Godrej Consumer Products Ltd (GCPL) rose to its highest level in nine months in Mumbai trading today amid speculation that it may end its joint venture (JV) with the US-based The Hershey Company.
Shares of GCPL advanced as much as 3.26 per cent to their nine-month high of Rs 452.60 in intra-day trading on the Bombay Stock Exchange, before closing the day 1.48 per cent higher at Rs 444.80.
The maker of Cinthol soaps and Ezee liquid detergent has been in a JV with Hershey’s for the last four years. But barring Hershey’s Syrup, no other product from the US company has been launched by the JV so far.
Adi Godrej, chairman of Godrej Group, said he would not comment on speculation. A Mahendran, managing director of GCPL, also declined to comment.
The JV had called a pitch involving public relations (PR) agencies last week. The objective was to hand over the PR mandate for two brands, Kisses and Rockers, to be launched in two months in the south. A clutch of agencies had made presentations to the company back then. With the current development, most of them are confused regarding the future of the launch.
GCPL is likely to buy the 51 per cent stake of Hershey’s in the JV, freeing the latter to set up shop on its own.
