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GCPL to go for more acquisitions, eyes Africa, Latin America

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Press Trust of India New Delhi
Last Updated : Jan 21 2013 | 2:33 AM IST

On the back of two successful acquisitions within a month, homegrown FMCG player Godrej Consumer Products (GCPL) today said it will further press for overseas buys to fulfil its ambition of becoming a global player.

"We aim to be a global FMCG firm, and for that we are looking for acquisitions in overseas markets particularly in Asian, African and Latin American region," GCPL Vice President and Company Secretary P Ganesh told PTI.

He said that GCPL is primarily looking for buyouts in personal and hair care, and insecticide segments.

Earlier this month, the company announced the acquisition of Indonesia-based insecticides maker Megasari Makmur Group and its distribution company for an undisclosed sum but reportedly worth over Rs 1,000 crore. In March GCPL also said it will acquire African personal care brand Tura from Nigeria's Tura Group.

The company had earlier said that it is aggressively looking for buyouts in the African region and could spend up to Rs 1,000 crore for that purpose.

Last year, the company got approval to raise up to Rs 3,000 crore to fund its expansion plans.

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"A part of the amount raised would be spent on acquiring Sara Lee's stake in the joint venture 'Godrej Sara Lee' and the remaining would spent on company's buyout plans," he said.

US-based Sara Lee has been operating in India through its joint venture with Godrej. The Indian partner has agreed to buy 51 per cent stake of Sara Lee as the US firm had expressed its intentions to exit from the joint venture.

Speaking about financing of the recent acquisitions, Ganesh said, "The company will fund these buyouts through a mix of internal accruals and debts."

He said the company will most likely to go for a loan from overseas bank as dollar debt is easily available but declined to give details on the amount to be raised.

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First Published: Apr 14 2010 | 7:51 PM IST

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