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Godrej scouts for domestic, intl acquisitions

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Press Trust of India New Delhi
Last Updated : Jan 21 2013 | 1:47 AM IST

FMCG player Godrej Consumer Products today said it is in talks with some domestic and international firms and plans to acquire them within the next 12 months.

"We are talking to domestic and some foreign firms... I cannot comment on the specifics, but something will surely happen in the next 6-12 months," Godrej Consumer Products Managing Director Dalip Sehgal told reporters on the sidelines of a Technopak summit here.

The company took an approval from its board in an enabling resolution to raise up to Rs 3,000 crore through debt and equity for mergers and acquisitions, he added.

"We are looking at mainly personnel wash, haircare and household categories to acquire the firm and explore possibilities in the African, Asian and the Latin American regions," Sehgal said.

The company is also expecting a 20 per cent jump in revenue and is targeting a total sales of Rs 2,000 crore during this financial year.

Besides, the homegrown firm is expanding its reach across the country.

"Today, we are present in 4,000 towns and 22,000 villages. Our target is to reach 5,000 towns and 50,000 villages, in the next three years, as 42 per cent of our total sales come from rural areas," Sehgal said.

He further said the company is also strengthening its product categories and looks to enter new segments.

"There are huge opportunities lying in many areas. We want to strengthen our presence in the personnel wash, hair colour, deodorant, talcum powder, and health hygiene categories... We will enter new segments in the future," he added, without giving any details.

Talking about rising prices of raw materials, Sehgal said, food inflation is a matter of concern and the company would try to absorb it internally.

Godrej Consumer Products, which spends 14 per cent of its total sales in advertisement and promotional activities, sells its products through about one crore outlets across the country.

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First Published: Feb 18 2010 | 4:46 PM IST

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