to the Latin American group's website, it has three subsidiaries in Mexico, Brazil and Uruguay, catering to the demands of the markets in those countries. The company boasts a product presence in 25 countries.
If the acquisition comes about, it would help realise the objective of GCPL's global 3 by 3 strategy, - presence in Asia, Africa and Latin America. GCPL, which is looking to emerge as a market multinational, is in the process of expansion of its footprint in the three markets in the core categories of homecare, personal wash and haircare.